22nd October 2025 ❘ Legal News and Commentary
Understanding the Trusts of Land and Appointment of Trustees Act (TOLATA)
Understanding the Trusts of Land and Appointment of Trustees Act (TOLATA)
When people buy property together, whether as partners, family members or even friends, the arrangement often feels straightforward. Unfortunately, disagreements can arise later, especially when circumstances change. The Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) is the law that governs these situations, and it’s good to understand how it works.
At Burnetts, we regularly help clients navigate disputes under TOLATA. In this news piece we aim to provide a simple overview of what the Act is, who it applies to, the types of claims that can be made, and steps you can take to reduce the risk of a dispute.
What is TOLATA?
TOLATA is an Act of Parliament that gives courts the power to resolve disputes where property is held on trust. A “trust of land” arises whenever two or more people own property together, whether they realise it or not.
Put simply, if you jointly own a property for example, as a couple purchasing a home then the property is usually held on trust for you both. TOLATA sets out how that property can be managed and what happens if the owners cannot agree.
Who does TOLATA apply to?
TOLATA is most commonly relevant in the following scenarios:
- Unmarried couples buying a home together – Unlike married couples, there is no automatic right to a share in the property. Ownership is determined by legal documents (such as Land Registry title register/transfer/declaration of trust) or, if absent, by what the court decides based on the parties’ intentions.
- Family members contributing to a purchase or improvements – For example, parents helping children purchase a property.
- Friends or business partners investing in property – Joint ventures can become complicated if relationships sour.
- Where beneficiaries of a trust of land disagree on what should happen to the property – Where trustees and beneficiaries disagree about how land should be used or sold.
In short, anyone who owns (or claims to own) an interest in property jointly with someone else may be affected.
Common types of TOLATA claims
The court has wide powers under TOLATA to make orders where disputes arise. The most frequent claims that we see are:
- Orders for sale – Where one party wants to sell the property and the other refuses.
- Declarations of beneficial interests – To determine who owns what share of the property (for example, 50/50 or another split).
- Occupation disputes – Deciding who has the right to live in the property and on what terms.
These claims often arise when relationships break down such as after separation or when one party feels they have contributed more financially and want recognition of their share.
How can risks be reduced?
The good news is that many disputes can be avoided with proper planning. Here are some key steps:
- Early Legal advice– Understand your legal position now and in the future by speaking to a solicitor prior to purchasing property
- Declaration of Trust – When buying property with someone else, you can sign a Declaration of Trust setting out who owns what share and what happens if the property is sold.
- Clear communication and record-keeping – Keep evidence of financial contributions (mortgage payments, renovations, deposits).
- Legal advice – If you sense a dispute is brewing, speaking to a solicitor early can prevent matters escalating to court.
Conclusion
Disputes over property ownership can be stressful, expensive, and emotionally draining. TOLATA provides a legal framework for resolving these issues, but the best approach is always to prevent a dispute in the first place through clear documentation and agreements.
If you are buying a property with someone else, or if you are already in a dispute, we can help guide you through your options and protect your interests – please just get in touch and we’ll be happy to assist you.