Law of Property 1 Essay Example | Topics and Well Written Essays - 3000 words

Law of Property 1 - Essay Example Jane carried on paying the instalments on the loan. In 2009 Harry became ill and died. Jane has continued to pay the instalments to the friend direct. Under Harry’s will, all his property passes to his widow, Helena. There is ?1,000 still owing on the loan. Helena, as executrix of and sole beneficiary under the will, has applied for a possession order against Jane. Advise Jane. Students are advised not to consider the Land Registration Acts but to answer the question within the syllabus. 2. Augusta had a friend Julius, who was in financial difficulties. Augusta lent Julius ?5,000 " to get himself sorted out". At Augusta's insistence, Julius put the money into a separate bank account and told the bank, to whom he owed money, that the money was a special loan from Augusta. Julius used ?2,000 of the money to pay various debts before he was declared bankrupt. ?3,000 remains in the account. Augusta died leaving a will containing the following provisions: â€Å"To my son Cassius I leave ?20,000 to enjoy as he likes during his lifetime, provided that, at his death, he leaves any of the money that remains to his sister Demeter, The rest of my estate I leave to Gaius and Lucius on trust, so that they may make grants out of the income from this fund to any of the descendants of my illustrious ancestor Tarquin and their families.† Tarquin lived two hundred years ago and is reputed to have had many children both legitimate and illegitimate. Advise Cassius as to his rights and duties over the ?20,000. Advise Augusta’s executors as to whether they will be able to recover the balance of ?3,000 in Julius’ bank account. Advise Gaius and Lucius as to their powers and obligations with the regard to the residue of Augusta’s estate. Question 1 In the above, it is necessary to consider what rights Jane might have over the property. This will involve analysing how proprietary rights over property can be established. Under the Law of Property Act 192 5 the person registered on the deed for the property will be the legal owner of the estate1. This effectively means that Harry would have been the legal owner despite his promise to give the property to Jane if she paid off the loan. The effect of the Will would mean that the house would transfer in ownership to Helena, which would entitle her to dispose of it in any manner she sees fit2. However, this would create unfairness to Jane who has been paying the money owed to Harry and latterly to his friend on the understanding that she would have a right to the property. As there is no written agreement between Jane and Harry, and Harry has not expressly left the property to Jane in his Will, the only rights she might have in relation to the property would be an equitable interest3. As a result of this, Jane might have to rely on the doctrine of implied trusts to be able to claim a share of the property. Implied trusts can exist through statute or as a resulting or constructive trust. The latter 2 trusts exist in equity only and are applied by the courts to rectify any unfairness caused by the denial of legal property rights through the property only being registered in one parties’ name. A resulting trust occurs where there is evidence that the claimant has made payments towards the purchase price of the property but was not included on the register as an owner. Those relying on this principle have to prove that they expended the money in the belief that they would acquire an interest in the property,