Land Law - Fundamentals Flashcards

1
Q

Nature of Land

Other than the physical surface area of the land itself, ownership of land includes…

A
  1. The airspace above, “to such height as is necessary for the ordinary enjoyment of the land”.
  2. The ground below, including mines, minerals and substances.
  3. Buildings or part of building
  4. Fixtures and improvements
  5. Incorporeal Hereditaments such as easements, rents, rights and benefits.
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2
Q

Nature of Land

Other property capable of being owned are…

A
  • Items found on the land. These belong to the landowner, unless he has no knowledge of the item, in which case it belongs to the finder.
  • Dead animals.
  • Plants
  • Water. The landowner owns water running on or over the land. If it is on the boundary of the land, he owns it up to its centre.
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3
Q

Nature of Land

Fixtures vs Fittings

A

Fixtures are part of the land (“affixed”), whereas fittings (also known as chattels) are not.

Another category is “improvements”. Like fixtures, these are permanent additions, and therefore form part of the land.

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4
Q

Nature of Land

To determine whether an object is a fixture or a mere fitting, two tests are used:

A
  1. The degree of annexation
  • An item attached to the land is likely to be considered a fixture. (e.g. integrated appliances, kitchen units, sinks.
  • A free-standing item is likely to be considered a fitting. (e.g. TV, curtains, white goods)
  1. The purpose of annexation
  • Why has the object been fixed to the land?
  • If an object is not strongly attached to the land, it may still be considered a fixture if its purpose is to benefit the land.
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5
Q

Nature of Land: Fixtures and Fittings

The ____ of annexation is the initial test which is final if the item is established to be a ______ but only raises a rebuttable presumption if the item is a ____. That presumption can be rebutted by the key test that takes priority:

A
  • The degree of annexation is final if the item is established to be a fixture. It only raises a presumption of the item is a fitting.
  • The purpose of annexation is the key test that takes priority.
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6
Q

If the object was attached to improve the land, it is a …. If it is attached for the better enjoyment of the object it is a ….

A
  • Fixture
  • Fitting
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7
Q

Legal and Equitable Rights in Land

Rights in land can be divided into:

A

a) Estates
b) Interests

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8
Q

A right is legal if it:

2 conditions

A

a) appears in s.1(1) or s.1(2) Law of Property Act 1925.
b) meets the necessary formalities

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9
Q

If a right falls outside of s.1(1) and s.2 LPA 1925 but meets the necessary formalities, it is …

A

…an equitable interest.

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10
Q

Section 1(1) LPA sets out the two legal estates:

A

a) Freehold estate (“fee simple absolute in possession”)
b) Leasehold estate (“term of years absolute”)

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11
Q

IMPORTANT

Section 2 LPA sets out the five legal interests:

A

a) An easement, right or privilege.
b) A rentcharge
c) A legal mortgage
d) Any other charge not created by an instrument.
e) Rights of entry.

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12
Q

The freehold estate (fee simple absolute in possession) has four characteristics:

A
  1. Capable of being inherited.
  2. Can pass to any class of heir.
  3. Not determinable or conditional on any event.
  4. Immediate right to possession (not a future entitlement)

Re. possession vs future entitlement: “A for life and then to B.”A will have the freehold. B’s interest exists only in equity.

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13
Q

Nature of Land

A lease is an estate in land in which the tenant is granted…

Unlike the freehold reversion, a lease cannot…

Leaseholds

A

…exclusive possession of land for a fixed period.

…last forever.

The lease is carved out of a superior interest (i.e. a freehold or longer lease). It is therefore possible to have more than one estate in relation to the same piece of land.

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14
Q

Nature of Land

Exclusive possession means…

A

…the ability for the tenant to control the land and exclude everyone from the land, including the landlord.

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15
Q

Nature of Land

There are two types of leases:

A
  • Fixed term
  • Periodic.
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16
Q

Nature of Land

Fixed-term leases can be for any period, provided that…

A

…the maximum duration is certain.

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17
Q

Nature of Land

A periodic lease lasts for a fixed period. After that period…

A

…the lease extends itself automatically until either the landlord or tenant terminates the lease by notice.

Notice to quit would usually be for the period of the tenancy, i.e. one month’s notice is required for a one month tenancy. For a one year periodic, only 6-months’ notice is required.

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18
Q

What interests are capable of being legal?

