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Trusts of the Family Home - Coggle Diagram
Trusts of the Family Home
Common intention constructive trusts
Who owns the property?
SOLE owners
At law, the property will belong to the party registered
JOINT owners
At law, the couple will own the property as legal joint tenants
LEGAL ownership
At law, the owner of the property is whoever holds LEGAL title
REGISTERED land this is the person registered as legal owner at the Land Registry
Disputes over ownership
Arise if legal title is NOT representative of the beneficial ownership of the property
2 circumstances
SOLE owner
Legal title is registered in the name of one party only, but the other claims a beneficial interest in the property
JOINT owners
Legal title is registered in the name of both parties, but there is no declaration as to beneficial interest, and it is claimed the parties are NOT beneficial joint tenants
On dissolution of a CIVIL PARTNERSHIP court discretion under the Civil Partnership Act 2004
Legal and equitable co-ownership
LEGAL title only held as:
Sole legal owner
Joint tenants
Legal owners may hold legal title in following ways:
On trust for a SOLE beneficiary
On trust for more than one beneficiary as JOINT TENANTS
As full legal AND beneficial owner
On trust for more than one beneficiary as TENANTS IN COMMON in EQUAL shares
On trust for more than one beneficiary as TENANTS IN COMMON in UNEQUAL shares
On DIVORCE court discretion under the Matrimonial Causes Act 1973 to allocate ownership fairly between parties
NO equivalent statutory provisions applicable to cohabitees or third parties e.g. mortgagee or someone entitled to inherit the estate of one of the cohabitees
EXPRESS trust
Written evidence which satisfies s 53(1)(b) LPA 1925 this will determine beneficial interests in the property
Land Registry TR1 form includes provision for specifying equitable ownership- satisfies s53(1)(b) LPA 1925
Legal owners of land will declare an express trust, NO question of beneficial ownership
NOT completed presumed BENEFICIAL ownership MIRRORS LEGAL ownership
Common intention constructive trust
Court must take an ‘holistic approach’, considering ALL the circumstances before determining whether the beneficial ownership is different to the legal ownership (Stack v Dowden)
Intention can be either:
Express
Based on express statements as to ownership
Inferred
Determined objectively based on circumstances
Common intention constructive trusts allow courts to account for wider range of factors than simple monetary contributions to the home
Purchase money resulting trusts have NO place to play in determining the beneficial ownership of family homes
Stack v Dowden
Involved land held by joint legal owners
A holistic approach should be adopted when determining legal ownership
Proposed that:
Equitable title reflects legal title
A sole legal owner is the sole beneficial owner
Joint legal owners are presumed to be equitable joint tenants
In SOLE legal ownership cases
Individual seeking to establish a beneficial interest will need to establish acquired an interest under a common intention constructive trust
Proof of:
A COMMON INTENTION they should have a beneficial interest
AND DETRIMENTAL RELIANCE upon that intention
In JOINT legal ownership cases
Individual seeking to establish NOT beneficial joint tenants will need to REBUT THE PRESUMPTION with reference to the common intention of the parties
NO need to show detrimental reliance
Court seeking to establish ACTUAL INTENTION whether EXPRESSED or INFERRED based on the ‘whole course of conduct’
INTENTION can be AMBULATORY- beneficial interest can be established, or the presumption of joint tenancy rebutted, AFTER acquisition
QUANTIFY the interests of the parties
Take into account 'the whole course of conduct' to conclude on the appropriate shares
Joint legal owners
Sole legal owners
Proprietary estoppel