Chapter 6: Trusts of the Family Home

Flashcards covering Chapter 6: Trusts of the Family Home, including ownership regimes, resulting trusts, common intention constructive trusts, and proprietary estoppel.

How do joint owners of a family home hold legal title?

Joint owners hold legal title as joint tenants.

In what two forms can equitable title be held when property is owned jointly?

As a joint tenancy (with the right of survivorship) or a tenancy in common (holding distinct shares that pass by will or intestacy).

Is completing the section of the TR1 form that declares beneficial interests compulsory?

No, completing the section to declare beneficial interests on the TR1 is not compulsory.

What statutory regime governs the division of property for married couples or civil partners?

The wide discretionary powers under the Matrimonial Causes Act 1973 (MCA 1973).

What legal rules govern property disputes between cohabitees upon separation?

Trusts law, because there is no statutory regime for cohabitees and "common law marriage" is a myth.

What formal requirement must an express trust of land satisfy to be enforceable?

It must be evidenced in signed writing pursuant to s 53(1)(b).

Why do resulting trusts fall short regarding qualifying financial contributions to the family home?

Only contributions to the purchase price at the time of acquisition (deposit and completion) count; fees, SDLT, and later mortgage payments are excluded.

Why do resulting trusts fail to recognize domestic or caregiving contributions?

Only direct monetary contributions count under a resulting trust, meaning domestic and childcare work is ignored.

What is the equitable presumption when a home is purchased in joint names without an express declaration?

Equal beneficial shares are presumed under the principle "equity follows the law."

Under Hudson v Hathway, what must a party show to claim an unequal share in a jointly owned home?

The claimant must prove a common intention to hold unequal shares supported by detrimental reliance, or a changed common intention supported by detrimental reliance.

What evidence is usually required to establish unequal shares in a jointly owned home in the absence of an agreement?

Evidence that the couple kept their finances separate throughout the whole course of dealing; unequal initial contributions alone are not enough.

What must a non-legal owner demonstrate at Stage 1 to establish a common intention constructive trust in a solely owned home under Lloyds v Rosset?

A common intention that both have a beneficial interest, alongside substantial detrimental reliance.

How can an express common intention be shown in a solely owned home case?

Through an agreement or understanding that both have an interest (e.g., "Think of this house as much yours as mine"), or through reasons given to explain why a partner was not put on the legal title (Grant v Edwards).

How can a common intention be inferred solely from conduct in a solely owned property?

From direct financial contributions to the purchase price or significant contributions to mortgage payments.

Under what circumstance may indirect financial contributions establish a constructive trust according to Le Foe?

In limited cases where payment of household bills directly enables the legal owner to pay the mortgage.

What types of expenditure are insufficient to establish a common intention constructive trust?

Legal fees, SDLT, refurbishment costs, and personal loans.

How does the court quantify beneficial shares at Stage 2 of a constructive trust in a solely owned home if no express share was agreed?

The court awards what is fair having regard to the whole course of dealing, considering both financial and non-financial factors.

What are the three essential elements required at Stage 1 to establish a claim in proprietary estoppel?

1. Assurance (active or passive)\n2. Detriment (substantial, though not necessarily financial)\n3. Reliance (causally linked to the assurance)

Why does a proprietary estoppel claim fail if the claimant acted solely out of love and affection?

Because detrimental acts must be causally linked to the assurance; acting entirely for personal reasons negates reliance.

What key distinction was established in Archer v Archer [2026]?

Ownership and occupation are distinct concepts and must not be conflated.

What are two equitable bars to relief in proprietary estoppel?

Unclean hands and unreasonable delay.

What is the key difference between the remedy granted by a common intention constructive trust and proprietary estoppel?

A CICT guarantees an equitable beneficial share (addressing present interests), whereas proprietary estoppel provides a discretionary remedy that could be more or less than a beneficial share.

How is a loan towards a deposit treated when determining beneficial ownership in a family home?

A loan towards the deposit is treated as a debt, not as a qualifying contribution toward a beneficial interest.

Which doctrine applies to an assurance that "the house will be yours when I die"?

Proprietary estoppel applies because it involves a future promise upon death rather than a present interest under a CICT.