Erlam and others v Rahman (A Bankrupt) and another

Creation of trust – Declaration of trust. The Chancery Division allowed the claimants' application to make final an interim charging order over property owned by the first defendant, whose election as the mayor of Tower Hamlets had been declared void. The court held that the Stack approach to the purchase of a domestic property would not apply when property had been brought for letting. Among other things, the proper approach when considering the property was to follow the classic resulting trust doctrine by looking at the actual contributions to the purchase price. On the evidence, the second defendant, who was R's wife, had not made out her case that she had made substantial contributions to the purchase price, and it followed that she could not establish a resulting trust.

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