Trust of Land & Appointment of Trustees Act 1996/Unmarried Couples & Property – How to Protect Yourself: Practical Tips

  1. Put Clear Legal Ownership in Writing

When you buy a house:

  • Use a declaration of trust if someone else is contributing to the purchase or will live there.
  • Clearly set out who owns what in writing.
  • Don’t rely on verbal understandings—courts can interpret these loosely.
  1. Avoid Taking Contributions Without Clarity

If someone gives you money for:

  • A deposit
  • Renovations
  • Mortgage payments

document it. Make sure it’s clear whether it’s:

  • A gift
  • A loan
  • An investment

That clarity can prevent them from later claiming a beneficial interest.

  1. Be Cautious When Letting Others Move In

Letting a partner, friend, or family member move in may not automatically give them a legal claim. But if:

  • They pay toward the mortgage
  • You make joint financial plans
  • There’s a suggestion they’ll gain a share

…you could unintentionally create a constructive trust.

Tip: Make a cohabitation agreement if you’re living with someone but don’t intend for them to gain rights to the property.

  1. Use Formal Agreements for Loans

If someone lends you money for your house:

  • Get it in writing with clear terms.
  • Consider a loan agreement instead of an informal promise.

This shows you never intended to give them a share in your property.

  1. Keep Communications Professional and Limited

In case things go south, your emails, texts, or WhatsApp messages can be used as evidence in court. Avoid making promises or casual comments like:

  • “This will be your home too”
  • “One day, this house will be ours”

Unless you mean it—because it might later be used against you.

Common Mistakes to Avoid

Assuming you’re safe because your name is on the title – beneficial interest is different from legal ownership.

  • Relying on verbal understandings.
  • Not taking legal advice when accepting financial help from others.

If You’re Worried About a Claim…

If someone threatens or hints at making a TOLATA claim:

  • Don’t ignore it. Speak to a solicitor immediately.
  • Gather all evidence—bank transfers, texts, agreements, etc.
  • Avoid discussing the matter informally—things said can be used in court.

Final Thoughts

Protecting your property from a TOLATA claim starts with clarity, documentation, and legal advice. Whether you’re buying with a partner, accepting a loan from a family member, or just letting someone move in, it’s vital to set out the terms from the beginning.

Being proactive now can save you a long, expensive, and emotionally draining court battle later.

If you have concerns regarding a potential TOLATA matter speak with one of our Litigation Team for advice.