When couples, friends, or family members buy property together, or where one person buys and another contributes, the legal title does not always tell the full story of who really owns what. In English law, equity has long recognised that ownership can exist behind the scenes through what’s known as a common intention constructive trust. This doctrine has become one of the most important, and misunderstood, features of modern property disputes between cohabitees and informal partners.

 

What Is a Common Intention Constructive Trust?

 

A constructive trust arises by operation of law, not by express declaration or written document. In this context, it occurs where:

• The parties shared a common intention that both should have an interest in a property (even if the property was registered in only one name); and
• One party acted to their detriment in reliance on that shared intention.

The law then steps in to prevent one party from unconscionably denying the other’s beneficial (equitable) interest.

In simple terms, the person holding legal title is treated as a trustee, and the other as having a beneficial share in the property.

 

How do they arise?

 

These trusts most often arise in cohabitation or family property disputes, where the legal ownership recorded at the Land Registry does not reflect the parties’ true intentions. Frequently, one partner purchases a home in their sole name because the other cannot obtain a mortgage, yet both regard it as their shared property. In other cases, one party contributes towards the purchase price, mortgage payments, or major improvements, or a parent or relative provides financial assistance towards a property held in a child’s or partner’s name.

 

Sometimes there is an express understanding that ownership will be shared, but the formal documentation never follows. When resolving constructive trust or beneficial ownership claims, the courts examine the full context, what was said, done, and paid, to decide whether a common intention to share ownership can properly be inferred.

 

What are the consequences?

 

Where a constructive trust is found:

• The legal owner holds the property (or part of it) on trust for both parties;
• The non-owning party acquires a beneficial interest, which can be enforced on sale or in court proceedings;
• The property’s equity is divided according to the parties’ respective shares as found by the court.

These interests are binding in equity and can have significant financial consequences, for example, a cohabitant could claim a share in a property years after separation if their contributions and intentions are proven.

 

When things go wrong

 

Disputes commonly arise when:

• Relationships break down and one party seeks to sell or exclude the other;
• The financial contributions were informal or undocumented;
• A party later claims there was no true agreement to share ownership;
• Third parties (such as family members who helped with renovations or deposits) assert that they too hold an interest.

Without clear documentation, these disputes often turn on recollections of conversations or ambiguous financial records. Litigation can become highly emotional and costly, with outcomes depending on credibility and inference rather than black-and-white evidence.

Common intention constructive trusts are equity’s way of ensuring fairness where the law’s paperwork lags behind people’s real-life arrangements. They remind us that property ownership is not always about whose name appears on the title deeds, but about what was intended, promised, and relied upon.

 

How we can help

 

At Muldoon Britton, we regularly advise clients on property ownership disputes and claims arising from constructive and resulting trusts. Our team has extensive experience acting for both claimants seeking to establish an equitable interest and defendants facing claims against property held in their name.

We can assist you to:

• Assess whether a beneficial interest or trust claim exists and advise on your rights;
• Negotiate a practical resolution or financial settlement before proceedings are issued;
• Represent you in court proceedings under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA); and
• Protect your interests if a dispute arises following separation, inheritance, or family arrangements.

Our approach is strategic, pragmatic and sensitive to both the legal and personal dimensions of these cases.

 

Contact us

 

If you are facing uncertainty or dispute regarding property ownership or beneficial interests, our experienced team can provide expert guidance and representation.