5 interests

A
  1. Easements and profits
  2. Rentcharges
  3. Mortgages
  4. Interests arising by statute
  5. Rights of entry

The most important such interests are easements and mortgages.

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19
Q

Interests in land that are capable of being legal

An easement is a right of one landlowner to:

Easements and profits

A

Make use of another nearby piece of land for the benefit of his own land.

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20
Q

A profit is a right to…

A

…go on somebody else’s land and take from that land something which exists naturally.

E.g. a right to fish

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21
Q

Easements and profits are only capable of being legal if they are for a duration…

A

…equivalent to a freehold or leasehold estate.

.i.e. lasting forever (“perpetually”) or for a fixed duration

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22
Q

Easements or profits are not legal if…

A

…for an uncertain duration.

Legal easements either last forever (as a freehold) or for a fixed duration (as a leasehold)

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23
Q

A rentcharge is a right to…

A

…receive periodic payment charged on the land.

Only capable of being legal if they are to last forever or for a fixed duration.

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24
Q

A mortgage is an interest over property granted by the ____ to the ____ as security for….

A

Borrower to lender as security for a debt.

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25
Q

The borrower is the …. while the lender is the ….

A

Mortgagor, mortgagee.

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26
Q

A right of entry is the right for the landlord to…. or for the rentcharge owner to….

A

Landlord to forfeit the lease if the tenant breaks the terms of the lease; or the rentcharge owner to reclaim the land if the money owed is not paid.

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27
Q

Equitable interests in land

All property rights are capable of being equitable. What are the most significant ways in which equitable rights in property can be created?

5 ways

A
  1. By contract to create or transfer a legal estate or interest
  2. By trying to gain a legal estate or interest, but failing to comply with formalities.
  3. By grant of an estate or interest by a person who owns only an equitable right.
  4. By grant of an estate or interest which can only exist in equity.
  5. By trust (express or implied)
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28
Q

The defining characteristic of the trust is:

A

The legal title to the property is separated from the equitable interests.

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29
Q

Who holds the legal title to a trust property, and who enjoys the benefits?

A

The trustee; the beneficiary.

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30
Q

Adil is the freehold owner of a property. He places the property in trust for his five-year-old daughter Maryam. Adil is the …. Maryam is the ….

A

Trustee; beneficiary.

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31
Q

An express trust can be created in two ways:

A

(a) self-declaration
(b) declaration + transfer.

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32
Q

There are two forms of implied trusts:

A
  • Resulting
  • Constructive
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33
Q

When does a resulting trust arise?

A

When a person who is not the legal owner contributes directly to the purchsae price of the property.

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34
Q

Resulting Trusts

When a person who is not the legal owner contributes directly to the purchase price of the property, how is that person’s interest quantified?

A

In proportion to their contribution.

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35
Q

Dolly is the freehold owner of the property. Prior to acquisition, Dolly’s mum Enid paid the 10 per cent deposit. Who holds the legal estate? Who holds the equitable interest and to what proportion? What two roles does Dolly have?

A

Dolly holds the legal estate.
Dolly holds 90% of the equitable interest. Enid holds 10% of the equitable interest.
Dolly is both trustee and beneficiary.

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36
Q

When does a constructive trust arise?

A

When a person who is not the legal owner contributes to the property other than by direct financial contribution at the time of purchase

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37
Q

Give two examples of a constructive trust arising.

A
  • When a non-owner contributes to the mortgage payments.
  • Substantial improvements to the property.
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38
Q

How is an interest arising out of a constructive trust quantified?

A

By taking into account the parties’ conduct, any financial contributions, any non-financial contributions.

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39
Q

Which type of trust is more appropriate in relation to trusts of the home?

A

The constructive trust.

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40
Q

Amanda is the freehold owner of the property. Five years ago, her partner Dan moved into the property and has since paid half the mortgage payments. Does Dan have an interest in the property?

A

Yes. His conduct is sufficient to infer a common intention that he holds a beneficial interest under a constructive trust.

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41
Q

Name 3 interests that are equitable by nature.

They are equitable by nature as they do not appear in s.1(1) or s.(2) LPA 1925

A
  1. A beneficial interest under a trust.
  2. A restrictive covenant.
  3. An estate contract.

