TRUSTS AND THE FAMILY HOME – REVISION LECTURES
Title Register (Registered Land) – Provide the confirmation of legal ownership.
Title Deeds (Unregistered Land) – Provide the confirmation of legal ownership.
Non-Owning Cohabitee – Person living with the legal owner; having no legal
interest in the home.
Pettitt v Pettitt – Equity should follow the law. The name of the title is the person
who owns the property.
How Might Trust Arise?
Expressly (Formally) – Section 51(1)(b) Law of Property Act 1925 – Requires the
declaration of trust to be evidenced in writing and signed by the settlor.
Resulting and Constructive Trust (Informally) – Section 53(2) Law of Property
Act 1925 - Both excluded from the need for written evidence
Resulting Trust – Arises at the time when the property was purchased. The
contribution of the Non-owning Cohabitee has to relate to the purchase price; it can
be cash, or it can be a mortgage. If it is not mortgage, it must be agreed at the time
of the purchase.
Contributions to the household expenses does not amount to the resulting
trust.
Burns v Burns [1984] – (Decoration of the house / Relationship broke / Lack of
financial contributions to the purchase price / No resulting trust)
Valerie Burns, lived with the defendant for 19 years, Patrick Burns, whom she never
married. The house had been bought in the name of the defendant who also paid the
purchase price with the plaintiff making no financial contributions to the purchase
price or mortgage instalments and had acted as a homemaker performing domestic
duties. She had however made financial contributions to the household with regards
to household bills and redecorating.
Held: In the absence of a financial contribution which could be related to the
acquisition to the property such as mortgage instalments there is no right to a
beneficial entitlement to a family home.
Title Register (Registered Land) – Provide the confirmation of legal ownership.
Title Deeds (Unregistered Land) – Provide the confirmation of legal ownership.
Non-Owning Cohabitee – Person living with the legal owner; having no legal
interest in the home.
Pettitt v Pettitt – Equity should follow the law. The name of the title is the person
who owns the property.
How Might Trust Arise?
Expressly (Formally) – Section 51(1)(b) Law of Property Act 1925 – Requires the
declaration of trust to be evidenced in writing and signed by the settlor.
Resulting and Constructive Trust (Informally) – Section 53(2) Law of Property
Act 1925 - Both excluded from the need for written evidence
Resulting Trust – Arises at the time when the property was purchased. The
contribution of the Non-owning Cohabitee has to relate to the purchase price; it can
be cash, or it can be a mortgage. If it is not mortgage, it must be agreed at the time
of the purchase.
Contributions to the household expenses does not amount to the resulting
trust.
Burns v Burns [1984] – (Decoration of the house / Relationship broke / Lack of
financial contributions to the purchase price / No resulting trust)
Valerie Burns, lived with the defendant for 19 years, Patrick Burns, whom she never
married. The house had been bought in the name of the defendant who also paid the
purchase price with the plaintiff making no financial contributions to the purchase
price or mortgage instalments and had acted as a homemaker performing domestic
duties. She had however made financial contributions to the household with regards
to household bills and redecorating.
Held: In the absence of a financial contribution which could be related to the
acquisition to the property such as mortgage instalments there is no right to a
beneficial entitlement to a family home.
