Quizzes & Puzzles3 mins ago
gifted property
if someone transfers a property to you at a discounted price and gives you a letter saying that they are selling you the property at �x. Would this be classed as a gift and at a later date could the seller ask you to pay further monies to make up the difference in what the market price was to what they actually sold it you
for. Could it also be classed as the purchaser holding a common intention constructive trust or give rise to a beneficial interest even though nothing has been put in writing to suggest this. thanks
for. Could it also be classed as the purchaser holding a common intention constructive trust or give rise to a beneficial interest even though nothing has been put in writing to suggest this. thanks
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For IHT and CGT purposes, it could well be construed as a gift or a sale "at an undervalue".
The difficulty you have with the property transaction is that a letter on a conveyance is not enough, the transactionneeds to be done by deed to properly convey the legal title.
As far as common intention constructive trusts or beneficial interests are concerned, it is the common intention of the parties which is of relevance and not necessarily the legal title (for more info see Stack v Dowden HL either this year or last - sorry I don't have full ref) or the fact that anything is put in writing.
It may be worth being more specific on the situation you have in mind - some very knowledgable peeps here will help if they can.
The difficulty you have with the property transaction is that a letter on a conveyance is not enough, the transactionneeds to be done by deed to properly convey the legal title.
As far as common intention constructive trusts or beneficial interests are concerned, it is the common intention of the parties which is of relevance and not necessarily the legal title (for more info see Stack v Dowden HL either this year or last - sorry I don't have full ref) or the fact that anything is put in writing.
It may be worth being more specific on the situation you have in mind - some very knowledgable peeps here will help if they can.
thanks for quick reply barmaid, i'll try and be more specific, the transfer was from my sisters ex partner to her and has now taken place and it is now registered in her sole name and a mortgage was taken out by her to purchase the property. my sister is worried in case her ex comes back at a later date and asks for more monies. I know she has read quite a few posts on this forum with similar problems. my sister paid �x for the house which is what her ex asked for and is the same figure in the letter she has off him stating what he was selling it her for.
Did she do it through a solicitor as they may have something in writing as regards intention?
It may be that some indemnity insurance was also put in place for the undervalue.
If he offered to sell it at x price and she accepted and that is what was done then in the absence of some other agreement then he'd find it pretty hard to prove that the intention was that further monies were to be paid.
The only think she could consider if if she owes him any other money to such a sum he could get a charge on the property. He'd have to prove it though or get a court order.
It may be that some indemnity insurance was also put in place for the undervalue.
If he offered to sell it at x price and she accepted and that is what was done then in the absence of some other agreement then he'd find it pretty hard to prove that the intention was that further monies were to be paid.
The only think she could consider if if she owes him any other money to such a sum he could get a charge on the property. He'd have to prove it though or get a court order.
hi, she did use a solicitor but there was no mention of indemnity neither was their ever an agreement either verbally or written made that he would retain an interest. if my friend thought that at any time he claim a beneficial interest she would not of bought the property as the mortgage she now has on the property (she had a further advance for home improvements - (which she has receipts for) only leaves a few thousand pounds of equity.
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