Law of Property - Implied and Resulting Trusts
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Questions and Answers

What is a key feature of constructive trusts?

  • They require a formal written agreement.
  • They automatically grant equal shares to all parties.
  • They depend on shared intention and detrimental reliance. (correct)
  • They are based solely on financial contributions.
  • Which case emphasized the shift towards constructive trusts in family home scenarios?

  • Pettitt v Pettitt (1970)
  • Stack v Dowden (2007) (correct)
  • Dyer v Dyer (1788)
  • Grant v Edwards (1986)
  • In the context of joint tenancy, what is necessary for a sale to occur?

  • Consent from the legal owner only.
  • A majority vote from the owners.
  • A written agreement signed by all owners.
  • Consent from both parties involved in the ownership. (correct)
  • What does the 'whole course of dealings' consider in establishing a constructive trust?

    <p>Both financial and non-financial contributions and responsibilities.</p> Signup and view all the answers

    Under what condition does overreaching occur in property transactions?

    <p>When equitable interests are satisfied by payment at sale.</p> Signup and view all the answers

    What is the primary legal principle regarding beneficial interests and purchasers once overreached?

    <p>Beneficial interests do not bind purchasers regardless of actual occupation.</p> Signup and view all the answers

    When can a spouse be treated as having an enlarged share in beneficial interest according to the Matrimonial Proceedings and Property Act 1970?

    <p>When the contribution is substantial and there are no contrary agreements.</p> Signup and view all the answers

    What was a significant change brought by the TLATA 1996 regarding co-ownership?

    <p>It introduced greater flexibility and certain family-centric factors.</p> Signup and view all the answers

    What does Bevan imply about land law's approach to family home disputes?

    <p>The law incorporates non-legal factors such as family relationships.</p> Signup and view all the answers

    In the context of joint tenancy and sole ownership, which characteristic best distinguishes joint tenancy?

    <p>Joint tenants have equal rights and survivorship benefits.</p> Signup and view all the answers

    Miss Jones was awarded a 70% share of the property after the court's decision.

    <p>False</p> Signup and view all the answers

    Mr. Kernott made continuous contributions to the household expenses after moving out in 1993.

    <p>False</p> Signup and view all the answers

    The court concluded that a common intention to share the property equally was not inferred from the parties' conduct.

    <p>True</p> Signup and view all the answers

    The presumption of beneficial joint tenancy can be rebutted by evidence of a common intention to share the property equally.

    <p>False</p> Signup and view all the answers

    The Supreme Court upheld the High Court's ruling in favor of Mr. Kernott regarding the split of the property.

    <p>False</p> Signup and view all the answers

    A resulting trust is automatically established when one party pays the entire purchase price of a property.

    <p>False</p> Signup and view all the answers

    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.

    <p>False</p> Signup and view all the answers

    The common intention constructive trust is completely unrelated to the financial contributions made by co-owners.

    <p>False</p> Signup and view all the answers

    Implied trusts are considered an exception to the requirements of LPA 1925 s53, which mandates a written declaration for trusts regarding land.

    <p>True</p> Signup and view all the answers

    In the case Dyer v Dyer, the youngest son claimed possession of properties because his father was listed as a joint legal owner.

    <p>False</p> Signup and view all the answers

    Match the legal cases with the principles or concepts they illustrate:

    <p>Burns v Burns (1975) = Illustrates estoppel Grant v Edwards (1986) = Express agreement with detriment Stack v Dowden (2007) = Non-financial contributions recognized Jones v Kernott (2011) = Common intention inferred from conduct</p> Signup and view all the answers

    Match the legal terminology with their definitions:

    <p>Constructive trust = Trust created from parties' intentions Proprietary estoppel = Claim based on reliance and detriment Common intention = Mutual understanding regarding property ownership Express agreement = Clear and direct agreement between parties</p> Signup and view all the answers

    Match the legal principles with the cases that refer to them:

    <p>Direct contributions = Lord Bridge's inference for constructive trust Judicial quest = Hammond v Mitchell (1991) Trust for sale = Co-ownership operation Financial and non-financial factors = Inferred agreement test</p> Signup and view all the answers

    Match the tests outlined by Lord Bridge with their descriptions:

    <p>Express agreement test = Requires evidence of detriment Inferred agreement test = Based on various contributions Judicial quest for intention = Identifying common intention Trust confirmation through conveyance = Estate held in joint names</p> Signup and view all the answers

    Match the aspects of contribution with their significance in constructive trusts:

    <p>Initial payment = Justifies constructive trust inference Mortgage installments = Direct contribution as evidence Household expenses management = Factors influencing inferred agreement Financing of property = Relevant to establishing interest</p> Signup and view all the answers

    Match each case with its associated legal principle:

    <p>Halifax Building Society v Brown (1955) = Contribution to the deposit gives rise to a share Gissing v Gissing (1971) = Mortgage payments evidence common intention to share ownership Curley v Parkes (2004) = Mortgage instalments are not part of the purchase price Laskar v Laskar (2008) = Mortgage repayments evidence contribution to purchase price</p> Signup and view all the answers

    Match each presumption of advancement scenario with the corresponding case:

    <p>Re Roberts (1946) = Father to child Pettitt (1970) = Husband to wife Antoni v Antoni (2007) = Father to child Hepworth v Hepworth (1870) = Person in loco parentis to a child</p> Signup and view all the answers

    Match each case to whether it applies common intention constructive trust or resulting trust analysis:

    <p>Stack v Dowden (2007) = Common intention constructive trust Midland Bank v Cooke (1995) = Resulting trust analysis Jones v Kernott = Common intention constructive trust Laskar v Laskar (2008) = Resulting trust analysis</p> Signup and view all the answers

    Match each statement regarding the establishment of interest under a resulting trust with the correct case:

    <p>Stack v Dowden (2007) = Financial contribution without alternative intention Midland Bank v Cooke (1995) = Whole course of dealings may increase interest size Laskar v Laskar (2008) = Mortgage repayments as a contribution to purchase price Curley v Parkes (2004) = Court dismissed mortgage instalments as purchase price</p> Signup and view all the answers

    Match each legal principle to its description:

    <p>Presumption of resulting trust = Rebutted by evidence of true intention Presumption of advancement = Automatically implies ownership without intention Constructive trust = Determines interests in family home Resulting trust = Applies in commercial/investment context</p> Signup and view all the answers

    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.

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