If you are new to declaration of trust documents, let’s take a look at the answers to six commonly asked questions.
1. How does a declaration of trust work?
A declaration of trust sets out the ownership of property rights, and division rights, in a legal document. It is used to clarify each owner’s share, rights, and responsibilities when multiple parties buy a property together to avoid disputes in future. The trust is legally binding and ensures transparency.
2. Is the declaration of trust binding?
Yes, it will be legally binding if it meets the necessary legal requirements. It needs to be in writing and signed by all parties. It must also contain the required information to be valid, which is why a lawyer should complete it. Contact your solicitor to find out more info on a declaration of trust.
3. Does a declaration of trust need to be witnessed?
There is no legal requirement for it to be witnessed; however, it can be useful to sign the document as a deed with a witness for each signature. This helps avoid future disputes.
4. Can the declaration be deemed invalid?
If a declaration of trust doesn’t reach the necessary legal standards, it will be deemed invalid. Common errors include not having a written agreement, making the provisions unclear, not having signatures, or coercing a party into signing it.
5. Can the deed be changed?
Yes, a deed of variation can be used to update a declaration of trust. This is a legal document that lets you alter the terms of the original agreement.
6. Can you write your own declaration of trust?
It is generally recommended that you use a solicitor to draft any kind of legal document, including a declaration of trust. This is because it requires the inclusion of certain defined types of information; if these are left out, the trust isn’t valid and cannot be legally enforced. For a solicitor specialising in deeds of trust, the process is clear and simple and means you are assured of a secure result.