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Purchase Money Deed Of Trust Template for England and Wales

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Key Requirements PROMPT example:

Purchase Money Deed Of Trust

"I need a Purchase Money Deed of Trust for a commercial property purchase in Manchester, with a loan amount of £2.5 million and three-year term starting March 2025, including specific environmental compliance provisions due to the property's previous industrial use."

Document background
A Purchase Money Deed of Trust is commonly used in England and Wales when a property purchase is financed through a loan. This document is essential when the purchase money lender requires security for their loan and prefers the trustee arrangement over a traditional mortgage. It provides detailed specifications of the property, loan terms, repayment schedules, and default remedies. The document is particularly important as it protects the lender's interests while allowing the borrower to use the property, with the trustee acting as an independent party holding legal title until the loan is repaid.
Suggested Sections

1. Parties: Identifies the Lender, Borrower, and Trustee with their full legal names and addresses

2. Background: Details of the loan and property being secured, including the purpose of the deed

3. Definitions: Key terms used throughout the deed including Property, Secured Obligations, Security Period

4. Grant of Security Interest: Creation of the trust and security interest, including the formal declaration of trust

5. Property Description: Detailed legal description of the secured property including title number and address

6. Payment Terms: Loan amount, interest rate, repayment schedule and payment obligations

7. Borrower's Covenants: Obligations of the borrower regarding property maintenance, payments, and compliance with laws

8. Default Provisions: Circumstances constituting default and remedies available to the lender

9. Power of Sale: Trustee's power to sell upon default and the process for exercising this power

Optional Sections

1. Insurance Requirements: Detailed insurance obligations and minimum coverage requirements when specific insurance terms need to be included

2. Assignment Provisions: Rules and procedures for transferring interests in the property or the loan

3. Environmental Provisions: Environmental obligations and warranties for commercial properties or those with environmental concerns

Suggested Schedules

1. Property Schedule: Detailed property description including plans, boundaries, and any existing encumbrances

2. Payment Schedule: Detailed payment terms, amortization schedule, and interest calculations

3. Title Documents: Copies of relevant title documents, searches, and certificates

4. Insurance Schedule: Specific details of required insurance coverage, amounts, and providers

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Law of Property Act 1925: Primary legislation governing the creation and operation of trusts of land, and setting out requirements for legal estates and interests in land

Trustee Act 2000: Defines trustees' powers and duties, and sets out investment and delegation requirements for trustees

Land Registration Act 2002: Establishes requirements for registration of charges and determines priority of interests in registered land

Law of Property (Miscellaneous Provisions) Act 1989: Outlines requirements for execution of deeds and formal requirements for creating interests in land

Land Registration Rules 2003: Sets out procedural requirements for registration and specifies forms and documentation requirements

Financial Services and Markets Act 2000: Relevant when trust involves regulated financial activities

HM Land Registry Practice Guidelines: Practical requirements and procedures for land registration and documentation

Common Law Trust Principles: Established case law and principles regarding the formation and operation of trusts

Equitable Principles: Fundamental principles of equity that govern trust relationships and remedies

Consumer Protection Legislation: Applicable when the property involved is residential, protecting consumer interests in property transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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