What is a constructive trust in real estate?

British Columbia, Canada


The following excerpt is from Reeves v. LaRose, 1987 CanLII 2916 (BC SC):

A constructive trust arises by operation of law, regardless of the intention of the parties, where there is an unjust enrichment compris­ing: (1) an enrichment, (2) a corresponding deprivation, and (3) the absence of any juristic reason for the enrichment (Pettkus v. Becker, at p. 176). The unjust enrichment can arise through a contribution, direct or indirect, by the claimant to the property at issue. However, there must be a causal connection between the contribution and the acquisition, maintenance, improvement, or preservation of the property to found a claim in constructive trust.

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