More and more unmarried couples are setting up home together and if the relationship breaks down, are finding themselves facing a stressful dispute as to what will happen to the property. Perhaps one party put down a larger deposit when the house was purchased or has paid more towards the mortgage than the other. As an unmarried couple, you and your partner do not have the same rights that are available to couples who are married or in a civil partnership.

In this article we will take you through what you need to know about TOLATA, possible resolutions, and what steps you need to take should you wish to make a claim.

What is TOLATA?

Legislation exists that provides a way for disputes relating to the ownership of property and use of land held in trusts to be resolved, known as TOLATA (Trusts of Land and Appointment of Trustees Act 1996).

Often, unmarried couples will try to reach an agreement over a shared property informally, which, while sometimes can be a faster and cheaper process, doesn’t always work out. In this instance, unmarried couples have the option to bring a TOLATA claim.

Can you make a TOLATA claim?

There are multiple scenarios where it may be possible to bring a TOLATA claim, for example:

  • You put down the deposit and the mortgage is in both of your names
  • Your partner/ex-partner is the sole owner of the property
  • Your partner put down the deposit and the mortgage is in both of your names
  • The deposit for the purchase of the property was provided by both of you in equal proportions
  • Your partner paid the deposit and the mortgage is in their name but you contribute towards the payments
  • The property is in joint names, but you have never contributed financially, however you have dependents living at the property with you

With any claim, the court will consider all of the evidence provided and will make a decision that they deem appropriate.

How to make a TOLATA claim?

If you have exhausted other avenues to reach a mutual agreement and have decided you wish to make a TOLATA claim, there are a few steps you will need to take:

  • Gathering Evidence – It is important to provide any legal documentation you have that evidences the ownership of the property, communication between all parties involved in the dispute, and any financial contributions made towards the purchase, mortgage, or maintenance of the property.
  • Legal Advice – TOLATA claims can be a complex and detailed process, so obtaining professional legal advice and representation is highly recommended to assess the strength of your case, navigate the process effectively, and provide you with alternative options.
  • Resolution – Before bringing a claim, you should try to resolve the dispute amicably through negotiation or mediation as this can be a faster and more cost-effective option.
  • Letter Before Action – This is an important step in the process that involves sending a formal letter to the other party outlining your claim, any evidence, and your proposed resolution (e.g. selling the property, distribution of selling price, etc).
  • Filing a claim – If it is necessary to proceed with filing a TOLATA claim you will need to complete the relevant forms, pay court fees, and submit your claim. As previously mentioned, a legal professional will take you through the process and ensure each step is completed correctly.
  • Serving a claim – It is imperative that the other party is formally served with the court papers. This includes copies of the claim form, particulars of the claim, and any supporting documents.
  • Court Proceedings – Be prepared to attend court hearings and provide evidence.
  • Decision – The court will review the evidence and arguments from both parties and decide the outcome of the case. This may involve ordering the sale of the property, deciding on the distribution of proceeds, or making other relevant orders.
  • Final step – Both parties must comply with the court’s decision and take the appropriate action required of them.

Due to the nature and complexities of the process, seeking help from a legal expert will give you the best chance of bringing a successful claim.

Possible resolutions that you could expect?

Before bringing a TOLATA claim, you should first decide the outcome you want, there are several possible resolutions:

  1. Order for Sale – the court will issue an order for the property to be sold and state how proceeds are to be distributed
  2. Declaration of Interests – the court will make a declaration that determines how much of the property each party owns (share or percentage)
  3. Occupation Orders – the court can decide which party has the right to occupy the property
  4. Transfer of Property – An order can be granted to transfer the property from one party to another
  5. Regulation of Trusts – The terms of the trust may be varied by the court
  6. Mediation and Alternative Resolution – In some cases, the court may encourage parties to engage in mediation
  7. Interim Orders – If there is an immediate issue, the court may grant an interim order as a temporary measure

A legal expert will offer advice and guidance relating to these resolutions.

How we can help:

The team at Backhouse are here to help with your dispute. To discuss your options with one of our experts or to bring a claim, contact us and book your free 30-minute consultation using the contact details below.

Tel:          01245 893400
Email:     info@backhouse-solicitors.co.uk
Visit:       17 Duke Street, Chelmsford, CM1 1JU
Or send us a message through the Contact Us page on this website.