Co-Ownership Problem Question Answer Outline
1) Who holds the legal title?
- S.34(2) of LPA25 – first four names on the conveyance are the legal owners of the
trust, given they are:
o willing to become trustees,
o are of or over the age of 18
o have mental capacity
- The legal title must be held as a joint tenancy and cannot be severed
o S1(6) and S36(2) LPA25
2) Who holds the equitable title?
- Any number of beneficiaries of any age and mental capacity can be on the equitable
title
3) How is the equitable title held?
- Joint tenancy
o All four unities must be present
Same possession, equal interest, acquired through same instrument,
at the same time
o Title not part of a business deal
o Title not contributed to unequally
o No express declaration of severance
Goodman v Gallant – would have been conclusive
o Equity follows the law -> equitable joint tenancy
o Joint tenancies have the feature of survivorship
4) Has the joint tenancy been severed?
- Any beneficial joint tenant can choose to sever their share in the beneficial joint
interest and convert to a being a tenant in common.
- Must happen in the lifetime of the joint tenant – cannot severe by will
- Upon severance, the beneficial interest changes form from a joint tenancy to a
tenancy in common and the beneficially ceases to benefit from survivorship
- Severance can take place by:
1) Who holds the legal title?
- S.34(2) of LPA25 – first four names on the conveyance are the legal owners of the
trust, given they are:
o willing to become trustees,
o are of or over the age of 18
o have mental capacity
- The legal title must be held as a joint tenancy and cannot be severed
o S1(6) and S36(2) LPA25
2) Who holds the equitable title?
- Any number of beneficiaries of any age and mental capacity can be on the equitable
title
3) How is the equitable title held?
- Joint tenancy
o All four unities must be present
Same possession, equal interest, acquired through same instrument,
at the same time
o Title not part of a business deal
o Title not contributed to unequally
o No express declaration of severance
Goodman v Gallant – would have been conclusive
o Equity follows the law -> equitable joint tenancy
o Joint tenancies have the feature of survivorship
4) Has the joint tenancy been severed?
- Any beneficial joint tenant can choose to sever their share in the beneficial joint
interest and convert to a being a tenant in common.
- Must happen in the lifetime of the joint tenant – cannot severe by will
- Upon severance, the beneficial interest changes form from a joint tenancy to a
tenancy in common and the beneficially ceases to benefit from survivorship
- Severance can take place by:
