Constructive Trusts

Question 1

Trustee

Answer 1

LEGAL TITLE

owes duties to beneficiaries when exercising responsibilities

Question 2

Beneficiary

Answer 2

EQUITABLE TITLE

has certain rights in property e.g. Right to use,enjoy and OCCUPY property

Question 3

What does equity do?

Answer 3

Common law only recognised the legal title holder and so equity intervened where this was UNCONSCIONABLE + recognised property could be held by TRUST for benefit for another

Question 4

Section 12 and 13 TLATA 1996

Answer 4

Occupation

Govern rights to occupy property by beneficiaries who are not legal owners

–> pre TLATA this depended on purpose and actual occupation

Question 5

S.12 TLATA 1996

Answer 5

Beneficiary occupy ANY TIME if:

> purpose of trust was to provide land for beneficiary to occupy

> the land is available and suitable for occupation

Question 6

S.15 (1) TLATA 1996

Answer 6

Whether land should be sold:

Courts regard-

A) intention of settlor
B) purposes of trust
C) welfare of minor occupying land as their home
D) interests of secured creditors of any beneficiary

Question 7

4 UNITIES

Answer 7

AG securities v Vaughan and Others 1990

• TIME
• TITLE
• INTEREST
• POSSESSION

Question 8

Joint tenants

Answer 8

Legal title where there are no shares

All joint tenants own the land jointly

All 4 unities present

Question 9

Tenants in Common

Answer 9

EQUITABLE TITLE

unequal contributions= rebut presumption of joint tenants BULL V BULL 1955

Separate undivided shares

Possession present- each co owner is as much as entitled as the other to possession of any part of the land