Q&As

Are there grounds to argue that a constructive trust is created where A loans to B and C the whole of the purchase price of a property under a loan agreement? If so, can A's trust interest be protected by registering a restriction?

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Produced in partnership with Helen Galley of XXIV Old Buildings
Published on LexisPSL on 09/03/2018

The following Private Client Q&A Produced in partnership with Helen Galley of XXIV Old Buildings provides comprehensive and up to date legal information covering:

  • Are there grounds to argue that a constructive trust is created where A loans to B and C the whole of the purchase price of a property under a loan agreement? If so, can A's trust interest be protected by registering a restriction?

A resulting trust is a form of trust recognised in equity which is implied or presumed out of the presumption of the parties. Normally, if A provided the money to buy Blackacre which is transferred into the name of B, a resulting trust will be presumed in favour of A. For more information, see Practice Note: Resulting trusts.

A constructive trust is another species of presumed or implied trust and in circumstances such as this will arise out of the common intention of the parties that A was to have an interest in the property acquired. A constructive trust most frequently arises in the circumstances where a property is acquired for two people to live in but is transferred into the name of only one of the parties. See Stack v Dowde

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