Exam Style Q + Answer

In 2000, Plagueis died and left Darth House to his five children, Queldroma,Revan, Sidious, Traya and Vader. The property was expressed to be transferred to all five of them jointly. At the time of the transfer, all the children were over 18 except Queldroma who was aged 17. In 2004, Revan signed a written document that purported to transfer all his interest in the property to his girlfriend, Kryat. Sidious died in 2008, leaving all his property by will to his friend, Malak. In March 2009 Traya wrote to her siblings telling them that she intended to hold her beneficial interest as a tenant in common from the 1st January 2010. Traya died i nFebruary 2010, leaving all her property by will to Nihilus. Last year, Queldroma was declared bankrupt. Her interest in the property is now worth £120,000; it is her only substantial asset, and her debts amount to £200,000.

Queldroma’s trustee in bankruptcy wishes to realise Queldroma’s interest in Darth House for the benefit of Queldroma’s creditors and has applied to the court for a sale of the property under s.14 of the Trusts of Land and Appointment of Trustees Act 1996. The application is opposed by Revan, Kryat and Vader,who are (together with Vader’s wife, Zannah, and their five year-old daughter)the present occupiers of Darth House.

Consider:

a) whether the court might order a sale of Darth House; and

(b) in the event of a sale, who would transfer the legal title and how the proceeds should be distributed.

- At the beginning: Q, R, S, T and V are beneficial joint tenants, with RSTV being on the register (trustees) because Q is under age.

- R purports to transfer his 'share' by writing to K. This would serve to sever R's share via the statutory severance method in s36(2) LPA 1925 as it is in writing, sufficiently immediate, and concerns ownership of the house. the new position is therefore a joint tenancy for Q, S,T and V with K being a 20% tenant in common.

- S dies, attempting to leave a 'share' by will but you cannot sever by will (I think there is a case called…