How to avoid a dispute between co-owners of a property

A dispute may arise if:

• There were one or more people contributing more to the initial deposit
• One person who didn’t pay anything towards the deposit
• Family members (bank of mum and dad or supportive grandparents) who paid monies and now want to recover their investment
• Disputes over the sale of the property as to how proceeds should be split, or who should occupy the property

Complex process

Anyone with an interest in the property, whether or not they are named on the title deeds, can make a TOLATA claim if they are unable to determine ownership shares. TOLATA is an abbreviation for The Trusts of Land and Appointment of Trustees Act 1996, which is a way for the courts to rule on the ownership of a property where multiple parties are involved.

TOLATA claims give the courts various powers to make decisions, including:

1. Determining the share of the property each party owns.
2. Ordering the sale of the property.
3. Deciding who is entitled to occupy the property.
4. Making declarations as to the nature and extent of a person’s interest in the property.

The court will also consider the welfare of any children residing in the property. And depending how the process goes, it could potentially end in a trial – which may prove to be expensive.

Recently our Family Department have been acting on a number of these claims, as they seek to help parties to resolve disputes relating to property ownership. Jonathan Miller, Senior Solicitor in our Family Department explains. “It is a complex process and may take time. As well as meeting everyone involved, we would need to look through the original conveyancing file, bank statements, receipts for any building work/property improvements and of course all mortgage statements.”

Protect Your Interests

Jonathan continues. “If you’re considering a TOLATA claim, you will need the expertise of specialist solicitors with specific legal knowledge required for Trusts of Land and related property disputes. Some general practice solicitors may not have the expertise that you need to fight your cause, so you can receive fair compensation.”

Jonathan concludes. “Essentially to avoid a TOLATA claim, especially when cohabiting, it’s essential to ensure from the outset that you have clear, documented intentions regarding property ownership and keep records of all financial contributions. If you are still unsure about your rights, consult with a solicitor to ensure your agreements are legally sound and protect your interests. Often, we consult with our Head of Property Helen Checketts regarding how property ownership is registered, whether the shares are equal or unequal and the importance of recording agreements as to the beneficial ownership of property – especially if one party is contributing significantly more to the deposit, or nothing at all.”

Type of Ownership

Helen Checketts comments on the different ownership terminology. “You can own a property as either ‘joint tenants’ or ‘tenants in common’. The type of ownership affects what you can do with the property. Joint tenants own the property equally and if one of the joint tenants dies the deceased’s share automatically goes to the surviving tenants, while tenants in common own separate shares and can leave their share to whomever they choose in their will. When buying a property it’s essential to consider what type of ownership you require. Furthermore, if you’re buying a property and each party is contributing differently, you can also enter into a declaration of trust.”

Fixed fee initial meeting for support and advice

If you have a personal stake in a property but feel that you are not being treated fairly, or are facing a TOLATA claim or indeed trying to prevent one, we provide an initial fixed fee meeting, £360 including VAT to discuss your needs. After that our experienced team, will help you every step of the way ensuring that your legal and property rights are protected.

For timely and specialist advice and support, please contact Jonathan Miller on 01926 356000, email jonathan.miller@alsterskelley.com.