Tenancy in Common: la Comproprietà nel Diritto Inglese

Real estate co-ownership (2) – Tenancy in common

Transcript:

In the last Peter’s Pill, we saw that when real estate is purchased by two or more persons in England, the legal title can only be held as a joint tenancy which is indivisible, without shares, and in which the right of survivorship[1] applies. However equity recognises a tenancy in common in the beneficial interest.

Equity in English law is a specialised body of legal principles and remedies developed to mitigate[2] the rigidity of the common law. It focuses on fairness[3] and conscience[4], offering discretionary remedies.

Tenancy in common, which equity recognises, is a form of co-ownership in which two or more people hold the beneficial interest in separate shares. These shares may be equal (50/50) or unequal (70/30), depending on the parties’ agreement and financial contributions.

Remember, the legal title is not held as a tenancy in common. Where land is co-owned, the legal estate is held jointly[5] by the legal owners, while the separate shares exist only in equity. For this reason, tenancy in common is best understood[6] as an equitable arrangement[7] concerning the beneficial ownership[8] of the property.

The main practical effect is that there is no right of survivorship in tenancy in common. If one tenant in common dies, that person’s share does not pass automatically to the other co-owner or co-owners. Instead, it passes under the deceased’s will[9] or, if there is no will, under the rules of intestacy[10].

A declaration of trust is the favoured instrument to record this arrangement clearly. This document can state the parties’ beneficial shares and may also regulate mortgage payments[11], household expenses[12], sale of the property, or a future buy-out[13].

Tenancy in common is therefore chosen where co-owners want flexibility, especially unmarried couples, friends, relatives[14], or business partners contributing in different proportions and is most commonly established by a declaration of trust.

Thank you very much and see you next time for more Peter’s Pills to improve your Legal English!

Note

[1] Right of survivorship – diritto di accrescimento

[2] Mitigate – attenuare

[3] Fairness – equità; quello che è equo e giusto

[4] Conscience – coscienza

[5] Jointly – congiuntamente

[6] Understood – intesa

[7] Equitable arrangement – accordo di natura equitativa

[8] Beneficial ownership – titolarità beneficiaria

[9] Will – testamento

[10] Rules of intestacy – norme sulla successione legittima

[11] Mortgage payments – pagamento del mutuo

[12] Household expenses – spese domestiche

[13] Buy-out – acquisto della quota

[14] Relatives – parenti

Read more about tenancy in common and the declaration of trust here: “Declaration of Trust for Property“.

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Legal English – Sommario delle Lezioni

• Legal English – Peter’s Pills – Lesson 119 – Real estate co-ownership (2) – Tenancy in common

• Legal English – Peter’s Pills – Lesson 118 – Real estate co-ownership (1) – Joint tenancy

• Legal English – Peter’s Pills – Lesson 117 – Translation Challenges: Real Estate

• Legal English – Peter’s Pills – Lesson 116 – Company share capital Vs Equity share capital

• Legal English – Peter’s Pills – Lesson 115 – Key actors in real estate transactions

• Legal English – Peter’s Pills – Lesson 114 – Promoters

• Legal English – Peter’s Pills – Lesson 113 – Payment statuses of shares

• Legal English – Peter’s Pills – Lesson 112 – Green Papers vs White Papers

• Legal English – Peter’s Pills – Lesson 111 – Consistent and Inconsistent

• Legal English – Peter’s Pills – Lesson 110 – Share Capital Terms

• Legal English – Peter’s Pills – Lesson 109 – Colour Idioms

• Legal English – Peter’s Pills – Lesson 108 – Agreement vs Covenant

• Legal English – Peter’s Pills – Lesson 107 – Fixtures and Chattels

• Legal English – Peter’s Pills – Lesson 106 – Material Breach

• Legal English – Peter’s Pills – Lesson 105 – Entity Shielding

• Legal English – Peter’s Pills – Lesson 104 – Protectors and Enforcers

• Legal English – Peter’s Pills – Lesson 103 – To Sue or Not To Sue

• Legal English – Peter’s Pills – Lesson 102 – Squeeze-out and Freeze-out vs Drag-along and Tag-along

• Legal English – Peter’s Pills – Lesson 101 – Liquidation vs Administration

• Legal English – Peter’s Pills – Lesson 100 – Endorse

• Legal English – Peter’s Pills – Lesson 99 – Legal Ownership, Equitable Ownership, and Beneficial Ownership Compared

• Legal English – Peter’s Pills – Lesson 98 – Condition Precedent vs Condition Subsequent

• Legal English – Peter’s Pills – Lesson 97 – Board Observers

• Legal English – Peter’s Pills – Lesson 96 – Vested interest vs Contingent interest

• Legal English – Peter’s Pills – Lesson 95 – Collegiality

• Legal English – Peter’s Pills – Lesson 94 – OE = A – L

• Legal English – Peter’s Pills – Lesson 93 – False Friends – Part Two

• Legal English – Peter’s Pills – Lesson 92 – False Friends

• Legal English – Peter’s Pills – Lesson 91 – Fee Estimate Headings – Part 5 – Unregistered deeds and formalities

• Legal English – Peter’s Pills – Lesson 90 – Fee Estimate Headings – Part 4 – Other

• Legal English – Peter’s Pills – Lesson 89 – Fee Estimate Headings – Part 3 – Mortis Causa

• Legal English – Peter’s Pills – Lesson 88 – Fee Estimate Headings – Part 2 – Corporate

• Legal English – Peter’s Pills – Lesson 87 – Fee Estimate Headings – Part 1 – Real Estate Deeds

