Land Law Essay Help: Resulting Trusts

Land Law Cases referred to in this section:
Dyer v Dyer (1788) 2 Cox Eq Cas 92
Hannaford v Selby (1976) 239 EG 811
Gissing v Gissing (1971) Ac 886

The resulting trust relates to the amount of money contributions which went towards the purchase price of the land. It gives effect to (unilateral) intention which is presumed from the way that money was contributed. Provided that there is no evidence to the contrary, the trust will arise automatically where a person contributes to the purchase price in favour of the contributor, and their equitable interest in that trust will be proportionate to their actual contribution.

Examples of resulting trusts:

  • A purchases land in the sole name of A, using all of B's money - a resulting trust arises in favour of B to the extent of his contribution towards the purchase (in this case, 100%)
  • A purchases land in the sole name of A, using 10% of his own money, 10% of B's money and 80% of C's money. A resulting trust arises in favour of A, B and C, in those proportions respectively (10%, 10% and 80%)
  • A and B purchase land in the names of A and B, each contributing 10% of the purchase price, and the remaining 80% coming from C. A resulting trust arises - A and B hold the land on trust for A, B and C in those proportions respectively (10%, 10% and 80%).

The classic explanation can be found in Dyer v Dyer (1788) 2 Cox Eq Cas 92 at 93, 30 ER 42 at 43) which states that "a trust of a legal estate... results to the man who advances the purchase money". The trust 'results' for the real purchaser.

Note that contributions other than to the direct purchase price will not give rise to a resulting trust. So for example, in Hannaford v Selby (1976) 239 EG 811, a young couple purchased a house in their own names with the help of a mortgage. The wife's parents moved in with them and paid a weekly sum into the general family income pool over a substantial period of time. Goulding J held that there was no beneficial interest acquired in the home, and that their payments resulted in nothing more than an occupational licence, revocable on reasonable notice.

The position remains that mere contribution to family living expenses is not sufficient to replicate the character of purchase money (Gissing v Gissing (1971) Ac 886) at 901B-C), so far as a resulting trust is concerned. Such contributions may, however, be sufficient to find a relevant detriment or change of position for the purposes of finding a constructive trust. Similarly, domestic labour such as housekeeping and bringing up the children will not be sufficient for a resulting trust, but again may be relevant to a constructive trust.

See also...
Proprietary Estoppel
Promissory Estoppel
Implied Trusts
Constructive Trusts
Express Bargain Constructive Trusts
Implied Bargain Constructive Trusts

 

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