So, you know that you need to draw up a deed of trust but what should be included in this legally binding document?
The document needs to contain key information about the transaction happening and should include the following:
The figure that the mortgage lender is supplying to make the property purchase.
The starting date of the loan and when it is due to mature. The maturity date is when the loan will be expected to have been paid in full.
Confirmation will be needed of the amount of deposit paid by each party and this should include payments made to legal fees and stamp duty tax.
A necessity to include is the equity percentage that will be repaid to each individual if and when the property is sold. This might either be a fixed amount or a changing percentage over time.
The intended contributions of each party to the mortgage payments and other factors such as property maintenance, council tax and utility bills. For Deed of Trust information, visit Sam Conveyancing
The parties involved in the transaction should be named and this includes the borrower, the lender and the trustee who will have their name of the title deeds until the loan is repaid in full.
There should also be details of who will receive any rental income if it is a buy to let home.
If the property will be sold in the future, valuation arrangements should also be included. This is also the case if there is a chance that one party may wish to buy out the other.
The Deed of Trust is an important document and deserves serious consideration. It can be drawn up at any point but at point of sale is recommended.