Can You Cancel a Deed of Trust?
Key Takeaways
- You can cancel your deed of trust by getting a deed of surrender in place. This is a legal document which can be used to waive a previous deed or contract between multiple parties.
- You can't cancel a deed of trust without the consent of all parties named within the deed.
- The previous legal document is usually replaced with a new deed or lease contract and it can sometimes condition you to get additional supporting documents.
- A deed of surrender will help if you're wondering whether or not can you cancel a deed of trust. However, this type of document can also be used in different contexts, whether it's as a deed of surrender of lease or for surrender of tenancy rights.
A deed is a very formal legal document that, once signed and witnessed, cannot be changed or surrendered without a formal process to be followed. You most commonly cancel a deed of trust when you:
- Sell the Property - The solicitor for the seller ensures the terms of the deed have been met to allow for the restriction to be removed on completion.
- Transferring from Tenants in Common to Joint Tenants - Often unmarried couples will surrender their deed of trust and register their home as joint tenants. Read more: Joint Tenants vs Tenants in Common: Pros and Cons
- Transfer due to break up - Where a party moves out and they are paid for their share of the property, the remaining party will need to cancel the deed of trust and remove the Form A restriction. Read more: How Does The Transfer of Equity Process Work? and How can I handle a property dispute?.
Whilst you can cancel a deed, you'll need to follow a set process to make sure the terms of the deed have been adhered to, and complete the required Land Registry Forms to remove any restrictions on the title of the property that relate to the deed.
You may even want to cancel one deed and replace it with another deed which reflects changes to the terms, ownership or beneficial interest. We explain the process for the above in the article below, including the cost to cancel a deed of trust.
How legally binding is a deed of trust?
Deeds of Trust are generally used by unmarried couples who are not protected by matrimonial home rights. We discuss deeds of trust and when you should get them, even if you're married, here - Deed of Trust.
As long as your deed is properly executed, it is legally binding and it can stand up in court.* So how can you cancel a deed of trust? You can amend it with a deed of variation or a surrender your rights under your old deed with a deed of surrender, freeing you to make a new one in alignment with your current intentions.
Can a deed of trust be revoked?
Revoking is the same as cancelling so yes, you can revoke your deed of trust by getting a deed of surrender in place, which will cancel ("surrender") any terms stated in your pre-existing deed. Your solicitor will help with this and you can subsequently get a new deed of trust drafted.
What is a deed to surrender?
A deed of surrender is a document drafted between two parties in order to make amends to any pre-existing legal agreements between the two. Getting this document would mean that both parties are willing to relinquish their interests and obligations under the previous agreement.
With your deed created, you can negotiate in order to reach a new agreement.
In some cases, you might be conditioned to get additional supporting documents. For example, Form A Restrictions are applied to protect beneficial owners and they usually come into effect when deeds are executed. This is often the case with Deeds of Trust or Deeds of Assignment. If you wish to surrender the pre-existing deed, you will need this restriction removed. This, in turn, will condition you to provide the following forms:
- RX3 Form - if you wish to cancel a restriction on your property
- ST5 Form - a statement of truth which supports the RX3 Form
How do you recognize a Form A restriction?
- A
"No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court."
How much does it cost to cancel a deed of trust?
The cost will vary depending on how complex the deed is and the reason for cancelling. Here are some examples of costings:
- Selling - The seller's solicitor will charge to review the deed and distribute the proceeds of sale in accordance with the terms of the deed. This costs between £180 to £500 INC VAT.
- Tenants in Common to Joint Tenants - The solicitor will charge to review the deed, draft the ST5 and RX3, submit to the Land Registry and handle any replies. This will cost between £299 to £500 INC VAT.
How long will a Trust Deed usually last for?
Once drafted, signed, witnessed and dated, the deed of trust is a formal legal document which is valid until further changes are done or the property is sold. These changes, however, can only be done through either a deed of variation or a deed of surrender.
Are you trying to cancel your deed of trust?
If you need advice on your situation, you can contact us and a member of our team will guide you on this matter.
Frequently Asked Questions
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