Declaration of Trust: Protecting your deposit when buying together
Buying a property with a partner, family member, or friend is an exciting step, but it is important to record your intentions from the outset, especially if one party is providing a larger deposit. Clear arrangements can help prevent misunderstanding and disputes later, or if your circumstances change.
What is a declaration of trust?
A Declaration of Trust is a legally binding document that sets out each person's initial contribution and how the proceeds should be divided if the property is sold. That keeps expectations clear from day one.
When is it particularly useful?
A Declaration of Trust is often used where:
One person contributes a larger deposit
Mortgage payments are unequal
Family members are helping with funding
Buyers want clarity from the start
What can it cover?
It can be tailored to your situation and agreement. It may cover:
How deposits are treated on sale
How mortgage payments affect ownership shares
How sale proceeds are divided
What this means for you
Putting arrangements in writing helps to avoid confusion or disputes in the future and will ensure that everyone's interests are protected.
Next steps
If you are buying a property with someone else and want to protect your investment, taking advice early ensures the document reflects what you have agreed. Our team can help you put clear, practical arrangements in place.
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