Ownership Of Property

Question 1

There are two types of property ownership under the English law.

What are these?

Answer 1

1. Legal ownership.
2. Beneficial ownership.

Question 2

Define what legal ownership is

Answer 2

Legal ownership refers to the individuals or entities whose names appear on official title documents.

1. The legal owner(s) are those named on the title documents, such as the registered proprietors on the Land Registry or share registers.
2. They hold the property in their name but may not have full rights to its use or value.
3. Legal ownership is often formal or administrative, meaning that while legal owners may hold the title, the true economic benefits of the property belong to the beneficial owner.

Question 3

Define what beneficial ownership is

Answer 3

Beneficial ownership refers to the individual(s) who enjoy the true economic benefits of a property, even if they are not the registered legal owners.

1. A beneficial owner has the right to live in, use, or enjoy the property, even if their name is not on the title.
2. They are entitled to a share of any proceeds from the sale of the property.
3. Beneficial owners often have control over decisions, such as whether a property is sold.
4. Example: Client money held in a firm’s account is legally owned by the firm, but the client remains the beneficial owner.
   Similarly, a custodian may hold shares in their name, but the true owner is the beneficiary.

Question 4

Most people own their property as both legal and beneficial owners.

What are the three different ways of property can be held under the English Law?

Answer 4

1. Sole/ Absolute Ownership
   A. The property is owned by a single individual who has full control and absolute ownership.
   B. They can sell, transfer, or bequeath the property as they wish.
   C. There are no co-owners, and the legal and beneficial ownership rests with one person.
2. Tenancy in Common
   A. Two or more people own the property, but each holds a distinct share (may be equal or unequal).
   B. Each owner is free to dispose of their share (e.g., selling or leaving it in their will).
   C. There is no right of survivorship—
   if one co-owner dies, their share passes to their heirs, not automatically to the other co-owner(s).
3. Joint Tenancy
   A. Two or more people own the entire property jointly, rather than in separate shares.
   B. Each joint tenant has equal ownership and equal rights to the whole property.
   C. A joint tenant can only dispose of their interest during their lifetime by severing the joint tenancy (converting it into a tenancy in common).
   D. Right of survivorship applies—
   when one joint tenant dies, their interest automatically passes to the surviving joint tenant(s), overriding any will.