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])