Declaration of Trust

Charley2

Hi there I could use some advice regarding a Declaration of Trust document. I split with my ex in 2005 & he moved out of the house we jointly owned. Rather than sell the house I took on a remortgage in my sole name and bought him out for half the equity (40k) I could only raise 30k so for the remaining 10k a Declaration of Trust was drawn up and I agreed to pay him 10k within 24 months (2007). However property prices have crashed and I have been unable to raise the money to pay him the remainder. He been very patient, however he gave me a letter today saying that I must pay him 10k by 31 March 09 or he will take action via his solicitor. The property is registered in my sole name. I want to pay him back but property prices have plummeted and I will be giving him far more in equity that he would have been entitled to if he was still living with me. I would like to know if the Declaration of Trust can be enforced if he took me to court. Could he force me to sell my home? I only have enough income to get by paying bills, and cannot afford to take on any more debt as I am living alone. Any advice gratefully received. Thanks Charley

loopylu36

Hi Charley

He can't make you sell your house. Really I would need to see the actual Declaration to comment too much further. It seems to me a bit of an odd way to have secured the additional 10K as he would have been better of taking a charge on the property, but the fact that he didn't is good news for you! It's the same story really, you can't get blood out of a stone and he can't have what you don't have to give. He could sue you via the County Court using the Declaration of Trust as technically it is a contract that you are in breach of. But get a smart lawyer and I am sure you will be able to come to an agreement.

Hope this helps.