Constructive trusts: scope, triggers and remedies—fiduciary gains, land contracts, mutual wills, forfeiture, statutory fraud, mistaken payments, home beneficial interests, third‑party liability (knowing receipt/dishonest assistance) (England and Wales)
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Practice notes
Constructive trusts
This Practice Note considers constructive trusts, one of three trusts that do not need to be declared or evidenced in writing—the others being resulting trusts and implied trusts, though it is doubtful that any implied trust is not in truth either constructive or resulting. It looks at what amounts to a constructive trust, when such a trust may arise or be imposed, how unauthorised gains made by a fiduciary are dealt with, and the exposure of third parties. In Paragon Finance v D B Thakerar & Co (Court of Appeal), Millett LJ split constructive trusts into two classes, distinguishing between:
- the constructive trust proper, where equity intervenes to stop the legal owner unconscionably denying another’s beneficial interest (the institutional constructive trust)
- the so‑called constructive trust, where equity grants relief for fraud by requiring those involved to account as if they were trustees (the remedial constructive trust)
Constructive trusts arise through operation of law, irrespective of the parties’ intentions. A constructive trust arises:
- where a fiduciary makes an unauthorised profit
...
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Web page updated on 21/05/2026
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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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