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Property Ownership Disputes

Jointly owned properties

When a property is owned by two or more people, disputes can unfortunately arise if one owner wishes to sell or buy the other party out and the other owner doesn’t agree, or if the parties are not agreed on what each of their shares in the property are. Often, this arises in the aftermath of a separation of unmarried partners and for more information on this, please click here. There are, however, many other situations in which a dispute may arise.

It is increasingly common for a property to be owned in the joint names of family members or friends, particularly where a party needs assistance to get onto the property ladder. If a disagreement arises between the owners regarding the property, the legal position and remedies are governed by the Trusts of Land and Appointment of Trustees Act 1996 (“TOLATA”).

Under TOLATA, the court can determine what each party’s share in the property is, whether the property should be sold and if so, when. There are a range of factors to be considered in such applications and the outcome will depend on the particular facts of your case.

 

Sole owner cases

TOLATA also deals with cases where a party claims that they have an interest in a property which is registered in the name of someone else. In these cases, the party is asserting that although they are not named as a legal owner on the title deeds, they have a “beneficial interest” in the property and are therefore entitled to a share of the equity.

A person making such a claim can apply to the court for a declaration under a.14 TOLATA that they have a beneficial interest in the property and if successful, the court will determine what their share is and can order the sale of the property.

These types of cases involve complex legal arguments and it is recommended that you take specialist legal advice if you are considering making such a claim, or wish to defend one.

Reaching a resolution

Whether it is a joint ownership dispute or a claim against a solely owned property, it is always advisable to try to reach a conclusion outside of court proceedings if possible. If this can be achieved, the terms can be drawn up into a Settlement Agreement and signed by both parties.

If it is not possible to reach a settlement voluntarily, a court application can be made and ultimately, a Judge will make a decision following a trial. The court will require parties to attempt mediation before pursuing the court process unless it is deemed unsuitable in the particular case.

"Rebecca helped me with a separation agreement. The whole process went very smoothly and she always provided a prompt response to any questions I had. I would definitely recommend Rebecca"

"I had spoken to a few solicitors about my property ownership dispute and Chloe’s suggestions were by far the best. Throughout the entire dispute, she was extremely helpful, knowledgeable and efficient. We were able to reach a much better outcome than I could have hoped for and I would happily recommend Chloe to anyone."

Am I entitled to stay on in the house with our children now we have separated?

Sadly, there is no automatic right for a parent to postpone the sale of a property in order to continue living there until the youngest child reaches the age of 18.

It is possible to apply to court under Schedule 1 of the Children Act 1989 but success is by no means a given.

Each case turns on its own facts with the courts looking at factors including the best interests of the children, the income and resources of both parents, how the mortgage is to be maintained and day to day living funded and how the other parent’s housing needs will be met.

Again, these cases in terms of court proceedings can be very costly so early legal advice to carefully consider all options is highly advisable.

The property I shared with my ex-partner is in his sole name but I have helped pay the mortgage for years. Am I entitled to anything?

Firstly, you must demonstrate you have what’s known as a beneficial interest in the property.

You can build your case in a number of ways.  However, one example may be that you would need to evidence your direct contributions to mortgage payments or the deposit.

We would also need to look at the reason for these payments. For example, did you make them because of promises made to you about your future in the property? Was the house treated as a shared home?

This may enable the court to agree that you do indeed have an interest in the property.

The next stage is to determine what the size of your interest is – this could be 50 per cent, possibly more and possibly less. If you and your ex-partner did not make a prior agreement, the court will apportion each of you the shares it considers fair and reasonable considering the circumstances of the case.

Can I force the sale of the property I own jointly with my sister and her husband?

You are entitled to apply for an order of sale under the Trusts of Land and Appointment of Trustees Act (TOLATA) 1996 but before you do so, you must set out your case in detail giving the other person, known as the defendant, the chance to respond.

The court, which has the discretion to order a sale, will take a number of factors into consideration including the interests of any creditors, the welfare of any children living in the property and the intentions of those who created the trust in the first place.

It is important to try to resolve a dispute like this one away from the court room as judges can take a dim view of those who have not tried to do so. Contact us for more information on how best to proceed as this can be a costly route.

Careful early planning

There are early legal safeguards you can put in place to help avoid a dispute if you break up later .

These include Cohabitation Agreements, which reflect arrangements made between couples as well as family members and friends, and Declaration of Trusts which confirm the proportions in which two or more individuals own a property.

Why use Wards?

Our specialist dispute resolution lawyers have years of experience in all types of residential property and cohabitation disputes.

Our team has been recommended in the independent Legal 500 Guide: “At every stage of the process, Wards have identified the issues and clearly explained them in “easy to understand” terms, exhibiting their expert knowledge and showing they clearly understand their clients.’

We will always do everything we can to help you settle your differences by negotiation, mediation or, as a last resort, going to court.

Get in touch

For further information or to discuss a cohabitation issue, please get in touch with Rebecca Max on 01454 204880 or Chloe King on 0117 929 2811 or email them directly at
rebecca.max@wards.uk.com or chloe.king@wards.uk.com.