Para 1 Flashcards
S.34(2) LPA 1925
Whenever land is co owned, a trust of land is imposed by s.34)2) LPA 1925, separating the legal and equitable title to the land
How is the legal estate held?
The legal estate is always owned as joint tenants (s.34(1) LPA 1925) with a maximum of four trustees.
Legal title - application Shauna and Kieran
Shauna and Kieran hold the legal estate under a joint tenancy, meaning in legal terms the each own 100% of the house.
How can a property be held in equity?
The equitable estate can be owned as either joint tenants or tenants in common
Joint tenancy
The trustees collectively constitute one legal owner.
Tenants in common
In tenancy in common, each trustee owns a share of the equitable estate which can either be equal or unequal depending on the money they put into the property
4 conditions for a joint tenancy in equity to exist (AG Securities v Vaughan)
Unity of possession
Unity of interest
Unity of time
Unity of title
Unity of possession
No tenant can be excluded from any part of the land
Unity of interest
Each tenant has the same estate
Unity of time
Each tenants interest vests at the same time
Unity of title
All tenants acquire under the same document
Tenancy in common (four unities)
If unity of possession is present but any of the three unities is absent, it will instead be a tenancy in common
Joint tenancy - application - Kieran and Shauna
It can be assumed from the scenario that Kieran and Shauna held the equitable estate as joint tenants originally as no restrictions were entered on the proprietorship register - which would be the case if the proprietors intended to exist as tenants in common. It can be assumed that Shauna and Kieran fulfil the four conditions stated in AG securities v Vaughan
ANALYSIS of JT/TiC
However, on the other hand it could be argued that Kieran and Shauna are tenants in common due to the wording in the scenario. For example, it uses the term “shares” which could allude to a division of shares which would constitute tenants in common (Payne v Webb)
