Owning a property with someone else can work perfectly well until circumstances change. Relationship breakdowns, family disagreements, financial pressures, or disputes between friends can all lead to questions about who owns what and what happens next.
Understanding your legal rights is often the first step towards resolving the situation.
In this article, Property Litigation specialist, Michelle Hayter, outlines your legal rights in resolving a dispute over a jointly owned property.
Why are joint property disputes becoming more common?
Joint ownership can arise in many different situations, including:
- Unmarried couples buying together
- Family members helping someone onto the property ladder
- Friends purchasing a property jointly
When relationships, financial circumstances or expectations change, disputes can arise over ownership shares, occupation of the property, mortgage payments, financial contributions, or whether a property should be sold.
What situations lead to a jointly owned property dispute?
Common examples of situations that lead to jointly owned property disputes include:
- Separating couples who own a home together.
- Family members who contributed towards a property purchase.
- Disagreements about whether or when a property should be sold.
- Disputes over mortgage payments or household contributions.
- Situations where one person remains living in the property while another wants their share released.
Does it matter whether you're married, unmarried, or related?
Yes. Married couples and civil partners generally have different legal remedies available through the family courts, when dealing with divorce or dissolution.
Disputes involving unmarried couples, relatives, friends, and business partners are usually dealt with under property and trust law instead. This can make the legal position very different, even where the circumstances appear similar.
What law governs jointly owned property disputes in England?
Many disputes involving jointly owned property outside divorce proceedings are dealt with under the Trusts of Land and Appointment of Trustees Act 1996 commonly known as TOLATA.
What is TOLATA and why does it matter?
TOLATA gives the court powers to resolve certain disputes involving property held on trust.
Depending on the circumstances, the court can determine the nature or extent of someone’s interest in a property and make orders relating to how trustees exercise their powers. This can include dealing with disputes about the sale or occupation of a jointly owned property.
It provides a legal framework for resolving disputes where ownership, beneficial interests, or occupation rights are in question.
Who does TOLATA apply to?
TOLATA disputes commonly involve:
- Unmarried couples.
- Family members.
- Friends who purchase property together.
- Individuals who have contributed financially to a property but are not named on the title deeds.
Simply contributing towards a property does not automatically mean that someone has a particular ownership share. Whether a beneficial interest exists will depend on the circumstances and the available evidence.
TOLATA does not generally govern the division of assets between spouses as part of divorce proceedings.
Is TOLATA different from divorce proceedings?
Yes, TOLATA is different from divorce proceedings. In a divorce, the family court has broad discretion when dealing with the parties’ finances and can consider factors including their needs and the overall fairness of a financial settlement.
A TOLATA dispute is different. The court is primarily concerned with property and trust law, including the parties’ existing legal and beneficial interests. It does not simply redistribute ownership because the outcome might appear fairer than another..
What are your rights if you jointly own a property?
If the property is jointly owned, your rights depend on how the property is owned and the circumstances surrounding the purchase and ownership.
It will also depend on the parties’ intentions both at the time of purchase and the intention can change over time.
What does being a joint tenant mean?
Joint tenants own the whole property together, and there are no distinct shares..
If one joint tenant dies, their interest automatically passes to the surviving owner.
What does being a tenant in common mean?
Tenants in common each own a separate share of the property. These shares may be equal or unequal, and each owner's share can be left to someone else in their will; it does not automatically pass to the surviving owner.
What if you contributed but your name is not on the deeds?
If you contributed but your name is not on the deed, you may still have a legal claim.
If you contributed towards the purchase price, mortgage, renovations, or there was a shared understanding that you would have an interest in the property, you may be able to establish a beneficial interest.
Can your share be different from your co-owner's?
Yes. Ownership is not always divided equally.
In some cases, the court may recognise unequal shares based on financial contributions, agreements between the parties, or evidence of their intentions.
What can you do if you're involved in a property dispute?
Can you force the sale of a jointly owned property?
In many circumstances, yes you can force the sales of a jointly owned property. A court can order the sale of a property if it is appropriate to do so, although each case depends on its specific facts.
Can you claim a larger share if you paid more?
Potentially. Evidence of larger financial contributions, agreements between the parties, and the overall circumstances may support a claim for a greater beneficial interest.
What if the other person is living in the property and won't leave?
If the other person is living in the property and won’t leave, the court may be able to determine occupation rights, whether compensation is payable, and how the parties' interests should be dealt with moving forward.
Can you stop someone selling or remortgaging without your agreement?
If you have a recognised legal or beneficial interest in the property, there may be steps available to protect that interest and prevent transactions taking place without your involvement.
What does a TOLATA claim involve?
A TOLATA claim asks the court to resolve disputes about ownership, occupation, or sale of property.
Do you have to go to court?
Not necessarily. Many disputes are resolved through negotiation, mediation, or solicitor-led discussions before court proceedings become necessary. A final Court hearing is generally the last resort.
How long does a dispute take?
Timescales vary depending on the complexity of the case and whether the parties can reach an agreement. Early legal advice often helps resolve matters more quickly and cost-effectively.
How much does it cost?
Costs depend on the issues involved, the amount of evidence required, and whether court proceedings are necessary. We, as specialist solicitors can advise on likely costs and funding options.
What evidence do you need?
Relevant evidence may include:
- Property deeds.
- Mortgage statements.
- Bank records.
- Written agreements.
- Emails, messages, and correspondence.
- Evidence of financial contributions to the purchase, mortgage, or improvements.
What outcome can you realistically expect?
The outcome will depend on the facts of your case and the available evidence.
What will the court consider?
The court may consider:
- The intentions of the parties.
- Financial contributions.
- Any written agreements.
- The purpose for which the property was acquired.
- The interests of any secured lenders.
- The wider circumstances surrounding ownership.
Can you negotiate a settlement?
Yes. In many cases, reaching a negotiated settlement is quicker, less stressful, and more cost-effective than litigation.
What happens to the mortgage?
A mortgage remains a key consideration. Even where ownership shares are disputed, mortgage obligations continue and must usually be addressed as part of any settlement or sale arrangement.
How our TOLATA experts can help
Property disputes can be legally complex and emotionally challenging. Obtaining specialist advice at an early stage can help you understand your position, protect your interests, and identify the most practical and cost-effective route to resolution.
Specialist TOLATA lawyers
Not sure where you stand? Our dispute resolution team in Christchurch, Ringwood and Wimborne can help you understand your options in plain English, without the legal jargon.
Call 01202 499255 or complete our online enquiry form for a free initial conversation with one of our specialist TOLATA solicitors.
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