If you jointly own a property with a former partner, family member or friend and cannot agree on who owns what, you may be considering a claim under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA). Before taking action, it is important to understand the potential costs involved and the steps you can take to keep those costs under control.
1. What Costs Are Involved in a TOLATA Claim?
The overall cost of a TOLATA claim will depend on the complexity of the dispute and whether an agreement can be reached before a court hearing.
Common costs may include:
- Solicitor's fees
- Court fees
- Barrister's fees
- Property valuation costs
- Land Registry documents
- Expert evidence where required
The longer a dispute continues, the more expensive it can become. This is why many people benefit from understanding their position early and exploring ways to resolve matters efficiently.
2. Who Pays the Legal Costs?
One of the most common questions people ask is whether they will have to pay the other person's legal costs.
In TOLATA claims, the court has discretion when deciding costs. This means there is no automatic rule that one side will always pay. The court may consider factors such as:
- The conduct of both parties.
- Whether reasonable settlement offers were made.
- Whether court proceedings could have been avoided.
- The outcome of the case.
This uncertainty makes it important to consider the financial risks before commencing proceedings.
3. Mediation Can Help Reduce Costs
Many property ownership disputes arise because communication has broken down after a separation.
Mediation can provide an opportunity to discuss issues in a structured environment and may help avoid lengthy court proceedings.
Topics commonly discussed during mediation include:
- Ownership shares in the property
- Sale of the property
- Division of sale proceeds
- Mortgage responsibilities
- Future housing arrangements
For many separating couples, mediation can be quicker, less stressful and more cost-effective than litigation.
4. Gather Your Evidence Early
Strong evidence can help clarify the issues and reduce unnecessary disputes.
Useful documents may include:
- Mortgage statements
- Bank records
- Deposit contributions
- Renovation invoices
- Building materials receipts
- Messages discussing ownership arrangements
This can be particularly important where one person has contributed more financially to the property than the other.
5. Focus on Resolution, Not Conflict
When children, family relationships and financial pressures are involved, emotions can understandably run high.
However, prolonged disputes can increase legal costs and create additional stress for everyone involved.
Where possible, focusing on practical solutions and fair outcomes can help preserve resources and allow both parties to move forward more quickly.
Understanding the potential costs of a TOLATA claim from the outset can help you make informed decisions, protect your financial interests and avoid unnecessary expense during what is often a challenging period of life.
