Facts
- The case addresses the severance of a joint tenancy, a legal process by which co-ownership is converted from joint tenancy to tenancy in common, thereby terminating the right of survivorship.
- Joint tenancy involves multiple individuals holding equal, undivided interests in property, with the right of survivorship applying upon the death of a co-owner.
- Severance requires a clear and demonstrable intention by at least one co-owner to end the joint tenancy structure.
- The established legal methods of severance set out in this case remain influential in property law regarding co-ownership.
Issues
- What methods are legally recognized for severing a joint tenancy?
- What constitutes a valid and immediate intention to sever a joint tenancy in property law?
- To what extent do notice, alienation, mutual agreement, or a course of dealing achieve severance?
- How does the distinction between legal and equitable interests affect severance outcomes?
Decision
- Severance of a joint tenancy can occur by three principal methods: acts operating on a joint tenant's own share, mutual agreement, and a course of dealing exhibiting such mutual intent.
- Acts operating on one's own share, such as sale or mortgage, will sever the joint tenancy in respect of the acting co-owner.
- Written notice, under Section 36(2) of the Law of Property Act 1925, is effective for unilateral severance if it states an immediate intent.
- Mutual agreement between co-owners, whether express or implied by conduct, suffices to sever, provided there is clear mutual intent.
- A course of dealing demonstrating that the co-owners have mutually treated their interests as being held in common rather than jointly may also sever the tenancy.
- Severance applies to a party’s equitable interest: the legal title remains held as joint tenancy under a trust of land.
Legal Principles
- Severance of joint tenancy removes the right of survivorship and allows each co-owner to hold their share as a tenant in common.
- Methods recognized for severance include: an act on one’s own share (alienation, sale, or mortgage), serving written notice stating immediate intent, mutual agreement (not necessarily in writing), and a clear course of conduct that evidences mutual intention to sever.
- Section 36(2) Law of Property Act 1925 governs written notice for severance.
- Severance is effective for the equitable interest; the legal estate remains a joint tenancy per statutory trust principles.
- Bankruptcy of a joint tenant automatically severs the joint tenancy for their share.
- The shares on severance are equal unless an express agreement provides otherwise.
Conclusion
Williams v Hensman established the foundational methods for severing a joint tenancy: by acts affecting one’s own share, mutual agreement, or a course of dealing reflecting mutual intent. The decision clarified that the intention to sever must be clear and demonstrable, with effects on the equitable—not legal—interest, thus shaping subsequent legal treatment of co-ownership and severance in English property law.