Joint tenants

Citation

(2001), "Joint tenants", Property Management, Vol. 19 No. 4. https://doi.org/10.1108/pm.2001.11319dab.028

Joint tenants

Joint tenants

Whenever a property is bought by more than two people, the document transferring ownership of the property to the buyers will always state whether the buyers hold the property as joint tenants or tenants-in-common. These are the only two ways which property owners can hold a property. There are a number of striking differences between the two methods, David Case, Property lawyer, at Cobbetts Solicitors, in Manchester, warns that property owners should be careful to ensure that they hold their property on the basis which best serves their needs.

In the case of a tenancy-in-common, it is assumed that each property owner is entitled to a specific share in the equity in the property. This is often accompanied with a declaration of trust, which will state each property owner's share in the equity. In the absence of a declaration of trust, it is assumed that the owners intended to have an equal share in the equity of the property. When one of the property owners dies, the interest in the property will pass in accordance with the provisions of their will or in the absence of a will, in accordance with the intestacy rules.

This is to be contrasted with the other method by which a property can be held, as joint tenants. With a joint tenancy, it is assumed that each party is entitled to the whole of the equity in the property. The last surviving property owner will be entitled to the whole of the equity in the property. This rule cannot be rebutted by a provision within a will or by virtue of the intestacy rules. A joint tenancy may be converted into a tenancy-in-common at any time by one of the joint tenants serving a notice to terminate the joint tenancy.

Parliament passed the Trusts of Land and Appointment of Trustees Act in 1996. This legislation provides that where there is a trust of land, persons entitled to the equity in the land are duty bound to consult each other on matters relating to the property.

In the case of Notting Hill Housing Trust v Brackley and another [2001] A11ER (D) 164 (Apr) the Court of Appeal decided that the legislation did not affect the rule that a joint tenant could unilaterally sever the joint tenancy. A joint tenant who gives notice to the other without having consulted the other joint tenants would therefore not be acting in breach of the 1996 Act. The case emphasised the point that a joint tenancy can be severed at any time by service upon notice to the other joint tenants.

Property owners should ensure that the basis upon which they hold their property is the way best suited for their needs, but in any event can take some comfort from the fact that if a property is held on a joint tenancy basis, the joint tenancy may be severed unilaterally so as to convert it into a tenancy-in-common.