The Learning & Resource Section
Constructive Trusts
Constructive Trusts:
In the absence of an express agreement or declaration of a trust, there must be evidence of common intention and a detrimental reliance by one party in order to show that they may hold a beneficial interest in the land
In order to prove common intention and detrimental reliance, there are two tests that were established in Lloyds Bank v Rosset [1991]:
1. The Express Common Intention Constructive Trust
- For the requirement of common intention to be satisfied, the party must point to clear words that promised co-ownership. Meaning, thre must be evidence of some sort of agreement that the property was to be shared beneficially between both parties.
2. The Implied or Inferred Common Intention Constructive Trust
· For the requirement of common intention to be satisfied, one must look at what could be inferred from the conduct of the parties. This may include:
- A contribution to the purchase price
- Home improvements (Eves v Eves [1975])
- Financial contribution to household expenses (Grant v Edwards [1986])