Hi yellowdebs,

Do you jointly own the property with your husband? If you do jointly own the property and it is sold then your full half share of the net free proceeds will be ingathered into the Trust Deed. Effectively you would lose your share of any money that was made.

When you sign a Trust Deed a notice is placed on the register of Insolvencies and also an Inhibition is placed against you. The Inhibition prevents you from selling or transferring a property. The solicitor that deals with the sale is required to make certain checks and it should bring up the fact that you have signed a Trust Deed. It's then that the solicitor will need to notify the Trustee about the sale. It's only at the point the solicitor would be concluding a sale that the issue would come to light.

Is there a reason that you want to sell the property which in the Trust Deed?

Hi yellowdebs

In a Trust Deed the Trustee normally send out Form 13 to the register of Scotland and this is recorded against the person as opposed to a specific property.

So before conclusion of a sale, the solicitor is required to check the Register of Inhibitions and Adjudications to check if there are any notices against the individual's name and not even necessarily at that address. If not then the property can be sold with clear title. In sequestration the recording is automatic on an award of sequestration.

It must be a helluva job when people called John Smith try and buy a property and they need to cross check all the John Smiths in Scotland!

Mark

Thanks Mark

I did wonder how they would know about every property someone may have (we only have one)

The property is in joint names and there is little or no equity. We were looking to get something smaller and would always run this past the trustee for their guidance.

Thanks again. the site is great.

Hi yellowdebs

No problem. It always sounds a lot more complicated than it actually is, usually by solicitors over complicating matters.

Generally a Trustee is there to safeguard assets and this is just one way.

Mark

Hi Mark

I meant to ask what would happen if we left the property and moved into smaller rented accommodation. There are no mortgage arrears or anything at present.

Moving would allow us to reduce a lot of expenses as the heating bills etc are particularly high. Would the bank pursue for arrears.

Hi yellowdebs

If both of you were in the trust deed, then the bank would normally commence repossession proceedings after about the 3rd missed payment and eventually seek to take possession of the property and sell this. Any shortfall would be a claim under the trust deeds and they would be unable to pursue you independently of this.

If your husband was not in a trust deed, then they would submit a claim for you, but could pursue your husband for any arrears, recovery costs, sale costs etc.

Another key thing to remember is that you would remain responsible for Council tax unless you had exemption once moved out and also factors fees if you have factors for the property. You would not be exempt from factors until the bank had possession of the property.

Mark