Co-Ownership — Express Trusts
What is co-ownership?
Concurrent/simultaneous.
NOT successive.
Two or more parties own a property at the same time.
Concurrent:
Same estate in land (freehold or leasehold)
At the same time.
A, B, and C own the freehold of Greenacre at the same time.
NOT - A sells to B who sells to C: Successive.
A owns the freehold and B owns the leasehold.
Statutory Trust of Land
Trust: A device under which the legal and beneficial interest are held separately.
Co-ownership - Trust will arise.
Key Statutes:
Law of Property Act 1925 (LPA 1925)
Trusts of Land and Appointment of Trustees Act 1996 (TOLATA or TLATA).
Trusts - Terminology
Trustee - Holder of the legal title.
The 'manager'.
Beneficiary - Holder of the equitable interest.
Enjoys the benefit of ownership of the land.
Every instance of co-ownership, two questions considered:
How the land is held at law?
, Examples:
Example 1
A, B, C, D & E purchase property together.
Agree to hold property as Joint Tenants in Equity.
Law: A, B, C, D (JTs)
Equity: A, B, C, D, E (JTs)
Example 2
A, B, C, D & E purchase a property together.
B is aged 16 at the date of purchase.
Expressly agree to hold the property and joint tenants in equity.
B is under age of 18, cannot legally own land.
Law: A, C, D, E (JTs)
Equity: A, B, C, D, E (JTs)
N.B. Legal owners are trustees - Enables them to carry out duties and obligations towards
Legal ownership has no economic value in itself; the value of land lies in equitable ow
Limitation of four - Trustees required to sign relevant documentation on sale of the prop
Position in Equity
Co-ownership in equity more flexible:
Joint Tenant and Tenant in Common.
Joint Tenancy can be severed to create a Tenancy in Common.
No limitation on numbers.
Capacity not a requirement.
Legal title can only be held as Joint Tenants - LPA.
Equitable owners can be either Joint Tenants or Tenants in Common - Equitable interest is
Joint Tenancy
Four unities required - A.G. Securities v Vaughan [1988] 3 WLR 1025
What is co-ownership?
Concurrent/simultaneous.
NOT successive.
Two or more parties own a property at the same time.
Concurrent:
Same estate in land (freehold or leasehold)
At the same time.
A, B, and C own the freehold of Greenacre at the same time.
NOT - A sells to B who sells to C: Successive.
A owns the freehold and B owns the leasehold.
Statutory Trust of Land
Trust: A device under which the legal and beneficial interest are held separately.
Co-ownership - Trust will arise.
Key Statutes:
Law of Property Act 1925 (LPA 1925)
Trusts of Land and Appointment of Trustees Act 1996 (TOLATA or TLATA).
Trusts - Terminology
Trustee - Holder of the legal title.
The 'manager'.
Beneficiary - Holder of the equitable interest.
Enjoys the benefit of ownership of the land.
Every instance of co-ownership, two questions considered:
How the land is held at law?
, Examples:
Example 1
A, B, C, D & E purchase property together.
Agree to hold property as Joint Tenants in Equity.
Law: A, B, C, D (JTs)
Equity: A, B, C, D, E (JTs)
Example 2
A, B, C, D & E purchase a property together.
B is aged 16 at the date of purchase.
Expressly agree to hold the property and joint tenants in equity.
B is under age of 18, cannot legally own land.
Law: A, C, D, E (JTs)
Equity: A, B, C, D, E (JTs)
N.B. Legal owners are trustees - Enables them to carry out duties and obligations towards
Legal ownership has no economic value in itself; the value of land lies in equitable ow
Limitation of four - Trustees required to sign relevant documentation on sale of the prop
Position in Equity
Co-ownership in equity more flexible:
Joint Tenant and Tenant in Common.
Joint Tenancy can be severed to create a Tenancy in Common.
No limitation on numbers.
Capacity not a requirement.
Legal title can only be held as Joint Tenants - LPA.
Equitable owners can be either Joint Tenants or Tenants in Common - Equitable interest is
Joint Tenancy
Four unities required - A.G. Securities v Vaughan [1988] 3 WLR 1025
