Registered Land
Introduction
•The Register
•Third party rights
•Overriding interests
•Overreaching
Registered Land
1925 Property legislation
• In force 1st January 1926:
– Law of Property Act 1925
– Land Registration Act 1925 (2002)
– Land Charges Act 1925 (1972)
Registered Land
Land Registration Act 1925
“introduced for the first time …a power in
central government to designate areas in
which registered conveyancing would be
compulsory.”
• Compulsory registration.
• H.M. Land Registry.
• District Land Registries.
• www.landreg.gov.uk
Registered Land
Land Registration Act 2002
• In force 13th October 2003.
• Repealed Land Registration Act 1925
• Lays foundations for electronic
conveyancing.
• Most fundamental reform of property
law since 1925.
The Register
• Not a register of land but ownership of land
– Fee simple absolute in possession (freehold)
– Term of years absolute (leasehold)
• Register divided into 3 parts:
– Property register
– Proprietorship register
– Charges register
• Documentation:
– Land/Charge certificates
– ‘dematerialisation’ of documents
– Title Information Document
Property Register
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Identifies the land
Freehold/leasehold
Description (postal address)
Reference to plan (title plan)
Title number
List rights which property benefits from
(i.e. easements)
Proprietorship Register
Identifies the owners of the land
• Name and address of current registered
proprietors
• Grade of title
• Details of any restrictions limiting the
registered proprietors rights to deal with
the land.
Proprietorship Register
Grades of Title – Freehold Land
Absolute Title
• Best grade of title
• S.26 Land Registration Act 2002
• Subject to:
– Entries on the register (i.e. 3rd party
rights).
– Overriding interests.
Proprietorship Register
Grades of Title – Freehold Land
Possessory Title
• Not as good as absolute title
• Subject to:
– Entries on the register.
– Overriding interests.
– Adverse pre-registration estates, rights or
interests.
• Upgrade to Absolute title?
– S.62 Land Registration Act 2002.
Adverse Possession
• Limitation Act 1980:
– S.15: Limitation period for recovery of land 12 years.
– S.17: at end of 12 year period original owner looses
both the right to sue and title to the property.
• Land Registration Act 2002:
– Apply to be registered as proprietor after 10 years
adverse possession.
– Registered proprietor notified.
– If still in occupation after a further 2 years will be
registered as proprietor.
Proprietorship Register
Grades of Title – Freehold Land
Qualified Title
• Defect in title
• Subject to:
– Entries on the register
– Overriding interests
– Defect noted on the register
Proprietorship Register
Grades of Title – Leasehold Land
Absolute Title
• Provide evidence of both freehold and
leasehold title
• Subject to:
– Entries on the register
– Overriding interests
– Covenants in the lease
Proprietorship Register
Grades of Title – Leasehold Land
Good Title
• No evidence of freehold title
• Subject to:
– Entries on the register
– Overriding interests
– covenants in the lease
Proprietorship Register
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Grades of Title – Leasehold Land
Possessory Title
Same as for freehold land
No guarantee of freehold title
Can be upgraded to Good Leasehold title
after 12 years
Qualified Title
Same as for freehold land
Charges Register
Third party rights which affect the land
• Rights which burden the land:
– Mortgages
– Restrictive covenants
– Easements
Third Party Rights
• Enter on Register:
– Notice
– Restriction
– Caution against first registration
• Land Registration Act 2002:
– Abolition of cautions and inhibitions
• Overriding interests
Notices
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S.32 – 39 Land Registration Act 2002.
Agreed notice.
Unilateral notice.
Leases (exceptions) /easements/restrictive
covenants (exceptions)/estate contracts.
• Spouse’s right to occupy matrimonial home
(Family Law Act 1996).
• Interests requiring registration under s.27 Land
Registration Act 2002.
• Exceptions: s.33 Land Registration Act 2002.
Notices
• S.33 Land Registration Act 2002:
– 5 interests that cannot be protected by the
entry of a notice:
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Interests under a trust or settlement
An interest in any coal or coal mine
A lease granted for 3 years or less
Restrictive covenants made between a landlord
and a tenant
• An interest capable of registration under the
Commons Registration Act 1965.
