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Complete 8 page APA formatted essay: At its simplest the principle in Stack v Dowden is that a common intention trust, for the cohabitants' home to belong to them jointly in equity as well as on the p
Complete 8 page APA formatted essay: At its simplest the principle in Stack v Dowden is that a common intention trust, for the cohabitants' home to belong to them jointly in equity as well as on the proprietorship register, is the default option in joint names cases. The trust.
The ruling in Stack v Dowden appears to clarify the matter, by ruling that there is a general presumption that the title to the document and declaration of beneficial interests will be decisive unless there is evidence of a shared intention to divide the property differently.v However, following the decision Stack, it was ruled in Jones v Kernott that where the parties share the beneficial interests and the common intention cannot be ascertained, the court must necessarily be careful not to infer a common intention that the parties may not have shared.vi Thus there is a decided shift toward adhering to the principle that equity will follow the law unless there are unusual circumstances where an inference can be made of a common intention.vii This paper examines the principle of common intention as stated in Stack v Dowden and in subsequent cases, particularly Jones v Kernott.
Stack v Dowden held that the title to property and the declaration of beneficial interests will automatically prevail unless there is clear and convincing evidence that the parties shared a common intention to divide the property differently.viii In other words, it was held that in circumstances where there legal title is held by two parties and there is no expression of the division of those shares, it will be presumed that the parties are joint tenants. Additionally, if the legal title is held by one person alone, there is a presumption that the legal owner holds the beneficial interests alone.ix
The presumptions can be rebutted but only in extraordinary circumstances. In cases where the legal title is held by one party alone, the court will look at all of the facts and circumstances to ascertain first and foremost if there was a common intention that the non-legal owner shares the beneficial interest in the property. Following this determination, the court will then look at the evidence to ascertain the common