Problem Question Solving Sample: Express Co-Ownership

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EXPRESS CO-OWNERSHIP

PROBLEM QUESTION SOLVING SAMPLE


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In 1998, Mr. Norton, who had three sons studying in London, decided to buy a flat for
them to live in. He paid the whole of the purchase price, and the flat was registered in
their names (Mark, Luke and John) as beneficial joint tenants. In 2000 Mark got
married, moved out, and sold his interest in the flat to John. In 2001 Luke wrote to
John offering to sell his interest in the flat to John. John accepted the offer in
principle but they had still not agreed a price when Luke was killed in a climbing
accident. Luke left his estate to Mark and John equally.

Dispute has now arisen between Mr. Norton, Mark and John as to (i) who owns the
flat, (ii) who is entitled to occupy the flat, and (iii) whether the flat should be sold.

Discuss.

TENTATIVE ANSWER:

On the given fact Mr. Norton (N) purchased the property in 1998 and the property was
registered in the names of (M), (L) and (J) and they were expressly declared as equitable
JTs. So according to Goodman V Gallant they are to be considered as Equitable JTs.

Now the mechanism to the co-ownership stands as follows M, L & J hold the property on
trust as trustees or (LJT) for themselves as (EJT).

In 2000 `M’ sold his interest to `J’ in this way severance has occurred by common law
method which is an act operating upon one’s own share.

Now the mechanism to the co-ownership is standing as follows:

M, L and J hold the property on trust as trustees for L & J as equitable JTs (2/3) and for J as
tenant in common in equity (1/3).

In 2001 `L’ wrote to J to sale his interest in the property. They agreed in principle but the
price was yet to be decided between themselves.

On the given fact common law way of severance will be applicable of which mutual
agreement and any course of dealings are the two ways.

Since the `L’ and `J’ did not agree the price of the share, So it can be said that mutual
agreement of severance will be less appropriate to share JT as no formal agreement was
made (Williams V Hensman). Alternatively any course of dealing would be the more
appropriate way upon which JT can be severed since it does not require any agreement but
negotiation (Burgess V Rawnsley).

Now we have to see when the severance has occurred as the answer to this question will
differ upon the timing of the severance.

M. Taiful Seraj
Barrister-at-Law (Lincoln’s Inn)
Advocate, Supreme Court of Bangladesh
[email protected]
EXPRESS CO-OWNERSHIP
PROBLEM QUESTION SOLVING SAMPLE
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If no severance occurs before the death of `L’ then right of survivorship will apply. The share
of the JT will pass on to the remaining JT.

Now the mechanism is that `M’ and `J’ hold the property on trust for `J’ absolutely.

If the severance occurs before the death of `L’ then the right of survivorship will not apply
and the testamentary disposition i.e. Will will get privilege. So the beneficial share of `L’ will
pass on to `M’ & `J’ equally.

Now the mechanism is that `M’ and `J’ hold the property on trust as trustees for `M’ (1/6)
and `J’ (1/3+1/6=1/2) as TC in equally and for `J’ (1/3) as equitable JT.

Application of TOLATA

`M’ and `J’ being the trustees of the trust of land own the flat according to S. 6 of TLATA
1996.

(M and J being the beneficial or equitable owners of the land are entitled to occupy the land
according S. 12 of TLATA 1996).

In order to decide whether the flat should be sold. The court upon receipt of the application
from the persons having interest in the land will decide (s. 14 of TOLATA 1996). In doing so
the court will consider some factors set out in s. 15 of TOLATA 1996.

On the fact the flat was purchased with the view of providing accommodation to the sons
while they study in London. So in short the flat was purchased for study purpose. So in order
to consider the purpose of the trust and the intention of creator of the trust the court will see
that the study purpose behind the trust of property is still continuing. As long as the purpose
behind the trust of land is continuing the court may not grant any order for sale.

So in the light of the above fact it can be submitted that the court may not grant any order for
sale.

M. Taiful Seraj
Barrister-at-Law (Lincoln’s Inn)
Advocate, Supreme Court of Bangladesh
[email protected]

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