Disputes in relation to the Trust of Land and Appointment of Trustees Act 1996 (“TOLATA”).
If you or your ex-partner own a property that was shared together, then you may be able to make a claim through the Trusts of Land and Appointment of Trustee’s act (TOLATA). Our TOLATA Solicitors can assist you in determining whether you have a claim and guide you through this complex area of law.
Dealing with your relationship breakdown whilst handling the obstacles of separation can be difficult. Unmarried couples who live together do not receive the same legal protection through separation as married couples do. Decisions around property during such separations can be difficult, which is where the Trusts of Land and Appointment of Trustee’s act comes in to play.
The Trust of Land and Appointment of Trustees Act 1996 gives courts certain powers to resolve disputes around the ownership of property for separated, unmarried couples. TOLATA can be used to decide the ownership of a property, and who can remain in the property. The court has discretion through TOLATA to decide whether:
- To force sale of the land or property, and decide the split of proceeds between beneficiary parties.
- A claim for this can be made for anyone who may have a beneficial interest in the property or land.
- To reoccupy a home when an ex-partner refuses to leave.
- Whether a person has a beneficial interest in the property – even in cases where the person is not named on the legal title.
- To determine the share of the property that each of you (as an unmarried couple) owns.
It is not necessary to be named on the deeds of a property to make a claim through TOLATA.
How Can Reeds Help?
At Reeds, one of our expert TOLATA solicitors can help;
- Settle a property dispute out of court.
- Make a TOLATA claim.
- Defend a claim being made against you.
- Protect you from a future TOLATA claim made against you if a relationship breaks down.
Whether you are looking to make a TOLATA claim or defend against one, this area of law can be complex so it is important to receive specialist legal advice. Contact our team of solicitors to provide free initial advice for your circumstances through our contact page here. Alternatively you can phone 0333 240 7373, or email us at info@reeds.co.uk.
Frequently Asked Questions
What Are the Restrictions of a TOLATA?
In some cases, the Trusts of Land and Appointment of Trustees Act cannot help someone making a claim. The courts do not have the power to:
- Vary the co-ownership of a property.
- Adjust the proportion a person owns of a property.
- Order that a person should sell or transfer their share of property to the other.
- Order a trustee/owner to do something they are not permitted to do under the terms of trust.
- Order that one person should buy another out of their share.
What Is a TOLATA Claim in Family Law?
A TOLATA claim (or Trusts of Land and Appointment of Trustee’s Act Claim) are claims which determine the ownership of a ‘trust of land’ that has been under joint ownership or sole ownership.
Through TOLATA, the court can decide the ownership of a property when there is a dispute during the separation of an unmarried couple. The Court will determine the extent of both you and other party’s (for example, your ex-partner) interest in the land or property. This could result in ordering the sale of the property, and how the proceeds of the sale should be distributed between you both.
A ‘Trust of Land’ is land that is held by a legal owner or owners on trust for one or more beneficial owners.
Who Can Make a TOLATA Claim?
Whilst a claim under TOLATA is not restrictive of who can make it, the majority of claims tend to be from unmarried couples separating from a relationship. This is because unmarried couples are not subject to the same legal protections that married couples are.
It is possible for cohabiting family or friends to make a TOLATA claim, however it is more common for couples to claim.
What Is the Process for Making a TOLATA Claim?
When making a TOLATA claim there is a standard process that you must follow. This process includes:
1. Letter Before Claim – a letter setting out the claim, along with evidence.
2. Response – the defendant of the claim, or recipient of the letter must reply and set out their case within a reasonable time.
3. Early settlement – Both parties should attempt to settle the claim without going to court. Either through mediation, dispute resolution or through a specialist solicitor.
4. Court – when unable to settle the dispute, the matter will progress to court.
What Is a Letter Before Action?
Before a TOLATA claim can be issued with the court, a ‘Letter Before Action’ will need to be sent laying out the basis of the claim.
The ‘defendant’ of the claim (i.e. recipient) should acknowledge the letter of claim within 21 days of receiving it. This should provide a timescale for the defendant’s response or formal reply.
The involved parties must negotiate to see if the property/land disputes can be settled before any court proceedings are initiated. If couples do not attempt to negotiate, they could be penalised on costs.
You can be referred to Alternative Dispute Resolution (ADR) to assist with negotiations where appropriate.
Should I Settle Out of Court?
You should always attempt to settle a matter, where possible, out of court. A TOLATA claim can be settled out of court through a formal mediation process or through solicitor negotiation.
The Court will usually have expected you to have tried ADR before filing a claim under TOLATA. ADR refers to ‘alternative dispute resolution’ usually in the form of mediation or arbitration.
