Solicitors Qualifying Examination (SQE) Practice Exa\

Question: 1 / 400

How can tenants in common protect their beneficial interests?

By creating a legally binding agreement

By having a verbal agreement only

Through registration with a restriction on the title

Tenants in common can protect their beneficial interests primarily through registration with a restriction on the title. This legal mechanism ensures that any transfer of the ownership interest in the property cannot occur without the consent of all tenants in common or in accordance with the terms specified in the restriction. This registration provides public notice of the tenants' respective shares in the property and safeguards against any unilateral actions that one tenant might take, which could affect the interests of the others.

While creating a legally binding agreement can offer some level of protection and clarify each party's intentions regarding the property, it does not provide the same level of security as a registered restriction. A verbal agreement lacks enforceability in a legal sense and is not recognized in property law as a means of protecting beneficial interests. Dividing the property physically is generally impractical and does not inherently protect the ownership interests unless the property is suitable for such division and both parties agree to it.

Thus, the most secure method for tenants in common to safeguard their interests is through registration of a restriction, ensuring their rights are clearly documented and protected in legal records.

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By dividing the property physically

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