Co-Ownership - Trusts of Land

Question 1

Express Creation Route 1:
Land is conveyed to 2 or more persons registered as proprietors.
If legal owners are not equitable owners, then the trust has to be manifested and proved by some writing signed by a person able to declare such trust per s. 53(1)(b) LPA 1925

Answer 1

Registered proprietors are joint-tenants.

Question 2

Express Creation Route 2:
Sole owner decides to share equitable interest by making express declaration manifested and proved by some writing signed by some person who is able to declare such a trust per s. 53(1)(b) LPA 1925

Answer 2

In absence of written evidence, and express trust will be valid but non-enforceable per Gissing v Gissing

Question 3

Creation of equitable interest can be valid without writing if: (1) Proprietary estoppel applies; (2) the sole owner is attempting to use statute as instrument of fraud; (3) there is an implied trust, either resulting or constructive

Answer 3

2. Rochefoucauld v Bousted

3. s. 53(2) LPA 1925

Question 4

Resulting Trust:
in quantification cases, and assumed for acquisition cases, that resulting trusts do not apply to domestic context of co-habiting couples

Answer 4

Stack v Dowden, developed by Jones v Kernott,

but conflict with Privy Council in Marr v Collie

Question 5

Presumption that Resulting Trusts apply in commercial/mixed contexts when (1) unequal contributions are made to the purchase price or (2) later financial contributions are made post acquisition

Answer 5

1. Laskar v Laskar

2. Dyer v Dyer

Question 6

Resulting trusts in domestic contexts

Answer 6

Chaudhary v Chaudhary

Question 7

In Resulting trusts, equity presumes the contributors take as tenants in common with share being commensurate to the proportion of the advanced purchase price

Answer 7

Munford v Ash : payment of money or using discount triggers RT

Question 8

Constructive Trusts: presumption that for domestic contexts

Answer 8

Stack v Dowden, developed by Wodzicki v Wodzicki

Question 9

Constructive trusts can also be applied to acquisition cases

Answer 9

Per obiter in Marr v Collie and Abbot v Abbot in Privy Council

Question 10

For constructive trust, there must be common intention between parties and detrimental reliance by party seeking to establish interest

Answer 10

Loyds Bank v Rosset

Question 11

Common intention: (1) Express common intention; (2) inferred common intention (e.g. direct financial contributions), (3) Inferred common intention from entire course of dealing (context is everything

Answer 11

1. Lloyds Bank v Rosset
2. Llloyds Bank v Rosset
3. Stack v Dowden (per Baroness Hale) and Jones v Kernott (children born etc)

Question 12

Detrimental Reliance: court is entitled to assume detrimental reliance in absence of evidence to the contrary

Answer 12

Lord Denning in Greasley v Cooke

Question 13

Forms of detrimental reliance:

1. Opportunities lost by leaving home
2. physically working on land
3. Substantial work on dwelling
4. Substantial contributions to housekeeping and feeding and raising children
5. Financial (i.e. mortgage payments)
6. Staying in property to look after elderly relative

Answer 13

1. Chun v Ho
2. Eves v Eves
3. Ungurian v Lesnoff
4. Grant v Edwards
5. Per Baroness Hale in Stack v Dowden
6. Re Basham

Question 14

Quantification of Resulting trusts:
Parties’ interests are in direct proportion to their respective contributions to purchase price - “equitable accounting” allows credit to be given to person who has paid more of the running costs

Answer 14

Wodzicki v Wodzicki

Question 15

Quantification of constructive trusts:

Court’s endeavours to give effect to common intention (has discretion)

Answer 15

Midland Bank v Cooke

Question 16

Husbands, wives or civil partners may acquire or enlarge a beneficial interest by contributing to the improvement of the property.

Answer 16

Matrimonial Proceedings and Property Act 1970

Question 17

Trust is imposed by s.32 (2) LPA 1925

Answer 17

Known as trust of land (s. 1(1)(a) TOLATA 1996