1. When buying a property jointly, whether as your home or as an investment, all parties need to form
a Declaration of Trust, also known as a Trust Deed. This is a kind of statement that makes it clear
how much property is owned by whom, and the contributions made by each person at the time of
the purchase. It should also set out their responsibilities regarding maintenance and giving notice
to sell should the relationship break down or following the death of one party.
There are two different ways in which property can be owned jointly – Joint Tenants or Tenants in
Common. It must be your decision how you wish to hold the property, but it is important to note that
even if you decide to become joint tenants, it can be ‘severed’ at any time and turned into a
tenancy in common.
Joint Tenants – if you hold the property as joint tenants, both of you will own the whole of the
property. You will not each have a quantified share in the property and will not be able to leave a
share of the property in your Will.
If you sell the property, or if you separate, it will be presumed that you both own the property
equally, regardless of your respective contributions to the purchase price. On the death of one co-
owner, their interest in the property would automatically pass to the remaining co-owner without
any further action. The surviving co-owner would then own all the property and on their death it
would form part of their estate. This is known as the ‘right of survivorship.’
Married couples or those in a civil partnership commonly use this means of co-ownership because
the right of survivorship makes it straightforward to inherit each other’s shares in the property.
However, there may be reasons not to become joint tenants. For example, if one of you has made
a large contribution to the purchase price of the property, you may want this to be recognised if the
property is sold or if you separate. Further, it would be unsuitable if you have family from an earlier
marriage or relationship and wish to leave interest in the property to them, instead of it passing to
the co-owner.
Tenants in Common – if you hold the property as tenants in common, each of you will have a
specified share in the property. Your shares may be equal, but they do not have to be.
Your share of the property can be passed on to another person, either during your lifetime or under
your Will. If you do not have a Will at the time of your death, then your share will pass in
accordance with the rules of intestacy.
Holding the property as tenants in common may be appropriate if you have children from a
previous relationship, and would prefer them to inherit after your death, rather than the co-owner.
Holding the property and tenants in common in unequal shares may be desirable if you have made
unequal contributions to the purchase price of the property.
Declaration of Trust – when buying a property with another person, particularly if you are tenants
in common, it is advisable that you should sign a Declaration of Trust. If there is a mortgage on the
property, the Trust Deed should provide for this to be paid off before dividing the sale proceeds –
or, if one party is to be responsible for all or part of the mortgage capital payment out of their share,
then this should be stated in the Trust Deed. The Trust Deed should also go on to define the
proportions in which the joint owners would make the mortgage payments.
You may also wish to consider whether the document should contain a right of first refusal in the
event of one party wanting to dispose of their share in the property. This is called a right of pre-
emption. The arrangement would be that if one party wished to sell the property, they would first
give notice of this intention to the other parties who would have the right to buy that person’s share
at market value.

2.  Rukhsanah Haroon is a residential property specialist at Newcastle law firm Sintons. To
speak to her about this or any other matter, contact 0191 226 7924 or
Rukhsanah.haroon@sintons.co.uk