Ch 06 - Trusts of the Family Home Flashcards
How do courts determine ownership of a family home when there is no express trust?
Courts may imply a trust using either a resulting trust (based on monetary contributions at the time of purchase) or a common intention constructive trust (based on the intentions and conduct of the parties).
What is the difference between a resulting trust and a common intention constructive trust?
A resulting trust is based on the monetary contributions made during the purchase, while a common intention constructive trust is used when there’s no express declaration of ownership and is based on the parties’ common intention and actions.
How does a resulting trust work in property disputes?
A resulting trust tracks monetary contributions made at the time of purchase (e.g., deposit) to determine ownership. Post-purchase payments (e.g., mortgage) don’t alter the beneficial ownership.
What are the two key elements needed to establish a common intention constructive trust?
The two elements are: 1. Common intention that both parties would have an interest in the property (expressed or inferred). 2. Detrimental reliance, meaning the partner claiming an interest acted to their detriment based on the common intention.
What kind of contributions can establish a common intention constructive trust?
Both monetary contributions (e.g., deposit, mortgage) and non-financial contributions (e.g., childcare, housework) can establish a common intention constructive trust.
How does the court determine the size of each partner’s share in a family home under a common intention constructive trust?
The court considers: - Express agreements (e.g., a draft declaration of trust). - The course of dealing between the partners and factors like fairness.
What is proprietary estoppel, and how does it relate to property disputes?
Proprietary estoppel prevents a person from going back on a promise about property when it would be unfair to do so. It is similar to a common intention constructive trust but based on assurances regarding property.
What must be established to prove proprietary estoppel?
To prove proprietary estoppel, the claimant must show: 1. Assurance (a promise or representation regarding property). 2. Detrimental reliance (acting to their detriment based on the assurance). 3. A connection between the assurance and the detriment suffered.
What remedy can the court provide under proprietary estoppel?
The court can award an equitable share in the property or financial compensation for the detriment suffered, aiming to achieve a fair and proportionate outcome.
What is the key difference between common intention constructive trust and proprietary estoppel?
While both involve assurances and detrimental reliance, common intention constructive trust is based on the parties’ shared intentions regarding property ownership, whereas proprietary estoppel focuses on preventing unfairness when someone goes back on their word about property rights.
