What is a deed of trust and how does it work?
Breaking up with a partner is never an easy thing to do, especially if you’ve been together for a long time or you have children or other shared commitments. If you’re living together in a house that either you both own or only one of you owns, there are even more reasons to be worried. If you have a deed of trust in place though, the process of splitting up can be easier.
What does it do?
A deed of trust outlines exactly what will happen to your jointly owned property in the event that you break up further down the line. It can take one of several formats: it could specify that each party will get out the deposit they put in and then split the remainder, for example, or it could say that each party should get a defined percentage of the sale total.
How much does it cost?
There may be an initial upfront cost to get the deed drawn up, especially if you’re in an area where solicitors’ fees are high, in which case you may find yourself paying exorbitant amounts. However, it’s worth it in the long run, even when fees like £250 could be standard. Some solicitors may offer a package in which they can draw up a deed of trust and other key legal documents, such as wills, for one low price – in which case it may well be worth taking them up on their offer.
What if I don’t have one?
If there’s no deed of trust in place, it’s not always clear what the next move should be. In theory, the property will be split fifty-fifty, even if one of the parties put down a much larger deposit. Some people find that they would prefer a quick sale given that the legal wrangling involved can be stressful, and that releasing the property from their possession can help them to move on with their lives even if it does not represent a fully fair financial settlement.
Quick sales are certainly possible with National Property Trade, and we can in some cases get your home sold in just a week. Check out this page for more information.