Oxford BA: Co-ownership & Trusts of Land Exam Paper

Alice, Bob, and Carol purchase Greenacre as joint tenants in 2019. In 2020, Alice secretly executes a deed purporting to sever her interest and transfer it to David. In 2021, Bob declares bankruptcy, and his trustee in bankruptcy claims his interest. Carol, unaware of these developments, enters into a contract to sell the entire property to Emma for £500,000. Meanwhile, Alice has been living in the property since 2019 and paying all maintenance costs, while Bob moved to Scotland and Carol emigrated to Australia. David now seeks possession of 'his' one-third share, the trustee demands sale to satisfy Bob's creditors (£150,000 debt), and Emma threatens specific performance. Carol returns from Australia in 2022 demanding her share of rental income Alice has been collecting from a basement flat (£800/month since 2020). Advise all parties on their rights and obligations under the current law.

Critically evaluate the extent to which the Trusts of Land and Appointment of Trustees Act 1996 successfully reformed the law governing disputes between co-owners over sale and occupation of land. Consider whether the Act's objectives have been achieved in light of subsequent judicial interpretation.

In 2018, Marcus and Nadia, an unmarried couple, purchase Roseville using Marcus's £80,000 inheritance and a £320,000 mortgage in joint names. The transfer deed states they hold as 'beneficial joint tenants'. Nadia, a freelance designer, works from home and pays the mortgage (£1,200/month) while Marcus covers household expenses (£800/month). In 2020, without consulting Nadia, Marcus remortgages to secure his business debts, increasing the mortgage to £450,000. The business fails in 2021, and Marcus disappears, leaving Nadia facing possession proceedings. Nadia discovers Marcus secretly transferred his interest to his brother Oliver in late 2020 using a deed stating 'to hold on trust for Oliver absolutely'. Oliver, claiming sole ownership, serves Nadia with a notice to quit and demands she pay him occupation rent. Nadia has spent £15,000 on home improvements (new kitchen, bathroom renovation) and seeks advice on whether she can resist possession, claim any interest in the property, and recover her improvement costs.

To what extent does the current law strike an appropriate balance between protecting family interests in the home and satisfying the legitimate claims of creditors? Consider the effectiveness of both legislative provisions and judicial approaches in resolving this fundamental tension in co-ownership disputes.