Constructive Trusts Over Property in Florida: What You Need to Know

In Florida, constructive trusts are legal remedies used to address situations where someone holds property that they should not be allowed to keep, typically due to unfairness or fraud. A constructive trust is often imposed by a court in situations involving fraud, breach of fiduciary duty, or where one party has unjustly benefitted at the expense of another.

What is a Constructive Trust?

A constructive trust is imposed by a court to correct a situation where one party has wrongfully obtained or is holding property that should rightfully belong to someone else. The court essentially creates or “constructs” a trust where none existed before, directing the wrongful holder to transfer the property, or the value thereof to the rightful beneficiary.

The key principle behind a constructive trust is that a party should not be allowed to profit from wrongfully acquired property.

Common Scenarios for Constructive Trusts in Florida

1. Fraud or Misrepresentation: If one party has acquired property through fraud or deceit, a constructive trust may be imposed to transfer the property back to the rightful owner. For example, if someone falsely claims ownership of property and sells it to an unsuspecting buyer, the court may create a constructive trust to correct the wrong and ensure that the rightful owner regains the property.
2. Breach of Fiduciary Duty: Constructive trusts are also common in cases where one party, such as a trustee, business partner, or other fiduciary, breaches their duty and wrongfully takes or retains property that belongs to another. In Florida, business partners or those in a confidential relationship may be subject to constructive trust claims if they unfairly take advantage of their position.
3. Property Acquired by Unjust Enrichment: If one party unjustly enriches themselves at the expense of another, a court may impose a constructive trust. For example, if one party contributes significantly to the acquisition or maintenance of property but is not listed as an owner, the court may determine that a constructive trust should be imposed to give the non-titleholder equitable ownership rights.
4. Joint Ownership Disputes: Constructive trusts may also be applied in cases of joint ownership disputes, where one party claims a disproportionate share of the property or refuses to share it according to an agreed-upon arrangement. If the court finds that the person holding the property is unjustly withholding it from others who contributed to its acquisition or upkeep, a constructive trust may be used to redistribute the property.

Elements of a Constructive Trust

To have a constructive trust imposed, the party seeking it must typically prove several elements:

• Wrongful Conduct: There must be evidence of wrongful conduct or fraud.
• Title to Property: The person seeking the constructive trust must show they have an equitable interest in the property.
• Unjust Enrichment: The person holding the property must have been unjustly enriched, meaning they acquired or kept the property in a manner that was unfair or improper.

Constructive Trusts in Florida: Legal Process

If you believe you have a valid claim for a constructive trust in Florida, it is essential to consult with an experienced real estate litigation attorney. The process generally involves filing a lawsuit in civil court, where you will need to present evidence of the wrongful conduct and show why a constructive trust is warranted. Courts may also issue other remedies, such as restitution or damages, depending on the case’s circumstances.

Conclusion

A constructive trust is a powerful legal tool in Florida that can help ensure fairness when someone holds property that they should not have, typically due to fraudulent actions or unjust enrichment. 

For legal assistance regarding constructive trusts or other real estate related disputes, contact one of our experienced real estate litigation attorneys at 305-570-2208. You can also contact our founding partner Eduardo Maura directly at eduardo@ayalalawpa.com.

 We at Ayala Law PA are passionate about helping those in legal need, so please don’t hesitate to schedule a case evaluation with us online here.  

[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].