Presumed resulting trust

The recent Singaporean decision in United Overseas Bank v Giok Bie Jao ([2012] SGHC 56) provides a neat illustration of the resulting trust in action. G and J were the registered proprietors of property. It was mortgaged to U. U exercised its power of sale but there was a substantial surplus after the bank had been repaid and the question was as to how the balance should be distributed. J’s brother Jimmy was able to show that he had contributed 90% of the purchase price and, as there was doubt as to the remaining 10%, it was decided that the surplus was held on resulting trust as to 95% for Jimmy and 5% for J. The judgment contains a useful explanation of the workings of the presumed resulting trust.

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