5 - Co Ownership: Solving Disputes Flashcards
What is an implied trust?
If two parties contribute to the purchase but only party A is registered proprietor, party B would have to prove their contribution for equity to accept that a trust exists and a beneficial interest arises, resulting in co-ownership.
When does a resulting trust arise? Give case law example
Type of implied trust. Arises where a party makes payments towards the acquisition of the property but isn’t noted on the register. Bull v Bull
How is the presumption of resulting trusts rebutted?
Evidence to the contrary such as the contribution being a gift
What is shown by Curley v Parkes about the difference between resulting and constructive trusts?
If contributions are to mortgage payments or expenses after purchase (rather than to the purchase itself) a resulting trust will not arise but a constructive trust will
When will a constructive trust arise?
Type of implied trust. Arises in land where there is an express common intention or an inferred common intention of shared ownership. In both cases, the party claiming interest must show they acted in reliance on the promise to their detriment.
What is a case law example of an express common intention resulting in a constructive trust?
Eves v Eves, land was purchased in one party’s name but agreed would have been both parties in different circumstances (age). Claimant contributed financially to household/upkeep to their detriment.
How can a party show inferred common intention to result in a constructive trust?
Party must show a greater degree of contribution than simply household expenses to prove that common intention should be inferred. Contribution should be directly towards acquisition or referable to acquisition (Lloyds Bank plc v Rossett)
As well as financial contributions, what 7 other factors did the House of Lords list as considerations to determine parties’ intentions when quantifying shares of a constructive trust (Stack v Dowden)?
1 - nature of relationship 2 - advice/discussions at time of transfer 3 - purchase purpose 4 - children 5 - how couple arranged finances 6 - how outgoings paid/divided 7 - personality of parties
Who holds the equitable interest in resulting and constructive trusts?
The beneficiary/ies unless it has been overreached by sale by 2+ trustees
What is provided in s12 TLATA 1996 in relation to the rights of beneficiaries?
A beneficiary will have a right to occupy where the purpose of the trust includes making the property available for the beneficiaries occupation
What is provided in s11 TLATA 1996 in relation to when trustees must consult beneficiaries?
Trustees must consult beneficiaries when exercising any function relating to the land unless there is a specific provision in the disposition creating the trust which excludes it.
How does s14 TLATA 1996 allow disputes to be settled between co-owners?
Anyone with an interest in the trust can apply to obtain a court order for sale, and also prevent a sale by trustees .
What 4 factors must the court consider under s15(1) TLATA 1996 when deciding whether to grant an order for sale?
1 - intention of persons creating trust
2 - purposes the property is held for
3 - welfare of any child occupying the land (or reasonably expected to) as their home
4 - interests of any secured creditor or their beneficiaries
