Co ownership Notes - Co-ownership refers to a situation where two or more people hold
rights over the same piece of land at the same time. There are two main forms of co-
ownership in English law: joint tenancy and tenancy in common.
Trusts of Land – Express Trusts
Express trusts arise in two key situations:
1.Declaration of Trust – A sole legal owner (A) explicitly declares that they hold the land on
trust for the benefit of another (B).
2.Transfer Subject to a Trust – A legal owner (S) transfers the legal estate to another person
(A), subject to a trust for the benefit of a third party (B).
In both cases: Legal title remains with A. Equitable title belongs to B.
Why Co-Own Property? Rising house prices mean multiple people (e.g., couples, friends, or
business partners) often purchase property together. Property co-ownership is automatically
held on trust under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996).
Types of Co-Ownership : Joint Tenancy – All co-owners have equal rights to the entire
property (right of survivorship applies). Tenancy in Common – Each co-owner has a distinct
share in the property (no right of survivorship).
Joint Tenancy in Law and Equity - A joint tenancy can exist in both law and equity. It is a
form of co-ownership where all co-owners are seen as a single entity owning the whole
property. The key feature is the right of survivorship (ius accrescendi): when one joint
tenant dies, their interest automatically passes to the others and cannot be left by will.
This is sometimes compared to a tontine, where the last survivor becomes the sole owner.
Joint Tenancy in Law - In law, joint tenants are treated as owning the whole property
together, with no individual shares. The right of survivorship means the deceased tenant’s
interest automatically passes to the surviving joint tenants. They cannot leave their share in
a will, as their interest ends at death. Example: If A and B own property as joint tenants,
and A dies, B becomes the sole legal owner of the property. A’s will cannot override this.
Joint Tenancy in Equity - In equity, the same principles apply, but equity looks deeper at
the parties’ intentions and contributions. If the facts show unequal financial input or a
different intended arrangement, equity may treat the ownership as a tenancy in common
instead—giving each party a distinct share. Equity can also sever a joint tenancy to ensure
fairness, even if the legal title is joint. Example: If A and B own property jointly but A paid
80% of the purchase price, equity may declare they hold it as tenants in common in
proportion to their contributions.
A tenancy in common can exist only in equity. Unlike joint tenancy, a tenancy in common
allows each co-owner to have a separate and distinct share in the property, which is
quantified but not physically divided. While the land remains undivided, each tenant in
, common holds a specific proportion of the property, which can be determined at the outset
or inferred from contributions. There is no right of survivorship in a tenancy in common,
meaning that when a co-owner dies, their share passes according to their will or intestacy
rules rather than automatically transferring to the other co-owners. Each tenant in common
is free to dispose of their share as they wish, either by sale or through inheritance.
How Many People Can Be Joint Tenants? Before the Law of Property Act 1925 (LPA 1925),
co-owners could hold property as either joint tenants or tenants in common at both law and
equity. However, under section 1(6) LPA 1925, a legal estate in land cannot exist in
undivided shares, meaning that joint tenancy is the only form of legal co-ownership.The
number of legal owners is limited to a maximum of four, as set out in section 34(2) LPA
1925. If more than four people are named in a conveyance, only the first four hold the legal
title as joint tenants, while the equitable interest may be divided among all beneficiaries.
This rule ensures simplicity in dealing with land ownership and transactions.
AG Securities v Vaughan [1988] 3 WLR 1025 Facts: AG Securities granted four individuals
separate agreements to occupy a flat. Each agreement was made at different times and on
different terms. The issue was whether the tenants held a joint tenancy or individual
tenancies. Held: The House of Lords ruled that there was no joint tenancy because the Four
Unities were not satisfied. The tenants had separate agreements, meaning they did not
acquire their interest at the same time or through the same document. As a result, they
were not joint tenants and had separate tenancies instead.
How to Become a Joint Tenant - For a joint tenancy to exist, the Four Unities must be
present:
1. Unity of Time – Each joint tenant must acquire their interest in the property at the same
time.
2. Unity of Title – Each joint tenant must acquire their interest through the same document
or transaction.
3. Unity of Interest – Each joint tenant must hold an identical interest in the property in
terms of nature, extent, and duration.
4. Unity of Possession – Each joint tenant must be equally entitled to the possession and
enjoyment of the whole property.
If any of these unities are missing, the co-ownership cannot be a joint tenancy and may
instead take effect as a tenancy in common in equity.
Right of Survivorship - Joint tenancy is characterised by the right of survivorship (ius
accrescendi), meaning that when one joint tenant dies, their share automatically passes to
the surviving joint tenants. The last surviving joint tenant ultimately becomes the sole
owner of the property. However, this right can be defeated by severance, which converts a
joint tenancy into a tenancy in common, allowing each co-owner to hold a distinct share
that can be passed through a will or intestacy.
rights over the same piece of land at the same time. There are two main forms of co-
ownership in English law: joint tenancy and tenancy in common.
