When investing jointly in a property, many buyers are unaware that they can make a legally binding record of their individual contributions. And that this investment is protected in the event that their circumstances change, or the property is sold. This legally binding document is primarily used to protect the financial investments of parties investing in a property, and it can also include details about the use of the property and how it will be maintained or sold.
This document will protect everyone’s individual rights in a jointly purchased property – https://www.theguardian.com/money/2017/jan/26/do-we-need-deed-of-trust-reflect-our-shares-house-purchase-. It will make a legal record, with accurate details of the financial investments made by individuals, which all parties will have to agree and sign. Then, if there are any changes in the future, the document will show the exact monetary contributions that were made by all parties, protecting their investment. This is particularly important if there are going to be differing payments made towards the property.
What can be protected?
Along with the usual financial investments such as the original deposit, there are other financial interests that can be protected, such as:
– Mortgage Repayments – the contribution of parties towards the mortgage payments can be recorded, even if parties are paying different amounts, this will ensure that their regular contributions to mortgage payments will be recognised in the event of a sale.
– Property maintenance and renovations – this will record your agreements towards financing any renovation work or property maintenance, as this is reflected in your financial share of the property.
– Household costs – you can agree which party takes responsibility for other household expenses such as utility bills and taxes.
Consulting a firm of solicitors, or conveyancers, for a deed of trust will ensure there is no confusion over the legality of this document.
So if you are thinking of buying a property jointly, either because you are setting up home together or perhaps down-sizing and investing in a new home jointly with friends or relatives, it makes perfect sense to have a legal record of these financial investments in the property, so in the event of any changes, and you go your separate ways, you can retrieve your share of the property, which will be calculated, when the property is sold.