Faizi & Anor v Tahir [2019] EW Misc 8 (CC) (14 March 2019)

Faizi & Anor v Tahir [2019] EW Misc 8 (CC) (14 March 2019)

The claimant and defendant reached an agreement in 2006 that the defendant would purchase the property and hold legal title for the benefit of the claimant, with intention to transfer title when possible. The claimant acted to his detriment by paying most mortgage instalments and improving the property. The defendant holds the legal title on trust for the claimant, who is entitled to 100% beneficial ownership subject to reimbursing the defendant for mortgage payments made from 2015 onwards.

Citation
[2019] EW Misc 8 (CC)
Parties
Claimant: First Claimant; Defendant: Defendant; Mortgagee: Second Claimant
Jurisdiction
England and Wales
Judgment Date
14 March 2019
Procedural Posture
Civil / Final Judgment
Outcome
Claimant's claim for declaration of trust and beneficial ownership granted; defendant's possession claim dismissed
Legal Topics
Constructive Trust, Resulting Trust, Beneficial Ownership, Trust of Land and Appointment of Trustees Act 1996, Equitable Accounting
Property Law Trusts Constructive Trust Resulting Trust Beneficial Ownership Trust of Land and Appointment of Trustees Act 1996 Equitable Accounting

Case Brief

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Parties

First Claimant

Claimant

Defendant

Defendant

Second Claimant

Mortgagee

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether the claimant has a beneficial interest in the property held in the defendant's name
  2. 2 Whether payments by the claimant give rise to a resulting or constructive trust
  3. 3 Whether the defendant is entitled to possession against the claimant

Ratio Decidendi

The claimant and defendant reached an agreement in 2006 that the defendant would purchase the property and hold legal title for the benefit of the claimant, with intention to transfer title when possible. The claimant acted to his detriment by paying most mortgage instalments and improving the property. The defendant holds the legal title on trust for the claimant, who is entitled to 100% beneficial ownership subject to reimbursing the defendant for mortgage payments made from 2015 onwards.

Court Disposition

Claimant's claim for declaration of trust and beneficial ownership granted; defendant's possession claim dismissed

Orders

  • Legal title of property held by defendant on trust for claimant
  • Claimant entitled to 100% beneficial interest subject to reimbursing defendant for mortgage payments from 2015 onwards within three months or securing the sum against the property