A Declaration of Trust (also known as Deed of Trust) is a document often related to co-owned properties which determines, in addition to other matters, how the shares of property are to be held. It records how the property was funded, who is responsible for the ongoing liabilities and how the capital from the property may be shared and the income is to be distributed.
Under English law, those holding legal title of property may not be the same as the people holding the beneficial (the financial) interest. Whilst the legal title controls whose name is on the registration documents, most people are interested in who actually owns the property and it is the beneficial interests which are more relevant to co-owners.
Where joint owners of property hold the beneficial interest as tenants in common, in the absence of a specific Deed of Trust to apportion the income according to the Deed, they will be deemed to hold the property in equal shares (i.e. on a 50/50 basis).
Co-owned properties can be held as Joint Tenancy (beneficial Joint Tenants) or Tenancy in Common (as beneficial Tenants in Common).
Where joint owners of a property hold the beneficial interest as Joint Tenants, the owners together own the entire property in equal shares, and if one owner dies their share passes to the other(s) automatically, irrespective of the provisions in the deceased’s Will. In other words, neither of the owners have a separate share which they can sell or leave in a will, and if one owner dies than the survivor becomes the owner of the whole property. This happens automatically without any further formality.
Where joint owners of property hold the beneficial interest as Tenants in Common, each owner holds a separable right or interest in the property.
This Declaration of Trust - Change from Tenants in Common to Joint Tenants shall be used where the joint owners of a property hold the beneficial interest as tenants in common, and now want to change it to joint tenants.
There are several aspects to be considered in order to change ownership from tenants in common to joint tenants:
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You need a Declaration of Trust - Change from Tenants in Common to Joint Tenants
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You need to withdraw the joint proprietorship restriction registered at HM Land Registry - Form RX3 from the Land Registry website
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You also need a Statement of Truth (we have included a Statement of Truth with this Declaration of Trust - Change from Tenants in Common to Joint Tenants template)
Please note - you need the agreement of all the joint owners to change from being tenants in common to joint tenants.
This Declaration of Trust - Change from Tenants in Common to Joint Tenants is in Microsoft Word format, written in plain English, easy to use and edit.
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