Through mediation, an impartial specialist called a mediator will help you both to come to an agreement. Arbitration must be agreed on by both parties to proceed. An independent arbitrator will then hear each side of the case so the arbitrator can attempt to settle the dispute.
Opting for ADR, before proceeding with issuing a TOLATA claim, may allow you to avoid costly court fees. It may be a quicker and easier process than issuing a TOLATA claim. However, this is not always possible.
If all of the points of dispute are not settled through ADR it is possible to still proceed to court with the remaining issues. Resolving as many issues as possible through ADR will reduce the amount to settle in court.
An out of court settlement will be accepted under the act if the settlement is seen as;
- Fair.
- Agreed to by both parties.
- Made in the best interests of any children in the relationship.
What Will the Court Consider During a TOLATA Claim?
When making a decision on an application or claim through TOLATA, the court will consider a number of factors. These can include:
- The intentions of both parties
- The welfare and care needs of any child under the age of 18 (especially if they currently live at the property in dispute)
- The reasons for the purchase of the property
- The interests of any secured creditor or mortgage lender.
What Information Should I Collect to Make a TOLATA Claim?
A court will need to understand the history of the property in detail to be able to determine each party’s interest and claim on the property. Information requested could include:
- Office copy entries from the Land Registry for the title property.
- A copy of the conveyancing file from the solicitors at the point of purchase.
- A valuation of the property or a drive by valuation for it’s present value.
- Who purchased the property, or what name was used when purchasing the property?
- Was the property purchased as joint tenants or tenants in common?
- Was there any Declaration of Trust or Declaration of the Beneficial Shares in the Transfer Deed (TR1)
- Who has contributed to the mortgage payments since the property was purchased?
- Where did the deposit for the property come from?
- Who paid the household bills and any upkeep costs or expenses relating to the property?
- Has either party not directly contributed to the purchase, or acted to their detriment in any way?
This list is in no way exhaustive. A discussion with a solicitor will help advise you on the information that you need to collate in order to make a claim, or defend against one.
Obtaining legal advice at an early stage can be crucial, please contact us through our contact page here. Alternatively you can phone 0333 240 7373, or email us at info@reeds.co.uk.
How Long Does a TOLATA Case Take?
How long a TOLATA case takes, from ‘Letter before Claim’ to Court decision, will depend on the details of your specific case. The length of time will vary depending on how complex the case and claims are and how willing both parties are in the negotiations.
Our solicitors are experts in the negotiation and court proceedings of TOLATA cases. They can advise you at any stage of your proceedings – whether making a claim, or defending against one.
For initial advice on your situation, please contact us through our contact page here. Alternatively you can phone 0333 240 7373, or email us at info@reeds.co.uk.
How Do I Make a TOLATA Application?
The first step in a TOLATA application is usually ADR. Both parties must be aware of ADR and what it involves before progressing. However, it is up to your discretion whether you choose to progress with ADR. In some situations, such as when domestic abuse is involved, ADR may not be suitable.
If you are unable to come to an agreement through ADR you may wish to make a formal TOLATA application. Before choosing to go to court, our solicitors can help both parties to negotiate a settlement. If you decide to take the case to court, you can make a TOLATA claim.
First a letter before claim will be set out. This includes a claim form, statement in support and documentary evidence in support of the claim. All potential claims must be included in the claim form. After the other party receives this they are able to respond and lay out their case. If settlement does not work here either then the Court can decide the outcome.
How Much Does TOLATA Cost?
This depends on how cooperative both parties are in the process, and whether the claims can be settled out of court. If an early settlement can be reached, then the costs will be relatively low. However, if the claim can not be settled out of court then a TOLATA claim can become expensive.
The costs will also differ depending on the type of claim you are making under Trusts of Land and Appointment of Trustees Act. Get in touch with one of our solicitors who will be able to consider your situation and advise you on the likely costs associated with it.
You may also be able entitled to recover the costs of the claim back from the losing party after a TOLATA case. However, this is not guaranteed.
Why Choose Our Solicitors?
Our national team of family solicitors are experts in providing advice, making and defending TOLATA claims.
Making a claim that someone has financial interest in a property that they do not, on paper, own can be complex and require detailed legal arguments. It’s important that those making such claims seek experts that will represent their best interests to get the best outcome.
It is important to note that we cannot represent those for professional negligence who have been poorly advised in TOLATA.
Our solicitors are skilled negotiators and have experience in cases which involve children.
If your best-case or desired scenario is an out of court settlement, then we will do everything we can to settle the claim and dispute as swiftly as possible. When this is not possible, we will be your fiercest advocate in Court to help you secure your best outcome.
If you would like to discuss any aspect of your case, please contact us through our contact page here. Alternatively you can phone 0333 240 7373, or email us at info@reeds.co.uk.