What does TOLATA stand for?
What does TOLATA stand for?
The Trusts of Land and the Appointment of Trustees Act 1996
What is TOLATA used for?
TOLATA claims involve unmarried couples who are cohabiting and wish to bring a claim under this Act for a property dispute. This legislation gives the Court powers to deal with property which is jointly or solely owned between a cohabiting unmarried couple.
What evidence will you need to prove you have a beneficial interest in your ex-partner’s solely owned property?
The best evidence is in writing. Any emails, text messages, documents, letters, Facebook or other social media messages, from your ex-partner which suggest the home is for both of you, is extremely helpful. It is not foolproof but it is a great basis to start from.
If you have nothing in writing but you can recall specific conversations and the date and time of those conversations, that too is helpful. Therefore it is important to try and gather as much written and verbal evidence as you can as we will ask you about this and need to see it.
If you have provided any money towards the purchase price or towards renovations then bank statements and invoices will be required. It will be helpful to dig these out at the start of the claim.
Is it expensive to run a TOLATA claim?
If the claim is pursed through the Courts then it can become quite expensive. We would not recommend the Court route if you do not have substantial equity in the property or if your prospects of winning are not high (usually 51% or more).
As these claims are dealt with in the civil courts not the family courts, the ‘loser’ pays the ‘winner’s’ costs. If you lose, you will have a large bill to satisfy which will reduce your equity in the property significantly. A claim all the way to Trial could well exceed £35,000.00.
Court can make things quite heated between parties and the process can be very emotional and stressful therefore we recommend it as a last resort.
What about Alternative Dispute Resolution (“ADR”)?
We always recommend going down this route to avoid incurring unnecessary court costs and to try and keep things as amicable as possible between the parties.
We would always recommend that a Letter of Claim is sent to the opponent/ex-partner, initially setting out the legal and factual basis for the claim and stating that ultimately we would like to settle the dispute without going to Court. However, if they ignore the Letter or the dispute continues with no resolution, the next best step would be mediation.
What does mediation cost?
Parties can enter into family mediation which is approximately £120-£180 per party per session. Each party pays for their own costs.
It is a great starting point which aims to ensure that parties come to an agreement whilst remaining as amicable as possible. The process itself is not legally binding so you will need to see a solicitor to document any agreement by way of a separation agreement. If family mediation does not bring about the desired result, any agreements which may have been reached within the sessions, cannot be used as a starting point in legal proceedings.
Another option is civil mediation. This is more expensive than family mediation and will involve a jointly instructed mediator and usually a solicitor for each party and more than likely, a barrister for each party. The cost of mediation is split equally between the parties and any agreement reached will be legally binding as the barrister will draw up the separation agreement. A rough estimate for an entire day’s mediation can be somewhere between £3,500.00 and £5,000.00.
Summary
TOLATA claims are complex claims in terms of the relevant law of trusts and we recommend obtaining expert advice at the outset. Rebecca Max and Chloe King offer free half hour appointments. Contact Rebecca or Chloe to book in for a free half hour appointment.