The appellant and respondent were registered as 50% owners of a property.
The respondent applied for a sale under the Partition Act, while the appellant sought a declaration that the respondent held his interest in trust for her.
The application judge found the transfer was not gratuitous and ordered the sale.
On appeal, the Divisional Court upheld the finding that the transfer was not wholly gratuitous, as the respondent had assumed liability for the mortgage.
However, the court found the application judge erred in granting the respondent a full 50% interest, as the appellant's sister had transferred her 50% interest to the parties equally.
The court concluded the respondent held a 25% interest, with the remaining 25% held in trust for the appellant.
The appeal was allowed in part, and the property was ordered to be sold.