Trusts of the family home
Where a family home is held in the name of one or both parties without an express declaration of the beneficial shares, equity uses common intention constructive trusts (and sometimes resulting trusts) to determine ownership.
What "Trusts of the family home" covers
- An express declaration of the beneficial interests in the transfer is conclusive absent fraud or mistake (Goodman v Gallant).
- Sole legal owner cases (Lloyds Bank v Rosset): a claimant must show a common intention to share plus detrimental reliance — either an express agreement, or (traditionally) direct financial contributions.
- Joint legal ownership cases start from a presumption of joint beneficial ownership: 'equity follows the law' (Stack v Dowden; Jones v Kernott).
- That presumption can be displaced by evidence of a different common intention, judged on the whole course of dealing between the parties.
- Where intention as to shares cannot be deduced, the court may impute a fair share having regard to the whole course of dealing (Jones v Kernott).
- The Stack v Dowden factors include how the purchase was financed, whether finances were kept separate, and the parties' conduct over time.
- Proprietary estoppel is an alternative route: an assurance, reliance and detriment making it unconscionable to deny an interest (Thorner v Major; Guest v Guest on remedy).
Key cases & statutes
The authorities and provisions most likely to matter for this subtopic:
How it's tested in SQE1
SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For trusts of the family home, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.
Where candidates lose marks
- Applying the Stack v Dowden joint-ownership presumption to a sole-legal-owner case, where Rosset principles are the starting point.
- Confusing 'inferring' an actual common intention with 'imputing' a fair share (only permitted at the quantification stage).
- Treating minor domestic contributions as sufficient for an interest in a sole-owner case without an express agreement.
Learn this subtopic in the course
A video lesson, notes and exam-style practice on trusts of the family home.
FAQ
Is trusts of the family home tested on SQE1?
Yes — trusts of the family home is part of the SQE1 Trusts syllabus (FLK2) and can appear in single best answer questions.
How is trusts of the family home examined in SQE1?
SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (Stack v Dowden [2007], Jones v Kernott [2011]) helps.