Co-ownership And Trusts Flashcards
What is co-ownership?
Where more than one person owns land at the same time.
What is a trust of land?
This is when there are concurrent sharing of co-ownership in a property of land.
S 1 of TOLATA
When will a trust of land arise?
Landowner intentionally sets up trust of land, by transferring title to land to trustees for benefit of others (express trust)
A person acquires an interest in land owned by another due to their conduct (implied trust)
Land is acquired by more than one owner jointly (co-ownership)
What is the legal estate in a trust of land?
A legal estate is incapable of submitting or being created in an undivided share, therefore
Must be held in joint tenancy only
CANNOT be severed
Who can be a trustee of land?
Anyone over 18.
If minor and adult, the land is vested in the adult, in trust for the minor.
4 trustees MAX
What are the powers of trustees of land?
Have power of absolute owner, owner to sell or mortgage the land, purchase etc
Trustees powers are limited by duty o CONSUT the beneficiaires of full age and who have an interest
Must comply with wishes of beneficiaries.
What are the 2 forms of co-ownership?
Joint tenancy
Tenant in common
What is joint tenancy in equitable interest?
Jointly entitled to whole o property.
Can sever joint tenancy in equity and convert to TIC
What is the right of survivorship?
On death of joint tenant, the interest automatically and immediately passes to the surviving joint tenant. It does NOT pass under the will or intestacy.
What is tenancy in common?
Each owner is regarded as having a distinct share in the land, although the land in question had not been physically divided up.
Can be equal or unequal.
What are the 4 tests to work out if an interest is joint tenancy or TIC?
1: are al 4 unities present?
2: does the deed transferring the land to co-owners contain an express declaration?
3: does the deed transferring the land to co-owners contain words of severance?
4: does equity PRESUME TIC?
What are the 4 unities?
Test for joint tenancy:
Unity of possession - each co-owner has the right to possession of all the land.
Unity of interest - each co-owner must have identical rights in the land. If unequal, there is NO unity of interest.
Unity of title - each co-owner I must acquire their interest from the SAME DOCUMENT
Unity of time - co-owners recieve their interests at the SAME TIME
What does the second test for joint tenancy ask>?
Does the deed transferring the land to co-owners contain an EXPRESS declaration?
If it does, then you abide by that.
What is the third test for joint tenancy?
Does the deed transferring the land contain words of severance?
Words that are NOT severance:
Equally between them
In equal shares
Between A and B
Half ago A and half to B
Does equity PRESUME a tenancy in common?
There is a presumption that o owners wll be JOINT TENANTS on the basis that equity follows the law
The legal estate is always joint tenancy, and therefore PRESUMED that the equitable interest is also
How can he presumption of joint tenancy be rebutted?
If it is for business use
Unequal contributions to the purchase price
Post-acquisition money management (one has given greater share of finance)
What is severance?
Method by which a joint tenancy in equity can be converted into TIC.
What are the 2 ways of severance?
Formal severance by written notice
Informal severance
How can a joint tenant sever their share by written notice?
By giving written ntice to other co-owners, stating their intention to sever, ether expressly or impliedly.
NO specific form, does NOT need to be signed.
Unilateral act, does not need consent from others.
What are the 2 requirements for severance by written notice?
Use appropriate wording - mst express desire to send joint tenancy IMMEDIATELY.
Be recieved by ALL other joint tenants, or DEEMED to be recieved.
What are the postal rules when it comes to the delivery of a severance?
If posted, reliance can be deemed.
Registered post: if notice is sent by registered or recorded letter, is is served if letter is not returned.
If a joint tenant choose to send notice, can rely on this presumption.
Ordinary post: any notice is sufficiently service if it is left at the LAST KNOWN PLACE of abode or business in UK of the person to be served.
What are the methods of informal severance?
Acts operating on the joint tenants share
Mutual agreement
Course of dealing
Bankruptcy
Homicide
Post-acquisition money management
What are acts operating on the joint tenant share that result in severance?
Unilateral act.
Where joint tenant DISPOSES of equitable interest by SALE, GIFT, LEASE or MORTGAGE.
Must be in writing and signed.
How can informal severance be done by mutual agreement?
Requires joint tenants to ACT TOGETHER, to sever it, and must be supported by valuable consideration.
Oral agreement will suffice and agreement does NOT need eto be carried through to performance.
