If you own property with someone else and a dispute arises about who owns what share, the law that usually applies is called TOLATA.
TOLATA stands for Trusts of Land and Appointment of Trustees Act 1996. While the name sounds complicated, the idea behind it is quite simple. It is the law that helps courts decide who owns what share of a property and what should happen to that property when people disagree.
This guide explains the basics in clear, simple terms.
What is TOLATA?
TOLATA is a law that deals with property that is owned by more than one person.
It is often used when people who once lived together or invested together can no longer agree about:
- Who owns what share of the property
- Whether the property should be sold
- How the money from the sale should be divided
When people cannot resolve these issues themselves, the court can make a decision using TOLATA.
When do TOLATA disputes happen?
TOLATA cases commonly arise where unmarried couples separate. If a couple buys a house together but later separates, they may disagree about how much of the property each person owns.
It is also common where one person paid more than the other for example, one person contributes more to the deposit or mortgage and believes they should receive a larger share.
A parent may help a child buy a property, and later there may be disagreement about whether that money was a gift or an investment.
Disputes can also happen when friends or business partners jointly purchase property.
What can the court do under TOLATA?
If a case goes to court, the judge can make several types of decisions.
Decide Who Owns What Share
The court can determine the beneficial interest in the property. This means deciding the true share each person owns, even if the legal title shows something different.
Order the Property to Be Sold
If the parties cannot agree, the court can order the property to be sold.
Decide How the Sale Money Is Divided
Once the property is sold, the court can decide how the proceeds should be split between the owners.
What does the court consider?
When deciding a TOLATA dispute, the court will look at things such as:
- What the parties originally intended when they bought the property
- Who paid the deposit
- Who paid the mortgage or household expenses
- Any written agreements or discussions about ownership
Every case is different, and the court will look carefully at the facts.
Do all TOLATA disputes go to court?
No. Many disputes are resolved through negotiation or mediation.
Going to court can be time-consuming and expensive, so it is usually a last resort. A solicitor can often help parties reach an agreement without needing a court decision.
Why legal advice is important
Property disputes can become complicated very quickly. The way the property was purchased, what was said between the parties, and how money was contributed can all affect the outcome.
Getting legal advice early can help you understand your potential share of the property, explore settlement options
and hopefully avoid unnecessary legal costs
How we can help
While the legal name sounds technical, the core purpose of TOLATA straightforward: to ensure property is divided fairly when ownership is disputed.
If you are involved in a dispute about property ownership, seeking early legal advice can help clarify your position and guide you towards the best possible outcome. Contact us today to arrange an appointment.
