TOLATA disputes

Our specialist property dispute solicitors have a lot of experience in advising in this area so please do get in contact to discuss your situation and how we can help.

What is a TOLATA dispute?

TOLATA is the shorthand for a claim under the The Trusts of Land and Appointment of Trustees Act 1996.

Many properties are bought by unmarried couples in long term relationships. Sometimes both are the legal owners, both have contributed towards the deposit and both are on the mortgage.

In other cases, for whatever reason, there is only one legal owner but both contribute towards the deposit, mortgage or other bills.

The key thing to understand about these disputes is that they relate to beneficial entitlement of a property where an unmarried couple live together but only 1 person is the registered legal owner.

Is there a trust deed or cohabitation agreement?

A property co-ownership trust deed or cohabitation agreement are often drafted where a couple move in together and both contribute to the purchase price or outgoings. If well drafted, they will likely include clauses about dispute resolution or what should happen if the couple split up or 1 wants to sell the property.

If either of these legal documents are in place these will apply and TOLATA becomes less relevant.

How do the courts assess TOLATA claims?

TOLATA sets out the framework for the Court’s powers to decide on beneficial ownership rights of unmarried couples. The court will determine who are the beneficial owners of a property and in what proportions.

Under TOLATA, the Court has the express powers to decide:

• If only 1 party is the legal owner, whether the other party has any financial (beneficial) interest in the property

• The respective proportion of equity each party is entitled to

• Whether the property must be sold

• If the property is not to be sold, who can live in the property and on what terms

Options to resolve the dispute

As with any civil dispute it is rarely advisable to go all the way to a trial. Litigation is always risky, expensive and uncertain.

A negotiated or mediated settlement out of court is often the best outcome and we are highly experienced in helping clients get the best available outcome.