Between exchange of contracts and completion, an estate contract arises in equity for the buyer. It includes contracts for: the sale of a legal estate; an option; a right of pre-emption; the grant of a lease; the grant of an easement/profit.

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42
Q

What are “home rights”? What two conditions are required for the right to arise?

A

Statutory right of occupation of the matrimonial home for a non-owning spouse/civil partner.

Two conditions:

(a) The parties are legally married or civil partners (and not divorced)
(b) the home is, has been or is intended to be the matrimonial home.

Home rights do not create an interest in land. They also exist independently of any beneficial interest under trust.

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43
Q

Harriet is the freehold owner of a property. Her wife Nicole made significant contributions to the purchase price. What are Nicole’s interests?

A
  1. Beneficial interest under resulting trust.
  2. Home right of occupation.
44
Q

Licence

A license is a ….. right and does not create… Licences are binding only between…. and would not bind ….

A

Personal right; does not create an interest in land; binding only between the parties and would not bind a successor in title.

Licensor = person granting the licence.
Licensee = person benefiting from the licence.

45
Q

Formalities: Legal interests in land

What is required to create or transfer a legal estate or interest in land?

A

A deed.

46
Q

Formalities: Legal interests in land

The requirements for a deed are set out in s.1 Law of Property (Miscellaneous Provisions) Act 1989. They provide that the deed must be:

5 conditions

A
  • in writing
  • clear on its face that it is a deed
  • signed
  • witnessed (by one witness)
  • delivered.
47
Q

Formalities: Legal interests in land

What legal interest requires no formalities?

A

Short-term leases (parol lease) of three years or less.

Can be created orally.

Usually the creation of a legal easement requires a deed, but certain legal easements do not (see later)

48
Q

Formalities: Legal interests in land

Section 54(2) LPA 1925 sets out the criteria for short-term leases to be legal:

A

(a) Lease is for three years or less.
(b) Gives the tenant immediate right to possess and enjoy the land.
(c) Tenant pays market rent.
(d) Landlord must not charge a fine or premium (a one-off capital sum)

49
Q

Formalities: Equitable interests in land

According to s.2 LPMPA 1989, to be valid, contracts must:

A
  • Be in writing.
  • Incorporate all expressly agreed terms in one document (or in each document where contracts are exchanged)
  • Signed by/on behalf of all parties.

Any variation to a contract must also comply with the above requirements.

50
Q

Formalities: Equitable interests in land

Give four examples where the contract needs to comply with the requirements of s.2 LPMPA 1989 in order to be valid.

Once contracts are exchanged, the buyer has….

A

a) Sale of freehold or lease.
b) Grant of lease.
c) Creation of an option
d) Creation of an easement

Once contracts are exchanged, the buyer has an estate contract (an equitable interest in the land).

51
Q

Formalities: Equitable interests in land

If a restrictive covenant is created by deed, would it be legal?

In order to take effect, this type of equitable right must be created by…

A

No. It is an equitable right by nature and is not capable of being legal.

…signed written document.

As it is not listed in s.1(1) or s.2 LPA 1925.

52
Q

Formalities: Equitable interests in land

For equity to recognise contracts that create/transfer legal estates or interests, what are the two requirements?

A
  1. The contract complies with s.2 LPMPA 1989.
  2. The remedy of specific performance is available.
53
Q

Formalities: Equitable interests in land

Specific performance is an equitable remedy, therefore the courts will only grant if if the person seeking it has… This is based on the equitable maxim…

A

…behaved justly and fairly.
… “He who seeks equity must do so with clean hands”

54
Q

Formalities: Equitable interests in land

Where parties fail to use a valid deed, the court may….

Trying to grant a legal estate/interest but failing to use a deed

A

…find a contract so that the transaction does not fail entirely.

For this to occur, there still needs to be:

  1. A contract complying with s.2 LPMPA (inferred by the court from the invalid deed)
  2. The remedy of specific performance is available (clean hands).
55
Q

Which three equitable interests are created by signed written document alone (s.53(1) LPA 1925)?

A
  1. Grant of estates or interests that can only exist in equity (e.g. Restrictive covenants)
  2. Grant of estates or interests by a person who only owns an equitable right.
  3. Express trusts

  • Any interest in land must be by signed written document. However, some are subject to further provision of s.2 LMPA (sale of freehold/leasehold; grant of lease; creation of easement; creation of option).
  • Express trusts need to be manifested and proved by some writing signed by some person who is able to declare such trust or by his will.
56
Q

Formalities: Equitable interests in land

What are the formalities required of implied trusts?

