Terms & Conditions

[Jacqui Fowler]

Does anyone know if a deed of trust automatically ends if ownership of the property is legally transferred from the legal owner to the benficial owner named on the deed of trust

Property purchased by tenant in 2002
his brother paid for the purchase outright and a deed of trust was drawn up in 2004 to protect his interest. THis said the former tenant could continue to live in the property rent free as long as he wished.
Then legal ownership was transferred to the brother in October 2005
In January 2006 a tenancy agreement was created and we have refused benefit because the deed of trust said he could live there rent free for as long as he wished. Also he was the previvous owner of the property within 5 years and we have no evidence that he had no alternative than to transfer ownership to remain in the premises.

They are now saying the deed of trust no longer existed from the date ownership of the property transferred. When this happened his right to live in the property end free also ended.

THere is no documentation that the deed of trust has come to an end.

Any views please

[petedavies]

I’m not convinced that the deed has been extinguished.
The legal ownership may have changed but the same may not be true of the beneficial ownership. I suspect that this is where the right to live rent free comes from.

Couple of questions that may be pertinent – Why was the legal ownership transferred, was any payment made as a result of the transfer? Why did the brother pay for the place in the first place. Why the delay between purchase and setting up the trust?

Also were there any riders on the trust (e.g. but only as long as the brother was the legal owner?).

I’d probably think about the the motives for the tenancy agreement itself

[Jacqui Fowler]

No valid explanation as to why the delay in creating the trust. The borther paid for the porperty so that the tenant could get onto the housing market, he could not get a mortgage himself.

The is no limit in the deed of trust it simply says he could live there rent free as long aas he so shall wish.

The appellant said he had to transfer ownershp because he was unable to keep to the agreement he made with his brother to pay the interest he lost as a result of forking out for the purchase of the property. Ownership was transferred and no money exchanged hands. All in all the brother managed to obtain a cheap house as the period that you have to repay some of the discount had just expired.

I just don’t know if the right to live their rent free as stated on the deed of trust is extinguished on transfer of the property.

[Jacqui Fowler]

No valid explanation as to why the delay in creating the trust. The borther paid for the porperty so that the tenant could get onto the housing market, he could not get a mortgage himself.

The is no limit in the deed of trust it simply says he could live there rent free as long aas he so shall wish.

The appellant said he had to transfer ownershp because he was unable to keep to the agreement he made with his brother to pay the interest he lost as a result of forking out for the purchase of the property. Ownership was transferred and no money exchanged hands. All in all the brother managed to obtain a cheap house as the period that you have to repay some of the discount had just expired.

I just don’t know if the right to live there rent free as stated on the deed of trust is extinguished on transfer of the property.

[Author]

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