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Questions and Answers
What is a key feature of constructive trusts?
What is a key feature of constructive trusts?
Which case emphasized the shift towards constructive trusts in family home scenarios?
Which case emphasized the shift towards constructive trusts in family home scenarios?
In the context of joint tenancy, what is necessary for a sale to occur?
In the context of joint tenancy, what is necessary for a sale to occur?
What does the 'whole course of dealings' consider in establishing a constructive trust?
What does the 'whole course of dealings' consider in establishing a constructive trust?
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Under what condition does overreaching occur in property transactions?
Under what condition does overreaching occur in property transactions?
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What is the primary legal principle regarding beneficial interests and purchasers once overreached?
What is the primary legal principle regarding beneficial interests and purchasers once overreached?
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When can a spouse be treated as having an enlarged share in beneficial interest according to the Matrimonial Proceedings and Property Act 1970?
When can a spouse be treated as having an enlarged share in beneficial interest according to the Matrimonial Proceedings and Property Act 1970?
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What was a significant change brought by the TLATA 1996 regarding co-ownership?
What was a significant change brought by the TLATA 1996 regarding co-ownership?
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What does Bevan imply about land law's approach to family home disputes?
What does Bevan imply about land law's approach to family home disputes?
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In the context of joint tenancy and sole ownership, which characteristic best distinguishes joint tenancy?
In the context of joint tenancy and sole ownership, which characteristic best distinguishes joint tenancy?
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Miss Jones was awarded a 70% share of the property after the court's decision.
Miss Jones was awarded a 70% share of the property after the court's decision.
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Mr. Kernott made continuous contributions to the household expenses after moving out in 1993.
Mr. Kernott made continuous contributions to the household expenses after moving out in 1993.
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The court concluded that a common intention to share the property equally was not inferred from the parties' conduct.
The court concluded that a common intention to share the property equally was not inferred from the parties' conduct.
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The presumption of beneficial joint tenancy can be rebutted by evidence of a common intention to share the property equally.
The presumption of beneficial joint tenancy can be rebutted by evidence of a common intention to share the property equally.
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The Supreme Court upheld the High Court's ruling in favor of Mr. Kernott regarding the split of the property.
The Supreme Court upheld the High Court's ruling in favor of Mr. Kernott regarding the split of the property.
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A resulting trust is automatically established when one party pays the entire purchase price of a property.
A resulting trust is automatically established when one party pays the entire purchase price of a property.
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In the case of Pettit v Pettit, Lord Reid clarified that the quantity of interest an individual holds in an implied trust depends solely on the legal title.
In the case of Pettit v Pettit, Lord Reid clarified that the quantity of interest an individual holds in an implied trust depends solely on the legal title.
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The common intention constructive trust is completely unrelated to the financial contributions made by co-owners.
The common intention constructive trust is completely unrelated to the financial contributions made by co-owners.
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Implied trusts are considered an exception to the requirements of LPA 1925 s53, which mandates a written declaration for trusts regarding land.
Implied trusts are considered an exception to the requirements of LPA 1925 s53, which mandates a written declaration for trusts regarding land.
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In the case Dyer v Dyer, the youngest son claimed possession of properties because his father was listed as a joint legal owner.
In the case Dyer v Dyer, the youngest son claimed possession of properties because his father was listed as a joint legal owner.
