Purchase money resulting trust

Question:

My parents bought a certain land, but the title was transferred to my brother. We are all living in the house built on said property. When my brother died, his heirs claimed ownership over the property, arguing that their father was the owner as reflected in the Torrens Title. My mother reminded them that their father has no financial capacity to purchase the land. Who is the real owner of said property? Can my parents present proof that my brother is not its real owner?

This is a classic case where legal ownership (as shown in the Torrens Title) and equitable ownership (who actually paid for the property) are in conflict. Here's how the situation breaks down legally and what options may be available:

Legal Context

Under the Torrens system, the person whose name appears on the certificate of title is presumed to be the lawful owner of the property. However, this presumption is not absolute and can be overturned with clear, strong, and convincing evidence.

Key Facts in Your Case

1. Title is under your brothers name – so, on paper, he's the legal owner.

2. Your parents paid for the land – they're claiming they are the true buyers.

3. Everyone lived in the house together – shows cohabitation but not necessarily ownership.

4. Your brother had no financial capacity to purchase the land – this is a critical point if provable.

5. Now that your brother is dead, his heirs are asserting ownership – they are legally standing in his shoes.

   
   

What Your Parents Can Do

Yes, your parents can present evidence to rebut the title in Jeff's name and establish a "resulting trust" or "implied trust." This is a legal concept where:

A trust is presumed in favor of the real buyer (your parents) if they can show they provided the purchase money, and the title was placed in another’s name for convenience or other reasons.

Types of Proof Your Parents Should Gather:

• Receipts or proof of payment (checks, bank withdrawals, sale agreements)

• Deed of sale naming them as the real buyers

• Affidavits from witnesses (e.g., the seller, neighbors, family, etc.)

• Lack of income or financial capacity of Jeff at the time of purchase

• Any written or oral admission by Jeff that he was not the real owner

  
  

Possible Legal Remedies

If amicable settlement fails, your parents may:

1. File a case in court to establish a resulting trust or reconveyance of the property.

2. Argue that Jeff held the title in trust for your parents, not in his own right.

3. Ask the court to order the cancellation of the title in Jeff’s name and issue a new one in your parents’ name.

   
   

Important Caveats

• Statute of limitations may apply depending on how long ago this happened. Usually, it's 10 years from discovery of fraud or denial of the trust.

• The burden of proof is on your parents since the title is not in their name.

• This can be a long and potentially costly legal battle, so legal advice is a must.

Next Steps

1. Consult a lawyer specializing in property or family law.

2. Start collecting any and all documentation that proves your parents paid for the land.

3. Try amicable settlement or mediation with your brother's heirs, if possible.

Source: Ziggurat Real Estate