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 co-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, it helps determine the division of any proceeds of sale when the property is sold. A Deed of Trust can prevent disputes 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.
There are several situations where a Declaration of Trust can prove useful, for example where two or more people purchased a property jointly but each has made differing contributions towards the purchase price. Another common situation is where money has been provided by a third party who is not on the title deeds but wants to protect their contribution. A Declaration of Trust can also be used to set out restrictions or obligations on the use of the property or where one of the owners wishes to surrender or relinquish their interest in the property.
Our Declaration of Trust – Tenants in Common (Contributions Based) template shall be used where joint owners wish to determine each owner’s share of the property according to their financial contributions to the property. The 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.
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