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The Law Commission


You are here: BAILII >> Databases >> The Law Commission >> SHARING HOMES [2002] EWLC 278 (01 November 2002)
URL: http://www.bailii.org/ew/other/EWLC/2002/278.html
Cite as: [2002] EWLC 278

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The Law Commission

(LAW COM No 278)

SHARING HOMES

A Discussion Paper

Presented to the Parliament of the United Kingdom by the Lord High Chancellor

by Command of Her Majesty

November 2002

Cm 5666

The Law Commission was set up by the Law Commissions Act 1965 for the purpose of promoting the reform of the law.

The Law Commissioners are:

The Honourable Mr Justice Toulson, Chairman[1]
Professor Hugh Beale QC
Mr Stuart Bridge
Professor Martin Partington CBE
Judge Alan Wilkie, QC

The Secretary of the Law Commission is Mr Michael Sayers and its offices are at Conquest House, 37-38 John Street, Theobalds Road, London WC1N 2BQ.

This Discussion Paper was first published online on 18 July 2002.

The text of this Discussion Paper is available on the Internet at:

http://www.lawcom.gov.uk

CONTENTS
  Paragraph
Executive Summary Summary
   
PART I: INTRODUCTION PART I
The shared home 1.6
A property-based approach 1.23
   
PART II: THE CURRENT LAW PART II
Introduction 2.1
Trusts of land 2.4
Legal and beneficial ownership of the shared home 2.10
Legal title – joint tenancy 2.12
Beneficial ownership- joint tenancy or tenancy in common 2.16
Resolution of disputes between trustees and beneficiaries 2.23
Dealings with third parties 2.27
Occupation of the shared home 2.32
Where a person has an interest under a trust of land 2.34
Matrimonial home rights 2.37
Orders regulating occupation of the shared home 2.38
Encouraging formal arrangements 2.41
Express trusts 2.48
Construing the declaration 2.49
Implied trusts and proprietary estoppel 2.53
Implied trusts 2.54
The resulting trust 2.56
Intention to make a gift or loan 2.58
Presumption of advancement 2.59
The current role of the resulting trust 2.61
The constructive trust 2.62
Quantification of beneficial entitlement 2.80
Proprietary estoppel 2.88
Criticisms of the current law 2.105
"Common intention" constructive trust 2.106
The relevance of contributions 2.107
Discrimination against home-makers 2.108
The quantification of beneficial entitlement 2.109
The unpredictability of estoppel 2.110
The litigation consequences 2.111
   
PART III: A PROPERTY APPROACH PART III
An outline of the scheme 3.3
Principal features of the scheme 3.7
No express arrangement 3.7
The shared home 3.8
Excluded sharers 3.14
Trust-based 3.17
Proprietary interest 3.18
Pro rata 3.19
The date at which the beneficial interest arises 3.20
Contribution-based 3.21
Disregarding the parties' intentions 3.23
The valuation of contributions 3.26
Relevant contributions 3.27
Financial: direct and indirect 3.28
Valuation of financial contributions 3.32
Chattels 3.37
Non-financial contributions 3.38
Valuation of home-making and caring services 3.42
A discretion in respect of non-financial contributions only 3.47
Countervailing benefits 3.49
Possible controls 3.51
Disproportionality 3.51
Imposition of a minimum period of sharing 3.52
Worked examples 3.55
Example 1 3.56
Example 2 3.60
Unwelcome results 3.65
The problems with the scheme 3.75
The rejection of intention 3.76
The definitional problem 3.79
Undue advantage for those who share 3.82
The problem of proof 3.85
The inflexibility of the statutory trust 3.88
Prospective or retrospective 3.94
The lack of a unifying principle 3.96
Conclusion 3.100
   
PART IV: A WAY FORWARD PART IV
Australia: "unconscionability" 4.5
Canada: unjust enrichment 4.10
New Zealand: "reasonable expectation" 4.16
Summary 4.20
   
PART V: A RELATIONSHIP APPROACH PART V
Married couples 5.6
Financial provision and property adjustment on divorce 5.8
Statutory co-ownership 5.12
Unmarried couples 5.13
No adjustive discretion 5.16
Australia 5.19
New Zealand 5.22
Proposals for reform 5.23
The Law Society 5.23
Scotland 5.25
Northern Ireland 5.28
The policy questions 5.29
Registered partnerships 5.30
Denmark 5.31
France 5.32
Proposals for reform 5.35
Bills before Parliament 5.36
The policy questions 5.41
Summary 5.42
A tiered approach to rights and obligations 5.42
   
PART VI: CONCLUSIONS PART VI

1At the date this report was signed, the Chairman of the Law Commission was the Right Honourable Lord Justice Carnwath CVO.[Back]


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