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Property disputes are all too common amongst family members. If you are involved in an ownership dispute with your family members or business associates you should contact a lawyer to ensure that your rights are protected prior to the sale of the property and distribution of the proceeds of disposition. We handle all aspects of real estate litigation.
Family Property Disputes
With rising house prices in the City of Toronto and across Canada, many first-time home-buyers are increasingly relying on their parents for financial assistance. In the event of a separation, the recipients of financial assistance often seek our counsel with respect to whether they have any rights in the subject property.
Even if the parents are on title to the property and the residents of the home are not, it does not necessarily preclude either spouse from making a constructive trust claim in the property. Constructive trusts are an equitable remedy that grants relief to an individual that would be wrongfully deprived otherwise.
If the financial assistance provided by the parents for the house purchase was in the form of a loan, the residents will likely be required to repay the balance outstanding on the eventual sale of the home. Conversely, if the parents' intention was to gift the property, or if the recipients had justifiable reason to believe that the funds were gifted, then irrespective of who is on title, the recipients may have a successful constructive trust argument in Court.
Should the applicant be successful arguing that they have a trust interest in the property, the Court will grant a declaration stating that the recipient is the beneficial owner of a portion of the property. As a result, upon the sale of the property, the proceeds will be distributed in accordance with each beneficial interest-holders percentage interest in the property. Whether you are a child or an in-law, you may have an interest in the property.
If you are involved in a property dispute with family members, the lawyers at Rose Law Firm have the experience and expertise to protect your rights. Contact us now!