There are a number of instances in the legal procedures for home sales when a conveyancing solicitor may be called upon to draw up a declaration of trust or trust deed.

One of these circumstances is where more than one person, other than a married couple, is the owner and another is where the legal owner is different to the beneficial owner.

A beneficial or equitable owner of a property is one who has specific rights, such as living in a house. The legal owner is the person or persons whose name is on the title deeds and/or stated in Land Registry records.

In a declaration of trust, the legal owner signs to say he will hold the property on trust for the beneficial owner.

A declaration of trust is usually drawn up when two or more unrelated people wish to buy a property and the deed will state whether they hold equal shares, probably depending on how each contributes to the mortgage payments, repairs or other overheads, and what will happen either when the property is to be sold or if one of the owners dies.

With a co-habiting couple, it can also cover provisions following a breakdown in the relationship.

Another example of where a deed is needed after a home purchase is if more than four people own a property because this is the maximum allowed by law. Then, the legal owners would have to sign a document confirming the rights of the beneficial owner or owners.

Children under the age of 18 will need a trustee

Children under the age of 18 are not allowed to be legal owners of a property and, if they are given or bequeathed a house, a declaration of trust will cover that situation so that an adult trustee will be the legal owner until it can be transferred to them when they are old enough.

Sometimes one person in a married couple may wish to give ownership of the marital home to their spouse while still maintaining the mortgage or other payments and in that case a trust deed may be an appropriate legal way of stating the ownership change.

If someone pays directly or indirectly towards maintaining a house, either through making mortgage instalments or through paying for building work, they can establish through a declaration of trust that this contribution gives them some ownership rights.

Should a dispute arise over these circumstances, a court may issue a resulting trust which would set out the rights of the legal and beneficial owners, having looked at the intentions of the people concerned and the financial contributions involved.

Declarations of trust can be as simple or complicated as the situation requires and can be updated at any time with the agreement of all concerned.

Declarations of trust and Healys solicitors of London and Brighton

Declarations of trust need to be prepared by an experienced residential conveyancing solicitor, such as those who work for Healys in London and Brighton, but the property involved can be situated anywhere in the UK.

The extra complexities of drafting such an agreement is explained to house-buyers in clear and easy-to-understand terms, ensuring their interests are protected and any potential difficulties are explained.

There will be some extra costs in completing a legal agreement prior to the standard residential conveyancing but you can be sure there will be no hidden fees and throughout you will receive the high standards of legal services which Healys provides for all clients.

For more information and advice on costs of Healys' conveyancing services, you can request a call-back via the website, email partner Kiri Kkoshi, telephone 020 7822 4148 or associate solicitor Darina Gowen telephone 01273 669 115.