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ARTICLE · 07 JULY 2022

Does A Promise To Transfer Property Create An Express Trust?

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The British Columbia Court of Appeal recently dealt with whether a promise to transfer property created an express trust in Virk v. Singh, 2022 BCCA 153.

CanadaFamily and Matrimonial

The British Columbia Court of Appeal recently dealt with whether a promise to transfer property created an express trust in Virk v. Singh, 2022 BCCA 153.

Background

Mr. and Mrs. Virk married in India in 1977, where they met Mr. Singh. They remained close with Mr. Singh after moving to Canada. The Virks purchased a house in 1993. Mr. Singh purchased the neighbouring house eight years later (the "Property").

Mr. and Mrs. Virk separated in 2004, and Ms. Virk remained close to Mr. Singh. The relationships turned litigious-Mr. Virk sued Mr. Singh for an alleged debt, and Ms. Virk started a matrimonial action against Mr. Virk (on the advice of Mr. Singh).

In 2006, Mr. Singh promised he would give Ms. Virk the Property in exchange for some money and a commitment to help Mr. Singh in the debt action brought by her ex-husband.

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