What is a TLATA Dispute?
TLATA is an acronym for the Trusts of Land and Appointment of Trustees Act 1996, sometimes known as TOLATA or TOLATA Claims. The purpose of this Act is to manage land that is subject to a trust.
A trust may exist where there is more than one owner of a property, even if only one person appears on the title deeds. Whilst the legal ownership of property is governed by the title deeds, the beneficial ownership may be different. The proportions in which a property is owned may be explicitly set out in a written document (such as a Declaration of Trust); or they may be implied by circumstances.
When Might a TLATA Dispute Arise?
Some situations in which a person may have rights under TLATA are as follows:
- A party has contributed to the purchase price of a property but is not listed in the title deeds.
- A party has paid or contributed towards mortgage repayments and household bills, but is not listed on the title deeds.
- A party has occupied the property for a number of years during which time they have maintained the property, including repairs and renovations, at their own cost.
- The property is subject to a written trust agreement under which a party is listed as a beneficiary.
- The proprietors disagree about whether to sell the property.
- There is a partnership dispute where the partnership owns the property.
The above list is not intended to be exhaustive but provides some common circumstances in which ownership of a property is disputed. Each case must be assessed on its own merits, subject to its own facts.
For example, if a person has occupied and maintained a property for 20 years but has not contributed to the purchase price or made any mortgage or rental payments, any rights they might have accrued may need to be balanced against the financial benefit of free accommodation. On the other hand, a person who has occupied a property long-term but has paid rent under a formal tenancy agreement is unlikely to have acquired any rights of ownership.
One of the best ways to avoid a TOLATA dispute is to put a Declaration of Trust in place at the time of purchase. This legal document sets out each person’s financial interest in the property and what should happen if the property is sold or one party wants to leave.
A Declaration of Trust is a formal legal agreement that records how a property is owned between two or more people. It can outline who contributed what to the deposit, how the mortgage is paid, and how proceeds will be divided in future. You can learn more about it on the GOV.UK website.
Yes. A cohabitation agreement (also called a “living together agreement”) can help by setting out how you and your partner intend to manage your finances, property, and living arrangements. It can also clarify what should happen if the relationship ends. Citizens Advice offers helpful guidance.
Seeking Legal Advice in a TLATA Dispute
If you find yourself in a dispute as to ownership of property, we would be happy to provide you with legal advice—whether you are seeking to make or defend a TOLATA claim.
We can assist and advise you in gathering evidence in the first instance. Thereafter, we would enter correspondence with your opponent, including complying with pre-action protocols before the case is issued in court. We can represent you from pre-litigation correspondence through to trial if necessary.
We encourage you to seek legal advice at an early stage to give us the best opportunity to advise and guide you through the process—and to achieve the best result for your individual case.
Do you want to protect your contribution to a shared property purchase?
You can protect your share of your investment in a property by making a Declaration of Trust. For more information on how to make a Declaration of Trust contact our Residential Conveyancing Team today.
Have you ever wanted to just ask a lawyer if they can help you, without worrying about what it may cost to contact them? If so, call HSR Law Solicitors and together we can work out what your next steps might be, in confidence, at no cost and with no obligation. Complete our simple form with your name and contact number and we will call you back to discuss how we can help.
Alternatively, contact Katie Williams, Richard Allwood or Odette Tovey directly: our Dispute Resolution specialists.
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