Co-Ownership Flashcards
When does a Trust of Land arise?
Automatically when land is co-owned, under TLATA 1996
What are joint tenants and what happens if one joint tenant dies?
Joint tenants jointly own the whole of the beneficial joint interest with no distinct shares. The doctrine of survivorship will apply if one joint owner dies, meaning the interest of the deceased owner will pass automatically to the survivor. Usually most suitable for married couples.
What are tenants in common and what happens if one dies?
Tenants in common each own shares in the property which can be specified as unequal if they wish to protect contributions. If a co-owner dies, the doctrine does not apply, so their share in the property will pass in accordance with their Will/rules of intestacy. A Form A restriction will be inserted in the proprietorship register to state one party cannot deal with disposition alone unless by order of the court.
When will overreaching need to occur?
When a tenant in common dies and leaves their share in the beneficial interest to someone in their Will, this gives rise to a third party interest. To allow a buyer to take the property free of the third party interest, the survivor must appoint a co-trustee. Upon sale, the third party interest is removed from the property and placed in the proceeds of sale, so the buyer purchases free of the interest and the Form A restriction is complied with.