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Buying a house - Declaration of Trust/Land Registry

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JBroadSword
JBroadSword Posts: 5 Forumite
in House buying, renting & selling
Evening,

Hopefully a simple one but i can't find the answers anywhere!

We're buying a house as tenants in common and will be having a Declaration/Deed of Trust drawn up. The two questions i have are.

1) Who holds a copy of the Declaration/Deed of Trust? Just us?
2) What information with regard to the percentage split is held by the Land Registry? Or do they know it's just as Tenants In Common?

I have read that the TR1 form would just reference the Declaration of Trust (which will obviously detail the %'s) but will not have the details on it itself.

I just assumed that the Land Registry would hold ALL the information with regard to the ownership of the property including the %'s owned by each party.

Many thanks for any advice/info.

J

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  • anselld
    anselld Posts: 8,280 Forumite
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    You don'd necessarily need a separate DoT. The DoT can be made, and the percentages recorded, in section 10 of the TR1.

    I don't think LR record any separate DoT which may exist nor the percentages. I am not even sure if they record the TR1 itself.
  • Tom99
    Tom99 Posts: 5,371 Forumite
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    [FONT=Tahoma, sans-serif]The Land Reg rep's previous comments on this subject were:

    [/FONT] “[FONT=Tahoma, sans-serif]We do not register deeds of trust as such or the %s but their existence can be protected on the register by way of a restriction. See our online guidance on [/FONT][FONT=Tahoma, sans-serif]Joint property ownership[/FONT][FONT=Tahoma, sans-serif] and [/FONT][FONT=Tahoma, sans-serif]Private trusts[/FONT][FONT=Tahoma, sans-serif]

    A deed of trust deals with the beneficial ownership of the property. We register the legal ownership. As far as additional protection is concerned the existence of a restriction can indicate that such a trust exists and therefore cause a lender, buyer or indeed owner to take note.

    For example if a form A restriction is registered then a surviving sole owner can't take receipt of capital monies on their own but must appoint someone to do so with them. That can hamper their ability to sell or mortgage for example.”     [/FONT]
  • JBroadSword
    JBroadSword Posts: 5 Forumite
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    Thanks. I think that about answers it! Cheers.
  • Land_Registry
    Land_Registry Posts: 5,780 Organisation Representative
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    JBroadSword wrote: »
    We're buying a house as tenants in common and will be having a Declaration/Deed of Trust drawn up. The two questions i have are.

    1) Who holds a copy of the Declaration/Deed of Trust? Just us?
    2) What information with regard to the percentage split is held by the Land Registry? Or do they know it's just as Tenants In Common?

    I have read that the TR1 form would just reference the Declaration of Trust (which will obviously detail the %'s) but will not have the details on it itself.

    I just assumed that the Land Registry would hold ALL the information with regard to the ownership of the property including the %'s owned by each party.

    Looks like you have the answers you wanted but to be clear re your original Qs

    1) The two of you would hold it
    2) We would have a record, in the submitted paperwork, of whatever details you provide. We do not though add the %s to the register
    We don't 'know it as TIC' as the register is not the definitive detail re how you hold the property. The DofT will be.

    If you apply for a form A restriction to be registered then we will add that to the register and this will indicate that a trust exists. Nothing more detailed than that.

    The reasons why this aspect can be confusing is because we register the legal ownership whilst the DofT relates to your beneficial ownership.

    The easiest way I find to distinguish between the two is that you can split or share out the beneficial ownership as %s as it relates to in effect the value of the property, namely £s and they can be split/shared

    You can't do the same with the legal ownership as that relates to the land and building and you cna't eahc have a % share of the land/bricks & mortar
    “Official Company Representative
    I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • JBroadSword
    JBroadSword Posts: 5 Forumite
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    Thanks for the reply. Very helpful....and a lot clearer!
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