⇒ A purchase money resulting trust arises when two (or more) people contribute to the purchase of land, but the legal title is vested in only one of them.

• For example, lets say A and B buy a house together, but the legal title is only vested in A. As equity follows the law, it would normally be said that as A has legal ownership he also has equitable ownership too. However, under a purchase money resulting trust, as B contributed to the price of the property it would be possible for B to claim a share in the equitable ownership of the property.

⇒ Note, however, if money is given to the legal owner as a gift (as in Banbury v Hoolin (1998)) then a resulting trust won't arise. So, using our example, if B gifted A money to buy the property no resulting trust will arise i.e. B will not be able to claim a share in the equitable ownership of the property.

⇒ Dyer v Dyer (1788) → this case says that the person with the beneficial (equitable) interest of a property "results to the man who advances the purchase money" i.e. the person with the beneficial interest in the property falls on the person who bought the property.

⇒ So, if 2+ parties contribute to the purchase, but the land is registered in the name of one of them, the land is held by the legal owner on a resulting trust for the benefit of all the contributors, in shares proportional to their contribution to the purchase price (see, for example, Tinsley v Milligan [1994]).