Co-Ownership
Table of Contents
The Trust of Land.......................................................................................................................................... 2
Joint Tenancy v Tenancy in Common.............................................................................................................. 2
Express Trust................................................................................................................................................. 4
Implied Trust................................................................................................................................................. 4
Severance of Joint Tenancy............................................................................................................................ 6
1) Serving written notice............................................................................................................................... 6
2) Acting on own share.................................................................................................................................. 8
3) Mutual agreement.................................................................................................................................... 9
4) Course of Dealing...................................................................................................................................... 9
Trusts of Land and Appointment of Trustees Act 1996..................................................................................10
Disputes...................................................................................................................................................... 11
Edwards v Lloyds Facts:.................................................................................................................................13
Bankruptcy of a co-owner.................................................................................................................................14
, The Trust of Land
- General Rule: Whenever two people buy a house, they automatically hold legal title
on trust (s36(1) LPA 1925):
“Where a legal estate (not being settled land) is beneficially limited to or held in trust
for any persons as joint tenants, the same shall be held in trust, in like manner as if the
persons beneficially entitled were tenants in common, but not so as to sever their joint
tenancy in equity.”
i. The legal title of the land is held on trust by trustees, and the beneficiaries
have beneficial ownership or rights to enjoy the property recognized by equity.
- Rights held by the trustee:
Legal title holders, or the trustees:
i. Have control of any sale;
ii. Appear as registered proprietors.
iii. Can mortgage the legal estate.
- Rights held by the beneficiary:
The beneficiaries:
i. Are entitled to the benefits or proceeds of the sale.
ii. They may be entitled to occupy the property.
iii. They are not named as such on the register.
Joint Tenancy v Tenancy in Common
- General Rule: For the legal title to the land to be held by multiple people, there must
be a joint tenancy. (s36(2) LPA 1925)
- General Rule: There must be a maximum of 4 joint tenants at law (s34(2) LPA
1925).
- General Rule: There always be trustees (s36(1) LPA).
- General Rule: An equitable title, however, can be held either as a joint tenancy or as
a tenancy in common.
- What is a tenancy in common?
In a tenancy in common, each person has a distinct share in the value of the
property.
- What is required?
Table of Contents
The Trust of Land.......................................................................................................................................... 2
Joint Tenancy v Tenancy in Common.............................................................................................................. 2
Express Trust................................................................................................................................................. 4
Implied Trust................................................................................................................................................. 4
Severance of Joint Tenancy............................................................................................................................ 6
1) Serving written notice............................................................................................................................... 6
2) Acting on own share.................................................................................................................................. 8
3) Mutual agreement.................................................................................................................................... 9
4) Course of Dealing...................................................................................................................................... 9
Trusts of Land and Appointment of Trustees Act 1996..................................................................................10
Disputes...................................................................................................................................................... 11
Edwards v Lloyds Facts:.................................................................................................................................13
Bankruptcy of a co-owner.................................................................................................................................14
, The Trust of Land
- General Rule: Whenever two people buy a house, they automatically hold legal title
on trust (s36(1) LPA 1925):
“Where a legal estate (not being settled land) is beneficially limited to or held in trust
for any persons as joint tenants, the same shall be held in trust, in like manner as if the
persons beneficially entitled were tenants in common, but not so as to sever their joint
tenancy in equity.”
i. The legal title of the land is held on trust by trustees, and the beneficiaries
have beneficial ownership or rights to enjoy the property recognized by equity.
- Rights held by the trustee:
Legal title holders, or the trustees:
i. Have control of any sale;
ii. Appear as registered proprietors.
iii. Can mortgage the legal estate.
- Rights held by the beneficiary:
The beneficiaries:
i. Are entitled to the benefits or proceeds of the sale.
ii. They may be entitled to occupy the property.
iii. They are not named as such on the register.
Joint Tenancy v Tenancy in Common
- General Rule: For the legal title to the land to be held by multiple people, there must
be a joint tenancy. (s36(2) LPA 1925)
- General Rule: There must be a maximum of 4 joint tenants at law (s34(2) LPA
1925).
- General Rule: There always be trustees (s36(1) LPA).
- General Rule: An equitable title, however, can be held either as a joint tenancy or as
a tenancy in common.
- What is a tenancy in common?
In a tenancy in common, each person has a distinct share in the value of the
property.
- What is required?
