TOLATA Claims: What You Need to Know

TOLATA Claims: What You Need to Know

TOLATA claims, referring to the Trusts Of Land And Appointment Of Trustees Act 1996, arise when individuals have a dispute over the ownership of property or land held in trust. This can occur when people co-own property or land but disagree about how it should be divided, used or disposed of.

In this blog, we’ll explore what TOLATA claims are, the legal rights involved and how such disputes are resolved.

What Is A TOLATA Claim?

A TOLATA claim is a legal action that arises when there is a dispute between co-owners of property or land that is held in trust under the Trusts Of Land And Appointment Of Trustees Act 1996.

TOLATA claims typically occur when co-owners disagree over:

  • Property Or Land Ownership: Who has the right to occupy, sell or transfer ownership of the property.
  • Property Or Land Use: How the property should be used or managed.
  • Sale Of Property: One co-owner may want to sell the property while another wants to keep it, leading to conflict.
  • Financial Contributions: Disputes can also arise over the financial contributions made towards purchasing or maintaining the property.

TOLATA provides a framework for resolving disputes involving the ownership and use of land or property that is held in trust, where co-owners do not agree on the management or division of assets.

Who Can Make A TOLATA Claim?

TOLATA claims can be made by any individual with a legal interest in the property or land. This can include:

  • Joint Owners: Two or more people who share ownership of the property.
  • Beneficiaries Of A Trust: Individuals who are beneficiaries under a trust that holds the property or land.
  • Tenants In Common: Those who co-own a property with others but hold distinct shares, which may or may not be equal.
  • Family Members: In some cases, family members may be able to make a claim if they have been affected by the dispute.

What Rights Do I Have In A TOLATA Claim?

Under TOLATA, you have the right to bring a claim if:

  1. You Are A Co-owner Of The Property: This means that you have legal interest in the land or property, whether you are a joint tenant or a tenant in common.
  2. You Have A Beneficial Interest: You may have a beneficial interest in the property, even if your name is not on the title deed. This can happen when you’ve contributed to the purchase or maintenance of the property, even if your name is not formally listed as an owner.
  3. You Are Entitled To The Sale Or Division Of The Property: If the co-owners cannot agree on how the property or land should be used or divided, a TOLATA claim can provide a mechanism for resolving the issue. You can seek a court order for the property to be sold or divided or for other remedies such as the appointment of trustees.

TOLATA allows you to request that the court intervene and make a decision regarding the property or land, including the option of selling the property, transferring ownership or appointing a trustee to oversee the management.

How Are TOLATA Claims Resolved?

TOLATA claims are resolved through the courts, where a judge will consider the circumstances and make a ruling on how the property should be dealt with. The process generally involves the following:

  1. Negotiation: Before taking a TOLATA claim to court, it’s advisable to try to resolve the issue through negotiation. You and the other parties involved may be able to agree on a fair solution without the need for formal court proceedings.
  2. Mediation: Mediation can be a useful tool for resolving disputes under TOLATA. A neutral mediator can facilitate discussion between the co-owners to find a mutually acceptable solution.
  3. Court Action: If negotiation or mediation fails, a claim can be brought to court under TOLATA. The court has the power to:
    • Order the sale of the property: If the co-owners cannot agree on the use or division of the property, the court can order that the property be sold and the proceeds divided.
    • Decide on ownership rights: The court can decide who has the right to ownership, how the property is to be used or how the beneficial interests should be divided.
    • Appoint trustees: In some cases, the court can appoint a trustee to manage the property or land and resolve disputes about its use or disposal.

What Happens If I Want To Sell The Property And The Other Co-Owner Doesn’t?

One of the most common TOLATA claims is when one co-owner wants to sell the property or land, but the other does not. In these situations, the co-owner seeking the sale, can ask the court to intervene under TOLATA.

  • Court Order For Sale: If it is determined that the sale of the property is necessary or in the best interests of all parties involved, the court can order the property to be sold and the proceeds divided. This is often the case if the property has been jointly owned for a long period and the co-owners can no longer agree on how to manage it.
  • Other Options: The court may also consider other solutions, such as dividing the property in some way or transferring ownership to one of the co-owners. The final decision will depend on the circumstances of the dispute.

Can TOLATA Claims Apply To Family Disputes?

Yes, TOLATA claims can be relevant in family disputes over property, particularly when family members co-own property but disagree over its use or division. For example:

  • Family Property Disputes: If family members jointly own a property but are unable to agree on what should happen to the property following a family member’s death, a TOLATA claim may be necessary.
  • Property Disputes After Separation: If partners or ex-partners co-own property, TOLATA claims may be used to resolve disputes over the division of assets following a relationship breakdown.
  • Inheritance Issues: In cases where a person has died and left property in trust, family members who are beneficiaries under the trust may make a TOLATA claim if they believe the property is being managed or disposed of incorrectly.