It is presumed the purchaser did not intend the other

it is presumed the purchaser did not intend the other person to take
beneficially
• Applies when:
 A transfers property into the name of B, or in their names jointly, and B
provides no consideration
 Where A purchases property in the name of B, or in the name of A and B
jointly
Presumed resulting trusts – types of property
Applies to:
• Any realty, except the voluntary transfers of general law land

• In Queensland, the Property Law Act 1974 (Qld) s 7(3) provides that the presumption
does apply to the voluntary transfers of Torrens title land
• In a purchase money situation, any personalty
• In a voluntary transfer situation, only personalty that is capable of producing income
or of being enjoyed independently of title
Presumed resulting trusts – relevant presumptions
Presumption of a resulting trust
• Contrary evidence
 Rebuts the presumption of a resulting trust
• Presumption of advancement
 Rebuts the presumption of a resulting trust
o Contrary evidence
 Rebuts the presumption of advancement
Calverly v Green (1984) 155 CLR 242
When two or more purchasers contribute to the purchase of property and the property
is conveyed to them as joint tenants the equitable presumption is that they hold the
legal estate in trust for themselves as tenants in common in shares proportionate to
their contributions unless their contributions are equal [257]
Calverly v Green (1984) 155 CLR 242
• Intention is to be inferred from what the parties do or say
• Acts before or at the time of purchase are considered
• Subsequent declarations are admissible only as evidence against the person claiming
the interest
• Mortgage payments are not payment of the purchase price (on the facts in this case)
• Circumstances attending the payment of mortgage instalments are only one set of
relevant facts
Muschinski v Dodds (1985) 160 CLR 583
The majority held that there was a resulting trust in favour of the man applying Calverly
v Green and that the parties held their respective legal interests as tenants in common
upon trust, after payment of any joint debts incurred in improvement of the property, to
repay to each her or his contribution and as to the residue for them both in equal shares,
although the way this was decided differed
The Quistclose trust
• Where one creditor claims priority over other unsecured creditors
• The co-existence of a loan and a trust
 Where A lends money to B, and B puts this money on trust, so that is does
not later become available to B’s creditors
Barclays Bank v Quistclose Investments [1970] AC 567
• Facts : Quistclose Investments gives money to Rolls Razor to pay dividends. Barclays
Bank knows this and places money in separate account. Later Rolls Razor becomes

insolvent and Barclays Bank takes the Quistclose Investments money to satisfy Rolls
Razor’s debts to Barclays Bank
• Issue : Whether Quistclose Investments could recover its loan to Rolls Razor from
Barclays Bank
• Held : The Quistclose Investments loan to Rolls Razor was impressed with a secondary