Last updated on September 2nd, 2020 at 11:39 am
Note that this document is not intended for use where tenants in common are changing the percentage of how much of the property they each hold.
- Parties: This deed is drafted on the basis that there are two individuals jointly owning the property, however it can be amended to represent up to four individuals.
- Background: These statements should take into account the individual circumstances of each transaction and should be amended accordingly.
- Declaration of trust: The suggested wording which falls within the set of square brackets around the first paragraph allows the tenants in common to state a specific percentage of their beneficial interests in the property. The included optional wording also allows for severance of a joint tenancy.
The suggested wording which falls within the set of square brackets around the second paragraph (as well as clauses 3, 4 and 5) should be used if the tenants in common wish to set out a way of calculating each person’s proportions (in respect of how much of the property each person owns). Please note that the calculation which has been inserted is a suggestion and can be altered to suit the needs for each set of beneficiaries.
You should further note that the sections which are contained within square brackets at clause 1.1, have been inserted for the purposes of the above mentioned calculation as has Schedule 1.
- Registration: If a declaration of trust is being made after there has been a severance of a joint tenancy, then a form A restriction should be applied for. An application for such a restriction should not be necessary if the parties already hold the property as tenants in common (there should be a restriction on the register already).
If there are limitations which are placed on the trustees’ powers in the declaration of trust, a form B restriction will also need to be applied for.
Note that the registration of the above mentioned restrictions applies to registered land. If the property is unregistered, co-owners could confirm their agreement to endorse a memorandum of the declaration of trust on the relevant lease or conveyance. This should encourage a buyer to be aware of the need to pay purchase monies to all trustees.