2 January 2025
AMD’s Martin Hall explains TOLATA claims in detail; key issues, costs and ADR
Property ownership disputes often carry significant emotional and financial burdens, particularly when they arise between family members, cohabiting partners, or business associates. The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) provides a legal framework for resolving such disputes, enabling the courts to clarify ownership rights, regulate property use, or order a sale.
What is a TOLATA Claim?
When two or more individuals jointly own property, a trust of land is created. TOLATA governs the legal and equitable rights associated with land or property held in trust. Disputes often arise regarding ownership, use, or distribution. Under TOLATA, the court may:
- Declare ownership interests.
- Order the sale of property.
- Regulate property use, including occupation rights.
Who Can Bring a TOLATA Claim?
TOLATA claims typically involve disputes between:
- Unmarried couples: Following the breakdown of a relationship, disagreements often arise over the division of jointly owned property.
- Family members: These disputes frequently involve disagreements over inherited property.
- Business partners: Where property is jointly owned for business purposes, conflicts may emerge regarding its use or sale.
Key issues in TOLATA Claims
Ownership disputes form the crux of many TOLATA claims. While legal ownership appears on the title deeds, beneficial ownership, reflecting the right to use the property or receive income from it, may differ. Disputes often arise when a party seeks a larger share based on financial contributions or other factors.
Disagreements over selling property are also common, where one party may wish to retain the property while another seeks its sale. In such cases, the court assesses the circumstances and decides whether a sale should proceed.
Occupation rights frequently arise in disputes involving cohabiting partners with children. Courts can regulate these rights under TOLATA, considering factors such as the welfare of dependents and the purpose of the trust.
When deciding a claim, the court will consider any express agreements, implied trusts (e.g., those arising from financial contributions), and factors under section 15 of TOLATA, including the intentions of the parties and the purpose of the trust.
Costs of a TOLATA Claim
Potential claimants must carefully consider the costs of litigation. Complex and protracted proceedings can incur significant legal fees. In certain cases, the losing party may be ordered by the Court to pay the successful party’s costs.
Alternate Dispute Resolution (ADR)
The courts actively encourage parties to pursue ADR, such as mediation or negotiation, before issuing proceedings. ADR is often more cost-effective and faster than litigation and is particularly advantageous where ongoing relationships must be preserved.
Conclusion
TOLATA claims require meticulous preparation and a sound understanding of property law. Whether you seek to establish ownership, oppose a sale, or assert occupation rights, obtaining expert legal advice is crucial.
If you require advice or assistance with a TOLATA claim, please contact Martin Hall on 0117 973 3989 or email us at info@amdsolicitors.com.
