TOPIC 3 CO-OWNERSHIP ONLINE ACTIVITIES ACTIVITY 3.1 TENANTS IN COMMON VS JOINT TENANCY What are some of the key differences between tenants in common and joint tenancy? If you were a solicitor advising two people on the purchase of a property, why might you advise on the creation of one over the other? What details might you need to know from the clients? FEEDBACK The purpose of this question is to get you to think about co-ownership types and in what circumstances one might be advised over the other. Remember that with tenants in common there is no right of survivorship, as there is with joint tenancies. Tenants in common - each co-owner owns a distinct undivided share of the freehold estate. They are said to be "seised" of a separate share of the estate, not in a physical sense, but in a conceptual sense. So does this means the first half of the property can be owned by someone, and the other half owned by another? The answer is no. The share by tenants in common can be equal or unequal, for example fi0-40, or 50-50 or 99-1. There can be more than 2 tenants in common. When one of the tenants in common dies, the share of that person goes in accordance with their estate (eg via their will etc.). Joint tenants - there is no separate or distinct share in the property in a conceptual ownership sense. The parties own the property together and their share cannot be differentiated. Each joint tenant has a right to the whole of the property. Joint tenants can only be created if the four unities are present: unity of title, time, possession and interest. When one joint tenant dies, the right of survivorship applies meaning the surviving joint tenants have their share automatically enlarged by the death of the tenant. In your tutorials for this topic, or via the discussion board, consider which arrangement might benefit a set of circumstances. Family situations may benefit from right of survivorship and joint tenancy, on the one hand, but on the other, blended families or new relationship may want to keep shares in the estate separate to ensure they can deal with their share through their will etc. What about businesses and partnerships arrangements when property is purchased for the operation of the business? What might the partners need to consider for taxation, valuation and loan purposes etc? ACTIVITY 3.2 PRACTICE PROBLEM QUESTION The following problem question is based on a previous exam question worth 10%. Bulimba from their great uncle George on 12 April 2019. The terms of the bequest provided that: 1. The property is to be owned by Duncan and Margaret as joint tenants; and 2. It is my [great uncle George's] wish that the property will be used for family gatherings at least once every year.
2 Both Margaret and Duncan moved into the property on 25 April 2019 although Duncan is Duncan and Margaret are cousins who inherited a