Co-ownership disputes – How can you untangle property ownership and move On?
In our experience, a property is often the last remaining tie between former partners, friends, family members or business associates. The relationship or investment may have ended years ago, but ownership of the property continues to prevent the parties from making a clean financial break and moving on.
The title register is an important starting point, but it does not always tell the whole story. Your name may not appear on the title, but you could still have an interest in the property. Conversely, the property may be registered in joint names, but that does not necessarily mean the equity must be divided equally.
TOLATA claims are highly fact-specific. Their outcome will often depend on the quality of the available evidence about the parties’ contributions, discussions, agreements and intentions.
It is therefore important to seek advice early, before documents are lost, deleted or become difficult to obtain.
The Title Register is the starting point, but not necessarily the whole picture
The title register identifies the property’s legal owners. Beneficial ownership, however, determines who is entitled to its value and in what proportions.
Someone who is not named on the title may have contributed towards the deposit, mortgage, purchase costs or substantial improvements on the understanding that they would have an interest in the property. Equally, joint legal owners may have intended to own the property in shares other than 50/50.
The Trusts of Land and Appointment of Trustees Act 1996, commonly known as TOLATA, enables the court to determine the parties’ respective interests and, where appropriate, decide whether the property should be sold.
Can you claim an interest if you are not on the title?
Potentially, yes.
We regularly see arrangements where property was registered in one party’s name despite another party contributing financially or relying on an understanding that they would share in its value.
The court may consider whether there was a common intention that the property would be shared and whether the party claiming an interest acted to their detriment in reliance on that intention. Evidence is crucial. Bank statements, payment records, emails, messages, draft agreements and evidence from people who knew about the arrangement may all help establish what the parties intended.
Can you claim more than 50% if the property is in joint names?
Potentially, although joint registration will be an important part of the overall picture.
One party may have provided a larger deposit, made greater mortgage payments or funded substantial works. There may also be evidence that the parties agreed or understood that the equity would not be shared equally.
However, unequal financial contributions do not automatically produce unequal ownership. The court will consider the relevant documents, the parties’ intentions and, depending on the legal basis of the claim, their wider course of conduct. That is why early analysis of the evidence is so important.
Severing the final financial tie
Many clients do not want a prolonged legal dispute. They simply want clarity, access to their equity and the ability to move forward independently.
Where an agreement cannot be reached, a TOLATA claim may enable the court to:
- determine the parties’ beneficial ownership shares;
- declare who is entitled to the property’s value;
- decide questions concerning occupation; and
- order a sale of the property.
A court claim is not always necessary. In our experience, early advice followed by focused negotiation or mediation can create a practical route out of the arrangement while controlling costs and uncertainty.
Why you should act early
The strength of a TOLATA claim often rests on the evidence. Unfortunately, the relevant events may have occurred many years earlier and important records can become harder to recover over time.
We recommend taking advice as soon as it becomes clear that the property arrangement cannot be resolved informally. We can work with you to identify, preserve and obtain key evidence.
Early advice can also help prevent positions becoming entrenched and allow negotiation or mediation to be explored before substantial litigation costs are incurred.
How can we help?
We understand that these disputes are often about more than the physical property. The property may be the final connection to a relationship, investment or business arrangement that you are ready to leave behind.
Where possible, we seek to resolve disputes through focused negotiation or mediation. Where proceedings are necessary, we can bring or defend TOLATA claims, including applications for declarations of ownership and orders for sale.
Because the outcome can depend heavily on the evidence available, please contact us as early as possible. We can work with you to preserve and obtain the key documents, assess your position and develop a practical strategy for releasing your interest and moving on.
Angela is a partner in the Property Disputes team in our London office.
She is a Solicitor-Advocate with extensive experience in all aspects of commercial and contentious property matters.
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