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October 3, 2022

What is a Declaration of Trust?


A Declaration of Trust is a legally binding contract between joint property owners and/or anyone else who has a financial or beneficial interest in the property.


Typically, an agreement is reached at the time of property purchase.

The purpose of a Declaration of Trust is to eliminate any uncertainty regarding what will happen to each person's money if the property is sold or if one person wishes to buy out the other. Establishing the financial terms at the outset will provide clarity and reduce future disagreements.

Who Should Receive a Declaration of Trust?


If you are co-buying a property with another person and have contributed different amounts to the purchase, you must split the difference.

If someone else is helping you purchase a property and you want to protect their funds, you should use a trust. A Declaration of Trust can stipulate when, how much, and under what conditions money is to be returned. The deed can provide the investor with assurance.

When purchasing real estate with a business partner, can reduce disagreement risk and safeguard everyone's investments.

If you are an unmarried couple living together, Different rights apply to married and unmarried couples.

Cohabiting friends or family members have contributed varying amounts to the property.

If you are purchasing with a co-buyer who is not on the mortgage,



Joint Tenants or Common Tenants?

There are two options for purchasing a property jointly:

When two or more individuals own a property jointly, they are considered joint tenants. To illustrate, 100% together. The property is left to the surviving spouse upon death.

Tenants in common occur when the property's owners hold varying proportions of the property. For instance, 50% of each of the dead person's property goes to the people named in his or her will or according to the laws of intestate succession.

When purchasing a property with another person, it is possible that the costs of the purchase, mortgage, stamp duty, and other associated fees will not be equal. One of you may be contributing more to the down payment, while the other may be contributing more to the mortgage payments. Whether you are buying a property as Tenants in Common or Joint Tenants, a Declaration of Trust lets you say how much money each person is putting in and how much money each person should get when the property is sold or when one person buys out the other.

What elements can a Declaration of Trust contain?


It may consist of:

Each person's contribution to the deposit, as well as the amount that will be refunded, you might want to say, for example, that each owner gets their initial deposit back and the rest of the equity is split evenly.

What percentage of the property each person will own and how the proceeds will be divided if the property is sold.

How much will each owner pay toward the mortgage? However, the lender will continue to view payments as joint and several, so if two people are listed on the mortgage, they will both be responsible.

How each person will pay for legal fees, stamp duty, and utilities.

A calculation of a person's ownership percentage in a property based on the amount paid toward the mortgage or for renovations and improvements.

Contact A Solicitors if you wish to make a Declaration of Trust or for more information.

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“Trust Him For That Touch” Sunday, June 15, 2025

Key Verse “And he laid his hands on her: and immediately she was made straight, and glorified God” (Luke 13:13). Text — Luke 13:10-17 Message Social engineers have pointed out the power of touch in human relationships. They describe it as one of the most effective means of social connection, but they fail to understand why it is so. Recent advances in science have now revealed that when you touch something you leave your DNA on it. The DNA is the hereditary material inherited from your parents; it is what makes you who you are. When Jesus touched that woman therefore, He left a part of Himself on her. Does anyone still wonder why she was made instantly whole? Christ’s touch on your spirit straightens you up from the crookedness inherited from Adam’s disobedience. His touch on your mind removes the confusion and afflictions of your troubled existence. And, as with the woman, Christ’s touch on your body is all you require for healing and health. You must however believe He has both the power and the willingness to perform it. Faith is the unfailing arm that lays hold upon God’s possibilities, therefore have faith in God. On this World Elder Abuse Awareness Day, may God bless the old people. Quote Christ’s touch on your spirit straightens you up Challenge Dare to believe in a faithful God. Prayer for today Holy Father, touch and make me whole, in Jesus’ name.
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