Gill was not aware of this will. Don died without altering his will to give effect to his promise to inherit his property to his daughter Gill.
3. Gill and Bob were thought of buying other property in their name. But they decided to live in the same flat, which is in the name of Don. When Don promised that Gill would inherit all his property Bob has paid the remaining installments of the loan amount from legacy, which he received after the death of his aunt. He also spent on re-decoration and re-fittings of the flat out of his legacy.
Now three issues arisen out of the facts stated above they are 1. Whether Gill can claim the flat under an implied trust 2. Whether Gill can make a proprietary estoppel claim in respect of Don's promise to leave his property to her, 3. Whether Bob could make any claim regarding the flat if he and Gill separated. These issues can be dealt as following:
The remedy to these issues lies in the law of Property. The law provides for rights over property. Those rights are legal and equitable rights. Trust creates equitable rights. Common law recognizes legal rights. Equitable rights are also enforceable in common law but they are enforceable in personam, i.e. they are enforceable against only a particular person i.e. particular trustee. Whereas legal rights on a property are rights in rem, which are enforceable against any one.1.1
The statute classifies the interest in the property as commercial and family interest. The commercial interest in property is derived generally by buying and selling of the property, such transaction is registered under the law thereby creates legal right over the property. The family interest is the equitable interest like life interest in the property such interest is created by family settlements or formal testimonies like will.1.2
Co-ownership: The Law of Property Act, 1925 provides for Co-ownership. When two or more persons hold interests in a property their ownership over the property is said to be co-ownership and each of them are called tenants. The term tenant used in this statute differs from that used in lease. Under the co-ownership each tenant has the right to live on or share in the property during his or her lifetime. This co-ownership is of two types - Joint tenancy and Tenancy in common. In case of death of any of co-owners his/her interest is devolved to the surviving tenant.
Joint tenancy: In joint tenancy the ownership of the property is retained upon all tenants as single ownership. They are not entitled to devolve their share in the property by will but the law permits to dispose it during lifetime.
Tenancy in Common: When two or more persons hold the property in common such ownership is Tenancy in common. In this category the tenants are treated as individual landlords to the extent of their respective share. Though they are treated as individual landlords their right in the property is an undivided share and they are entitled to the extent of their share only but not the property itself. Joint tenancy and the Tenancy in common are created either expressly or impliedly1.3.
Trust and Co-ownership: In Co-ownership either by Joint Tenancy or Tenancy in Common, the property is brought in the name of single person but all the tenants pay the purchase money.