When siblings fall out – the importance of legal advice when it comes to co-ownership property disputes
Co-owning property with a family member or friend is something more and more of us are looking at as a way of finally getting on to the property ladder.
That’s why a recent court case, which settled a property dispute between two brothers by giving one of them full ownership of the house they’d shared and the other nothing, is such a significant one.
Whilst the case of William Fattal and Elias Fattal may be a relatively niche one, it does show the importance of taking specialist legal advice at an early stage to understand your options in this complicated area of the law.
It also shows how important it is to protect yourself legally and financially when you are buying a property with another person, be that a partner, sibling or friend, to minimise the risk of having to battle it out in court later.
What happened in this brothers’ co-ownership property dispute?
William Fattal bought a house in London in 1972 in his sole name and in 2014 transferred it to his brother, Elias, in the mistaken belief that Elias had paid him £400,000 for it back in 1990.
The brothers shared the property quite happily for many years but things became difficult when William realised he’d never been paid the £400,000 and sought compensation in court for the consequences of that mistake.
Elias, on the other hand, claimed he and William owned the property beneficially as tenants in common and that he’d made financial contributions towards both the acquisition of the property and subsequent refurbishments.
What is this significance of this brothers’ co-ownership property dispute?
The judge decided there was no evidence to support Elias’ claims and that there was no common intention to share the property beneficially.
The 2014 transfer, he said, was based on the mistaken belief that Elias had paid the £400,000 agreed and was therefore a void contract.
He ruled that although the property had been transferred to Elias legally, he actually held it on trust for William as though it was still William’s property.
As a result, the judge ordered the transaction to be unwound and the property transferred back to William.
Get in touch
Wards Solicitors is recommended in the Independent Legal 500 guide for 2024 for its outstanding professional service standards and high levels of expertise amongst its lawyers.
We are experts in the Trusts of Land and Appointment of Trustees Act (TOLATA) which gives courts certain powers to resolve property disputes between any parties who have bought property together, such as unmarried couples, family members and friends.
Our specialist team of disputes lawyers can help with any issues surrounding property ownership, always aiming to avoid going to court if possible.
For more information, or to talk through your options, please contact one of our specialist property dispute lawyers: