Declarations of Trust for Residential Property owned in Fixed Shares
The documents in this folder are for use by Co-owners of Residential Property and their professional advisers. The folder contains Declarations of Trust (also called Deeds of Trust) which set out each owner’s percentage share of the property and other arrangements for management of the property.
These documents are suitable for co-owners who want to own a property as tenants in common in fixed percentage shares. A separate folder of documents is available covering co-ownership of property in floating shares, i.e. where each owner’s share varies according to financial contributions made over time.
As well as recording the shares of the owners, a Declaration of Trust can also set out practical arrangements for the property, e.g. who is to pay the bills and look after the property. Pre-emption rights can be included to give the owners a right of first refusal if a co-owner wishes to sell their share of the property.
Co-ownership of property is a legally complex area. These template documents should be used by customers who fully understand their nature and effect.
Declarations of Trust for Residential Property owned in Fixed Shares is part of Property. Just £38.50 + VAT provides unlimited downloads from Property for 1 year.
Frequently Asked Questions
We are buying a home together and putting in different amounts. How do we record who owns what? +
With a declaration of trust in fixed shares. The deed states each owner's percentage of the property and how it is held, and it is the document that governs who gets what on a sale. It suits co-owners who want to hold as tenants in common in set percentages, and it can also cover who pays the bills and looks after the property.
What is the difference between owning as joint tenants and as tenants in common? +
As joint tenants you own the whole together with no distinct shares, and if one owner dies their interest passes automatically to the survivors. As tenants in common each owner has a defined share that they can leave by will. Fixed-share co-owners hold as tenants in common, which is why a declaration of trust recording the percentages matters.
How do I protect my share if my co-owner dies or we fall out? +
Hold as tenants in common and record the shares in a declaration of trust. On registered land a Form A restriction is entered so a sole survivor cannot sell without a second trustee, which protects the beneficial shares. The deed can also add pre-emption rights, giving the other owners first refusal if one wants to sell their share.
Is a declaration of trust legally binding on the shares it sets out? +
Yes. A declaration of trust of land must be in writing and signed, and once made it is conclusive of the beneficial shares unless it is set aside for something like fraud or mistake. That is its value: it settles the ownership split up front, so a court does not have to reconstruct your intentions from contributions and conduct later.
What if we cannot agree what to do with the property later? +
Any co-owner can apply to the court under the Trusts of Land and Appointment of Trustees Act 1996 for an order, including an order for sale. The court weighs factors such as why the property was bought, the wishes of the owners and the welfare of any child living there. A well-drafted declaration of trust, setting out what happens on a sale, reduces the chance of ever needing that step.
