Implied trusts of the home and proprietary estoppel Flashcards
Can individual have different equitable rights in the same property?
yes
If the parties have set up an inter vivos express trust can the law impose a common intention constructive trust?
no
Do constructive trusts have formality requirements?
no (unlike an express trust); they are a kind of implied trust
What are the 2 instances in which a common intention constructive trust may arise?
- common intention of parties
shared ownership of the home was intended (impliedly or expressly)
- party claiming ownership has suffered a detriment based on this intention
equity will not assist a volunteer -> need for there to have been a detriment suffered based on the idea that they had rights in the property
What is the main issue which Cs bring where there is a dispute regarding ownership of the home
legal title does not reflect true ownership and that they have rights in the property which should be granted by law.
What are the 2 types of dispute in relation to co-habiting couples
(types of property ownership)
- Joint ownership
- Sole ownership
What rights are afforded to joint tenants
both have legal title
both have equal equitable rights
If there is a joint ownership and a party is claiming that they they ought to have more rights, what 2 steps/ questions must the court ask?
- whether a common intention constructive trust should be set up
- if there should be a CICT, what level of shares should be attributed
When determining whether a common intention constructive trust should be set up in the case of a JT, what must the court establish?
(4 key steps)
(courts basically look to whether C deserves more)
- starting point in the law: JT have 50/50 equitable rights are legal title is joint
- presumption rebutted is strong intention that equitable rights are to be held in a way which is not 50/50 + detrimental. Burden of proof on C.
- court looks for evidence of the common intention + detriment to C based on the intention
- Evidence can be:
a. reason for registering legal title in particular names
b. discussion of parties - express intention
c. purpose of why parties purchase the property
d. nature of the relationship - e.g. agreed to JT to avoid an argument
e. how the house was financed
f. children
g. day-to-day spending arrangements
h. party character
i. division of responsibility for household expenses
What is sole ownership?
property registered in the name of 1 owner holding legal and equitable title.
If a CICT is implied where the property is owned solely, who will be the trustee?
sole owner is trustee
When determining whether a common intention constructive trust should be set up in the case of sole ownership what must the court establish?
(4 steps)
- starting presumption: sole owner has 100% rights
- presumption rebuttable where there is evidence showing common intention that C would also have rights and C suffered a detriment. Burden of proof on C.
- intention can be express or implied. Direct or indirect contributions can be used a s evidence for detriment.
- Court will look to:
a. advice or discussion between parties.
b. reason for registering legal title in sole name
c. nature of relationship.
What is proprietary estoppel?
separate form CICT
gives equitable interest in land to someone who does not hold or share legal title
rationale: enforce justice and fairness over landownership.
When does proprietary estoppel operate?
- A makes promise to B that B will acquire some rights.
- B relies on the promise. (objective test - would a reasonable person believe that A is making a promise he intends to keep for B to rely on?)
- B acts to his detriment on the promise.
- it would be unconscionable for A to depart from that promise.
- PE steps in to grant B rights promised.
Does proprietary estoppel have any formality requirements?
no
(unlike a CICT)
