Order for sale between co-owners: TOLATA 1996 ss.14 and 15 factors
Erin and Joel, an unmarried couple, bought a freehold house in Reading, England, as their family home, in their joint names on trust for themselves as tenants in common in equal shares. They have a daughter aged eight. Their relationship has ended. Joel has moved out and applies to the court for an order that the house be sold. Erin and their daughter still live there, and Erin opposes a sale until their daughter finishes school.
Which of the following best describes how the court will decide Joel's application?
Choose one answer to see the reasoning.
Worked answer
Correct answer A: The court has a discretion under s.14 and must have regard to matters including the purposes for which the house is held and the welfare of the daughter living there.
THE RULE TO REMEMBER
On an application under TOLATA s.14 the court has a discretion, having regard to the s.15 factors, including the trust's purposes and the welfare of any minor occupying the home.
Order for sale between co-owners: TOLATA 1996 ss.14 and 15 factors
Under s.14 of the Trusts of Land and Appointment of Trustees Act 1996, any trustee or person with an interest in property subject to a trust of land may apply to the court, which may make such order relating to the exercise of the trustees' functions, including their power of sale, as it thinks fit. Section 15(1) lists matters the court must have regard to, including (a) the intentions of the persons who created the trust, (b) the purposes for which the property is held, (c) the welfare of any minor who occupies or might reasonably be expected to occupy the land as his home, and (d) the interests of any secured creditor. Section 15(3) adds the wishes of adult beneficiaries entitled to an interest in possession. The house was bought as a family home and a child of eight lives there, so these factors are relevant and the court will balance them; there is no automatic outcome either way.
Why B is wrong: The 1996 Act replaced the old trust for sale; the court's decision is discretionary, weighing the s.15 factors.
Why C is wrong: A co-owner's occupation is a relevant circumstance, not a bar to sale.
Why D is wrong: Beneficiaries' wishes are only one factor under s.15(3), and the court is not bound by them.
Why E is wrong: Section 14(2)(a) allows orders relating to the trustees' functions, which include selling the land.
A little more practice done.
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A GOOD HABIT, DELIVERED
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