Property Disputes

Property Ownership Disputes

When it comes to property ownership, it’s not just about who’s on the deed. (for more information on Joint Property Ownership here (add link to that page).  Trust arrangements are another crucial aspect which you might need to consider. A trust is a legal setup where a trustee manages assets for the benefit of someone else, known as the beneficiary. This means the beneficiary might not be the same as the legal owner.

Example:

Let’s say Fred buys a property for £200,000, but Frank chips in £100,000 as a deposit. They can agree that part of the property is “held on trust” for Frank. This makes Frank a beneficial owner, even if his name isn’t on the paperwork. While it’s smart to formalise this with a Declaration of Trust, it’s not always necessary.

Legal vs. Beneficial Ownership

It’s important to distinguish between legal ownership and beneficial ownership. The legal owner might not enjoy all the benefits of ownership. The beneficial owner has rights to income from the property and a share of its proceeds. These rights are governed by laws like the Trust of Land and Appointment of Trustees Act 1996 and the Law of Property Act 1925.

Constructive and Resulting Trusts

In some cases, it’s morally wrong for the legal owner to have all the benefits of a property. Constructive trusts kick in to set things right. There’s usually a presumption of joint beneficial ownership for properties held in joint names. Resulting trusts, on the other hand, may arise when someone contributes financially to a property purchase without a formal trust agreement.

Proprietary Estoppel

If you’ve relied on promises about property ownership and acted to your detriment based on those promises, you might have a claim under proprietary estoppel. This can help you assert your rights if the owner tries to deny them unfairly.

Get Expert Help

Property disputes can get messy, but understanding these legal principles can help you navigate them more effectively. If you’re facing issues related to property ownership, our team is here to provide expert guidance. Let us help you find a solution to your property challenges.

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Once we have a full understanding of the issue you are facing, we will provide an estimate of future costs. Our aim is to support you by offering you advice on your dispute at a cost-effective price.