Restrictions
• S.40 – 47 Land registration Act 2002.
• Prevent any dealings in the land that
are inconsistent with the terms of the
restriction.
• Example: Prevent registration of land
unless specified consents obtained.
Priority between Third
Party Rights
• Date of registration v date of creation?
• S.28 Land Registration Act 2002.
• Effect of introduction of electronic
conveyancing.
Overriding Interests
• Major exception to principle that
purchaser need not be concerned with
interests that are not entered on the
register.
• No requirement to register.
• Notice irrelevant.
Overriding Interests
• Schedules 1 & 3 Land Registration Act 2002.
• Schedule 1:
Unregistered interests which
override first registration.
• Schedule 3:
Unregistered interests which
override registered
dispositions.
Overriding Interests
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Schedule 1
Leases not exceeding 7 years.
Interests of persons in actual
occupation of the land.
Legal easements.
Other miscellaneous rights.
Overriding Interests
Schedule 3
• Lease not exceeding 7 years.
• Interests of persons in actual
occupation of the land.
– Exceptions.
• Legal easements.
– Exceptions.
• Other miscellaneous rights
Overriding Interests
Interests of persons in actual occupation
of the land
• Requirements:
– Right in the land.
– Actual occupation.
– None of the Schedule 3 exceptions apply.
Overriding Interests
Rights
• Occupation in itself not enough.
• Common right contribution to purchase price
but contributor is not registered as a
proprietor.
• Strand Securities v Caswell [1965] Ch 958
Overriding Interests
Actual Occupation
• Williams & Glyn’s Bank Ltd v Boland
[1981] A.C. 487
– Occupation is a question of fact.
– Wife’s occupation is separate to that of her
husband.
Overriding Interests
Actual Occupation
• Abbey National Building Society v Cann
[1991] A.C. 56
– Degree of permanence and continuity
required in order to establish actual
occupation.
Overriding Interests
Actual Occupation
• Chokar v Chokar [1984] F.L.R. 313
– Position regarding temporary absence?
Overriding Interests
Enquiry
‘If the person with the interest was asked before
the disposition occurred and s/he failed to
disclose their interest when they could reasonably
have been expected to do so.’
• London & Cheshire Insurance Co Ltd v
Laplagrene Property Co Ltd [1971] Ch 499.
• Hodgson v Marks [1971] Ch 892.
Overriding Interests
Inspection
‘If the persons occupation would not have been
obvious on a reasonably careful inspection of the
land at the time of the disposition and the person
to whom the disposition is made did not have
actual knowledge of the interest at the time.’
• New provision in Land Registration Act 2003.
• Occupation that must be obvious, not the interest.
Overriding Interests
Express/implied waiving of right to priority
• Paddington Building Society v
Mendelsohn (1985) 50 P & CR 244.
– Implied consent to mortgage taking
priority?
Overreaching
• Applies to registered and unregistered
land
• Operates to transfer equitable
ownership of land into equitable
ownership of money (sale proceeds)
– City of London Building Society v Flegg
[1988] A.C. 54
– State Bank of India v Sood [1997] 1 All
E.R. 169.
Overreaching
Statutory Criteria
• Equitable interest must be capable of
being overreached.
– Limitation to equitable interests that can be
overreached (s.2(3) Law of Property Act
1925).
– Excludes equitable mortgages, equitable
easements, restrictive covenants and
estate contracts.
Overreaching
Statutory Criteria
• Transactions capable of having an
overreaching effect (s.2(1) Law of Property
Act 1925). Conveyance made by:
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Settled Land Act 1925 powers.
Trustees of land.
Mortgagee or personal representative
Under an order of the court.
Overreaching
Statutory Criteria
• Only operates in favour of a purchaser
of the legal estate (s.2(1) Law of
Property Act 1925).
• Includes mortgagees.
• Capital monies must be applied
appropriately (pay to 2 trustees).