Nielson Jones v Fedden [1975] Ch 222

Facts

• Mr. and Mrs. Fedden owned their marital home as joint tenants.
• Marital difficulties arose, and both parties agreed to sell the property.
• Mr. Fedden signed a document granting Mrs. Fedden permission to sell and use the proceeds to purchase another home for herself.
• Before the sale was completed, Mrs. Fedden died.
• The central issue was whether the agreement and actions constituted severance of the joint tenancy, allowing Mrs. Fedden’s estate to claim a share of the property.

Issues

1. Did the agreement between Mr. and Mrs. Fedden and Mr. Fedden’s execution of the sale document sever the joint tenancy?
2. Does an agreement to sell, without a concurrent arrangement to divide proceeds or deal with shares distinctly, suffice for severance?
3. What level of conduct or agreement is necessary to amount to severance of a joint tenancy?

Decision

• The Court of Appeal held that the agreement and Mr. Fedden’s actions did not sever the joint tenancy.
• Mere agreement to sell the property, without a clear plan to divide the proceeds or treat shares separately, is insufficient for severance.
• The signed document allowed for sale but did not evidence intention to create separate beneficial interests in the property.
• The right of survivorship remained unaffected, so Mr. Fedden, as the surviving joint tenant, became entitled to the entire property.

Legal Principles

• Severance of a joint tenancy requires clear indication or conduct showing intent to treat shares as separate, such as an explicit agreement to divide proceeds or ownership.
• An agreement to sell joint property alone does not amount to severance if it lacks provisions for division of interests or proceeds.
• Comparison with Burgess v Rawnsley demonstrates that an agreement to handle shares distinctly can effect severance, but mere sale intentions do not.
• Clear documentation and legal advice are essential to avoid uncertainty about the effect of agreements on joint tenancies.

Conclusion

Nielson Jones v Fedden confirms that for severance of a joint tenancy by conduct or agreement, there must be a definite plan to treat shares separately; absent this, the right of survivorship prevails and entire ownership passes to the surviving joint tenant.