A Deed of Trust, also known as a Declaration of Trust, is a document used to specify how a property is held between joint owners; it confirms the actual proportions in which co-owners own their homes.
A Deed of Trust is commonly used to hold property in joint names but in different proportions especially where there have been differing contributions towards the purchase price, it helps determine the division of any proceeds of sale when the property is sold. A Deed of Trust can prevent disputes as to who gave what ensuring that each joint owner gets a fair portion of what they put into the property when the property is sold.
There are several situations where a Declaration of Trust can prove useful, for example where two or more people purchased a property jointly but each has made differing contributions towards the purchase price. Another common situation is where money has been provided by a third party who is not on the title deeds but wants to protect their contribution. A Declaration of Trust can also be used to set out restrictions or obligations on the use of the property or where one of the owners wishes to surrender or relinquish their interest in the property.
The contents of this article do not constitute legal advice and are provided for general information purposes only.
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