This document contains a summary of co-ownership principles including severance, the creation of agreements as joint tenants or tenants in common. Additionally, it highlights the methods severance and the courts approach when deciding co-ownership cases.
CO-OWNERSHIP OF LAND What is Joint Tenant & Tenancy in Common Creation of JT & TIC: Trusts of Land
JOINT TENANCY
1. Each tenant is entitled ‘wholly to the whole’
Murray v Hall: together regarded as one person, “each
Position in Law and Equity holds nothing but yet holds the whole” Trust of Land & Appointment of Trustees
s.1(6)LPA 1925: A legal estate is NOT capable of
subsisting or created in undivided share in Land…
- Contributions to property irrelevant if they express Act 1996
themselves as JT at law & Equity Regulates the rights and duties of Trustees and
Co-ownership at Law can only take the form of JT
Purchaser buys only one legal estate – Tenants will 2. Right of Survivorship Beneficiaries in a Trust of Land, and protection of
divide shares in Equity Upon a Joint Tenant’s death, his interests is passed to the purchasers of co-owned land
S.36(2): no severance of a JT of a legal estate is surviving JTs
permissible JTs are not allowed to leave their ‘shares by will’ Trust of Land – s.1: Any Trust of Property that
s.34(2) LPA 1925: Max. of 4 Trustees The JT that lives the longest will get outright ownership involves Land, whether created before or after 1996
Only a max of 4 legal JT are allowed in Law, and any of property Powers of Trustees
later tenants will exist only in Equity s.4: any provisions restricting or removing Trustee’s
First 4 names in conveyance will be the Trustees (must 3. The FOUR Unities *** powers to postpone sale will be invalidated.
be full age) i) Unity of Possession: JTs possesses all parts of the s.6: Trustees have unlimited powers of disposition
Max. 4 signatures required for a Conveyance land, and one is not allowed to exclude the other from Note: Trust of Land aims at regulating the Land and
TIC’s shares will be reflected in Equity any part of it Ownership of the Land, rather than what happens
If one dies, the remaining 3 will be the JT in law ii) Unity of Interest: Each co-owner must own the ‘same after the property is sold.
(survivorship) estate’ and have equal interest in land
Consent of Trustees – s.10: Where property is sold
If a Person only has Equitable title in land, does he iii) Unity of Title: Each JT acquired interest from the
or mortgaged, the consent of TWO trustees is
have an Overriding Interest? same document/transaction
required, and beneficiaries interest may be
If an individual has a Beneficial Interest (acquired from iv) Unity of Time: Rights of each JT must commence at
the same time overreached,
some form of trust), and can demonstrate Actual
Occupation = Overriding Interests TENANCY IN COMMON
Consultation with Beneficiaries – s.11
1. No Right to Survivorship (Succession law applies)
Trustees should consult with beneficiaries if they are
Express Trust: Evidenced in writing and conclusive; (a) of full age, and in doing so (b) look out for
Goodman v Gallant 2. TICs holds a distinct but undivided shares in the
interests of the Trust & also give effect to the wishes
Implied Trust: may arise as a result of: property
of the beneficiaries (striking a balance)
Resulting Trust: contribution towards acquisition of Only Unity of Possession required - Other 3 unities
property
s.1 Trustees Act 2000: Duty of Care of Trustees to
possible but not essential
Constructive Trust: substantial contributions to mortgage get the best return reasonable in the circumstances.
instalments or to improvement of property – therefore if he has professional qualifications or
3. Express use of words of Severance business skills, more may be expected of him
e.g. where wife only has an equitable interests in land,
a trust is needed for an OI – If Trustee fails to obtain best price but acted in
Burns v Burns: departs from Bull v Bull, & unless a person
Methods of holding Land in Co-ownership good faith, he may not be sued but has to make
has made direct financial contribution, they will not Goodman v Gallant: Statement of intention in the deed is up for shortfall due to a breach of Trust.
acquire a beneficial interest enough to confirm the intention of the parties
Jones v Kernott: there is the presumption that a house Equity follows the law, therefore presumption of JT in
purchased by a couple for Joint occupancy exists both in Equity if nothing is written. (Rebutt: words of severance) SUMMARY
Law and Equity as a JT, regardless of the mortgage Joint Tenants or Tenancy in Common? 1. Any express declaration of JT or TIC?
payment and contributions to property. Payne v Webb: ‘in equal shares’ suggest 50/50 shares, 2. If no - Presumption of JT in Equity as
BUT this is Rebuttable – Examine Lord Bridge’s: therefore a TIC may be implied ‘Equity follows the law’ (only JT at law)
Expressed common intention & detrimental reliance Fisher v Wigg: ‘to be divided between’ 3. Rebuttal: Words of Severance
Inferred common intention & detrimental reliance Stack v Dowton: Resulting Trust when buying property in - Examine all the facts and circumstances
Inferred common intention through facts & the context of a family home no longer really exists * Did they intend for survivorship rule? 4 unities?
circumstances – Flexible approach by Lady Hale examine words of intention instead
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