Freehold = Estate in fee simple absolute in possession - LPA s1(1)(a)
In practice this form of ownership is not the most common, as most
people do not own property by themselves. Co-ownership is more
common.
Co-Ownership
Where two or more people hold an interest in land in possession at
the same time (concurrent interests)
Involves unity of possession
Implies that all of the parties are equally entitled to occupation of
the property.
Every time you have a co-ownership, you must have a trust (usually
express, if not, implied by statute)
Legal joint tenancy
No legal estate in undivided share (=tenancy in common) LPA s1(6)
- legislation says that a legal estate must be held in joint tenancy,
supplemented by rule in s36 - where there is a legal joint tenancy it
cannot be severed to create a legal tenancy in common.
When one party dies, their share passes on to survivors.
No restriction
1925 legislation means that a legal estate should not be held by
more than 4 people. Effectively forces trustees in practice to
number between 2 and 4.
If more than 4 beneficiaries are named for a property, the property
vests in the first 4 competent adults named. The others will still
have interest in the property but will not be named on the legal title.
S34 LPA 1925
Management power concentrated.
Used to be debate as to whether a joint tenancy could be created
between an individual and a company – the company would always
survive longer? 1899 Act specifies that an individual can be a joint
tenant with a company.
There must be at least 2 trustees – there is a power to appoint new
trustees if, through death, it becomes necessary. Surviving trustees
can always appoint new trustees.
Four unities necessarily present - interest, title, time and possession
Beneficial Joint Tenancy
Joint tenancy viewed as a single ownership – no shares in the
property.
Mark of beneficial joint tenancy is 4 unities:
o Interest – interest in the property must be the same
o Title – one single title deed must convey property
o Time – one single document must convey property
o Possession – you do not have some rooms that belong to you
and some rooms that belong to the other tenant, a single
property will be held in unity so all can be occupied jointly.
Examples of Disunity
In practice this form of ownership is not the most common, as most
people do not own property by themselves. Co-ownership is more
common.
Co-Ownership
Where two or more people hold an interest in land in possession at
the same time (concurrent interests)
Involves unity of possession
Implies that all of the parties are equally entitled to occupation of
the property.
Every time you have a co-ownership, you must have a trust (usually
express, if not, implied by statute)
Legal joint tenancy
No legal estate in undivided share (=tenancy in common) LPA s1(6)
- legislation says that a legal estate must be held in joint tenancy,
supplemented by rule in s36 - where there is a legal joint tenancy it
cannot be severed to create a legal tenancy in common.
When one party dies, their share passes on to survivors.
No restriction
1925 legislation means that a legal estate should not be held by
more than 4 people. Effectively forces trustees in practice to
number between 2 and 4.
If more than 4 beneficiaries are named for a property, the property
vests in the first 4 competent adults named. The others will still
have interest in the property but will not be named on the legal title.
S34 LPA 1925
Management power concentrated.
Used to be debate as to whether a joint tenancy could be created
between an individual and a company – the company would always
survive longer? 1899 Act specifies that an individual can be a joint
tenant with a company.
There must be at least 2 trustees – there is a power to appoint new
trustees if, through death, it becomes necessary. Surviving trustees
can always appoint new trustees.
Four unities necessarily present - interest, title, time and possession
Beneficial Joint Tenancy
Joint tenancy viewed as a single ownership – no shares in the
property.
Mark of beneficial joint tenancy is 4 unities:
o Interest – interest in the property must be the same
o Title – one single title deed must convey property
o Time – one single document must convey property
o Possession – you do not have some rooms that belong to you
and some rooms that belong to the other tenant, a single
property will be held in unity so all can be occupied jointly.
Examples of Disunity
