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Jun, 2017

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  1. #1

    Default Deed of Trust - template and process?

    Evening all,

    We have purchased an auction property which we are refurbing to sell and we borrowed a sizeable chunk on cash from a friend in order to buy the house (he is not named on the deeds).

    As security for him I have offered to add some form of restriction so I can't sell the place without paying him his money back. The most simply way seems to be a Deed of Trust.

    Has anyone used these before and could talk me through the process?

    Easy to find websites that'll sell you one for £200 but I'm guessing it's a really simple 2-pager signed by all parties? (hopefully anyway!)

    Thanks in advance

  2. #2
    Join Date
    Feb 2014
    Location
    Midlands
    Posts
    12,525

    Default

    What your friend needs is a charge on the property - like a mortgage lender places on a title deed for the same purpose.
    That needs a conveyancer or solicitor and will cost a few hundred quid.
    The charge would simply prevent your attempt to sell the property because you couldn't complete the transaction.

    A deed of trust could make a similar agreement, but there's nothing to stop you breaking it and forcing your friend to try and sue for non-compliance.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

  3. #3
    Join Date
    Aug 2008
    Posts
    5,349

    Default

    Registering a charge against the property title record held at Land Registry is the best for your friend.

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