A constructive trust is a remedy imposed by a court when a person has wrongfully attained property in an inappropriate way. The court will undo the transaction and order that title to the property go to the rightful owner.
Types of Wrongful Conduct
Any wrongful activity that leads to the unfair obtainment of property may be cause for a constructive trust, including:
Factors
In order for a constructive trust to be created, the following factors must exist:
Remedy Under Constructive Trusts
A constructive trust is imposed when an affected party initiates a lawsuit requesting relief. It typically provides that the property pass from the wrongful owner to the rightful owner.
However, if the unlawful owner has damaged or destroyed any of the property, the rightful owner is entitled to a money judgment for the value of the property.
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