What is a TOLATA claim?
A TOLATA claim is brought under the Trusts of Land and Appointment of Trustees Act 1996. It is used to determine who owns what share of a property and what should happen to it.
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When is a TOLATA claim used?
TOLATA claims are commonly used where:
- property is owned in one person’s name
- there is disagreement about ownership shares
- one party wants to force or prevent a sale
- cohabiting partners separate
- family members dispute ownership
What can the court decide?
The court can decide:
- who owns the property
- the size of each person’s interest (known as their “beneficial interest”)
- whether the property should be sold
- how sale proceeds should be divided
What is proprietary estoppel?
Proprietary estoppel is an equitable remedy that can arise where someone has relied on a promise or assurance about property ownership and suffered a detriment as a result.
When does proprietary estoppel apply?
A claim may arise where:
- a clear promise or assurance was made
- a person relied on that promise
- that person acted to their detriment (financial or otherwise)
- it would be unfair to deny them relief
These claims often arise in family and farming disputes.
What can the court award?
The court has wide discretion and may award:
- transfer of property
- a share of property value
- financial compensation
- a right to occupy
How do I prove a beneficial interest in a property?
A beneficial interest may exist even if your name is not on the legal title.
Evidence the court considers
While each case turns on its own facts, evidence often includes:
- financial contributions to purchase or mortgage
- payment of household expenses
- agreements or discussions
- conduct of the parties
- improvements to the property
Legal routes to proving an interest
Claims may be brought by asserting:
- an express trust
- a constructive trust
- a resulting trust
- a proprietary estoppel
We advise on the most appropriate route based on your circumstances.
Proprietary estoppel
Proprietary estoppel is a flexible equitable doctrine used to prevent unfairness where someone has relied on a promise relating to property.
The legal test
A claimant must generally show:
- a clear assurance or promise
- reliance on that assurance
- detriment suffered as a result
- that it would be unconscionable to deny relief
When does proprietary estoppel arise?
Common scenarios in which proprietary estoppel claims arise include:
- family members promised property
- farming succession arrangements
- informal inheritance promises
- long-term unpaid work or contributions
Remedies and outcomes
While the court has discretion as to how much to award, a recent series of cases have confirmed that the court should look to satisfy the equity or injustice insofar as possible. This usually begins with seeking to meet the expectation. However, where the expectation far exceeds any detriment actually suffered (whether financial or otherwise), then the court will usually look to award an amount to meet the detriment or perceived injustice.
Ultimately, the court aims to satisfy the equity and may tailor the remedy to the facts of the case.
Key contact
Roman Kubiak TEP
Partner
Roman Kubiak is a Partner and Head of the market leading Private Wealth Disputes team.
He advises across the whole spectrum of private wealth disputes, with a particular focus on high value, complex and cross-border disputes including: trust disputes, breach of trust claims and applications to remove trustees; will disputes, particularly those with an international element; claims under the Inheritance (Provision for Family and Dependants) Act 1975; and claims for equitable relief under proprietary estoppel, constructive trusts and resulting trusts.
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