Co-ownership Flashcards
Is a trust created when land is owned jointly?
yes. legal title is held by the trustees and are the registered owners at the land registry.
beneficiaries are kept private.
can be both a beneficiary and a trustee.
what are the formalities for an express trust to be created?
evidenced in writing anf signed.
what is a resulting and a constructive trust?
resulting- implied e.g if a property is bought in A’s name but B makes financial contributions.
Constructive- responds to unconscionability.
no formalities for implied trusts.
what are the four unities of title to distinguish between a joint tenancy and a tenancy in common?
unity of possession- co-owners cannot be excluded from the land.
unity of title- co-owners must acquire their title from the same document.
unity of interest- interests must be of the same nature and duration.
unity of time- interest of each co-owner must take effect at the same time.
rules for holding legal title?
maximum of four legal owners.
trustees must be of full age and sound mind.
must hold property as joint tenants.
LEGAL JOINT TENANCY CANNOT BE SEVERED TO MAKE A TENANCY IN COMMON.
RULES for equitable title?
kept private
no limit on the number of people.
no age limit.
can choose to hold it as joint tenants or tenants in common.
how does equitable title become a tenancy in common?
if unity of time, title or interest are missing.
or express wording.
or if land is a business asset or the purchase price of a non-domestic property has been paid in unequal shares.
what is severance?
when an equitable joint tenancy wishes to sever the joint tenancy to create a tenancy in common.
ONLY IN EQUITY.
must happen during lifetime.
HOW CAN SEVERANCE TAKE PLACE?
- notice in writing.
- ‘other acts or things’ (e.g mutual conduct, mutual agreement or a unilateral act such as alienation)
what are the effects of severance?
hold a tenancy in common which is an equal share, based on the number of former joint equitalbe tenants not on the proportion of contributions made to the initial price.
how to sever a tenancy through writing?
must demonstrate an unequivocal and irrevocable intention to sever the equitable joint tenancy immediately.
must be served on all other joint equitable tenants.
can be served by handing it over personally or posting it (at or to the last known place of abode or business).
what are the three unilateral acts with joint tenants that sever a equitable joint tenancy?
total alienation- severing owner disposes of the interest permanently, by way of a sale or gift.
partial- mortgage or lease over their interest/
involuntary- joint tenant is declared bankrupt by the court.
how to resolve disputes relating to co-owned land?
trusts of land and appointment of trustees act 1996 takes into account
- intention of the person who created the trust,
- purposes for which the property subject to the trust is held (and whether it is still continuing)
- welfare of any minor who occupies or might reasonably be expected to occupy any land subject to the trust as his home and
- the interests of the secured creditor of any beneficiary.
s15(3)- the circumstances and wishes of any beneficiaries of full age or the case of the majority.
