When you want to buy a property with another person as Joint Tenants or Tenants in Common, you’ll need to have a Declaration or Deed of Trust in place. This is a legal document that helps to put financial obligations and responsibility in writing for each of the parties involved. It is a fair system that prevents someone from unfairly benefiting from a situation if the property split is not equal. Here are some important things that should be contained in the document:
Although every case will be different, some of the main inclusions should be:
- The intentions of each party and jointly
- The share of the property belonging to each party
- What each party will be entitled to on selling the property
- If one party can buy the other out
- How the mortgage will be paid
- Who covers the stamp duty?
- The share of payment for solicitors and surveys
- What ratio the mortgage is to be split
- What will happen if a relationship ends
- Who will own the furniture?
- The expense of any redecoration or refurbishment
- Which insurance will be paid by whom?
- The ratio of which household bills will be split
For more information on the Declaration of Trust, visit a site like Sam Conveyancing, providers of Declaration of Trust advice.
There can be additional things put in the document that are unique to the particular arrangement, such as agreements about smoking or the ownership of pets. Anything at all that concerns financial arrangements for the property and related expenses should be explicitly listed in the document or it won’t be legally binding. This is why it is important to give the document some serious consideration before signing.
