When a relationship breaks down, disputes over property can become a highly stressful and antagonistic process. For unmarried couples, the process can be particularly complex. The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) provides the legal framework for resolving these disputes in England and Wales.
What is TOLATA?
TOLATA stands for the Trusts of Land and Appointment of Trustees Act 1996. This legislation allows courts to resolve disputes over property ownership and interests between parties who are living together but are not married or in a civil partnership. It is especially relevant when the property is held in one partner’s name, but the other partner claims a beneficial interest due to contributions made or promises relied upon in the relationship.
Cases where you may wish to issue a TOLATA Claim
- Cohabitants: Unmarried couples who have separated and have disputes over property ownership.
- Family Members: Relatives disputing ownership or interests in a family home.
- Friends or Business Partners: Individuals who jointly purchased property and are now in disagreement over their shares.
Grounds for TOLATA Claims
There are various scenarios where you may have grounds to issue a TOLATA Claim. Some examples of these situations are:
- Express Trust: A written agreement outlining each party’s interest in the property.
- Resulting Trust: This implies that the property interest is proportional to each party’s financial contribution to its purchase.
- Constructive Trust: This arises when one party is led to believe they have an interest in the property due to assurances or contributions (financial or otherwise) that were relied upon to their detriment.
The TOLATA Proceedings
- Pre-Action Protocol: Before initiating court proceedings, parties are encouraged to settle disputes through negotiation or mediation. This is often less costly and quicker than going to court.
- Issuing a Claim: If an agreement cannot be reached, a claim is issued in the county court. The claimant must detail their interest in the property and the grounds for the claim.
- Case Management Hearing: The court will schedule a hearing to set a timetable for the proceedings and may suggest further attempts at mediation.
- Disclosure and Evidence: Both parties are required to disclose relevant documents and provide evidence supporting their claims, such as bank statements, correspondence, and witness statements.
- Trial: If the case proceeds to trial, both parties will present their evidence and arguments. The judge will then decide based on the facts, evidence, and relevant law.
- Judgment: The court’s decision may include declarations of trust, orders for sale, or orders for one party to buy out the other’s interest.
Preparing for TOLATA Proceedings
In order to prepare for TOLATA Proceedings, it is useful to take the following steps:
- Gather Evidence: Collect all documents and communications that demonstrate your contributions and any agreements or assurances made regarding the property.
- Legal Advice: Consult with a solicitor experienced in property and trust law to guide you through the process and strengthen your case.
- Consider Mediation: An amicable settlement can save time, money, and emotional stress. Mediation can be a practical alternative to a contentious court battle.
TOLATA proceedings can be complex and emotionally draining. Understanding the framework and preparing thoroughly can help you navigate the process more effectively. Whether you’re trying to establish your interest in a property or defending against a claim, professional legal advice is invaluable. By approaching the situation with a clear strategy and realistic expectations, you can work towards a resolution that reflects your contributions and interests fairly.
For more detailed advice tailored to your specific situation, please do not hesitate to contact our Litigation team at Waldrons who specialise in TOLATA claims.
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