All Events of Property Ownership: What to Include in Your Deed of Trust

When two or more people buy a property together, it’s easy to get swept up in the excitement. New keys. New furniture. Maybe even new pets. But beneath the Pinterest boards and paint samples is something far more important: a clear, legally binding understanding of how the property is owned, used, and dealt with — today and in the future.

That’s where a Deed of Trust (also known as a Declaration of Trust) comes in. This document can protect your interests and your investment, especially when things don’t go according to plan — and they often don’t.

In this guide, we’ll break down what “all events of property ownership” means and exactly what you should include in your Deed of Trust to prepare for everything from buying to selling (and everything in between).

What Is a Deed of Trust?

A Deed of Trust is a legal document that records:

• Who owns what share of the property,
   
• How money has been contributed, and
   
• What happens in key life events — such as selling the property, a breakup, or death.
   

While it's not legally required when buying a home with someone, it’s highly recommended, especially if:

• You’re contributing different amounts to the deposit or mortgage.
   
• One person is helping with repayments while the other is not.
   
• Parents or family are gifting or loaning money toward the purchase.

Why Include “All Events” in the Deed of Trust?

Think of the Deed of Trust as your relationship’s insurance policy for property ownership. It’s not just about what happens now — it’s about future-proofing your arrangement.

Including all possible events in your Deed of Trust:

• Prevents future disputes
   
• Speeds up legal processes in the event of a separation or sale
   
• Gives peace of mind to all parties involved (especially those lending or gifting money)

Key Events to Include in Your Deed of Trust

Let’s walk through the key milestones and scenarios your Deed of Trust should cover:

1. Initial Ownership Shares and Contributions

Why it matters:
This section lays out who owns what percentage of the property, based on how much each person contributed toward the deposit, legal fees, stamp duty, etc.

What to include:

• Amount each person paid for the deposit
   
• How legal and other buying costs were split
   
• Whether any money came from third parties (e.g. parents)
   
• If the shares are fixed or changeable over time (see Floating Deed of Trust for variable shares)

2. Mortgage Payments and Running Costs

Why it matters:
Ownership is more than just the deposit — it’s also about who keeps the ship afloat. This section covers day-to-day costs and who shoulders what.

What to include:

• How monthly mortgage payments are split
   
• What happens if one person pays more or covers the other’s share
   
• Who pays for repairs, renovations, and household bills
   
• Whether future contributions affect ownership shares
   

3. Future Gifts, Loans, or Refinancing

Why it matters:
Over the years, more money may be added to the mix — for example, a new partner contributing to renovations or parents helping to pay off the mortgage.

What to include:

• How these new contributions are treated (as gifts or loans)
   
• Whether they adjust ownership shares
   
• Terms for any repayable family loans (with or without interest)
   
• What happens if the property is refinanced

4. Sale or Buyout of the Property

Why it matters:
One of the most common disputes arises when someone wants to sell, and the other doesn’t. Your Deed of Trust should make this process crystal clear.

What to include:

• Conditions under which the property can be sold
   
• Buyout options (how to calculate value, timelines for payment)
   
• How sale proceeds will be split (after fees and repayments)
   
• Any rights of refusal (first offer to existing owner or investor)
   

5. Death of a Co-owner

Why it matters:
This event is often overlooked — but essential. Whether you're friends, siblings, or unmarried partners, you need a plan for what happens when one owner dies.

What to include:

• Whether the share passes to the surviving owner or the deceased’s estate
   
• If there is life insurance involved (and how it affects ownership)
   
• Whether the property must be sold to release funds
   
• Who inherits what, especially if there’s no Will
   

6. Separation, Divorce, or Relationship Breakdown

Why it matters:
Life changes. People change. Having a clean, pre-agreed roadmap for what happens if you split makes everything smoother — legally and emotionally.

What to include:

• Whether one party can force a sale
   
• Whether one party can stay in the property temporarily
   
• How the value of the property will be assessed
   
• Whether a mediator or solicitor must be involved in disputes
   

7. Renting Out the Property or Taking in Tenants

Why it matters:
If you decide to let out the property or part of it (e.g. via Airbnb or lodger), you need to agree on the terms and income split.

What to include:

• Whether all owners must consent to rent it out
   
• Who manages the rental and tenant relations
   
• How rental income is divided
   
• How wear-and-tear or damages are handled
   

8. Renovations and Improvements

Why it matters:
If one owner funds a major renovation, should that increase their ownership share? It’s better to decide upfront.

What to include:

• Whether improvements adjust the ownership ratio
   
• How value added by improvements is measured
   
• How maintenance costs are split
   
• Approval process for major renovations
   

9. Property Value and Capital Growth

Why it matters:
The property may increase (or decrease) in value over time. A good Deed of Trust will clarify whether future appreciation is shared equally or proportionally.

What to include:

• Whether capital gains are split according to original shares or updated ones
   
• How and when property value is assessed
   
• What happens if equity is withdrawn (e.g. for another purchase)

10. Exit Clauses and Dispute Resolution

Why it matters:
Sometimes you just need a clean exit — and a clear way to resolve disagreements.

What to include:

• How a co-owner can exit the agreement
   
• Options for selling, transferring shares, or appointing a new owner
   
• Agreed process for resolving disputes (e.g. mediation before litigation)
   
• How changes to the Deed must be agreed and recorded

Tips for Drafting a Comprehensive Deed of Trust

• Use a solicitor. DIY templates can be risky. A solicitor ensures your document is legally sound and tailored to your situation.
   
• Update it when circumstances change. Like a Will, a Deed of Trust should reflect major life events (marriage, kids, refinancing, etc.)
   
• Be specific. Vague wording leads to confusion — and courtrooms.
   
• Store a signed copy safely. Each party should keep a signed, witnessed copy. You can also register a notice or restriction with HM Land Registry.

Do You Really Need One? (Yes.)

It doesn’t matter if you’re buying with a sibling, friend, partner, or investor — a Deed of Trust:

• Protects your contributions
   
• Minimises legal costs later
   
• Keeps the friendship/relationship intact
   

Especially for unmarried couples, it’s one of the few ways to legally protect your share of the home.

Final Thoughts

When it comes to property, it’s not just about who holds the keys — it’s about who holds the legal and financial responsibility. By covering all foreseeable events in a well-drafted Deed of Trust, you can enjoy the benefits of property ownership with confidence and clarity.

Because it’s not just about today’s excitement — it’s about protecting your future, whatever it may bring.

Need help drafting a Deed of Trust?
VisitParachute Law for affordable, legally sound, solicitor-prepared Deeds that cover every key event — and keep your property plans watertight