SQE1 sample questions

Question 73

A man purchases a house and is the sole legal owner. His sister moves in with the man after separating from her husband as she is unable to find any rented accommodation which she can afford. In discussing the ownership of the house with his sister the man promises that he will: “look after her financially”. The man explains that he will not need her to pay any rent for living in the house as he does not have a mortgage. They agree that she will pay half the fuel bills and council tax and share the household chores.

Two years after the sister moved in, the man dies leaving his estate to a charity. By this time the sister’s financial position has improved following the finalisation of her divorce from her husband.

The sister claims she has a beneficial interest in the house arising under a common intention constructive trust.

Does the sister have a beneficial interest in the house under a common intention constructive trust?

A. Yes, because a common intention to share the beneficial interest can be inferred from the express discussion concerning her financial situation.

B. No, because she was neither the man’s spouse nor unmarried partner.

C. Yes, because she acted to her detriment by sharing the household chores and contributing to household expenses.

D. No, because she has not rebutted the presumption that the man is the sole beneficial owner.

E. No, because she has not suffered any detriment as her financial position has improved and is no longer reliant on the man.