Clauses in house deeds

boosboos

Hi 

I am just in the process of buying a home with my partner and I would like to add additional clauses in the deeds because I have had negative experiences with home co-ownership in the past. I am wondering if anyone has any experience of this…

The clauses I want are;

-That if one party wants to sell the house at any point then the house must be sold (my last partner refused to sell after we split and it was a nightmare) 

-That in the event of my partner’s death, his children are not able to sell the house until I die (my partner and I will own the home 50/50 and his half will go to his children after he dies)

Any advice appreciated.

Thank you  

Doozergirl

These don't go in the house deeds.

Number 1 would be a deed of trust drawn up by a solicitor. 

Number 2 should be a part of his will.  

Flugelhorn

I would have thought that the second one (what happens if partner dies) would be better dealt with in his (and your) wills - presume you will be tenants in common and you each would have a life interest in the property if the partner died 

Slinky

Trouble is even if he puts this in his will when you buy the house, there's nothing stopping him changing his will at any time without your knowledge.

boosboos

Doozergirl said:

These don't go in the house deeds.

Number 1 would be a deed of trust drawn up by a solicitor. 

Number 2 should be a part of his will.  

Thank for Doozergirl… do you know if I should ask the solicitor about this when we meet to sort out the declaration of trust? 

boosboos

Thanks for the advice everyone…

getmore4less

The other issue with the second Life interest with a "partner" not spouse has some potential nasty tax issues with beneficial interests and lack of transferable nil rate bands.

doodling

Hi,

boosboos said:

The clauses I want are;

-That if one party wants to sell the house at any point then the house must be sold (my last partner refused to sell after we split and it was a nightmare) 

-That in the event of my partner’s death, his children are not able to sell the house until I die (my partner and I will own the home 50/50 and his half will go to his children after he dies)

Your first requirement is more or less unachievable. Yes, you could specify something in a deed of trust but enforcing it would require you to go to court, just the same as if you wanted to force the sale of the house without such an agreement in the deed. There may be some benefit in making clear who pays costs and when the house can/must be sold but if your partner won't play ball then you'll still end up in court.

It is not clear who you want to protect yourself from in the second case. If you own the house 50/50 then either of you, or either of your heirs, could force the other to sell (something you explicitly want I note). Your partner"s will could create a trust such that their heirs would only inherit on your death but there is nothing to stop your partner changing their mind on that point and changing their will.

There are wills that cannot be changed ("mutual" wills, not to be confused with "mirror" wills), but they are little used mainly because (unless you are able to see into the future) it is generally unwise to enter into one.  For robustness, as they are effectively a form of contract, both parties would need independent legal advice (which would probably be "don't do it").

theoretica

boosboos said:

Hi 

I am just in the process of buying a home with my partner and I would like to add additional clauses in the deeds because I have had negative experiences with home co-ownership in the past. I am wondering if anyone has any experience of this…

The clauses I want are;

-That if one party wants to sell the house at any point then the house must be sold (my last partner refused to sell after we split and it was a nightmare) 

-That in the event of my partner’s death, his children are not able to sell the house until I die (my partner and I will own the home 50/50 and his half will go to his children after he dies)

Any advice appreciated.

Thank you  

What does your partner want? The first clause looks mutual - if you both agree - but the second is their children giving up something.  What are they gaining in exchange?  Agreements are most likely to succeed when both parties gain.

saajan_12

boosboos said:

Hi 

I am just in the process of buying a home with my partner and I would like to add additional clauses in the deeds because I have had negative experiences with home co-ownership in the past. I am wondering if anyone has any experience of this…

The clauses I want are;

-That if one party wants to sell the house at any point then the house must be sold (my last partner refused to sell after we split and it was a nightmare) - 3 aspects to this:
a. Legally - this is meaningless as if partner refuses when you split up, your method of enforcement would be court, whether or not you have such an agreement.
b. Damages - with the agreement you could argue if the partner breaches, they pay court costs. But then you still have to recover if they don't have much sale proceeds after mortgage..
c. Practically / emotionally - having this written down might encourage all parties to abide by what a reasonable course of action BEFORE court as they might be more likely to believe that a sale will be the eventual outcome even though in reality it makes little difference. 
 

-That in the event of my partner’s death, his children are not able to sell the house until I die (my partner and I will own the home 50/50 and his half will go to his children after he dies)
This is at odds with your wish that either party can demand a sale at any point - whats the difference between partner and his kids requesting a sale during your lifetime? You could include in the deeds that both have a life interest to live at the property and then upon the 2nd death / move out, the property is sold and proceeds split based on the % ownership. Note this would have impacts on inheritance tax - would needs numbers on the house / other asset value to advise. 

Any advice appreciated.

Thank you  

Comments in line.. both points dont' really make sense together, so you'd need to think about which applies when. 

user1977

I don't follow the concern behind the second point. If the children inherit, who do you think they'd be selling their half to while you still own the other? Nobody's going to buy that.