Buying a house can be both exciting and stressful, even if you have done it before. There are a lot of financial, administrative and legal terms you need to understand, and it is a big financial and emotional commitment that you need to get right. You may have heard the term ‘deed of trust’, so let’s take a closer look at what it entails.
What is a deed of trust?
In the UK, a deed of trust can also be known as a declaration of trust. A legally binding document that is used to control and protect assets, it is often used when buying a home to ensure the shares of the property reflect the individual contributions. Essentially, the owners of an asset become tenants in common and know where they stand should the property need to be sold in the future.
How much does a deed of trust cost?
If you are worried about the deed of trust cost, there is plenty of help available. A clear breakdown of the costs involved can be obtained from a company such as https://www.samconveyancing.co.uk/news/conveyancing/deed-of-trust-4378. The deed of trust cost covers drafting the deed, which will specify the deposit paid, how the property expenses will be paid, how the property income will be shared, and how the property can be sold.
Who needs a deed of trust?
The deed of trust cost is often shared between partners purchasing a home. It can be viewed like a prenuptial agreement in that it protects the funds you contribute to buying a property should the relationship break down or there is a dispute. By investing in a deed of trust at the outset, you can avoid lengthy, upsetting and expensive disputes later on.
Can you have a deed of trust with a mortgage?
Yes, you can have a deed of trust prepared when you apply for your mortgage. You can also have it done at a later stage when the purchase is complete. This should not be a problem for the mortgage provider (bank or building society), but your solicitor will be able to inform you if you need to let the provider know.
Can you overturn a deed of trust?
Yes, a deed of trust can be overturned; however, this can only be done if all the parties are in agreement. Alternatively, the trust can be amended, again with the agreement of all the parties. If a lot of important changes are needed, it may be best to get the deed of trust re-written.