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Co-ownership disputes

Co-ownership of property can be a harmonious arrangement. Sadly, disputes can arise where, for example, co-owners cannot agree on when a property should be sold or who is entitled to what share of the proceeds of sale.

What is TOLATA?

To resolve disputes, the co-owners will turn to the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).

TOLATA governs the way land and property held in trusts are managed and disputed in England and Wales.

Under TOLATA, the following applications can be made to determine:

Who is entitled to occupy a property
The nature and extent of the ownership of a property
Whether there should be a sale or the property

Claims under TOLATA can also be brought by individuals who consider they have a beneficial interest in a solely owned property.

Common co-ownership disputes

Commonly, disputes arise between cohabitees when their relationship has broken down,

One party may want to realise their interest in the property but the other wants to stay in the property not wanting it to be sold.
One party may consider they have paid or contributed more into the property meaning agreement cannot be reached on the value or size of their share.

Other co-owners such as business partners who have purchased a property for investment purposes, cohabiting friends and/or family members can also look to TOLATA to resolve disputes.

Practical tips for co-owners

To minimise the risk of disputes, co-owners should consider:

Entering into a Declaration of Trust at the time of purchasing a property.
If cohabiting, entering into a co-habitation agreement outlining each party’s contributions, responsibilities, and intentions regarding the property in the event of the relationship breaking down.

Where a dispute arises, open and honest communication between co-owners is beneficial to address concerns and disagreements before they escalate.

Legal advice should also be taken at the outset. Our property dispute solicitors have vast experience in making and defending TOLATA claims.

If you are worried about a co-ownership dispute (or any if you consider you have a beneficial interest in a property) and would like to know more about the options available to you, please contact us today.