• Legal English – Peter’s Pills – Lesson 86 – Traded, listed and quoted

• Legal English – Peter’s Pills – Lesson 85 – Sole Traders and Partnerships

• Legal English – Peter’s Pills – Lesson 84 – General English vs Legal English 2

• Legal English – Peter’s Pills – Lesson 83 – General English vs Legal English 1

• Legal English – Peter’s Pills – Lesson 82 – Next of kin

• Legal English – Peter’s Pills – Lesson 81 – File, Register and Enrol

• Legal English – Peter’s Pills – Lesson 80 – Securities

• Legal English – Peter’s Pills – Lesson 79 – Legatee vs Devisee

• Legal English – Peter’s Pills – Lesson 78 – Adverse possession

• Legal English – Peter’s Pills – Lesson 77 – Probate

• Legal English – Peter’s Pills – Lesson 76 – File a deed vs Record a deed

• Legal English – Peter’s Pills – Lesson 75 – Allotting shares, Issuing shares and Placing shares

• Legal English – Peter’s Pills – Lesson 74 – Personal Representatives

• Legal English – Peter’s Pills – Lesson 73 – Essential Elements of a Contract

• Legal English – Peter’s Pills – Lesson 72 – Types of cases: Cornerstone and Milestone cases

• Legal English – Peter’s Pills – Lesson 71 – Types of cases: Landmark cases

• Legal English – Peter’s Pills – Lesson 70 – Specific performance

• Legal English – Peter’s Pills – Lesson 69 – Wills

• Legal English – Peter’s Pills – Lesson 68 – Notice

• Legal English – Peter’s Pills – Lesson 67 – Bonds vs Debentures

• Legal English – Peter’s Pills – Lesson 66 – Person Persons People

• Legal English – Peter’s Pills – Lesson 65 – Financial Reporting Words

• Legal English – Peter’s Pills – Lesson 64 – Representations and Warranties

• Legal English – Peter’s Pills – Lesson 63 – Machine translations

• Legal English – Peter’s Pills – Lesson 62 – Legal Timelines

• Legal English – Peter’s Pills – Lesson 61 – Liens

• Legal English – Peter’s Pills – Lesson 60 – Test your Legal English

• Legal English – Peter’s Pills – Lesson 59 – Appurtenent vs In gross

• Legal English – Peter’s Pills – Lesson 58 – Building societies and Banks

• Legal English – Peter’s Pills – Lesson 57 – Valid, void and voidable contracts

• Legal English – Peter’s Pills – Lesson 56 – Rescission

• Legal English – Peter’s Pills – Lesson 55 – Golden expressions

• Legal English – Peter’s Pills – Lesson 54 – Pre-emption right vs Right of first refusal

• Legal English – Peter’s Pills – Lesson 53 – What do we mean by “agent” of a company?

• Legal English – Peter’s Pills – Lesson 52 – Voting at a meeting

• Legal English – Peter’s Pills – Lesson 51 – Contracts vs Deeds

• Legal English – Peter’s Pills – Lesson 50 – Executive and Non-Executive Directors

• Legal English – Peter’s Pills – Lesson 49 – Transfer of shares vs transmission of shares

• Legal English – Peter’s Pills – Lesson 48 – They, them, their for singular nouns

• Legal English – Peter’s Pills – Lesson 47 – Jointly and severally

• Legal English – Peter’s Pills – Lesson 46 – Invoice words

• Legal English – Peter’s Pills – Lesson 45 – Quotation

• Legal English – Peter’s Pills – Lesson 44 – Gazumping and Gazundering

• Legal English – Peter’s Pills – Lesson 43 – English words that the English do not understand

• Legal English – Peter’s Pills – Lesson 42 – Easement vs Profit à prendre

• Legal English – Peter’s Pills – Lesson 41 – er, -or and -ee names

• Legal English – Peter’s Pills – Lesson 40 – The Objects Clause

• Legal English – Peter’s Pills – Lesson 39 – When is Latin hot, and when is it not?

• Legal English – Peter’s Pills – Lesson 38 – Default

• Legal English – Peter’s Pills – Lesson 37 – Company Agent

• Legal English – Peter’s Pills – Lesson 36 – Injunction (false freind)

• Legal English – Peter’s Pills – Lesson 35 – Mortgage

• Legal English – Peter’s Pills – Lesson 34 – Freehold, Leasehold and Commonhold estates

• Legal English – Peter’s Pills – Lesson 33 – Transferor, Transferee and Transmittee

• Legal English – Peter’s Pills – Lesson 32 – Tax evasion, tax mitigation and tax avoidance

• Legal English – Peter’s Pills – Lesson 31 – Numbers

• Legal English – Peter’s Pills – Lesson 30 – Ordinary resolutions vs special resolutions

• Legal English – Peter’s Pills – Lesson 29 – AGM vs EGM

• Legal English – Peter’s Pills – Lesson 28 – A going concern

• Legal English – Peter’s Pills – Lesson 27 – Collocations: Violate, breach, break, disobey and infringe

• Legal English – Peter’s Pills – Lesson 26 – Company meeting words

• Legal English – Peter’s Pills – Lesson 25 – Mortgagor vs Mortgagee

• Legal English – Peter’s Pills – Lesson 24 – Fixed charges vs Floating charges

• Legal English – Peter’s Pills – Lesson 23 – Doctrine

• Legal English – Peter’s Pills – Lesson 22 – Construe

• Legal English – Peter’s Pills – Lesson 21 – Sign vs Execute

• Legal English – Peter’s Pills – Lesson 20 – The closing statement

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