Deed Of Trust

lion-o

We need to decide how we own our future home.

Ideally I like the look of joint tenants, as if one person was to die, the other would get to retain the deceased's share.

But one of us is putting in more money than the other one, so if we were to split up (unmarried at present) how would each person get their fair share back upon sale?

I've heard of a deed of trust, can that be used with joint tenants? Also what exactly is it - a legal document explaining what happens incase of us splitting up?

Thrugelmir

Deed of trust can specify you wish it to. Normally it will detail the way that the proceeds are split upon sale of the property to take account of unequal deposit shares for example. Suggest you speak to the solicitor handling your transaction for guidance.

Let_Us_See

Rather than joint tenants requiring Deeds of Trust etc. just arrange as Tenants in Common and nominate individual percentage ownership. Much simpler.

TBagpuss

If you want to have unequal shares if you were to separate then you need to buy as Tenants in Common and define what share you will each have. If you do this simply on the transfer deed it will just state what % you each get.

If you want to specify things in a different way (e.g. you each get the cash amount of your deposit back and the balance is split equally) you will need a formal trust deed as well.

You will then need to make wills to ensure that in the event that one of you dies, the property will go to the other. (Because you are not married, you have no automatic entitlement at all on death)

brooklyn07

I had a deed of trust written up when i bought my house with my ex as he put down the deposit.
We were therefore named as tenants in common on the deed and should we split up i would be entitled to 47% of the profit and him the rest after the mortgage was repayed.
Fortunately for me he didnt state in there that he wanted the deposit back first and then the profit to be split.

Danny37701

so did you give him the deposit back?

getmore4less

You have to be careful to get it right many solicitors get it wrong.


If you want equitable shares where you calculate based on what you put in and how much of the mortgage you pay then you need to have the shares worked out BEFORE the mortgage is paid off and then you pay off your share of the mortgage from that.

If you take deposits back then split proceeds that is the equivalent of a loan to the other person of 1/2 your deposits.