Lesson 2 Flashcards
What is co-ownership in land law?
Co-ownership occurs when more than one person owns land at the same time, creating a trust of land under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA).
What is the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA)?
TOLATA governs the rights, duties, and rules for trustees and beneficiaries in relation to co-owned land.
What are the two ways in which co-owned land can be held?
Land can be held as a joint tenancy or a tenancy in common.
What is the key characteristic of a joint tenancy?
In a joint tenancy, co-owners share undivided ownership, and there is a right of survivorship, where the interest of a deceased co-owner automatically passes to the surviving co-owners.
How can a joint tenancy be severed?
A joint tenancy can only be severed in equity (not the legal estate) and can be done through methods such as written notice, unilateral acts (alienation), mutual agreement, or involuntary severance (e.g., homicide or bankruptcy).
What tests are used to determine if there is a joint tenancy of beneficial interests?
The four unities of possession, interest, time, and title must be present for a joint tenancy of the beneficial interests.
What is a tenancy in common?
In a tenancy in common, each co-owner has a distinct share in the property, which can be equal or unequal, and there is no right of survivorship. Upon death, the share passes according to the will or intestacy.
What is the process of severing a joint tenancy?
Severance can occur through written notice, unilateral actions, mutual agreement, or a course of dealing. Severance must be done during the lifetime of the co-owner.
What is an implied trust of land?
An implied trust of land arises from the conduct of the parties, either as a resulting trust (e.g., where a non-owning party contributes to the purchase price) or a constructive trust (e.g., when parties act to their detriment based on an agreement).
What are the characteristics of a resulting trust?
A resulting trust arises when a non-owning party contributes to the purchase price of land, creating an automatic trust.
What is a constructive trust?
A constructive trust arises when there is an agreement or common intention between co-owners, and one party acts to their detriment, contributing financially to the property.
What powers do trustees have under TOLATA?
Trustees hold the legal estate and have powers such as selling or mortgaging the property, while also having duties like consulting beneficiaries.
What rights do beneficiaries have under TOLATA?
Beneficiaries have equitable interests, which may include rights to occupy the property and to apply to the court under Sections 14 and 15 for property orders.
What happens when there is a dispute between trustees and beneficiaries?
Disputes can be resolved under Sections 14 and 15 of TOLATA, which provide for court orders to determine the disposition of co-owned property.
What is the key difference between a joint tenancy and a tenancy in common?
A joint tenancy involves undivided ownership with survivorship, while a tenancy in common involves distinct, undivided shares without survivorship.
What is the significance of Section 14 and Section 15 of TOLATA?
These sections allow trustees, beneficiaries, and courts to apply for orders regarding the property in cases of dispute.
What are the main types of co-ownership interests discussed in Chapter 2?
The main types are joint tenancy and tenancy in common, with rules on severance and the rights and duties of trustees and beneficiaries.
