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Please can someone explain this to me?

(10 Posts)
littletreasure2017 Thu 07-Mar-19 20:48:52

Not an aibu but posting here as didn't know where else to post- what does deeds of trust mean when buying a house? Xx

Cherrysoup Thu 07-Mar-19 20:52:38

Presumably similar in the U.K. Don’t you have google?.
Image result for deeds of trust
DescriptionIn real estate in the United States, a deed of trust or trust deed is a deed wherein legal title in real property is transferred to a trustee, which holds it as security for a loan between a borrower and lender. The equitable title remains with the borrower. Wikipedia

TulipsTulipsTulips Thu 07-Mar-19 20:53:41

OP are you buying as tenants in common or as joint tenants?

TulipsTulipsTulips Thu 07-Mar-19 20:55:39

If you buy as tenants in common and will have a share that is not 50/50, then your share will need to be set out in a deed of trust.

FromageRay Thu 07-Mar-19 21:00:35

We had one for our first house purchase as the deposit came from BF. The deed stated that if we sold the house he would be entitled to the first x% with the remainder being equally split.

littletreasure2017 Thu 07-Mar-19 21:25:34

We have brought I think we are tenants in common xx

littletreasure2017 Thu 07-Mar-19 21:31:42

What's the difference between tenants in common and joint tenants xx

elizzza Thu 07-Mar-19 21:51:35

Tenants in common - A and B each own 50% of the property. If A dies, her 50% passes to whoever inherits her estate, which may be a child or a sibling rather than B.

Joint tenants - A and B own 100% of the property jointly. If A dies her share automatically passes to B, whether or not B is entitled to inherit any of the rest of A’s estate.

If you want to record something other than one of those default positions - so for example if you want to own as tenants in common with a 60/40 split, or if B’s parents loaned them money to buy the house and expect it to be repaid if the house is sold, then you record those circumstances in a deed of trust.

littletreasure2017 Thu 07-Mar-19 21:56:16

Thankyou for your reply!! I understand it now!! Can it be changed to joint tenants in the future ? Or will it stay tenants in common? Xx

Merryoldgoat Thu 07-Mar-19 22:16:13

You can change to joint tenants in the future - your solicitor will do it.

We bought our first property as tenants in common with a deed of trust showing 55/45 split. We were going to change it after 5 years but decided to move instead.

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