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Multiple Choice

Which trust remedy is imposed to restore specific property to the rightful owner by imposing a trust on the holder of the property?

A constructive trust is an equitable remedy that arises to prevent unjust enrichment by imposing a trust on the person who holds the property, making them a trustee for the rightful owner. When someone wrongfully possesses property or uses it in a way that harms the true owner, the court can declare that the holder holds the property on trust for the owner, requiring transfer of title or its value back to the owner. This directly fits the idea of restoring specific property to its rightful owner. This differs from an equitable lien, which is simply a security interest on property to secure a debt and does not by itself transfer ownership. A purchase money resulting trust depends on who paid for the property and determines beneficial ownership based on that payment, not on correcting wrongful possession. A resulting trust arises from implied intent in a transfer—who should hold the beneficial interest based on the circumstances—but it’s not the tool used to address wrongful possession and restore property to the rightful owner.

A constructive trust is an equitable remedy that arises to prevent unjust enrichment by imposing a trust on the person who holds the property, making them a trustee for the rightful owner. When someone wrongfully possesses property or uses it in a way that harms the true owner, the court can declare that the holder holds the property on trust for the owner, requiring transfer of title or its value back to the owner. This directly fits the idea of restoring specific property to its rightful owner.

This differs from an equitable lien, which is simply a security interest on property to secure a debt and does not by itself transfer ownership. A purchase money resulting trust depends on who paid for the property and determines beneficial ownership based on that payment, not on correcting wrongful possession. A resulting trust arises from implied intent in a transfer—who should hold the beneficial interest based on the circumstances—but it’s not the tool used to address wrongful possession and restore property to the rightful owner.