Residential Property Co-Ownership Deed - Template Form

DECLARATION OF TRUST

TENANCY IN COMMON

This DECLARATION OF TRUST is made on:

_________ (day) ________________ (month) _______ (year)

PARTIES:

A. ________ of:

________

(the "First Party")

B. ________ of:

________

(the "Second Party")

(together the "Co-owners")

THIS DEED PROVIDES:

1. Background

1.1. The Co-owners purchase the below freehold property as Joint Tenants on ________:

________

(hereafter the "Property")

1.2. The property is subject to a mortgage between the Co-Owners and ________.

1.3. The Co-owners have agreed that the joint tenancy shall be severed as per the terms of this Deed.

2. Declaration of trust

The Co-owners declare that as from the date of this deed they will hold the Property subject to the mortgage of today's date in favour of ________ (the "Mortgage") as Tenants in Common both legally and beneficially on trust for themselves as set out in this deed.

3. Fixed shares

3.1. The net proceeds of any sale of the Property shall be divided in equal shares (the "Agreed Proportions") between the Co-owners.

3.2. In the event of a sale, the net sale proceeds shall be determined by deducting from the sale price the amount outstanding under the Mortgage, legal fees, agents' commission and valuers' fee (if any).

3.3. In determining the appropriate share of each of the Co-owners of the net sale proceeds, credit will be given to the appropriate party for any capital sum paid by that party in reduction of the Mortgage debt.

4. Co-owners' powers

Each Co-owner covenants with the other:

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

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5. Repair provisions

The Co-owners agree:

5.1. to keep the Property in good and tenantable condition and to deal with all essential repairs without delay.

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

6. Outgoings and expenses

The Co-owners agree that they shall be responsible in the Agreed Proportions for the payment of all outgoings relating to the Property, including but not limited to the instalments due under the Mortgage, council tax, water rates, insurance premiums and the cost of all repairs and maintenance carried out in accordance with this deed.

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.

In the event that 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 and shall be entitled to be reimbursed, and any sum so paid shall be credited to the paying party on any division of the net proceeds of sale of the Property.

7. Land Registry Restrictions and Entries

The Co-owners agree that they will co-operate to make such application to the Land Registry and execute and do all such documents, acts and things as may be necessary to procure that the appropriate restriction and other necessary entries shall be entered in the register of the title to the Property for the purpose of giving effect to this deed.

8. Pre-emption rights

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

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8.3. If a notice under the above clause is served then the Co-owners agree that the purchase of the share will be completed within 3 months of the service of the notice.

SIGNED AND DELIVERED AS A DEED BY THE PARTIES:

SIGNED AS A DEED BY ________ on:

DATED:

___________________

SIGNATURE:

___________________

________

In the presence of:

NAME OF WITNESS:

_________________

SIGNATURE OF WITNESS:

_________________

ADDRESS OF WITNESS:

__________________

OCCUPATION OF WITNESS:

__________________

SIGNED AS A DEED BY ________ on:

DATED:

___________________

SIGNATURE:

___________________

________

In the presence of:

NAME OF WITNESS:

_________________

SIGNATURE OF WITNESS:

_________________

ADDRESS OF WITNESS:

__________________

OCCUPATION OF WITNESS:

__________________