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Scottish Trust Deed Forum
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Topic starter
20/02/2013 11:35 am
Hi, I just wanted some advice on something. When I signed the papers for my trust deed,it stated in them that there was noo equity to be realised from the property. Now they say that there was, even though its through a retrospective valuation. Can they still pursue me for money even thought the papers were drawn up byy trustee, signed by me and accepted by creditors when they listed no equity expected?
20/02/2013 11:57 am
Hi Kerry
It depends on the agreement, wording and valuation at the start. If a valuation was carried out and it was assessed that there was no equity and that no further valuation would be carried out then the Trustee cannot alter the position.
If the paperwork was signed based on estimates still to be decided, then he can have this revalued. It is the reason why it is extremely important to have all valuations or agreements re equity carried out beforehand.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
20/02/2013 1:10 pm
Hi Kerry,
I would also advise you to revert carefully to the initial Trust Deed proposal, the figures and any engagement letter you will have received.
The Trustee should have clearly set out the plan for dealing with equity (or renunciation fees in absence of any equity). Sometimes Trustee's may ask for a renunciation fee to be paid within a certain timescale. If this does not happen it can leave them the option to re-visit valuations and redemption figures down the line and unfortunately if it has not been dealt with, and there is now equity they may pursue this for the benefit of your creditors.
It should be easy to determine from your initial documents however, what was agreed.
Many Thanks
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