Deed of trust for joint home buyers

Buying a home is a major investment, and when you decide to buy a property jointly, it is important to have legal agreements in place to protect everyone involved. In a survey conducted by Zoopla, it was discovered that 70% of participants admitted to buying a home without having a written contract in place that specified how much of their property they actually owned.

What is a deed of trust?

A Deed of Trust, also known as a Declaration of Trust or Trust Deed is a legally binding document that outlines how a property should be divided in terms of ownership where each person has paid different amounts towards the property deposit. It sets out the percentage of the property each party owns, how any equity will be split, and what will happen in the event of a dispute or the sale of the property. A Trust Deed is a good idea for unmarried couples, friends or siblings for instance who are buying a property together, as it helps clear up any uncertainty about how much each person invested. Equally, if there is a break-up or a dispute, a Trust Deed can help to clarify what will happen to each person’s share so that everyone is fairly provided for.

Why you need a deed of trust?

When purchasing a property jointly, a Deed of Trust is a key document that offers protection to all parties involved, for a number of reasons including the following:

Clarifies ownership and protects investment

A Deed of Trust sets out the percentage each person owns in the property. This is particularly important if one party contributed more to the purchase price or mortgage payments because it means that their investments are protected. For example, if one person contributed 70% of the deposit while the other paid 30%, the Deed of Trust may be set up to ensure that if the house is sold, each person will get back the amount they put in and any other equity after tax and lenders are paid will be split equally. This document can also clarify what will happen if one party wants to sell their share or if there is a dispute over ownership.

Avoids conflict

A Deed of Trust can help avoid conflicts by setting out everyone’s intentions and rights in advance. This can help avoid misunderstandings or disputes down the line and ensure that everyone is on the same page.

What is the importance of having a solicitor draft a deed of trust?

It is strongly recommended that a conveyancing solicitor drafts the Deed of Trust document for you. Buying a house is one of the biggest investments you may make, so you want to be sure that your share in the property is sufficiently protected. A lawyer will be able to ensure that the document is legally binding and enforceable and will be able to provide expert advice on any issues or concerns that may arise. They can also help ensure that the Deed of Trust is tailored to your specific needs and circumstances if any disputes come up later down the road.

BHW Conveyancing is the leading residential property law firm in Leicestershire and is ranked in the top ten real estate firms in the East Midlands by the Legal 500 guide. We pride ourselves on giving our clients a seamless and efficient end-to-end conveyancing service and adhere to high-quality industry standards. We work with many estate agents and financial advisors as their preferred conveyancing partner. Due to our proactive approach to progressing our clients’ property transactions, we are constantly being referred time and time again. 

Whether you are a property professional, seller, or buyer, we can help with your residential conveyancing queries. To request a personal conveyancing quotation, or to discuss setting up a professional referral relationship with your business, please call us on +44 (0)116 289 7000 or send us an email at

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