Trusts of Land: Sale by Co-Owners Flashcards
What happens when co-owners decide to sell their land in relation to the statutory trust of land?
The sale of co-owned land is governed by a statutory trust of land, which mandates that co-owners, as trustees of the land, hold the legal estate and have the authority to sell the trust land.
What powers do trustees have regarding the sale of co-owned land?
Trustees holding the legal estate in co-owned land have the statutory power to sell the land under the trust.
What ensures a purchaser acquires land free from any beneficial interests under a trust of land when buying from multiple trustees?
When a purchaser buys from at least two trustees and pays the purchase price to them, the equitable interests are overreached.
Consequently, the purchaser takes the land free from these interests, which then attach to the sale proceeds.
How does a pre-death sale by co-owners affect the transfer of property interests?
If co-owners sell the property before any of their deaths and both join in the sale, there will be no problem.
The equitable interests under the trust of land are overreached, making the transaction straightforward.
What happens to co-owned property if one of the joint tenants dies before the sale?
If the co-owners were joint tenants, the right of survivorship applies, and both the legal estate and the equitable interest fully vest in the surviving co-owner, who can then sell the property alone.
How does the death of one co-owner affect the sale of property held as tenants in common?
If co-owners were tenants in common, the surviving co-owner holds the land on trust for himself and the deceased’s beneficiaries.
To overreach the beneficiaries’ interests, the surviving co-owner may need to appoint a second trustee for the sale.
What does section 1 of the Law of Property (Joint Tenants) Act 1964 allow a purchaser to assume regarding joint tenancy in equity?
A purchaser can assume that the joint tenancy was not severed in equity before the co-owner’s death, allowing the purchaser to buy from the surviving joint tenant without appointing a second trustee.
What can a purchaser assume if there are no restrictions on the proprietorship register under s 40 Land Registration Act 2002?
The purchaser can assume joint tenancy in equity before a joint tenant’s death, enabling them to buy from the surviving tenant without further action.
What does a restriction on the register indicate in a property transaction?
It suggests the property was held as tenants in common in equity, requiring the appointment of a second trustee to overreach the equitable interests of beneficiaries.
What is overreaching, and when is it necessary in property transactions?
Overreaching is necessary when there’s a restriction on the register, indicating tenancy in common. It involves appointing a second trustee to ensure the purchaser can acquire the property free of any undisclosed equitable interests.
How is ownership proven in the case of a joint tenancy in equity for an unregistered title?
Ownership is proven through a “bundle of conveyances,” the last of which shows that the property was bought as joint tenants in equity.
What significance does a death certificate have in determining the status of a joint tenancy?
It indicates that the legal estate vested in the surviving joint tenant. The purchaser must verify if the joint tenancy was severed in equity before death to ensure clear title.
Who is considered “equity’s darling” in property transactions?
A bona fide purchaser for value of the legal estate without notice (actual, constructive, or imputed) of the beneficiaries’ interests, not bound by beneficial interests and rights of co-owners unless the transaction complies with specific legal provisions.
How is ownership proven in the case of a registered title?
Ownership is proven by showing the purchaser the entries on the register of title.
Under what conditions will a purchaser not be bound by an overriding interest according to s 29 LRA 2002?
A purchaser will not be bound by an overriding interest if the beneficiary is not in actual occupation, the occupation is not obvious, and the purchaser did not know of the interest.
However, a beneficiary’s registered restriction can prevent the purchaser’s registration.
