Property Law Lecture 6: Co-ownership and Trusts of Land

Flashcards covering key vocabulary and concepts related to co-ownership, joint tenancy, tenancy in common, resulting trusts, constructive trusts, and relevant legislation (LPA 1925, ToLATA 1996).

Co-ownership

Arises when two or more people are simultaneously entitled in possession to an interest in the same land, whether freehold or leasehold.

Statutory Trust

Whenever land is conveyed into the name of more than one person, a statutory trust arises under LPA 1925, ss34-36.

Joint Tenancy

Co-owners collectively own the whole and do not have individual interests; includes the right of survivorship.

Tenancy in Common

Each co-owner has a separate and defined share, but the property has not been physically divided (undivided shares).

Law of Property Act 1925

Significant act relating to legal estates and equitable interests in co-ownership.

Trusts of Land and Appointment of Trustees Act 1996 (ToLATA)

Governs trusts of land, including co-ownership, and provides rights and obligations in relation to the land.

Express Trust

Formal express agreement setting out the rights and obligations in relation to the land, including an express declaration of trust (s. 53(1)(b) LPA 1925: evidenced by signed writing).

Resulting Trust

Arises when a person contributes directly towards the purchase of a home but does not have his name on the legal title ('purchase in the name of another').

Constructive Trust

Arises when a person has contributed, directly or indirectly, to the purchase and/or establishment of a home but does not have their name on the legal title, and the court recognizes a common intention.

Common Intention Constructive Trust

Requires a common intention by the parties that the co-ownership should be held in equity differently from the way it is held in law, along with detrimental reliance by the party claiming a share.

Lloyds Bank v Rossett (1991)

Case outlining two ways of establishing common intention: express words amounting to an agreement or shared understanding + detrimental reliance or a direct or indirect contribution to the purchase price (narrow definition, no longer applicable).

Stack v Dowden (2007)

Case that broadened the factors to consider beyond financial contribution, including advice or discussions at the time of transfer, reasons for acquiring the home in joint names, the purpose for which the home was acquired, the nature of the parties' relationship, etc.

Jones v Kernott

Deals with common intention and quantification of shares in equitable co-ownership.

Inferred Intention

Intention understood from conduct and words, a matter of interpretation of the dealings between the parties.

Imputed Intention

When the dealings between the parties do not reveal any intention, the court concludes what they would have intended.