Why it's hard to challenge
The courts have said many times that when owners write down their shares, that settles it. In Goodman v Gallant (1986) the Court of Appeal held that an express declaration of the shares is conclusive. In Pankhania v Chandegra (2012) it refused to look behind a written declaration for a different "common intention" based on how the owners had behaved.
That's the point of having one. Without it, the court has to work out what you intended from years of behaviour, payments and messages. With it, the answer is on paper.
When it can be challenged
The main grounds are fraud, where one owner lied to get the other to sign, and undue influence or duress, where one was pressured into it. A genuine mistake also counts: if the deed doesn't say what you both agreed, say a typing error in a percentage, a court can correct it.
It's also open to attack if it wasn't signed properly, for example one owner never signed or the witnessing was skipped. And a later agreement you both acted on can sometimes change things, which is why changes belong in a new signed deed rather than a conversation.
Situations that override it anyway
If you marry and later divorce, the family court can divide your property differently. The declaration will be taken into account, but it doesn't bind the court.
Bankruptcy is the other. If one owner gave away a bigger share than they needed to and went bankrupt within a few years, the trustee in bankruptcy can sometimes challenge that as a gift at undervalue.
How to make yours hard to challenge
- Make sure you both read it and agree before signing. Nobody should feel rushed.
- Each of you should have the chance to take independent advice, even if you choose not to. Good declarations say so.
- Sign it properly, in front of an independent witness. Our signing guide covers this.
- Check the amounts against your completion statement.
- If things change, sign a new deed rather than relying on a conversation.
Sources
- Law of Property Act 1925, section 53
- Trusts of Land and Appointment of Trustees Act 1996, section 14