Five reasons a deed of trust should be drawn up

A deed or a declaration of trust is a legal document which can be utilised in a variety of contexts relating to the purchase of property and land. Let’s look at a few reasons why you may benefit from drawing one up.

Prevent future disputes

As a deed of trust reflects the intentions of the buyer at the time a purchase is made, this important legal document clearly sets out the interests of each party in the property and will prevent disputes arising should the property be sold in the future.

Under a tenants in common purchase arrangement

Without a deed of trust, it will be assumed that each party holds an equal stake in the property. However, if a property is being purchased by tenants in common who are bringing different amounts of investment into the purchase, a declaration of trust should be put in place to prevent uncertainty and protect each person’s interests.

Prevent complex challenges

Legal documents can, of course, be challenged, but a deed of trust can only be set up when all parties agree and approve the information contained within the document.

They are effective

When drafted by a professional team, such as Parachute Law, a deed of trust is an invaluable document that will protect the interests of each party involved in the purchase.

Cover a variety of details in a single document

There is so much information that can be covered in a deed of trust, which is why they are such a valuable and useful document to have. For this reason, it is always worth sitting down with a trusted legal team and spending as much time as necessary to ensure that your deed of trust protects the interests of each party.

You will likely find that you are asked to consider a number of questions during this process, including who will be paying the most money, who will be dealing with the mortgage, and what happens if one party invests in improvements to the property alongside putting down the majority of the deposit.