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Property Buying Guide

Free sample declaration of trust

FirstRungNow Ltd recommends that any set of joint owners have their own declaration of trust, or trust deed, drawn up to reflect their own particular situation. Ask our partner for a quote for legal services.

SAMPLE ONLY

1. Definitions and interpretation
 1.1In this declaration the terms defined in this clause have the meanings specified and the terms specified in the Particulars have the meanings attributed to them
 1.2Particulars means the page of the deed headed Particulars
 1.3The Co-Owners means the First Owner the Second Owner and the Third Owner
 1.4The Mortgage Shares means the First Owners Mortgage Share and the Second Owners Mortgage Share and the Third Owners Mortgage Share specified in the Particulars
 1.5Where any party comprises more than one person the obligations and liabilities of that party under this deed shall be joint and several obligations and liabilities of those persons
 1.6The clause headings do not form part of this deed and shall not be taken into account in the construction or interpretation of it
 1.7Any reference to a clause or paragraph is to one in this deed so numbered.

2. Recitals

 2.1The Co-Owners are the owners of the Property
 2.2The Co-Owners have agreed that they will hold the Property upon trust for themselves in the following manner

3. Declaration of trust

The Co-Owners declare that as from the date of this deed they will hold the Property subject to the Mortgage jointly both legally and beneficially on trust for themselves in the following manner.

4. Fixed shares

 4.1In the event of a sale the net sale proceeds shall be determined by deducting from the sale price the amount outstanding under the Mortgage legal fees agents' commission and valuers' fee (if any) and any other expenses properly incurred in connection with the sale
 4.2The net sale proceeds shall be paid as to:
 4.2.1The Fixed Sum to the First Owner and
 4.2.2The balance being divided between the Co-Owners by paying the First Owners Share to the First Owner and the Second Owners Share to the Second Owner and the Third Owners Share to the Third Owner

5. Indemnity

The Co-Owners covenant with each other that during the continuance of the Mortgage they shall be responsible for the Mortgage repayments in the Mortgage Shares and each will at all times in future keep the other and his or her estate indemnified from all actions costs claims and demands on account of such payments

IN WITNESS whereof the parties hereto have set their hands the day and years first before written

Signed by the First Owner, in the presence of:

 Witness signature
 Witness name
 Witness address
 Witness occupation

Signed by the Second Owner, in the presence of:

 Witness signature
 Witness name
 Witness address
 Witness occupation

Signed by the Third Owner, in the presence of:

 Witness signature
 Witness name
 Witness address
 Witness occupation

Only applicable in England and Wales.
 
Find out more about Joint Ownership, Joint Equity and Co-Buying a property in our guide:
 
What's good about joint ownership? What are the downsides of joint ownership?  l How much can we borrow for a joint ownership mortgage? l The two types of joint ownership, joint tenancy and tenants in common l Drawing up a trust deed, or declaration of trust and joint ownership agreement l Example of a joint ownership agreement l Joint mortgages and how the finances could work when you buy with others l Finding someone to invest with and tips for those using joint ownership schemes where you can meet other prospective joint owners. l Frequently asked questions about joint ownership 

Most useful and most popular pages on this site:

Look for your First Property l Seek First Time Buyer Mortgage Advice l See our Best First Mortgages Comparison Table l Find out about First Time Buyer Mortgages l Find out How to Buy a House l Learn all about The First Time Buyer Mortgage l Shared Ownership



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