Future Interests & Co-ownership
CEA Syllabus §2.10–§2.11 · Reversionary vs Remainder · Joint Tenancy · Tenancy-in-Common
1Future Interests
Future Interests
A future interest is the right to possess land in the future — as opposed to a present right. The right arises upon a certain condition or event (e.g. expiry of a lease, death of a life estate holder, breach of covenant giving right of re-entry).
There are two types of future interest:
| Type | Definition | Legal Status | Example |
|---|---|---|---|
| Reversionary Interest | Land reverts to the original grantor when the shorter interest ends (lease / fixed tenancy / life estate) | Legal interest — grantor remains registered as proprietor on title | HDB sells 99-yr lease → HDB holds reversionary interest; on expiry, flat reverts to HDB |
| Remainder Interest | Land passes to a third party (not the original grantor) when a life estate ends | Equitable interest — cannot be registered; protect by caveat | A grants life estate to B; on B's death, passes to C → C holds remainder interest during B's lifetime |
Key Distinction (Exam Focus)
- Reversion = land goes BACK to the ORIGINAL GRANTOR
- Remainder = land passes to SOMEONE ELSE (not the original grantor)
Sale "Subject to Tenancy" — Assignment of Reversionary Right
When a landlord sells property "subject to tenancy," the reversionary right is assigned from the outgoing landlord to the new landlord via an "Assignment of Lease" document. The new landlord is bound by the existing tenancy during its term and cannot evict the tenant. Upon expiry of the tenancy, full rights revert to the new landlord.
2Joint Tenancy (JT)
Joint Tenancy (JT)
In a joint tenancy, each co-owner owns the wholeproperty — there are no individual shares. There are no "words of severance" (e.g. "equally") or share descriptions (e.g. "½") in the title.
The Four Unities — ALL must be present
Each co-owner has the same right to possess and access the whole property (not just a portion).
All co-owners derive their interest from the same title/deed; their names appear in the same certificate of title.
All co-owners hold the same estate (e.g. if the property is freehold, all hold fee simple — none may hold a lesser interest).
All co-owners acquire ownership at the same time (upon legal completion).
Right of Survivorship
- Upon death of one joint tenant, the entire property automatically passes to surviving joint tenant(s).
- No Will, probate, or court order needed.
- A joint tenant cannot Will his interest to another party (right of survivorship overrides).
- A joint tenant CAN transfer his interest during his lifetime (this severs the JT — see Section 3).
- Civil Law Act 1909 s.30 (commorientes): if 2+ persons die in circumstances where the order of survival is uncertain, deaths are presumed (subject to court order / contrary evidence) to have occurred in order of seniority — the younger is deemed to have survived the elder.
- Muslim deceased joint tenant: the right of survivorship still operates and the JT property passes to the surviving joint tenant outside the Muslim deceased's estate — it is NOT subject to faraid distribution (Shafeeg bin Salim Talib v Fatimah bte Abud [2010] SGCA 11).
3Termination of Joint Tenancy
Termination of Joint Tenancy
A joint tenancy ceases once the four unities are broken. There are five ways a JT can be terminated:
① By Alienation
When one joint owner transfers his interest to a third party, the new owner comes in as a tenant-in-common (not a JT), because the four unities are broken (different title, different time). The remaining original JTs may still hold as JTs among themselves.
② By Partition
The joint owners agree to break up joint ownership by mutual agreement, converting JT to TIC with equal or unequal shares. "Partition" effectively means agreeing to sell or divide.
③ By Order of Court
A court order can compel the sale of the property and division of proceeds (e.g. in a divorce). The court determines the proportionate shares.
Sitiawah Bee bte Kader v Rosiyah bte Abdullah [1999] 3 SLR(R) 606:Mother and daughter were JTs of a HDB flat (deposit from late father; balance funded by daughter). Mother sought court order to sell. Where unequal contributions are made to a joint purchase, the joint tenancy is regarded as severed in equity into a tenancy-in-common in shares proportionate to each party's contribution — sale proceeds were divided accordingly (not 50:50).
④ By Unilateral Declaration
One joint owner executes a deed of declaration to sever the JT — no consent from the other JT required. Once served on the other party, the JT is severed in equity (even before registration with land titles registry). If no shares are mentioned, the court presumes equal shares.
⑤ By Bankruptcy
When a joint tenant becomes bankrupt, his/her property vests in the bankruptcy trustee — under IRDA Part 13 (in force 1 Nov 2023) this is usually a Private Trustee in Bankruptcy (PTIB); the Official Assignee (OA) still steps in where required by public interest. The vesting constitutes an alienation, severing the JT. The trustee becomes a tenant-in-common with the remaining joint tenants.
4Tenancy-in-Common (TIC)
Tenancy-in-Common (TIC)
In a tenancy-in-common, co-owners hold the property by shares — equal, unequal, or by undivided share values (strata titles). Only Unity of Possession is required (all have access to the whole property); the other three unities need not be present.
| Feature | Joint Tenancy (JT) | Tenancy-in-Common (TIC) |
|---|---|---|
| Unities required | ALL 4 (PTIT) | Only Unity of Possession |
| Shares | No shares — own the whole | Defined shares (equal/unequal) |
| Right of survivorship | YES — auto passes to survivor(s) | NO — share passes to estate |
| On death | Bypasses Will/ISA | Goes through Will or ISA |
| Can Will interest | NO | YES |
| Sell/mortgage own share | Only collectively (all must agree for full sale) | YES — independently, without consent of others |
| Typical use | Husband & wife | Business partners; strata (all subsidiary proprietors) |
| Words of severance | None (no "equally", no "½") | Present (e.g. "equally", "in equal shares", "½") |
TIC in Strata Titles
Under the Land Titles (Strata) Act, all subsidiary proprietors of a strata-titled development (condominium, cluster landed) are tenants-in-common of the common property (land), holding undivided share values. Each unit owner's share value is prescribed in the title; the total of all share values collectively represents ownership of the land.
5How Tenancy-in-Common is Created
How Tenancy-in-Common is Created
TIC can be created at law or in equity:
Created at Law
- Land Titles (Strata) Act — all strata subsidiary proprietors hold common property as TIC
- Words of severance— conveyance to 2+ persons using "equally", "equal shares", or specifying fractions (e.g. "½")
- Even if all 4 unities are present, words of severance override → TIC is created
Created in Equity
- Unequal contributions to purchase price — equity presumes TIC in proportion to contributions (even if legally JT)
- Joint mortgagees or partnership property — equity treats as TIC
- Unilateral declaration served (without registration) — severed in equity
Case: Malayan Credit Ltd v Jack Chia-MPH Ltd [1986] AC 549 (Privy Council, on appeal from Singapore); [1986] 1 MLJ 445
Two companies took a single lease of one floor of a building as joint tenants at law but occupied defined unequal areas and contributed rent and service charges in unequal proportions. The Privy Council reversed the Singapore Court of Appeal and held they held the leasehold in tenancy-in-common in equity in unequal shares, reflecting their separate commercial interests, pre-determined occupation areas, and unequal liability for rent and service charges.
✓Practice Questions
10 questions · exam-style · 90 seconds per question
Section Quiz
Unit 2.10–2.11 — Future Interests & Co-ownership
10 questions · 90 seconds each · exam-style difficulty