Bull v Bull [1955] 1 QB 234

Court of Appeal

Basic Facts: C and M purchased a house together, with C contributing the majority of the purchase price and the house conveyed into C's name. M did not want to gift her portion of the purchase price. Later, C married, leading to disputes between C, C’s wife, and M. C then gave notice to M to vacate the property.

Issue for the Court: What are the implications of LPA 1925 s.34 regarding co-ownership and whether C can evict M?

Held: The court ruled that where one party contributes to the purchase price, a constructive trust is created, giving them a beneficial interest in the property, despite one party holding the legal title.

Denning LJ:

• Legal Ownership and Trusts: C is the legal owner of the house, but both C and M are holding the house on trust for each other as equitable tenants in common. This means:

• Each party is entitled to an undivided share in the house proportional to their financial contribution.

• Until a sale occurs, each equitable tenant in common has the same rights to enjoy the property as the legal owner.

• Right to Eviction: C cannot evict M from the property as long as the property is not sold. If the co-owners disagree, the property must be sold (with both agreeing as trustees, though the court can force a sale if consent is unreasonably withheld) and the proceeds divided based on their contributions.