4- Trusts Of Land & Co-ownership

Question 1

Express trusts: s53(1)(b) LPA 1925

Answer 1

Express trusts should be manifested in writing

Question 2

Implied trusts: s53(2) LPA 1925

Answer 2

No formalities are needed for an implied trust and arise when the law considers it appropriate to recognise a trust

Question 3

Statutory trusts

Answer 3

Arose when 2 or more people co-own land —> formalities are those needed for creation/ transfer of legal estate

Question 4

Co:ownership of land: S34(2) LPA 1925

Answer 4

Maximum of 4 trustees of legal estate

Question 5

Joint tenancy: S1(6) LPA 1925

Answer 5

Legal estate can only be held as joint tenancy whereas equitable estate can be held as either joint or TIC

Question 6

How do you know whether tenants hold equitable interest as joint tenants or tenants in common: 4 tests

Answer 6

(1)Are the four unities present?
The four unities – time, title, interest, possession

(2) Express declaration in the transfer or conveyance to the co-owners
Restriction in the proprietorship register

(3) If the four unities are present but the documents are silent, are there words of severance in the transfer/conveyance?

(4) Or does equity presume a tenancy- in- common?
Business partners, co-lenders, unequal contributions to the purchase price.
—> BUT Goodman v Gallant [1968] Fam 106. express declaration in transfer document overrides inequality of contribution.

Question 7

If not using 4 tests: equity

Answer 7

Equity follows law

Question 8

Severance of joint tenancy- Notice: S36(2) LPA 1925

Answer 8

Write notes

Question 9

Severance of joint tenancy- Alienation by sale, gift, mortgage, bankruptcy: S53(1)(c)LPA 1925

Answer 9

Write up notes

Question 10

Severance of joint tenancy:p- mutual agreement (express, implied by conduct/ course of sealing): BURGESS V RAWNSLEY

Answer 10

Write up notes

Question 11

Power of trustees and rights of beneficiaries: S6 TOLATA

Answer 11

Trustees are absolute owner of property —> have rights of absolute owner to sell etc.

Question 12

Power of trustees and rights of beneficiaries: S11 TOLATA

Answer 12

Trustees must consult with certain beneficiaries if they have lots of interest

Question 13

Power of trustees and rights of beneficiaries: S12 (&13) TOLATA

Answer 13

Right of beneficiaries to occupy

I’d more than one beneficiary and interests clash then trustee chooses who occupies

Question 14

Powers of trustees and rights of beneficiaries: S14 (&15) TOLATA

Answer 14

Application to court

If clashes between beneficiaries of whether to sell or not then they can apply to court

NB: S15 covers factors court take into account when deciding

Question 15

Overreaching: S2 and S27 LPA 1925

Answer 15

Purchase monies should be paid to all trustees

Question 16

Overreaching: CITY OF LONDON BUILDING SOCIETY V FLEGG

Answer 16

Instead of an interest in the property, the trustees can have an interest in the proceeds of the property

(Ie. Contribution to purchase price)