A property ownership dispute refers to a conflict arising from divergent claims on the rights or ownership of a jointly owned property. It is a prevalent occurrence for cohabiting couples who lack the legal status of marriage or civil partnership to experience with the breakdown of a relationship. It is a prevalent occurrence for both parties to contribute financially to a property, however such contributions do not inherently confer rights to the property. This scenario can also occur when individuals cohabitate with friends or family members and collectively contribute towards a property that is solely owned by one individual.
An illustration of a more pronounced instance of a cohabitation dispute emerging would be in the event that the cohabitant, who also has legal ownership of the property, passes away without leaving a will. In the context of cohabitation without formal marital ties, it is commonly presumed that in the event of one partner’s death, the surviving partner will be entitled to inherit the jointly owned property without the need for additional legal procedures. This assertion is not accurate. In the absence of formal ownership, those who contribute financial resources towards a property do not inherently own automatic entitlements to the property. In these circumstances, a potential for dispute and subsequent adjudication in the judicial system exists. In this article, Property Ownership Disputes, we take a look at the process involved.
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For a free initial discussion on how we can help you if you are involved in a property ownership disputes, get in touch with us today. We are experienced in dealing with all forms of property litigation. We will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.
What are the common types of property ownership dispute?
There are a number of potential disputes that can occur relating to property ownership, a number of which we discuss below.
Investment property
Properties are frequently acquired by many individuals for investment purposes, which may include commercial properties, buy-to-let properties, or properties incorporated into personal pension schemes rather than for residential purposes.
Under these circumstances, it is imperative to engage in careful thought over the allocation of shares among individuals involved in the property. Additionally, it is crucial to meticulously prepare documentation that accurately reflects the intentions of all parties concerned.
The court adopts a distinct approach when dealing with disputes related to investment or commercial properties as compared to its approach in cases involving cohabiting or married couples and civil partners. Within the realm of business, it is anticipated that the court will require a higher level of clarity from the involved parties regarding their goals compared to a domestic setting.
In the absence of compelling evidence to the contrary, it is customary for the court to determine that the allocation of interests in the property by the parties corresponds to their respective financial contributions or commercial involvement in the acquisition cost.
Cohabiting couples
In England and Wales, it is important to note that the concept of a “common law spouse” does not hold legal recognition, despite its prevalence in public perception. In the event of a separation between cohabiting partners, the regulations pertaining to property division remain consistent with those applicable to property owners who jointly possess property and are not in a relationship, unless the couple in question shares children.
Numerous conflicts pertaining to co-owned assets commonly emerge in the event of a relationship breakdown, when the owners hold opposing views regarding the sale of the property, the distribution of equity shares upon its sale, or the transfer of ownership.
In the event of co-ownership of a property and a deadlock arising from a disagreement on either the sale of the property or the equitable division of its value, it is feasible to seek recourse through legal channels by applying to the courts for resolution of the impasse.
Applications are submitted to the courts in accordance with the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). The courts possess extensive jurisdiction pursuant to the Trusts of Land and Appointment of Trustees Act (TOLATA), enabling them to issue an order for the sale of the property and/or determine the division of equity.
In the event that one finds oneself embroiled in a disagreement of this sort, it is advisable to consider the termination of the joint tenancy arrangement and assess the necessity of drafting a new will.
What is the difference between legal and beneficial interests, and why does it matter?
There is a significant distinction between legal and beneficial ownership of a property. In short, the individual who owns the legal interest in a piece of property also owns the land’s legal title. Their identity, for example, would be listed as the legal owner in the land registry.
However, a beneficial interest is different. A beneficial owner is defined as a person entitled to the property’s benefits. That could mean that they have the right to occupy the home, or the right to participate in the income or sale proceeds from a property.
This is important because without a legal or beneficial interest, you may not have the right to reside in a property or receive any of the sale proceeds.
In terms of a married couple, unless the marriage was exceedingly brief, this is typically not a significant issue with divorce. This is due to the fact that all assets, whether legal or beneficial, are deemed family assets and are available for distribution by agreement or, if necessary, by the courts.
In the absence of a legal interest, however, establishing a beneficial interest is essential for cohabitants, business partners, or even just companions who own a property.
How we can help
We have a proven track record of helping clients involved in property ownership disputes. There can be an array of issues to take into consideration. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner and support and advise you with all the negotiations. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
Please click here to find out more about our Property Litigation services.
How to contact our Commercial Litigation solicitors
It is important for you to be well informed about the issues and possible implications of a property ownership dispute. Expert legal support is crucial in terms of ensuring a positive outcome to your case.
To speak to our Property Litigation solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.
Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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