A

None. They arise as a result of the conduct of parties.

57
Q

Co-ownership and Trusts

A trust of land will arise in the following three situations:

A

i. Express trust
ii. Implied trust.
iii. Co-ownership.

58
Q

Co-ownership and Trusts

The legal estate must be held as a… and cannot be…

A

…joint tenancy.
…severed

The legal estate is incapable of subsisting or of being created in an undivided share.

59
Q

Co-ownership and Trusts

Who can be a trustee of land?

A

A person over the age of 18.

60
Q

Co-ownership and Trusts

If land is conveyed to a minor and an adult, the land is…

A

…vested in the adult in trust for the minor.

TOLATA 1996, Sch.1, para 1(2)

61
Q

Co-ownership and Trusts

What are the maximum and minimum number of trustees permitted?

A

Maximum of four. No minimum.

62
Q

Co-ownership and Trusts

What happens if land is conveyed to more than four people?

A

The first four will be the trustees.

63
Q

Co-ownership and Trusts

Trustees have all the powers of… including

Three powers

A

…an absolute owner, including powers to:
- sell the land
- mortgage the land
- purchase land for the occupation of a beneficiary.

64
Q

Co-ownership and Trusts

Section 11 TOLATA: The trustees’ powers are limited by…

A

…their duty to consult the beneficiaries.

65
Q

Co-ownership and Trusts

The trustees’ duty to consult the beneficiares applies only to…

A

…beneficiaries of full age who have an interest in possession

An interest in possession = entitled to immediate interest in the land.

66
Q

Co-ownership and Trusts

Trustees must comply with…

A

…the wishes of the beneficiaries, or in the case of a dispute, the majority of them.

This duty is only in so far as it is practicable.

67
Q

Two forms of co-ownership

The legal estate is always held as a joint tenancy. However, the beneficiaries can hold their equitable interests either as…

A

Joint tenants or tenants in common.

68
Q

Co-ownership (Legal owner + Legal owner)

On the death of a joint tenant, their interest passes automatically and immediately to…

Joint tenancy

A

…the surviving joint tenant(s).

Right of survivorship

69
Q

Co-ownership (Legal owner + Legal owner)

Joint tenants are jointly entitled to…. of the property and the term ‘ …’ is never used in the context of a joint tenancy in equity.

A

….the whole of the property and the term ‘shares’ is never used in the context of a joint tenancy in equity.

70
Q

Co-ownership (Legal owner + Legal owner)

It is possible for joint tenants to ____ a joint tenancy in equity and to thereby….

A

sever; thereby convert the beneficial interests into a tenancy in common.

71
Q

Co-ownership (Legal owner + Legal owner)

When a tenant in common dies, their share in the property passes to…

Tenancy in common

A

…their estate.

In accordance to their will or intestacy.

72
Q

Co-ownership (Legal owner + Legal owner)

What is the first test to determine whether the co-owned property is held in equity as joint tenancy or tenancy in common? What does it consist of?

A

The four unities test. It consists of:
(1) Unity of possession
(2) Unity of interest
(3) Unity of title
(4) Unity of time

73
Q

Co-ownership (Legal owner + Legal owner)

Which of the four unities are present in both joint tenancy and tenancy in common? How is it defined?

A

Unity of possession.
Each co-owner has the right to possession of all of the land.

74
Q

All four unities are required for a ____ whereas only unity of possession is required for a ____

A

Joint tenancy; tenancy in common.

75
Q

Define unity of interest, title and time.

A

Unity of interest - Each co-owner has identical rights over the land.

Unity of title - Each acquired their interest from the same document.

Unity of time - Each received their interest at the same time.

76
Q

Where all four unities are present, an ________ is conclusive evidence of the way in which the property is to be held.

A

Express declaration of trust.

E.g. “Conveyed to them as express beneficial joint tenants”

77
Q

Co-ownership (Legal owner + Legal owner)

Where all four unities are present and there is no declaration of trust, there may still be a tenancy in common if…

Joint tenancy or tenancy in common: third test

A

There are words of severance.

“To A and B in equal shares”
“To be divided equally”
“Between A and B”
Half to A and Half to B.

These indicate that it was possible in the first place to hold in unequal shares. = Tenancy in common.

