Land Law

Suggested Answer to Exercise 11.4 (Part 2)

Planning Your Answer

Issues

• What interests do the parties have in the land?
• What are the consequences of Denise selling her interest to Amanda?
• Can Florence and Michael insist upon the house being divided?
• What are the possible implications of Ben’s financial difficulties?

Rules

1. Principles of co-ownership
   1. All co-owned land is held on trust – dividing legal and equitable ownership
   2. The relationship between the co-owners is regulated by TOLATA 1996.
2. Interests in the land
   1. Legal
      • Must be joint tenants (LPA 1925, ss.1(6), 34(2));
      • Maximum of four legal joint tenants (LPA 1925, s.34(2)).
   2. Equitable
      • The four unities;
      • Words of severance in the deed of transfer;
      • Presumption of a tenancy in common.
      • Severance
      See Land Law, Sections 10.4 and 10.5.
3. Powers and duties of trustees: especially TOLATA 1996, ss 11-13
   See Land Law, Section 11.4.
4. Resolution of disputes by the court
   1. Applications: TOLATA 1996, s 14
   2. Relevant factors: TOLATA 1996, s 15 and Insolvency Act 1986, s 335A
      See Land Law, Section 11.5

Answer Plan

1. Introduction
   1. All co-owned land is held on trust.
   2. The relationship between the co-owners is regulated by TOLATA 1996
2. Ownership of the land
   1. Legal
   2. Beneficial
3. Sale by Denis of her interest to Amanda
   1. Consequences at law
   2. Consequences in equity
4. Division of the house into two maisonettes
   1. The powers of the trustees to control occupation TOLATA 1996, ss12-13;
   2. Application to the court: TOLATA 1996, s 14;
   3. The s 15 factors.
5. Ben’s financial difficulties
   1. Section 15(1)(d)
   2. Bankruptcy:
      1. Severance;
      2. Section 15(4) of TOLATA and section 335A of the Insolvency Act 1986.
6. Make sure that you have stated your conclusions and that these conclusions follow logically from your reasoning.

Before you go to the next page, prepare a more detailed answer plan, including references to relevant cases and statutes.