Land Law - Co-Ownership

Question 1

A commercial property is purchased by A and B who each contribute half of the purchase price. The legal title is registered in A’s name only. What is the position regarding A and B?

A - There is no trust as A is the legal owner
B - There is a trust that A holds on trust for himself
C - There is a constructive trust: A holds on trust both A and B, as both parties contributed
D - There is a resulting trust: A holds on trust both A and B, as both parties contributed

Answer 1

Answer: D.

In a non-domestic context (this question refers to a “commercial property”), when someone makes a direct contribution to the purchase price, a resulting trust is implied to reflect their contribution.

Question 2

What are the formalities for creating an express trust in land?

Answer 2

The declaration of trust must be evidenced in writing signed by the person creating the trust.

(The trust does not need to be signed in writing, see an oral trust (Rochefoucauld case), but it must be EVIDENCED in writing).