Analysis Of Implied Constructive Trusts

Implied constructive trusts arise in the absence of a declaration of trust where another has acted to their detriment under the influence of the trustee which caused a mistaken belief that their act would lead to a beneficial interest in the land, similarly to proprietary estoppel in the necessity of acting to one’s detriment. Constructive trusts also aim to avoid unconscionable behaviour, the similarities in purpose between the two does create an expected amount of overlap.
Claims in constructive trusts are governed by the Trust of Land and Appointment of Trustee’s Act 1996. Section 14 of the act gives the court the power to declare a person’s interest in property subject to trust.
How a property can be owned differs, it can be in a person’s sole name, as tenants in common or as joint tenants and an expressed declaration of trust is a fundamental tool in the safe guarding the beneficial interest among parties. Where there is no evidence of undue influence, misrepresentation or fraud it is commonly impossible to undermine a declaration of trust. …show more content…
However courts have adjusted to changing economic and social conditions and will now look at parties intention be it actual, implied or shared in the context of the parties’ entire course of conduct in relation to the property.
Historically, in order to establish a constructive trust one would need to show an agreement or an
The foundations of constructive trusts come from Gissing v Gissing [1971] AC 881 which set out a two stage process:
1.