You can each own 50% of the property if, when you boughtit, you register it as tenants in common in equal shares.
You will also need a deed of trust which states that theother person holds the rent on trust for you.
If there is no trust, or other agreement to the contrary,when you bought the property, then regardless of what you each put in , eitherat the beginning or in respect of the mortgage, it is split 50-50 when it issold.
The only way you can opt out of paying the mortgage isfor the other person to buy you out or sell the property.
If buying you out is not an option, then the property hasto be sold. Neither party can sell without the other's consent and if neitherparty consents, the other is faced with making an application to court for anorder for sale. Although the reluctant party can be asked to pay court costs.There is little point in having an agreement in respect of your right to sellthe property every three years or five years or when ever because if the otherparty will not sell it, you are faced with going to court.
It doesn't matter therefore, whether you are going tocourt to enforce an agreement to sell or simply going to court to compel him tosell. The proceedings are exactly the same so why not save yourself the cost ofthe opt out agreement?
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if there is a joint bank account, joint signatories and 50/50 split on all monies in and out is there a need for a deed of trust? is a legal agreement adequate without the deed of trust to safeguard the 20K invested by me against my partner defaulting on mortgage payments, and therefore having to sell the property? If so can you do one?
Youwill see that in the third paragraph, I said "If there is no trust, or otheragreement to the contrary,when you bought the property, then regardless of what you each put in , eitherat the beginning or in respect of the mortgage, it is split 50-50 when it issold."
Whichmeans that without a deed of trust, your £20,000 disappears into the pot andyou would lose 50% of it in effect. In fact, if the property ended up innegative equity, you could actually lose it all!
Whetheryou have a deed of trust or a legal agreement makes no difference whatsoever.Because, quite simply, a deed of trust is a legal agreement. It is simply words.
Itis pure the construction of a deed which makes it a deed. Just a legalagreement not drafted as a deed is of the same effect, but there is no pointnot to do it completely properly to be sure.
Thedeed of trust or legal agreement or whatever you do, would need covenants fromboth parties to pay the mortgage to ensure the in the event of the other partynot paying their half (which would leave you totally liable for the wholemortgage), then your payment of their half of the mortgage is preserved in theequity.
I amafraid that we are unable to draft or supply documents on here. Includingattending on you drafting the document and making sure it does everything thatyou want it to do and suggesting that the other party takes independent legaladvice, you are into couple of hours work so expect to pay £300 or so. Plus VAT
Inview of the amount of money involved and the potential risk, it is better toget it drafted properly now rather than have tens of thousands of pounds worthof problems later . A stitch in time as the proverb says.
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Disappointed at the end of the day i new i needed an agreement it was the type of agreement i required,
You offer advise but i am still no further down the road as you cannot do an agreement
You also believe that i bought the house which i did not i was intending to invest in the equity so he could release some cash
Feel i have gone around in a full circle and have been given advise to seek a solicitor!
I'msorry, but we simply do not draft documents because it is beyond the scope ofthe questions and answer website.
Believeit or not, if you both agree what happens upon sale, you don't need anagreement because you have an agreement, a verbal one. It is perfectly bindingprovided you both agree the contents of your verbal agreement. What you want todo is avoid any arguments and hence the formality. Just a simple letter ofunderstanding and agreement between you, signed by you both, is the next step.Ultimately, belt and braces is a deed of trust on which you both take advice fromdifferent solicitors.
Investingin the equity of a house and being responsible for half of the mortgage,however you dress it up is buying a house. If you already own under the houseor he already owned the house, it is still a deed of trust. If you are going,on the title deeds to the house, then it is a transfer deed and a deed of trust,two documents.
Thereason I suggested d seeing a solicitor is quite simply because this could be, if it goes wrong, £10,000 or a £20,000 or £30,000 problem and the solicitor will have professional indemnity insurance in case you need to make a claim against him. I would certainly not suggest that you did a DIY job. Although, provided there is never a falling out a DIY job can be perfectly adequate.
Evenif the solicitor does everything perfectly, you then have a properly drafteddocument in support of the argument with the other party
Incidentally,you do not need the provision to be able to opt out every two or three years because that is an ongoing option for you although it will require both signatures whether you simply want to sell at any time or you have an agreement to sell every two or three or five years or whatever. If he will not sign the contract and transfer deed at that time, and give you your money, you are faced with an application to court, regardless of agreement or not.