78
Q

Co-ownership (Legal owner + Legal owner)

Where the four unities are present, there is no declaration of trust and no severance, the fourth test is:

Joint tenancy or tenancy in common: fourth test

A

Whether equity presumes a tenancy in common.

79
Q

Co-ownership (Legal owner + Legal owner)

There is a presumption that co-owners are ____ based on the maxim that….

This presumption can be rebutted in three situations:

A

Joint tenants in equity, based upon the maxim that equity follows the law.

Three situations where this is rebutted:

  1. Property acquired for business use.
  2. Unequal contributions to purchase price
  3. Post-acquisition money management

Unequal contributions to purchase price may not rebut the presumption in relation to a trust of the home.
Post-acquisition money management is where one side pays far greater share of financing the home after acquiring the property.

80
Q

Severing a joint tenancy

Does severance apply to joint tenancy in law, equity or both?

Severance of a joint tenancy in equity

A

In equity only.

81
Q

Severing a joint tenancy

Severance can be effected in two ways:

A
  1. Formal severance by written notice.
  2. Informal severance.

Note: severance must be inter vivos. Cannot be by will.

82
Q

Severing a joint tenancy

Does written notice to sever require consent from other joint tenants?

Formal severance

A

No. It is unilateral.

83
Q

Severing a joint tenancy

For formal severance to be effective, the notice must:

2 conditions

A

(a) Use appropriate wording, expressing a desire to end the joint tenancy immediately
(b) Be received by all other joint tenants or be deemed to have been received.

Expressing a future intent or desire is insufficient.
Notice can be handed or posted to the intended recipient

84
Q

If the notice is sent by registered post or recorded letter, it is deemed sufficiently served if…

Formal severance and the postal rules

A

…the letter is not returned undelivered.

85
Q

Severance of joint tenancy

If the notice is delivered by ordinary post, notice is served if…

Formal severance and the postal rules

A

…left at the last known place of abode or business in the UK of the person served.

86
Q

What are the three main methods of informal severance?

A
  1. Acts operating on the joint tenant’s share.
  2. Mutual agreement
  3. Course of dealing
87
Q

Joint tenancy: informal severance

Acts operating on joint tenant’s share occurs when the joint tenant…

A

…disposes of their equitable interest by sale, gift, lease or mortgage.

The disposition relates to an equitable interest, therefore must be in writing and signed (s.53 LPA requirements).

88
Q

Apart from disposition, a contract to dispose would sever the joint tenancy in equity, provided it:

A

(1) complies with s.2 LPMPA (2) is capable of specific performance.

89
Q

Severance by mutual agreement must be supported by…

A

…some valuable consideration.

Oral agreement suffices; agreement doesn’t need to be carried through to performance.

90
Q

Joint tenants in equity agree that tenant 1 would purchase tenant 2’s interest for $750. Tenant 2 later changed her mind, requesting a payment of $1000 instead. No further action was taken, and Tenant 1 died a year later. Was there severance?

A

Yes. There was an agreement supported by an intention to give valuable consideration, which provided an indication of a common intention to sever.

91
Q

Severance by mutual conduct (course of dealing) requires…

A

that the joint tenants assume they are tenants in common over a significant period of time, through their conduct.

92
Q

There are two cases in which severance can be involuntarily effected:

A
  1. Severance by bankruptcy.
  2. Unlawful killing of joint tenant.

Bankruptcy causes an assignment to the trustee in bankruptcy.

93
Q

Where a joint tenancy in equity is severed, it becomes a tenancy in common. Where there are two tenants, they both become tenants in equal shares. Where there are three or more tenants….

A

…only the co-owner who severs becomes a tenant in common. The others continue to hold a joint tenancy for the remaining interest.

94
Q

Harry and Seema purchase a property. Seema contributed 70% of the purchase price, and Harry the remaining 30%. Harry sells his interest to his brother Joseph. Seema subsequently dies, leaving all her interest to her cousin Amber. How is the property held?

A

Legal estate - joint tenancy. On Seema’s death, Harry became the sole trustee of the legal estate.

Equitable interests - Joseph and Amber therefore hold 50% interest each. Initial contributions are irrelevant when severance occurs to create a tenancy in common.

When severance occurs, the individual co-owners’ contributions to the purchase price is irrelevant.

