Declaration of trust where third party has beneficial interest
A standard document that sets out a declaration of trust for a property where a third party, who is not a legal owner, has a beneficial interest. This deed is designed for situations where an individual contributes to the purchase price of a property and wishes to formalise their financial stake. This standard document establishes that the legal owners hold the property on trust for themselves and the beneficiary as tenants in common, specifying their respective shares in the property and the net proceeds of sale. It outlines the legal owners' obligations, including responsibilities for repairs, maintenance, insurance, and payment of outgoings. To protect the beneficiary's investment, this standard document imposes restrictions on the legal owners' ability to deal with the property, such as selling or creating a mortgage, without obtaining prior written consent. It also provides for the registration of appropriate restrictions at HM Land Registry to safeguard the beneficiary’s interest against the property's title.
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