Co-ownership Flashcards
What are the two types of concurrent co-ownership?
- Joint Tenancy
2. Tenancy in Common
What statutory trust did the Law of Property Act 1925 create?
Trust of sale
What is the effect of a trust?
It bestows a legal title on a trustee and an equitable title on a beneficiary
What rights do trustees have and not have with a legal title of land?
Legal title grants duties and powers of management but no right to enjoy the land.
Which two provisions of the LPA 1925 imposed a trust for sale when there was any express conveyance to more than one person?
ss34(2) and 36
Which two provisions of the LPA 1925 impose a trust of sale when there is a will expressly conveying land to more than one person?
ss34(3) and 36
Which Act has now abolished the imposition of a trust of sale?
Trusts of Land and Appointment of Trustees Act 1996
How does s205(1(xxix) LPA 1925 define a trust for sale?
An immediate binding trust for sale whether or not exercised at the request or with the consent of any person, and with or without a power of discretion to postpone the sale’
What is understood by the doctrine of conversion?
This relates to the trust of sale. As equity looks on done as that which ought to be done, the beneficiaries are said to have an interest in the purchase money of a property rather than an interest in the property itself even before it is sold.
What did s1(2)(b) TLATA 1996 do to trust of sale existing on 1 Jan 1997?
Converted them into trusts of land.
What is the effect of s4 TLATA 1996 on trusts of sale?
It discredits any express provision removing the right to postpone sale thereby allowing postponement for all trusts of sale whether the trusts of sale came about before or after TLATA 1996.
What do paragraphs 3 and 4 of schedule 2 TLATA 1996 do?
They have replaced ‘trusts of sale’ with ‘trusts of land’ in ss34 and 36 of LPA 1925 so anything caught by ss36 and 36 post-1 Jan 1997 is now a trust of land.
What is the effect of s3 TLATA 1996?
It abolishes the doctrine of conversion except in the circumstance where the testator died before 1 Jan 1997 and created a trust for sale by his will (s3(2).
Which provision defines the trust of land? How is it defined?
Section 1(1)(a) TLATA 1996 defines a trust of land as ‘any trust of property which consists of or includes land’
What does s1(2)(a) TLATA 1996 make clear?
That TLATA 1996 applies to all types of trusts of land eg express, implied, resulting, constructive, bare and trusts for sale.
What common feature do both joint tenants and tenants in common enjoy?
Unity of possession. Each co-owner is simultaneously entitled to possession of the whole land
What other unities must be present for there to be a joint tenancy?
Unity of title, interest and time
Which case tells us that a joint tenancy cannot exist unless there are the four unities?
AG Securities v Vaughan
How would you describe each of the four unities?
- Unity of possession - simultaneous possession of the whole property by each co-owner;
- Unity of interest - the freehold/leasehold must be the same duration
- Unity of title - all joint tenants must acquire their title under the same document
- Unity of time - the interest of each tenant must vest at the same time
What is the effect of right of survivorship?
When one joint tenant dies his interest in land passes automatically to the other joint tenants.
Can a will defeat the right of survivorship?
No, the right of survivorship occurs automatically on severance where a will has to be exercised. The right of survivorship comes first (Re Caines Deceased)
Can tenancy in common ever be legal? Which provision gives the answer?
Section 1(6) LPA 1925 says legal title must always be a joint tenancy
Which provision says that a legal joint tenancy cannot be severed to create a tenancy in common?
Section 36(2) LPA 1925
What is the usual reason for severing a joint tenancy?
To end the right of survivorship
