Co-ownership Flashcards
What is concurrent co-ownership?
Where two or more people together own the same estate in the same piece of land at the same time
What happens whenever land is held jointly?
A trust of land is imposed wherever land is owned jointly (TOLATA 1996, s1)
If there is a trust, what does ownership of legal title of land carry with it?
Powers and duties of management
Ownership does not confer rights of enjoyment over the land.
Who holds the legal title of land?
Trustees and registered owner(s) at Land Registry
Who holds the equitable title?
Beneficiaries
Names are kept private and arrangements relating to the equitable title do not appear on registers.
What must be followed for express trusts?
Formalities must be followed (LPA 1925, s53(1)) - Must be evidenced in writing and signed by declarants.
What are implied trusts?
Trusts created with no formalities (LPA 1925, s53(2)), can be resulting or constructive trusts
What is a constructive trust in relation to land?
Imposed where it is unconscionable for the legal owner to deny the interest of another person
Example: contribution to repayment of mortgage.
What is a resulting trust in relation to land?
If property is bought in A’s name but B makes a financial contribution
What is the unity of possession in co-ownership?
All co-owners are simultaneously entitled to possession of the property.
What defines joint tenancy?
All co-owners constitute one single entity and own the whole property collectively
Level of contribution by each co-owner is irrelevant.
What is the right of survivorship in joint tenancy?
When one tenant dies, their interest accrues to the surviving joint tenants
Operates immediately upon death; wills cannot override this.
What are the four unities required for joint tenancy?
- Unity of possession
- Unity of interest
- Unity of title
- Unity of time
What characterizes a tenancy in common?
Each tenant has a distinct but undivided share in the land
No right of survivorship; a deceased tenant’s share passes under their will or intestacy rules.
Which unities does a tenancy in common require?
Unity of possession only
What is the maximum number of legal owners allowed?
Four legal owners (Trustee Act 1925, s34(2))
What are the requirements for trustees holding legal title?
- Must be of full age and sound mind
- Must hold property as joint tenants
What happens if land is transferred to more than 4 people?
The first four who are named sui juris will be the legal title holders.
Are there any requirements to holding equitable interest in land?
No:
- No limit on the number of equitable interest holders in land.
- no requirement to be sui juris
What is the rebuttable presumption regarding tenancy in common?
Tenancy in common is presumed where land is:
- a business asset
- a non-domesitc property purchased in unequal shares.
What is the most common reason for severance?
To exclude the operation of survivorship so a distinct share can be left to someone other than the surviving joint tenant - this is only effective if severance is effected before death
Can legal title be severed?
NO
How can an equitable joint tenancy be severed?
- Notice in writing to all other joint tenants
- Unilateral act by one joint tenant
- Mutual agreement
- Mutual conduct
How is severance effected by notice in writing? (x4)
- the notice must be given to all other equitable joint tenants
- the writing does not have to be primarily intended to sever the joint tenancy
- no particular formalities, but must show an unequivocal and irrevocable intention to sever immediately
- if poseted, does not need to be read or acknowledged. Will be deemed served as long as it is left at the last known place of abode or business/signed for/not left underlivereed
What are the types of unilateral acts of severance
- acts of total alienation
-acts of partial alienation (e.g mortgage) - involuntary alienation
What is required for severance by mutual agreement
there must be specific point in time where it is agreed that one person’s interest is severed - the agreement does not have to go so far as being a specifically enforceable contract
What is required for severance by mutual conduct
- clear intention of both parties that severance was intended
- long negotiations on the assumption that the interest is severed
What happens if a joint tenant successfully severs the joint tenancy?
They will hold a tenancy in common, which is an equal share based on the number of former joint tenants.
What does TLATA 1996 s14 provide courts regarding co-owned land disputes?
Courts have jurisdiction to hear applications regarding disputes involving co-owned land.
What factors must courts consider under TLATA 1996 when resolving disputes?
- Intention of the trust creator
- Purpose of the property
- Welfare of any occupying minor
- Interests of any creditor
- Circumstances and wishes of beneficiaries
