If you want to buy a property with another person, it’s a wise move to get a Declaration or Deed of Trust. This also applies to anyone who will receive financial help from another person to purchase a property. Here are the times you should have one:
Financial help from someone else – With house prices being so high, more often than not buyers will need to seek financial assistance from others to make the purchase. It is normally from family or friends, but it is most likely that those helpers will want their money returned in the future. Having a declaration or deed helps to map out what will be repaid and when it will be repaid. This makes everyone feel more confident and assured that the investment is protected. For more details on the Declaration of Trust, visit a site like Sam Conveyancing, who can provide Declaration of Trust advice.
Purchasing a property as joint owners – When buying a property with someone else, there is a good chance that the financial split won’t be 50/50. Perhaps one party is putting down more for the deposit and one covering more of the monthly repayments. In this scenario, a declaration of trust helps to set out who is paying what and what percentage a party should receive if the house is sold in the future or if one wants to buy out the other. A property can be bought as either Joint Tenants or Tenants in Common, for example.
A declaration of trust is a legal document that provides great peace of mind for all those wishing to buy property with the help of others or with another individual. Each party knows where they stand, and it can help to avoid unnecessary disputes and confusion in future dealings with the property and finances attached to it.