Subject: Land law--Presumed resulting trusts. Illegality.---Jurisdiction : HK/UK

Consider the questions: When does the presumption arise? How are the parties' equitable shares calculated? What effect does illegality have on the ability to enforce a presumed resulting trust?

1. In September 2018 Karen and her sister Alexa bought Flat 14C Prosperous Villas as a joint investment. Title to the flat is in Karen's sole name because Alexa was out of Hong Kong at the time of the purchase. The purchase price of the flat was HK$10 million. Karen and Alexa each contributed HK$2 million to the purchase price. Karen borrowed HK$6 million from Tuen Mun Bank to finance the purchase and gave Tuen Mun Bank a charge over the flat as security. Alexa is not a party to the mortgage but she has made some contribution to the payment of the mortgage installments.

Alexa is worried about the fact that her name is not on the title deeds.

Advise her as to whether she has any ownership rights in the property (if she has, explain how her share of the equitable interest might be calculated).

2. In April 2020 Phillip transferred Flat 17A Prosperous Villas to his daughter Katherine for no consideration. This was not intended as a gift to his daughter but so that he would not need to reveal his ownership of the flat to the Inland Revenue.

Advise Phillip as to whether he will be able to recover the ownership of the flat from Katherine if he decides to do so in the future.

references:

https://e-lawresources.co.uk/Land/Resulting-trusts.php

https://hklandlaw.wordpress.com/category/presumed-resulting-trust/

Many thanks:))