Deed of Trust

katy123

Hi

Does anyone know a little about setting up a deed of trust. My solicitor is recommending a deed of trust for a property we are holding 3 ways as tenants in common. What does he mean by...should the transfer be lost:

I note that you are holding the property 35% to you, 35% to your husband and 30% to father in law. This is noted on the Transfer but will not be recorded on the legal title and should the transfer be lost there is no evidence of the shares. The only way we could do this - which is the proper way of dealing with this would be to draft a deed of trust and enter a restriction on the legal title that the property is not to be sold except in accordance with the deed of trust.

THanks,

Thrugelmir

Could you provide some background to the transaction?

kingstreet

If the piece of paper showing 35/35/30 is lost, there will be no record of the shares.

Therefore he thinks a deed of trust would be the best place to state these shares.

katy123

Thrugelmir wrote: »

Could you provide some background to the transaction?

Background = the property is being purchased by 3 people. No mortgage will be attached to it.

What is it meant by the transfer can be lost? what transfer?

katy123

kingstreet wrote: »

If the piece of paper showing 35/35/30 is lost, there will be no record of the shares.

Therefore he thinks a deed of trust would be the best place to state these shares.

Hi Kingstreet

What paper are they referring to?

kingstreet

The actual transfer form signed by the purchaser.

This is the thing which alters the Land Registry to the change of proprietor.

It's probably best known as "the deeds" these days.

Land_Registry

The solicitor is quite correct that the shares will not be recorded on the legal title. However the Transfer would be lodged and then scanned/stored electronically in our database. The possibility of it then being lost is probably then considerably smaller than if a paper copy was filed?

Often the details of the trust/shares are captured in a separate deed of trust which the solicitor or yourselves retain. Such a deed may often contain more than simply a statement of who has what % share but that can vary.

The Transfer is a form TR1 and panel 10 is where the % shares can be stated. The notes on how to complete the form explain this panel and the options available. As mentioned the Transfer is then scanned to our database. The original is destroyed. However the original can be returned to the applicant if a certified copy is supplied when registering.

kingstreet

The Deed Of Trust can also reflect what should happen in the event of relationship breakdown and sale/transfer of equity at a profit, loss or break-even,

katy123

Land_Registry_representative wrote: »

The solicitor is quite correct that the shares will not be recorded on the legal title. However the Transfer would be lodged and then scanned/stored electronically in our database. The possibility of it then being lost is probably then considerably smaller than if a paper copy was filed?

Often the details of the trust/shares are captured in a separate deed of trust which the solicitor or yourselves retain. Such a deed may often contain more than simply a statement of who has what % share but that can vary.

The Transfer is a form TR1 and panel 10 is where the % shares can be stated. The notes on how to complete the form explain this panel and the options available. As mentioned the Transfer is then scanned to our database. The original is destroyed. However the original can be returned to the applicant if a certified copy is supplied when registering.

Hi Land registry rep, many thanks for your detailed reply. so the transfer form is scanned and stored somewhere at land registry, just not on the legal title. As we have copies of the form with the allocation split we submitted to our solicitor (both hard and soft) + family affair + no mortgage we are probably going to run without a deed of trust for simplicity.

Just one final question if I may, how can someone bring up the transfer form again in the future that is stored electronically at land registry?

Land_Registry

Everything which is submitted and retained by us is then stored electronically.
If someone other than ourselves wanted to obtain a copy in the future they would have to apply and pay a fee (currently £7).
Only the register, which would reflect the ownership details (name/address) and the restriction as mentioned would be available online along with the title plan.

The specific details of any applications submitted including the associated papers/forms are not available online.

In my experience a trust deed is the preferred route and this is simply retained by the parties involved and/or their solicitor.

katy123

Land_Registry_representative wrote: »

Everything which is submitted and retained by us is then stored electronically.
If someone other than ourselves wanted to obtain a copy in the future they would have to apply and pay a fee (currently £7).
Only the register, which would reflect the ownership details (name/address) and the restriction as mentioned would be available online along with the title plan.

The specific details of any applications submitted including the associated papers/forms are not available online.

In my experience a trust deed is the preferred route and this is simply retained by the parties involved and/or their solicitor.

Good morning, once again, thank you for your reply. Do you mind if I summarise everything?

- title register/legal title are the same thing and shows ownership details, address and charges

- Title Plan is a map show boundary of the land/property

- Aplication forms/transfer form that is submitted to landregistry on completion is scanned and not available to purchase online. You mention that you can obtain the application fees for £7? Would you have a link. We have previously purchased a few properties with various splits and have always wondered if our solicitor (not current one) actually recorded/submitted it correctly as we were never asked to complete a deed of trust...would be nice to check!..:)