Oral declaration of trust of land: LPA 1925 s.53(1)(b)
Owen Fairweather is the sole registered proprietor of a buy-to-let flat in Leeds, England. Over dinner he tells his adult sister Beatrix, 'From today I hold the flat on trust for you.' Nothing is put in writing. Beatrix has paid nothing towards the flat and has not changed her position in reliance on what Owen said. A year later Owen tells Beatrix he has changed his mind and intends to keep the flat.
Can Beatrix enforce the trust against Owen?
Choose one answer to see the reasoning.
Worked answer
Correct answer D: No, because a declaration of trust of land must be manifested and proved by signed writing, and Owen signed nothing.
THE RULE TO REMEMBER
A declaration of trust of land must be manifested and proved by writing signed by the person able to declare the trust, or by will (LPA 1925 s.53(1)(b)).
Oral declaration of trust of land: LPA 1925 s.53(1)(b)
Section 53(1)(b) of the Law of Property Act 1925 provides that a declaration of trust respecting any land or any interest in land must be manifested and proved by some writing signed by some person who is able to declare such trust, or by his will. The person able to declare the trust here is Owen, as the owner of the flat. His declaration was purely oral and he has signed nothing, so it cannot be proved in the way the section requires and Beatrix cannot enforce it. The writing does not have to be contemporaneous, so a later signed note by Owen would have sufficed, but he refuses. Section 53(2) preserves resulting, implied and constructive trusts, but nothing on these facts gives rise to one: Beatrix provided no money and did not act to her detriment. As a volunteer relying only on an oral declaration of trust of land, she has no enforceable claim.
Why A is wrong: Section 53(1)(b) specifically governs declarations of trust of land; s.53(1)(c) is the separate rule for dispositions.
Why B is wrong: Section 53(2) preserves constructive trusts, but there is no detrimental reliance or other basis here for imposing one.
Why C is wrong: The section requires signed writing, not a deed.
Why E is wrong: The writing must be signed by the person able to declare the trust (Owen), not by the beneficiary.
A little more practice done.
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