Constructive Trust - раздел Образование, MARRIAGE AND CIVIL PARTNERSHIP Key Definition
In Order To Establish A Constructi...
KEY DEFINITION
In order to establish a constructive trust, it is necessary to show:
1. A common intention to share ownership. This is proved by evidence of an express agreement to share ownership or it can be inferred from a direct contribution to the purchase price or mortgage instalment.
2. Actions by the claimant in reliance on the common intention.
Reading: The leading case on constructive trusts of the home is Lloyds Bank v. Rosset [1991].
Lloyds Bank v. Rosset [1991] 1 AC 107
Concerning: constructive trusts
Facts
The house had been purchased in the husband's sole name. Although his wife had helped to renovate the house, she had made no financial contribution to its purchase or renovation. She had never discussed ownership of the property with her husband.
Mr Rosset had charged the house to Lloyds Bank as security for a loan, but Mrs Rosset knew nothing of this. When Mr Rosset went into debt, the bank claimed possession of the house and an order for sale. Mrs Rosset, by way of defence to the bank's claim, argued that she had a beneficial interest in the house under a constructive trust and that this interest, coupled with her actual occupation, gave her an overriding interest under s.70(l)(g) Land Registration Act 1925 which would defeat the bank's claims.
In a dispute between Mr and Mrs Rosset and their bank, which had a mortgage over their house, a key issue arose: did Mrs Rosset have an interest under a constructive trust?
Legal principle
In order to establish a constructive trust, it must be shown that there was an express agreement to share ownership of the property. In the absence of an actual conversation, such an agreement could only be inferred from a contribution to the purchase price or mortgage instalment. Mrs Rosset, therefore, was not entitled to claim an interest under a constructive trust. The House of Lords dismissed her appeal, holding that her activities in relation to the renovation of the house were insufficient to justify the inference of a common intention that she was entitled to a beneficial interest under a constructive trust.
Quantification of the Beneficial Interest
Reading:
1) Oxley v. Hiscock [2005] Fam 211
Concerning: calculation of the share a party has under a constructive trust
Facts
Mr Hiscock and Ms Oxley lived together for about 20 years without marrying. When their relationship broke down, a dispute arose over the ownership of their house, which was in Mr Hiscock's name. Ms Oxley had contributed around 20% of the purchase price. They had not discussed what shares they were to own in the property.
Legal principle
Having established a constructive trust, the parties were to share the equitable interest in line with their agreement. If the parties had not made clear what share each was to have, then the court would decide what share would be fair in all the circumstances. The court was not bound to reflect exactly their financial contributions. In this case it was decided that Ms Oxley should have 40%.
2) Midland Bank v. Cooke and Another[1995]
Facts
The husband purchased the matrimonial home for £8450, the purchase moneys consisting of £6450 by way of a mortgage, £1000 of his own savings and £1000 by way of a wedding gift from his parents to him and his wife. The wife had made no direct contribution to the purchase price, except for the £500 representing her half-share of the wedding gift, but she had made considerable financial contributions to the upkeep of the house and to the household. She claimed a beneficial interest in the home.
Legal principle
At first instance, the county court judge held that her interest in the house amounted to a sum equivalent to 6.47 per cent of the value of the property, which represented her half-share of the wedding gift of £1000 advanced by her in-laws. She appealed. The Court of Appeal allowed her appeal, holding that, as she and her husband had agreed to share everything equally, including the house, she was entitled to half the beneficial interest.
England and Wales... LECTURE... MARRIAGE AND CIVIL PARTNERSHIP Introduction...
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