A Declaration of Trust is a legal document that details how much each owner paid towards the deposit for a property and what should happen if:
- The relationship between you and the other owners breaks down
- One owner is unable to make their mortgage repayments
- One owner wants to sell the property
It can also be referred to as a deed of trust, and it makes sure everyone who owns the property is clear on what would happen in different circumstances.
Putting one in place is generally a good idea for cohabiting friends, family, couples and business partners as it makes sure there’s no ambiguity over who owns what and accounts for circumstances where one owner has contributed more or changes their plans.
Ultimately it protects your financial interests, particularly if there are any diasgreements (or breakups 💔) down the line.
You should look to have the Declaration of Trust in place before your completion date so it can be included as part of the general paper work of the property.