What is a TOLATA claim?

Disputes over property ownership can cause considerable strain. They often arise for unmarried couples, family members or friends who have purchased property together or have contributed financially to someone else’s purchase without legal recognition. When these disagreements arise, it may be necessary to apply to the courts to resolve matters through a TOLATA claim.

A TOLATA claim refers to legal action under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). This process enables someone to ask the court to decide who is entitled to a property, whether someone has a beneficial interest or if a sale can go ahead. If you believe you have a financial interest in a property but are not the legal owner, or if another party is disputing your rights, a TOLATA claim could resolve the issue.

The property law experts at Clough & Willis have extensive experience dealing with TOLATA claims and all aspects of property disputes, including applications under the Trusts of Land and Appointment of Trustees Act 1996. Whether someone is defending a beneficial interest or seeking to clarify property rights after a relationship breakdown, this is a complex area of law where legal advice is necessary to avoid procedural errors and strengthen a case. In this blog, we explain what a TOLATA claim is, how the process works and what to expect if you are involved in such a dispute.

What is TOLATA law?

The Trusts of Land and Appointment of Trustees Act 1996 sets out how the courts can intervene in disputes involving property held in trust - either formally or informally - where more than one person may have an interest in a property.

The act gives the court powers to:

• Declare the extent of each party’s beneficial interest.
• Order the sale of a property or postpone a sale.
• Appoint or remove trustees responsible for managing the property.

TOLATA provides a route for individuals to assert financial interests even if they are not the legal owner. This is often used when there is no formal agreement between the parties, and ownership is disputed. The court can step in to assess the facts and determine what share, if any, each person is entitled to.

While TOLATA is a key part of property law, it also overlaps with trust law, family law and the civil procedure rules - which makes it important to seek legal support to fully understand the wider legal context before making a claim.

What are TOLATA claims?

A TOLATA claim is a civil court application made to resolve disputes about property ownership. TOLATA is especially relevant to common law marriage scenarios, where long-term partners live together without formalising their relationship. These individuals often assume they have the same rights as married couples, but in law, they do not - and a TOLATA claim may be their only option to resolve disputes about jointly occupied homes or other property subject to informal ownership. Claims can also involve:

• Family members in dispute over an inherited property.
• Joint tenants or co-owners who cannot agree whether to sell or how to divide the proceeds.
• One party claiming a share in a property they do not legally own because of financial contributions.

The court's role is to assess all available evidence and decide how the property should be treated in terms of legal and beneficial ownership. This can involve reviewing written agreements, mortgage or bank statements, records of financial contributions and any communication that demonstrates shared intentions. The court will also consider oral evidence, such as witness statements about how the property was acquired and used. Where there is no formal agreement, the judge will look at the conduct of the parties over time to establish whether a trust existed and, if so, what each person's interest might be. This process is fact-specific, and the outcome will depend on the strength and consistency of the evidence provided.

The TOLATA claim process

The process begins with the pre-action protocol, which encourages both parties to try to resolve the matter outside of court, such as through alternative dispute resolution methods like mediation. In many cases, with the right legal support, an agreement can be reached before the need to go to court.

However, if one side is unwilling to cooperate, or if the dispute is too complex to settle privately, an application to court may be unavoidable. Even so, efforts to settle can continue throughout the process.

Your solicitor will support you to:

• Provide details of the legal and beneficial owners.
• Set out the facts of your financial interest in the property.
• Include any witness statements or oral evidence you intend to rely on.

The court will set out a case management conference timetable to manage the progress of the claim. This could include directions for disclosure, valuation and preparation for a final hearing. Your solicitor can handle much of this on your behalf - gathering evidence, meeting deadlines, corresponding with the court and other parties and preparing your case for each stage of the process.

During proceedings, the court may:

• Declare the respective shares in the property.
• Order a sale of the property.
• Determine how proceeds should be split.

Each party will usually bear their own legal costs, unless the court orders otherwise based on the circumstances of the case. This might happen if one party has acted unreasonably, refused to engage in settlement discussions or caused unnecessary delays during the proceedings.

How long does a TOLATA claim take?

There is no fixed timeframe, but TOLATA claims can take several months to over a year, depending on the complexity of the dispute and the parties’ willingness to cooperate. Cases involving family members or unmarried couples often involve high levels of emotion, which can delay progress.

Delays may also arise from:

• A backlog of cases in the court system.
• Disputes over valuations.
• Difficulties in gathering evidence.

Seeking legal representation early can clarify your position, identify the evidence you will need and avoid procedural missteps that might otherwise lead to delays or increased costs. It can also support efforts to resolve the dispute before court proceedings become necessary.

What are the costs of a TOLATA claim?

Costs will vary depending on the complexity of the case and whether it proceeds to trial. They could include:

• Court fees.
• Your solicitor’s fees.
• The risk of having to contribute to the other party’s costs if you lose.

While each side usually pays their own costs, the court’s decision can alter this. For instance, unreasonable behaviour or refusing mediation might lead to a costs order. Early strategic advice can help manage your exposure and clarify the likely cost implications.

Why seek legal advice for a TOLATA claim?

Trust law and property disputes can become highly technical, particularly when dealing with legal ownership versus beneficial ownership, or when there are multiple contributors and no formal documentation. Having property law experts on your side ensures that your interests are properly represented and that your case is based on the strongest possible evidence.

The Clough & Willis team can:

• Assess the legal framework that applies to your case.
• Help you make a clear court application with appropriate evidence.
• Represent you throughout TOLATA proceedings.

In many cases, early legal input can help avoid litigation altogether by opening a route to negotiation.

The TOLATA experts at Clough & Willis has extensive experience dealing with TOLATA claims and all aspects of property disputes. Whether you are defending your beneficial interest or seeking to clarify property rights after a relationship breakdown, we can provide the guidance and representation you need. Call us today on 800 083 0815, or fill in our online enquiry form to request a call back.