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Co-ownership of Trusts Flashcards

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1
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A
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2
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3
Q

What are the two forms of co-ownership?

A

Joint tenancy and tenancy in common

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4
Q

What is the rule of survivorship in joint tenancy?

A

On the death of a joint tenant, their interest passes automatically to the surviving joint tenant(s)

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5
Q

What is the difference between legal and beneficial ownership of land?

A

Legal ownership refers to the formal title, while beneficial ownership refers to the right to benefit from the property

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6
Q

What creates a trust of land under TLATA 1996?

A

A trust of land arises when:
* A landowner intentionally sets up a trust
* A person acquires an interest due to their conduct
* Land is acquired by multiple owners jointly

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7
Q

What is the definition of a trustee?

A

Trustees are the legal owners who have an administrative role and no entitlement to benefit from the property

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8
Q

What is the role of beneficiaries in a trust of land?

A

Beneficiaries are the equitable owners entitled to occupy the property or receive rent from it

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9
Q

What must happen when property held in trust is sold?

A

Trustees must execute the deed to transfer the legal title; beneficiaries receive the proceeds of sale

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10
Q

What does s 1(6) LPA 1925 state about the legal estate?

A

The legal estate must be held as a joint tenancy and cannot be severed

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11
Q

What is the maximum number of trustees permitted under the Trustee Act 1925?

A

Four trustees

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12
Q

What powers do trustees have under s 6(1) TLATA 1996?

A

Trustees have all the powers of an absolute owner, including selling or mortgaging trust land

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13
Q

What is the difference between a joint tenancy and a tenancy in common regarding ownership?

A

In a joint tenancy, ownership is undivided with the right of survivorship; in a tenancy in common, each owner has a distinct share that can pass to their estate

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14
Q

What are the four unities required for a joint tenancy in equity?

A

Unity of possession, unity of interest, unity of title, unity of time

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15
Q

What is an express declaration of trust?

A

A formal statement in the deed that specifies how property is to be held, which is conclusive

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16
Q

Fill in the blank: Severance only applies to _______ interests.

A

equitable

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17
Q

What is required for formal severance of a joint tenancy?

A

Giving written notice to the other co-owners expressing the intent to sever

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18
Q

True or False: A will can effect severance of a joint tenancy.

A

False

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19
Q

What happens when a tenant in common dies?

A

Their share in the property passes to their estate according to their will or intestacy rules

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20
Q

What is the significance of unequal contributions in determining tenancy type?

A

Unequal contributions may indicate a tenancy in common rather than a joint tenancy

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21
Q

What does ‘equity follows the law’ mean in the context of co-ownership?

A

It means that the equitable interest is presumed to mirror the legal estate, which is always held as a joint tenancy

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22
Q

What are words of severance?

A

Words in a transfer document indicating that co-owners are to have distinct shares

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23
Q

What is the effect of the absence of an express declaration or words of severance?

A

The equitable interest will be presumed to be held as joint tenants

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24
Q

What must be true for severance to be effective?

