Co-ownership

Question 1

What will co-ownership give rise to? Authority.

Answer 1

A trust of land - ss34/36 LPA 1925.

Question 2

How can legal title be held? Authority.

Answer 2

Only as joint tenant - s1(6) LPA 1925.

Question 3

How many trustees can there be in a trust of land? What happens if there are more than this many purchasers? Authority.

Answer 3

4. If more, the first 4 named on the transfer document will be the trustees - s34(2) LPA 1925.

Question 4

Can someone under 18 hold legal title to land/be a trustee of land? Authority.

Answer 4

No - s1(6) LPA 1925.

Question 5

What is test 1 for how the equitable interest is held - to see whether it is capable of joint tenancy?

Answer 5

4 unities:
1. Time - did parties acquire their interests at the same time? 2. Title - in the same transfer document? 3. Interest - of the same type and duration? 4. Possession - all entitled to use/occupy?

Question 6

What is test 2 for how the equitable interest is held? Will it be conclusive? Case.

Answer 6

Express provision in the transfer document? It will be conclusive - Goodman v Gallant.

Question 7

What is test 3 for how the equitable interest is to be held? If satisfied, how is interest held?

Answer 7

Words of severance, e.g. “equally”, “in equal shares”. If so, tenancy in common.

Question 8

What is test 4 for how the equitable interest is held?

Answer 8

Is a presumption raised? 1. Business partners buying land as an asset. 2. Unequal contributions to purchase price.

Question 9

If the position regarding how the equitable interest is held is still unclear after the 4 tests, how will it be held?

Answer 9

As joint tenants.

Question 10

Can the legal joint tenancy be severed? Authority. How will it pass?

Answer 10

No - s36(2) LPA 1925. It will pass by survivorship.

Question 11

In what 4 ways may an equitable joint tenancy be severed?

Answer 11

1. Notice.
2. Alienation.
3. Mutual agreement/course of dealings.
4. Homicide.

Question 12

Is a declaration of intention to sever an equitable joint tenancy in the future sufficient? Case.

Answer 12

No - must be immediate intention - Harris v Goddard.

Question 13

Is stating “I am entitled to (x) share” sufficient to show an intention to sever an equitable joint tenancy? Case.

Answer 13

Yes - Re Draper’s Settlement.

Question 14

If notice of intention to sever is correctly served at the last abode/place of business, is it effective even if the addressee does not actually receive it? Case.

Answer 14

Yes - Kinch v Bullard.

Question 15

If notice of intention to sever is correctly served by registered letter, is it effective even if the addressee does not actually receive it? Case.

Answer 15

Yes - Re 88 Berkeley Road.

Question 16

How must severance by alienation (i.e. sale, gift mortgage) be effected? Authority.

Answer 16

By signed writing (it is the disposition of an equitable trust interest) - s53(1)(c) LPA 1925.

Question 17

Which statute governs trusts of land, and the rights of trustees and beneficiaries?

Answer 17

Trusts of Land and Appointment of Trustees Act (TLATA 1996).