Estates and Trusts – Trusts - Resulting trust
Parties C and W were friends, and in 2012 C purchased property. W and family moved into property, and his evidence was that payments of rent reflected agreement by which he obtained 50 percent interest in property. Rental tenancy agreement was signed by parties in 2013, and when relationship deteriorated they signed hand-written document entitled “Trust Agreement”. W brought action for declaration that he held equitable interest in property. Action granted in part. Payment of $62,000 to C from third party were funds directed by W to C for purpose of investing in share of property. Transaction fit within scope of “purchase money resulting trust”. Courts have recognized that party may be both tenant and have equitable interest in property. Trust Agreement was agreement to settle dispute over property by C buying out W's equitable interest, with certain set-offs, for $184,500. W was not entitled to 50 percent interest, but only to payment of $184,500 as agreed upon amount in Trust Agreement.
Warraich v. Choudhry et al (2019), 2019 CarswellOnt 7038, 2019 ONSC 2656, Sossin J. (Ont. S.C.J.).
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