Deed of trust - legally enforceable?

pph

Hi, we're first time buyers and have been together for years. Relationship has its ups and downs but who doesn't?

A friend suggested going to our conveyancer and getting a deed of trust drawn up. If one of us wants out then the other has three months to buy the other's share or it goes on the market.

Another friend said that they were actually not enforceable on law if one of us decided to ignore the document. Is that true?

I have seen the draft from our conveyancer and it looks straightforward, costs £25.

All advice and wisdom greatly received!

anselld

Depends if "Relationship" = Married.

Flosmum_2

anselld wrote: »

Depends if "Relationship" = Married.

Out of interest, how does marriage impact (sorry op to jump in on your thread!)

Guest101

Flosmum wrote: »

Out of interest, how does marriage impact (sorry op to jump in on your thread!)

Because marriage is a legally binding agreement? With centuries of case law?

Deeds of trust are enforceable - that clause may not be.

Guest101

I wouldn't buy a house if the relationship isn't sorted.

It's just asking for trouble down the line

pph

Thanks Guest 101 but we're sorted - but we're youug and who know's how we'll feel in 15yrs. We have the deposit, there's not point in paying someone else's mortgage.

So I appreciate the comment, and agree, but I'd rather the thread didn't go that way.

So it's only enforcable if we're married?

davidmcn

pph wrote: »

A friend suggested going to our conveyancer and getting a deed of trust drawn up. If one of us wants out then the other has three months to buy the other's share or it goes on the market.

Another friend said that they were actually not enforceable on law if one of us decided to ignore the document. Is that true?

I have seen the draft from our conveyancer and it looks straightforward

Isn't your conveyancer providing any advice?

How different is this to what would apply anyway? Any joint owner can force a sale, in practice the other party would try to avoid going to court by buying them out.

anselld

pph wrote: »

So it's only enforcable if we're married?

The opposite.

Deed of trust is enforceable provided there are no unfair terms.

However, in Divorce Court proceedings the Court will decide how to divide all marital assets and it will not necessarily be decided in line with the Trust Deed.

TBagpuss

If you own unequal shares then it is sensible to have a declaration of trust.

Having it would make it much less likely that you would end up having to go to court if the relationship went badly wrong.

In drafting the deed it's usually a good idea to specify things such as how you will determine the value of the property if one of you is buying out the other, (e.g. by agreement, or if not agreed, based on a valuation by a survey appointed by the president for the time being of the RICS, for instance)

G_M

pph wrote: »

So it's only enforcable if we're married?

Wrong.

If you're married, the divorce courts will decide who gets what, and can ignore the Deed.

If you're not married, the Deed is enforcible (assuming it is properly drawn up and Executed).

pph

Our situation is a 50/50 split of a two bedroom flat. One of us could move to another city in years to come for a job or something, you never know. We'd either need to rent out the spare room to a friend for the one that remains, or sell up (not something I want to do really as we've got our hands on the greasy London property ladder). I'd rather rent it to a London family and move out to the sticks.

The conveyancer is obviously saying they are legally binding but I trust the MSE gurus for a second opinion

So the upshot seems to be to go for it and sign one. The conveyancer has a blank document where we fill in the split of equity and monthly mortgage payments we'll pay. So it show's everything 50/50 if we are forced to sell.