95
Q

Implied Trusts of land: Legal owner + Non-legal owner

A resulting trust arises when:

3 conditions

A
  • A person who does not hold legal title makes a contribution to the purchase price.
  • There is no evidence that the contribution was intended as a gift or loan.
  • The contribution is of all or part of the purchase price at the date of acquisition.
96
Q

Implied Trusts of land: Legal owner + Non-legal owner

A constructive trust occurs when there is:

Two situations

A

An agreement + Detrimental reliance.
An agreement + direct financial contribution

96
Q

Post-acquisition money management

Common intention of a tenancy in common is deduced objectively by the parties’ conduct. Where it is not possible to ascertain this by evidence or inference, their shares are to be:

What factors will the court consider?

A

What the court considers fair, having regard to the whole course of dealing.

Financial contributions are relevant, but there are many other factors which enable the court to decide what shares were intended or fair.

97
Q

Post-acquisition money management

Where a family home is bought in the joint names of an unmarried couple, the presumption of joint tenancy in equity can be rebutted where:

A

A party shows they had a different common intention at the time of acquisition or their common intention later changed.

Unequal contributions would not usually in itself be enough to show a tenancy in common. But, their intentions may change over time through their conduct.

98
Q

Implied Trusts of land: Legal owner + Non-legal owner

The non-legal owner must show that they…

Provide three examples of detrimental reliance.

Constructive Trust: Agreement + Detrimental Reliance

A

…relied upon the agreement to their detriment.

Examples:
- Paying for improvements
- Paying household bills so that the legal owner can pay the mortgage.
- Working unpaid in the legal owner’s business.

The detriment must be linked to the agreement.
Agreement can be at the time of purchase or subsequent to it.

99
Q

Implied Trusts of land: Legal owner + Non-legal owner

George is the legal owner of his property. At the time of purchase, he told his girlfriend the house was their “forever home”. Upon the purchase, the girlfriend gave up her rented flat and paid half the mortgage payments for the property.

What would you advise the girlfriend?

A

She has a beneficial interest arising under a constructive truts. There was an agreement that Nicole detrimentally relied upon.

100
Q

Q

Implied Trusts of land: Legal owner + Non-legal owner

Where there is no evidence of agreement, the courts look at the conduct of the parties.

In ascertaining whether there was a common intention constructive trust, the court considers:

In ascertaining the extent of the respective interests, the court considers:

Constructive Trusts: Conduct + Direct Financial Contribution

A
  1. To ascertain common intention: Direct financial contributions (Payment of purchase price and mortage payments)
  2. To ascertain extent of respective interests: Financial contributions and non-financial contributions.
101
Q

Co-ownership: Settling Disputes

Applications under s.14 TOLATA are likely to fall under the following 4 categories:

A
  • Disputes about size of co-ownership interests;
  • Disputes regarding occupation of trust land;
  • Authorisation of transactions without the consent of all trustees;
  • Disputes about whether co-owned land should be sold.
102
Q

Under s.14 TOLATA, the court has the discretion to make an order about:

Two bullets

A

(a) Exercise of trustees’ functions
(b) Nature or extent of a person’s interest in property.

103
Q

Under s.15, the court must take into account the following five factors in exercising its s.14 powers:

A

Section 15(1):

(a) Intentions of person(s) who created the trust.
(b) Purposes of property being held in trust.
(c) Welfare of minors who might reasonably be expected to occupy any land;
(d) Interests of secured creditors of any beneficiaries.

s.15(3) Circumstances and wishes of beneficiaries of full age and entitled to an interest in possession.

104
Q

Where the interests of a child are weighed against the interests of a secured creditor, whose interest takes precedence in relation to trust property disputes.

A

The secured creditor (e.g. mortgagee).

105
Q

A, B, C and D purchase a property while studying, expressly declared as tenancy in common in equal shares.

B sells her property to A. D completed his studies and wants to sell the property. A and C want to remain in the property.

(1) How is the property held?
(2) On an application from Duncan, what factors will be taken into account, and would his application succeed?

A
  1. Legal estate always held as joint tenants. Equitable interests: 1/2 Archie, 1/4 Cherry, 1/4 Duncan, tenancy in common.
  2. Factors taken into account: Purposes for which property is held; the majority of beneficiaries’ interests/wishes = Cherry and Blake want to continue on.

Court will likely refuse the sale.