A Deed of Trust, also known as a Declaration of Trust, is a document used to specify how a property is held between joint owners; it confirms the actual proportions in which owners own their homes.
A Deed of Trust is commonly used to hold property in joint names but in different proportions especially where there have been differing contributions towards the purchase price as it helps determine the division of any proceeds of sale when the property is sold. A Deed of Trust can prevent any argument as to who gave what ensuring that each joint owner gets a fair portion of what they put into the property when the property is sold.
This Declaration of Trust – Tenants in Common (Contributions Based) shall be used where joint owners wish to determine each owner’s share of the property according to their financial contributions to the property. This document records each person's contribution by way of purchase costs, mortgage payments and sums spent on improvements and sets out how each owner’s percentage share in the property is calculated.
This Declaration of Trust – Tenants in Common (Contributions Based) assumes that there are two individuals who jointly own the property but the joint owners have not made equal financial contributions to the property. It also assumes that the property is situated in England and Wales and each of the co-owners is resident and domiciled in England and Wales.
Please note that this document can be amended to provide for more co-owners however you should note that a legal estate may be held by a maximum of four people.
This Declaration of Trust – Tenants in Common (Contributions Based) template is fully comprehensive and flexible; it can be adapted to fit most situations. It can be used whether the title to the property is registered or unregistered and whether the property is freehold or leasehold. It can be used where the declaration of trust is being entered into contemporaneously with the transfer, conveyance or lease of the property to the owners or where the owners have held the property as tenants in common since the transfer, conveyance or lease of the property to them but have not yet declared the extent of their beneficial interests. Also it can be used where the owners originally owned the property as joint tenants but the joint tenancy has been severed, or is being severed by this deed, and they now wish to declare their beneficial interests following the severance.
This Declaration of Trust – Tenants in Common (Contributions Based) is in Microsoft Word format, written in plain English, easy to use and edit.