A Deed of Trust, also known as a Declaration of Trust, is a legal document that records how much money/financial contribution each person has contributed towards the purchase of a property.Often a Deed of Trust is created by two people who are buying a property jointly as homeowners.


They are usually popular with parents who are helping their son or daughter get onto the property ladder, by loaning them a lump sum or contributing towards the deposit. Also, a trait becoming very popular is more and more people getting financial help from family and friends when buying a property.


When buying the property with someone else, it is a possibility that you won’t be dividing the costs 50/50. One out of the two may be putting more towards the deposit or one may be paying more towards the mortgage payment. In essence, anyone providing financial assistance will want their money back and the Deed shall protect the person’s investment, helping to ensure it isn’t lost.


Generally, the trust comes into play should the time come when the property is sold, or one person wants their share back.


What a Deed of Trust can cover:


  • How much money each person contributes towards the purchase of the property and any further costs that will be incurred, such as; Fees, maintenance, mortgage payments, etc.
  • How much each person will contribute towards paying off the mortgage.
  • What happens to each individual’s financial share/contribution if a current relationship breaks down.
  • What happens to each individual’s financial share/contribution if there is a failure to keep up with mortgage payments by the homeowner.
  • What happens to each individual’s financial share/contribution if either person involved gets married or has children.
  • What is to happen to each individual’s financial share/contribution if the homeowner sells the property and buys another.
  • Essentially this is a matter of how and when each person will get their money back.


If there is no Deed of Trust or any formal agreement in place, there is no legal proof or record of any contributions being made, therefore leaving your interest/investment exposed and not allowing you to be able to get anything back.