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Match the legal cases with the principles or concepts they illustrate:
Match the legal cases with the principles or concepts they illustrate:
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Match the legal terminology with their definitions:
Match the legal terminology with their definitions:
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Match the legal principles with the cases that refer to them:
Match the legal principles with the cases that refer to them:
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Match the tests outlined by Lord Bridge with their descriptions:
Match the tests outlined by Lord Bridge with their descriptions:
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Match the aspects of contribution with their significance in constructive trusts:
Match the aspects of contribution with their significance in constructive trusts:
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Match each case with its associated legal principle:
Match each case with its associated legal principle:
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Match each presumption of advancement scenario with the corresponding case:
Match each presumption of advancement scenario with the corresponding case:
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Match each case to whether it applies common intention constructive trust or resulting trust analysis:
Match each case to whether it applies common intention constructive trust or resulting trust analysis:
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Match each statement regarding the establishment of interest under a resulting trust with the correct case:
Match each statement regarding the establishment of interest under a resulting trust with the correct case:
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Match each legal principle to its description:
Match each legal principle to its description:
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Study Notes
Implied Co-ownership
- Implied trusts are exceptions to the Law of Property Act 1925, section 53(1)(b) and (2).
- A declaration of trust respecting land or an interest in land must be evidenced in writing, signed by someone with the capacity to declare the trust, or in a will.
- Implied trusts relate to interests acquired in purchased property, typically a family home, but separate from the Matrimonial Causes Act 1973.
- Family courts have wide powers to adjust property rights during divorce.
- Implied trusts help determine how joint owners split their interests.
Resulting Trusts
- Resulting trusts arise from the case of Dyer v Dyer (1788).
- This situation occurs when one party contributes the full purchase price of property.
- There is a presumption that the contributor retains the beneficial interest in the property, unless rebutted.
- The typical traditional position is that A and B both contribute to the purchase price, although the title is only in A's name.
- B's interest is directly related to their contribution.
- Pettit v Pettit (1970): a party contributing to the purchase price gains an equitable interest in the property and the quantity of interest is proportional to the contribution.
Dyer v Dyer (1788)
- Mr Dyer paid the full purchase price of properties in Wiltshire.
- The properties were registered in joint names of himself, his wife, and eldest son.
- His wife predeceased him, then Mr Dyer died, leaving the properties to his youngest son.
- The youngest son sought to take possession, arguing a resulting trust in his father's favor.
Contribution to the deposit
- Financial contribution to the deposit is sufficient to give rise to a share in a co-owned property.
- Gissing v Gissing (1971): Mortgage payments are enough financial contribution to evidence a common intention to share ownership.
- Curley v Parkes (2004): Mortgage payments alone are insufficient to establish a resulting trust.
- Laskar v Laskar (2008): Mortgage repayments are evidence of a contribution to the purchase price.
Constructive Trusts
- Constructive trusts are the most effective and versatile type of trust for establishing interests in family homes.
- A claimant can establish an interest in a family home by demonstrating a shared intention and detrimental reliance.
- Eves v Eves (1975): Substantial improvements to a property can establish a constructive trust.
- Grant v Edwards (1986): Significant financial contributions to a property can establish a constructive trust.
Stack v Dowden [2007]
- This case emphasized the importance of considering the whole course of dealings when determining the interests of co-owners.
- Rebuttable presumption of equal shares in a jointly named property.
- Courts should consider all circumstances in a given case.
- Parties' actions demonstrate their intentions.
Jones v Kernott [2011]
- Common intention can change over time.
- Equitable shares determined by parties' conduct.
- Whole course of dealings considered.
Overreaching
- Overreaching is a mechanism that allows purchasers of land to avoid or "overreach" equitable interests.
- There needs to be at least two trustees to complete a successful overreaching.
- City of London Building Society v Flegg [1988]: Payments must be made to at least two trustees.
TLATA 1996
- This Act clarifies situations when trusts arise, and clarifies the duties of trustees and beneficiaries, in situations where co-ownership is involved.
- When a co-owner is bankrupt, the trustee in bankruptcy has duties to "get in, realise, and distribute" assets for the benefit of creditors.
- The trustee in bankruptcy takes the assets subject to the rights of other co-owners.
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Description
This quiz covers key concepts related to implied and resulting trusts under property law. It highlights the implications of the Law of Property Act 1925, as well as case law such as Dyer v Dyer (1788). Test your understanding of how these trusts affect co-ownership and property rights in family law.