Para 2 Flashcards
Severance
The act of turning a beneficial joint tenancy into a tenancy in common. Severance is irreversible.
Severance application Kieran and Shauna
Shauna wants to sever her joint tenancy with Kieran after an argument meaning that, if successful, she would own 50% of the estate as a tenant in common instead of 100% as a joint tenant in equity. She wants to pass her share to her sister, however the scenario is unclear whether this is to be passed on immediately or after Shauna has died.
Escape right of survivorship
The right of survivorship is when a joint tenant dies their share in the house immediately passes to the surviving joint tenant(s).
Application - right of severance - Kieran and Shauna
This means that Kieran will no longer inherit Shauna’s share of the estate, instead it will be passed to a named person in her will or if no will was created then through intestacy.
How can a joint tenancy be severed
Statutory severance - s.36(2) LPA 1925
Mutual agreement (Davis v Smith)
Voluntary acts e.g sale of share (brown v raindle)
Involuntary acts e.g bankruptcy (c putnam & sons v Taylor)
How has Shauna severed her joint tenancy
Shauna has statutorily severed her joint tenancy (s.36(2) LPA 1925) by writing a note to Kieran (Nielson-Jones v Fedden)
Death before reading note application
Kieran has died before reading the note. However, s.196(3) and (4) states that there is no requirement that the notice is actually received or seen by the recipient (re Berkeley road), it is only sufficient if it reaches the recipients last known address or business.
ANALYSIS of library
However, the scenario is unclear as to whether Kieran owns the library, which would perhaps constitute a business, or the library resides at his last known address. Either way Shauna has successfully severed her joint tenancy in the equitable estate.