Thanks for your question. I will try to help.
There is technically no legal requirement that a declaration of trust must be registered at land registry.
If the declaration of trust is between the registered proprietors of the property and not with a third party non-registered proprietor, then the land registry title should have the restriction noted on it which indicates that the property is held as “tenants in common” though.
If the declaration is with one or more of the registered proprietors AND a third party non-registered proprietor the non-registered proprietor will want the declaration of trust noted on the land registry title in the form of a restriction.
This is so that other people when checking the ownership of the property will be aware of the interests and that any buyer of the property and their solicitors in the future are also aware (and so won’t agree to a sale unless the money due in the declaration is paid and the restriction removed.)
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If the partner/builder is not on the registered title:
1. the Agreement should be registered on the title for the property as an Agreed Notice
2. the declaration should be registered with a restriction once it has been executed.
Both of these would be for the partner/builder's benefit.
Please remember to leave postive feedback..Tom
If the agreement itself states that the partner does not have an interest until the works are complete and the declaration signed, then the registering of the notice does not give the person a 5050 interest. It just notes there is a contract in respect of the property to provide a FUTURE interest.
A person does not get an 50:50 interest by nothing the agreement (ie. the contract, not the declaration of trust) as a notice on title. It just means there is a contract which relates to the property.
When the agreement is signed, register it with an Agreed Notice.
When the declaration is subsequently signed upon completion of the works, then register the Declaration as a Restriction.
Please remember to leave positive feedback.Tom
You're welcome, Duncan.
Please leave feedback.Tom