Buying a home is the single most important financial transaction in anyone’s lifetime.

Oxfordshire property prices remain high, and, more often than not, that purchase is made with someone else.

It is surprising to lawyers how many people, particularly when they are not married, do not consider in advance how to deal with the situation when one person decides they want to sell or move out or how their shares are to be worked out when that occurs.

When two people buy a property who are either married, in a civil partnership or a long term co-habiting relationship, or indeed are contributing equally to the price, the proper way of holding the property would usually be as joint tenants.

The presumption in these circumstances is that they own the property jointly and equally, and one takes the whole of the property should the other one die. It also means one person can oblige the other to agree to a sale.

However, there are a large number of different circumstances when this would not be right; such as when a property is purchased jointly by friends or by people who have been in a relatively short relationship, or where people are not contributing equally.

In these circumstances they should make it clear to the legal advisers that they intend to purchase the property as “tenants in common” and that they want their respective shares defined by what is called a Declaration of Trust.

A Declaration of Trust is an arrangement of trust between people, so that in the event of the relationship ending, the division of the proceeds of sale and what is to be done to the property is beyond dispute.

It is also important to note that if the property is held as Tenants in Common, the share of the deceased co-owner will pass in accordance with their will or the laws as to Intestacy or in accordance with the terms of the Declaration of Trust.

The Declaration of Trust should make it clear what shares the benefit of the property is held in. It can be viewed as a tidying-up exercise so that the people can be clear about what is intended and also clear as to what might happen if the trust breaks down.

It can state a minimum or a maximum period before the property is sold.

If one person has paid a large deposit and the other has contributed more to the mortgage the trust will set out how their shares are to paid back.

The Deed is there to clarify what that financial relationship is and to be relied on in case it breaks down, or a third party intervenes, for example, a Trustee in Bankruptcy or the Inland Revenue.

What you want is certainty. It is lack of certainty that results in legal action and provides work for lawyers.

Better to pay for a professionally-drawn Deed of Trust (likely cost no more than £250 plus VAT) at the outset.

Please contact me on 01865 770111 if you need advice or help with housing legal issues.

John McNulty is head of litigation at Turpin & Miller and specialises in disputes involving property.

He joined the company in 2005 having previously run his own firm in London for 13 years.

John will be joined in writing regular articles for the Oxford Mail by colleague Emily Boardman, one of T&M’s partners and head of the family department.

She undertakes any complex family case but specialises particularly in representing parents and children in cases involving social services.

If you have a legal question for her or John ring 01865 770111 or email eboardman@turpinmiller.co.uk or jmcnulty@turpinmiller.co.uk