Trusts of Land – Express Trusts
Express trusts arise in two key situations:
1.Declaration of Trust – A sole legal owner (A) explicitly declares that they hold the land on
trust for the benefit of another (B).
2.Transfer Subject to a Trust – A legal owner (S) transfers the legal estate to another person
(A), subject to a trust for the benefit of a third party (B).
In both cases: Legal title remains with A. Equitable title belongs to B.
Why Co-Own Property? Rising house prices mean multiple people (e.g., couples, friends, or
business partners) often purchase property together. Property co-ownership is automatically
held on trust under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA 1996).
Types of Co-Ownership : Joint Tenancy – All co-owners have equal rights to the entire
property (right of survivorship applies). Tenancy in Common – Each co-owner has a distinct
share in the property (no right of survivorship).
Joint Tenancy in Law and Equity - A joint tenancy can exist in both law and equity. It is a
form of co-ownership where all co-owners are seen as a single entity owning the whole
property. The key feature is the right of survivorship (ius accrescendi): when one joint
tenant dies, their interest automatically passes to the others and cannot be left by will.
This is sometimes compared to a tontine, where the last survivor becomes the sole owner.
Joint Tenancy in Law - In law, joint tenants are treated as owning the whole property
together, with no individual shares. The right of survivorship means the deceased tenant’s
interest automatically passes to the surviving joint tenants. They cannot leave their share in
a will, as their interest ends at death. Example: If A and B own property as joint tenants,
and A dies, B becomes the sole legal owner of the property. A’s will cannot override this.
Joint Tenancy in Equity - In equity, the same principles apply, but equity looks deeper at
the parties’ intentions and contributions. If the facts show unequal financial input or a
different intended arrangement, equity may treat the ownership as a tenancy in common
instead—giving each party a distinct share. Equity can also sever a joint tenancy to ensure
fairness, even if the legal title is joint. Example: If A and B own property jointly but A paid
80% of the purchase price, equity may declare they hold it as tenants in common in
proportion to their contributions.
A tenancy in common can exist only in equity. Unlike joint tenancy, a tenancy in common
allows each co-owner to have a separate and distinct share in the property, which is
quantified but not physically divided. While the land remains undivided, each tenant in
, common holds a specific proportion of the property, which can be determined at the outset
or inferred from contributions. There is no right of survivorship in a tenancy in common,
meaning that when a co-owner dies, their share passes according to their will or intestacy
rules rather than automatically transferring to the other co-owners. Each tenant in common
is free to dispose of their share as they wish, either by sale or through inheritance.
How Many People Can Be Joint Tenants? Before the Law of Property Act 1925 (LPA 1925),
co-owners could hold property as either joint tenants or tenants in common at both law and
equity. However, under section 1(6) LPA 1925, a legal estate in land cannot exist in
undivided shares, meaning that joint tenancy is the only form of legal co-ownership.The
number of legal owners is limited to a maximum of four, as set out in section 34(2) LPA
1925. If more than four people are named in a conveyance, only the first four hold the legal
title as joint tenants, while the equitable interest may be divided among all beneficiaries.
This rule ensures simplicity in dealing with land ownership and transactions.
AG Securities v Vaughan [1988] 3 WLR 1025 Facts: AG Securities granted four individuals
separate agreements to occupy a flat. Each agreement was made at different times and on
different terms. The issue was whether the tenants held a joint tenancy or individual
tenancies. Held: The House of Lords ruled that there was no joint tenancy because the Four
Unities were not satisfied. The tenants had separate agreements, meaning they did not
acquire their interest at the same time or through the same document. As a result, they
were not joint tenants and had separate tenancies instead.
How to Become a Joint Tenant - For a joint tenancy to exist, the Four Unities must be
present:
1. Unity of Time – Each joint tenant must acquire their interest in the property at the same
time.
2. Unity of Title – Each joint tenant must acquire their interest through the same document
or transaction.
3. Unity of Interest – Each joint tenant must hold an identical interest in the property in
terms of nature, extent, and duration.
4. Unity of Possession – Each joint tenant must be equally entitled to the possession and
enjoyment of the whole property.
If any of these unities are missing, the co-ownership cannot be a joint tenancy and may
instead take effect as a tenancy in common in equity.
Right of Survivorship - Joint tenancy is characterised by the right of survivorship (ius
accrescendi), meaning that when one joint tenant dies, their share automatically passes to
the surviving joint tenants. The last surviving joint tenant ultimately becomes the sole
owner of the property. However, this right can be defeated by severance, which converts a
joint tenancy into a tenancy in common, allowing each co-owner to hold a distinct share
that can be passed through a will or intestacy.