A

The notice must express a desire to end the joint tenancy immediately

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25
What is the purpose of the four unities test?
To determine whether the equitable interest is held as joint tenants or tenants in common
26
What is required for a notice of severance to be effective according to Harris v Goddard [1983]?
Must be received by all other joint tenants or deemed to have been received
27
What does s 196 LPA 1925 state regarding postal rules?
It is a method of proving service of notices
28
Under s 196(4), when is a notice deemed to be sufficiently served if sent by registered post?
If the letter is not returned undelivered
29
What was the outcome in Re 88 Berkeley Road [1971] regarding notice of severance?
Severance was effective as the letter had not been returned undelivered
30
According to s 196(3), how can a notice be sufficiently served via ordinary post?
If it is left at the last known place of abode or business in the UK
31
In Kinch v Bullard [1998], what was the court's finding regarding the severance of joint tenancy?
Severance was effective even though the letter was not received by the intended recipient
32
How do Martin and Jeff hold the Property in the example provided?
As joint tenants
33
What was Martin’s attempt regarding the Property and why was it unsuccessful?
He attempted to sever the joint tenancy but lacked the necessary immediacy
34
What are the methods of severance identified in Williams v Hensman (1861)?
* Acts operating on the joint tenant’s share (alienation) * Mutual agreement * Course of dealing
35
What is 'alienation' in the context of severance?
When a joint tenant disposes of their equitable interest by sale, gift, lease, or mortgage
36
What is required for severance by mutual agreement?
Joint tenants must act together, either expressly or by implication
37
What was the significance of the agreement in Burgess v Rawnsley [1975]?
It indicated a common intention to sever the joint tenancy
38
What constitutes severance by mutual conduct or course of dealing?
Joint tenants behave in a way that shows they regard themselves as owning distinct shares
39
What happens to a joint tenancy when one joint tenant declares bankruptcy?
It is severed, causing an involuntary assignment of the equitable interest
40
What is the effect of homicide on joint tenancy?
Survivorship principle does not apply, preventing the wrongdoer from benefiting
41
What is the starting presumption regarding the beneficial interests of unmarried couples in property acquisition?
Equity follows the law; they are joint tenants unless shown otherwise
42
What was the outcome in Stack v Dowden [2007] regarding the division of property?
Proceeds were divided as 65% to Ms Dowden and 35% to Mr Stack
43
What happens to joint tenancy in equity upon severance according to the number of joint tenants?
Two joint tenants become tenants in common in equal shares; three or more only the severing tenant becomes a tenant in common
44
In the example of Harry and Seema, how is the equitable interest held after severance?
As tenants in common in equal shares
45
What is a resulting trust?
Arises when a non-title holder contributes to the purchase price without intention of gift or loan
46
How is the legal estate held when Ken purchased the property for Barbara?
Ken holds the legal estate on trust for himself and Barbara
47
What creates a constructive trust according to Lord Bridge's comments?
Agreement + detrimental reliance or conduct + direct financial contribution
48
What is the two-stage test for the creation of a constructive trust as per Lord Bridge in Lloyds Bank plc v Rosset?
1. Agreement + detrimental reliance 2. Conduct + direct financial contribution ## Footnote This test helps determine when a constructive trust can be established based on the parties' intentions and actions.
49
What is required for an agreement to be relevant in creating a constructive trust?
Any ‘agreement, arrangement or understanding’ reached between the parties on how the property is to be shared beneficially ## Footnote This includes express discussions, regardless of their clarity or accuracy.
50
What must the non-legal owner demonstrate to assert a benefit from an agreement regarding property?
They must show that they have relied upon the agreement to their detriment or significantly altered their position ## Footnote Detrimental reliance examples include paying for improvements or household bills.
51
Fill in the blank: The detriment in a constructive trust scenario must be linked to the agreement and not related to any other motive, such as _______.
love and affection
52
What is an example of detrimental reliance in a constructive trust?
Paying for improvements to the house out of their own money ## Footnote Other examples include paying all household bills or working unpaid in the legal owner’s business.
53
What did Lord Bridge state about conduct in the absence of an agreement for a constructive trust?
The court looks at the conduct of the parties to infer a common intention to share the property beneficially ## Footnote Conduct must include direct financial contributions to the property.
54
What happens if one co-owner wants to sell the property but the other(s) want to retain it?
Disputes can be resolved using ss 14 and 15 of TLATA 1996
55
Which section of TLATA 1996 allows a trustee or interested person to apply for an order regarding property?
Section 14 TLATA 1996
56
What factors must the court consider under Section 15 TLATA 1996 when exercising its powers?
1. Intentions of the trust creators 2. Purposes for which the property is held 3. Welfare of any minor occupying the land 4. Interests of any secured creditor
57
True or False: The court can only consider the factors listed in Section 15 TLATA 1996 when making decisions.
False
58
What is the significance of Section 15(1)(a) in TLATA 1996?
It considers the intentions of the person or persons who created the trust ## Footnote This is relevant when the trust is created expressly or by will.
59
What is the presumption regarding the ownership of property when there is no express declaration of trust?
There is a presumption in favor of a joint tenancy if the four unities are present.
60
Fill in the blank: A joint tenancy can be severed formally or _______.
informally
61
What is the outcome of the case Lloyds Bank plc v Rosset regarding Mrs. Rosset's interest in the property?
Mrs. Rosset had no beneficial interest in the property.
62
What approach did Baroness Hale criticize in Stack v Dowden regarding constructive trusts?
She indicated that Lord Bridge’s test was too narrow.
63
What must be objectively deduced from the parties' conduct according to the Supreme Court?
The parties’ common intention to create a trust.
64
In the context of co-owned land, what does TLATA 1996 automatically create?
A trust of land when more than one person owns land.
65
What must happen for co-owned land to be sold according to TLATA 1996?
All trustees need to execute the deed transferring the legal estate.
66
What is the preferred type of trust for determining beneficial interests in a family home?
Constructive trusts are preferred by the courts.
67
What happens if a relationship has broken down irretrievably and there are no minor children?
The court is more likely to order a sale of the property.
68
Fill in the blank: The right of survivorship applies to _______ but not to tenancies in common.
joint tenancies
69
What is an example of a situation where the court may refuse a sale of property?
If the purpose of acquisition can still be fulfilled.
70
What is the legal estate held as according to TLATA 1996?
As a joint tenancy
71
What must be demonstrated to rebut the presumption of a joint tenancy?
Words of severance or business use.
72
What type of interest do a husband and wife hold as joint tenants?
Equitable interests ## Footnote Joint tenancy means that both parties have equal rights to the property.
73
What does the express declaration of trust signify in property ownership?
It is conclusive, regardless of unequal contributions to the purchase price ## Footnote This means that the legal arrangement supersedes any discrepancies in financial contributions.
74
How much percentage of the purchase price did the chemist, economist, and geographer each contribute?
20% ## Footnote The musician contributed the remaining 40%.
75
What happens to the economist's interest in the Property after mortgaging it?
It severs the joint tenancy, making it a tenancy in common for 25% ## Footnote The remaining joint tenants continue to hold the other 75% as joint tenants.
76
What effect does the death of the chemist have on her interest in the Property?
Her interest passes to the other joint tenants due to the rule of survivorship ## Footnote Her will's provision to leave her interest to her sister is ineffective.
77
In the case of the father gifting the Property, who are the original trustees?
The son, step-son, and daughter ## Footnote The step-daughter could not be a trustee due to being a minor at the time.
78
What happens when the son sells his interest in the Property?
It severs the joint tenancy in relation to his equitable interest ## Footnote The friend who buys the interest becomes a tenant in common.
79
What is the significance of the step-son's written notice to sever his joint tenancy?
It is a formal severance that complies with legal requirements ## Footnote This severance means he holds 25% as a tenant in common after his death.
80
Who becomes the sole trustee after the step-son's death?
The daughter ## Footnote She survives the step-son and thus takes over the role of trustee.
81
How are the equitable interests held after the step-son's death?
Wife = 25% as a tenant in common, Friend = 25% as a tenant in common, Daughter and step-daughter = 50% as joint tenants ## Footnote This distribution reflects the severance and the rules of survivorship.
82
True or False: The step-daughter automatically becomes a trustee when she turns 18.
False ## Footnote She does not automatically assume the role of trustee without formal appointment.

Land Law (5 decks)

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