Chapter 8: Family Home Trusts Flashcards
what are the 3 options available to a claimant if legal title is in one person’s name?
Resulting trust
Proprietary estoppel
Common intention construction trust
what is the presumption for property in joint names?
implied trust of land (hold beneficial interest 50/50)
what is the starting point for any claim on a family home?
resulting trust
when can a person claim a resulting trust in a family home?
Contributed toward the purchase price of the property but title in partner’s name
Legal owner hold on trust for himself and the claimant in shares proportionate to their contributions
what are valid contributions to claim a resulting trust?
Direct contribution to purchase price
Paying mortgage instalments
Discount available to a sitting tenant
what is a sitting tenant?
Tenant currently in possession of the leasehold and depending on type of tenant may be entitled to a discount when buying the freehold.
What is the general presumption of a family home?
Presumed the couple intended to share it EVEN if it is in one person’s name.
what are the requirements of a common intention constructive trust?
Common intention to share - both parties agree that the claimant should have a share in the family home.
Detrimental reliance - claimant must show they acted to their detriment based on the agreement.
what are the types of common intention the court will look at?
evidence of express agreement
conduct of the parties
What are the requirements for common intention?
Oral or written agreement
Before or at the same time as purchase
Claimant must prove agreement
how is a common constructive trust of land different from a normal trust of land?
it can be oral instead of a written agreement
what else can be treated as common intention to share?
an excuse
when will a court usually accept an excuse as common intention?
C acted in detriment on reliance of the excuse
when will the court not accept an excuse as common intention?
if the excuse was for the benefit of the claimant e.g reduce insurance costs
what are examples of detrimental reliance?
Heavy work done on the house
Paying the deposit, purchase price or mortgage instalments
what is NOT considered an act detrimental reliance
contributions to the household running (childcare/ domestic duties)
what conduct is generally found to show common intention?
same conduct as acting in detriment
Initial payment towards the purchase price
Paying mortgage instalments
Heavy work done on the house
what do acts of detriment usually require?
financial contribution or improvement to property to increase value
when will indirect financial contribution be enough to show an act of detriment/ common intention from conduct?
Without C’s contribution to house expenses the legal owner could not have made the mortgage repayments.
what is the effect of proving common intention on C’s claim?
Resulting trust is displaced.
The beneficial interest does not need to be proportionate to purchase price.
The court can AWARD a greater beneficial interest (up to a half share).
How does proprietary estoppel apply to a family home?
Legal owner promised a share or all of family home
Relied on this promise
Acted in detriment
when must a promise be made to successfully claim proprietary estoppel?
before act of detriment
what are the differences between common intuition and
