Co-Ownership Flashcards
Joint tenancy (JT)
- Legal title must be held as JT
- Right of survivorship applies (Re Caines)
- Cannot sever the legal JT
- All shares are equal as there is no identifiable own share
Tenancy In Common (TIC)
- TIC can exist for ET and LT
- No right of survivorship
- Can be held unequally
- Identifiable own share
S1 TLATA 1996
Converted all trusts for sale into trusts of land
Preliminary issues;
- A trust of land separates the legal and equitable title, so must be dealt with separately
- Rough structure;
- Initial acquisition
- Subsequent events
- Endings
AG Securities v Vaughan
4 unities (PITT) Possession Interest Title Time
Re Caines
- Right of survivorship under a JT
- Survivorship takes preecdence over a will
S1(6) LPA 1925
- Legal title must be held as a joint tenancy
- Legal title cannot be held by an infant (under 18)
S34(2) TA 1925
- Legal title can only be held by 4 legal owners
- Only first 4 named on the title deed shall be legal title holders
S22 LPA 1925
Must be of full mental capacity
If the equitable title can be held as either a JT or TIC how is it decided?
U - unities
S - words of severance
P - presumptions
E - express declaration
Pink v lawrence
Express intention prevails over presumption
What are words of sevarance?
In equal shares – Payne v Webb
Share and share alike – Heathe v Heathe
To be divided between – Fisher v Wigg
Equally – Re Klivert deceased
Bull v Bull
- Where contributions unequal there is a strong presumption of a TIC
Stack v Dowden
In domestic context even where there are different contributions it is still presumed to be held as a JT
Lake v Craddock
Commercial context TIC presumed
Legal title cannot be severed
- S36(2) LPA 1925 - as can only be held as a JT
Severance must occur whilst still alive
Re Caines
Severance can only go from JT to TIC not vice versa
AG v Vaughan
Goodman v Gallant
Where JT is severed the resulting TIC is always an equal share, regardless of unequal contributions
Singla v Brown
TIC from severance is equal, unless specifically stated not to be
Re Dennis
Where severance has not occurred the right of survivorship applies under a JT
Wright v Gibbons
One party can hold equitable title as both a TIC and JT
Methods of sevarance
- Written notice
- Act operating on own share
- Mutual agreement
- Mutual conduct
- Homicide
Requirements for written notice
- No formalities other than in writing S36(2) LPA 1925
- Re Drapers - no signature
- Given to all tenants
- Content
S196 (3) LPA 1925
- Valid on arrival at last known abode
Kinch v Bullard
- Severance occurs at point of arrival of letter
S196(4) LPA 1925
- Postal rule operates in relation to severance
Harris v Goddard
Content;
Unequivocal
Irrevocable
Immediate intentionq
Severance can be express or implied
- Re Draper’s Conveyance - Implied severance as intention to sever was immediate fromthe treating as separate shares
- Harris v Goddard - No immediate intention so implied severance not effectiveq
S36(2) - Severance by other acts or things
William v Hensman
- Act operating on own share
- Mutual agreement
- Mutual conduct
Total alienation of interest
Generally through sale. As this is a disposition of an existing equitable interest must be made in signed writing S53(1)(c)
Ahmed v Kendrick
Effective severance through forging of signature
Penn v Bristol and West
No severance where sale was attempted through forging of wife’s signature. Failed as collusion between purchaser and husband
Partial alienation
Where JT in property is mortgaged it becomes severed
First National Securities v Hegerty
Husband mortgaged house. Severed interest from JT to TIC. A mortgage is a charge on the TIC.
Involuntary association
Where the bankrupt party’s assets become the property of te bank this severs the interest, becoming a TIC