Residential Property Co-Ownership Deed - Template Form Pro · UK-law

DECLARATION OF TRUST
(TENANCY IN COMMON)

This deed is made under the law of England and Wales and takes effect in accordance with the Law of Property Act 1925, the Trusts of Land and Appointment of Trustees Act 1996 and the Land Registration Act 2002.

THIS DECLARATION OF TRUST is made as a deed on ________ (day) ________ (month) ________ (year).

PARTIES:

(A) ________ of:

________

(the "First Party"); and

(B) ________ of:

________

(the "Second Party"),

(together the "Co-owners", which expression shall include their respective personal representatives and successors in title).

OPERATIVE PROVISIONS:

1. Background and Recitals

1.1. The Co-owners have on ________ purchased, or are contemporaneously with the execution of this deed purchasing, the property described below:

________

registered at HM Land Registry under title number ________ (the "Property").

1.2. The Property is, or will upon completion be, subject to a legal charge dated ________ in favour of ________ (the "Mortgage").

1.3. The legal estate in the Property is vested in the Co-owners as joint tenants and, by section 1(6) of the Law of Property Act 1925, the legal estate is and shall remain held by them as joint tenants upon trust for themselves. The Co-owners have agreed that the beneficial joint tenancy shall be severed and that they shall hold the beneficial interest as tenants in common upon the terms set out in this deed.

1.4. This deed records the trusts upon which the Property is held and is intended to take effect for the purposes of the Trusts of Land and Appointment of Trustees Act 1996.

2. Declaration of Trust

2.1. The Co-owners declare that with effect from the date of this deed they hold the legal estate in the Property as trustees upon trust for sale, with power to postpone sale, and that they hold the net proceeds of sale and the net rents and profits until sale, subject to the Mortgage, upon trust for themselves as tenants in common in the Agreed Proportions specified in clause 3.

2.2. The beneficial joint tenancy (if any) subsisting immediately before the date of this deed is hereby severed and the Co-owners shall hold the beneficial interest as tenants in common accordingly.

3. Beneficial Shares

3.1. The Co-owners hold the beneficial interest in the Property, and the net proceeds of any sale shall be divided between them, in the following proportions (the "Agreed Proportions"): the First Party as to ________ and the Second Party as to ________.

3.2. In the event of a sale, the net sale proceeds shall be determined by deducting from the gross sale price the amount outstanding under the Mortgage, the reasonable legal fees, estate agents' commission and valuers' fees (if any) and any other reasonable costs properly incurred in connection with the sale.

3.3. In determining the entitlement of each Co-owner to the net sale proceeds, credit shall be given to the relevant party for any capital sum paid by that party in reduction of the principal sum secured by the Mortgage and for any other capital contribution made by that party which the Co-owners have agreed in writing is to be credited.

4. Co-owners' Covenants and Powers

Each Co-owner covenants with the other:

4.1. to observe and perform all covenants, restrictions, conditions and stipulations from time to time affecting the Property and all the terms and conditions of the Mortgage;

Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat duis aute irure dolor in reprehenderit voluptate velit esse cillum dolore eu fugiat nulla pariatur lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam quis nostrud exercitation ullamco laboris.

5. Repairs and Maintenance

The Co-owners agree:

5.1. to keep the Property in good and tenantable repair and condition and to carry out all essential repairs without undue delay;

5.2. that no non-essential maintenance, alterations and/or improvements to the Property shall be carried out without the prior written consent of both Co-owners.

6. Outgoings and Expenses

6.1. The Co-owners shall be responsible, in the Agreed Proportions, for the payment of all outgoings relating to the Property, including (without limitation) the instalments due under the Mortgage, council tax, water and sewerage charges, insurance premiums and the cost of all repairs and maintenance carried out in accordance with this deed.

6.2. The Co-owners shall keep the Property insured to its full reinstatement value with a reputable insurer against fire and such other risks as are normally covered by a comprehensive buildings insurance policy, and shall punctually pay all premiums in the Agreed Proportions.

6.3. If either Co-owner fails to pay his or her share of any outgoing or expense for which he or she is liable under this deed, the other Co-owner may pay the same, shall be entitled to be reimbursed on demand together with interest at the rate of ________ per cent per annum, and any sum so paid (with interest) shall be credited to the paying party on any division of the net proceeds of sale of the Property.

7. Occupation

The Co-owners acknowledge that each of them has, pursuant to sections 12 and 13 of the Trusts of Land and Appointment of Trustees Act 1996, the right to occupy the Property and agree that, save as otherwise agreed in writing, both Co-owners shall be entitled to occupy the Property concurrently and neither shall exclude or restrict the other from occupation except by agreement or order of the court.

8. Land Registry Restrictions and Entries

The Co-owners agree that they will co-operate to make such application to HM Land Registry and execute and do all such documents, acts and things as may be necessary to procure the entry of a Form A restriction and any other appropriate entries in the register of title to the Property for the purpose of giving effect to this deed and to the tenancy in common declared by it.

9. Termination, Pre-emption and Sale

9.1. If a Co-owner wishes to bring the trusts relating to the Property to an end, he or she must give written notice to the other Co-owner, and the Co-owners agree that, except with the written consent of the other, there shall be no sale of the Property until the expiry of three (3) months from the date of such notice.

Lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat duis aute irure dolor in reprehenderit voluptate velit esse cillum dolore eu fugiat nulla pariatur lorem ipsum dolor sit amet consectetur adipiscing elit sed do eiusmod tempor incididunt ut labore et dolore magna aliqua ut enim ad minim veniam quis nostrud exercitation ullamco laboris.

9.3. If a notice under clause 9.2 is served, the Co-owners agree that the purchase of the share shall be completed within three (3) months of the service of that notice.

9.4. Nothing in this deed shall exclude the right of either Co-owner to apply to the court for an order under section 14 of the Trusts of Land and Appointment of Trustees Act 1996.

10. Notices

Any notice given under this deed shall be in writing and delivered by hand or sent by first class post or recorded delivery to the address of the relevant Co-owner set out above (or such other address as that party may notify in writing). A notice sent by post shall be deemed received on the second business day after posting.

11. General

11.1. This deed constitutes the entire agreement between the Co-owners in relation to the beneficial ownership of the Property and supersedes all prior arrangements, whether oral or written.

11.2. No variation of this deed shall be effective unless made in writing and signed by both Co-owners.

11.3. If any provision of this deed is or becomes invalid or unenforceable, the remaining provisions shall continue in full force and effect.

11.4. A person who is not a party to this deed shall have no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.

11.5. This deed and any dispute or claim arising out of or in connection with it shall be governed by and construed in accordance with the law of England and Wales, and the Co-owners irrevocably submit to the exclusive jurisdiction of the courts of England and Wales.

IN WITNESS WHEREOF this deed has been executed and delivered by the parties on the date first stated above.

EXECUTED AS A DEED by ________:

DATED:

___________________

SIGNATURE:

___________________

________

In the presence of:

NAME OF WITNESS:

________

SIGNATURE OF WITNESS:

_________________

ADDRESS OF WITNESS:

________

OCCUPATION OF WITNESS:

________

EXECUTED AS A DEED by ________:

DATED:

___________________

SIGNATURE:

___________________

________

In the presence of:

NAME OF WITNESS:

________

SIGNATURE OF WITNESS:

_________________

ADDRESS OF WITNESS:

________

OCCUPATION OF WITNESS:

________