Examination Timing: 00H00M49S
Emily and Rachel live with James and Laura (a married couple) in a house which is registered in James's sole name. Emily and James split the mortgage payments equally. Rachel pays the household expenses and bills. Laura has given up her own career in order to help James with his business which he operates from home. Which of the following statements best describes the people who will be entitled to an interest in the property under the doctrine of proprietary estoppel?
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Your selected option: B
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The correct answer is C. For trusts over homes, a distinct set of rules has arisen. Contributing to the mortgage creates an equitable interest, as established in Lloyds Bank v Rosset [1990]. Housekeeping and contributing to domestic expenses alone do not create such an interest, as seen in Burns v Burns [1984]. Where a wife contributes to her husband's business activities, she may gain a right in the property through detriment, as established in Heseltine v Heseltine [1971]. Therefore, Laura and Emily would acquire an interest in the property under proprietary estoppel, while Rachel would not. James already has an interest in the property and does not gain any new interest under the doctrine.
Key Point: Contributions to mortgage payments and significant detriment, such as giving up a career to support a spouse's business, can establish an interest in the property under proprietary estoppel.
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