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REGISTRATION
(A) TYPES OF RIGHTS IN LAND
1. Proprietary rights
A right that affects the property, which is capable of being binding on any future owner of the land
National Provincial Bank v Ainsworth (1965): “before a right or an interest can be admitted into the
category of property, or of a right affecting property, it must be definable, identifiable by third parties,
capable in its nature of assumption by third parties, and have some degree of permanence or stability”
a) estate: fee simple, term of years absolute in possession
b) interest: easement, mortgage, beneficial interest, option to purchase, etc
2. Non proprietary / personal rights
A right that is enforceable against only the owner of land
(B) NATURE OF RIGHTS
1. Legal
3 conditions:
(a) it is capable of being legal
s1(1)(a) LPA 1925: fee simple
s1(1)(b) LPA 1925: term of years absolute in possession
s1(2)(a) LPA 1925: easement
s1(2)(c) LPA 1925: mortgage
S1(3) LPA 1925: all other interests take effect as equitable interests
(b) it was created by a deed - s52(1) LPA 1925
(i) exception
s52(2)(d) LPA 1925: s52(1) does not apply leases not required to be in writing
s54(2) LPA 1925: nothing shall affect the creation by parol of leases taking effect in possession
for a term not exceeding 3 years at best rent
Fitzkriston v Panayi (2008): “best rent means market rent”
(c) it was registered (applies to some interests in registered land only)
s27(2)(a) LRA 2002: a transfer
s27(2)(b)(i) LRA 2002: a lease more than 7 years
s27(2)(d) LRA 2002: expressly granted or reserved easement
s27(2)(f) LRA 2002: legal charge
s27(1) LRA 2002: interests requiring registration does not operate at law until the registration
requirements are met
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2. Equitable
condition:
(a) it is put in writing and signed
s53(1)(a) LPA 1925: an interest in land can only be created or disposed of if it is in writing and signed
s2(1) LP (MP) A 1989: a contract for the sale of or other disposition of an interest in land must be in
writing
s2(3) LP (MP) A 1989: the contract must be signed by each party
(b) exception
s53(2) LPA 1925: a right arising under a resulting trust or constructive trust need not be put in writing
(C) THE EFFECT OF RIGHTS ON THIRD PARTIES
1. Unregistered land
1. Legal rights
Binding
2. Equitable rights
(a) registrable rights (land charges)
(i) what can be registered
s2(4) LCA 1972: Class C(iv) – estate contract
s2(5) LCA 1972: Class D(ii) – freehold restrictive covenant
s2(5) LCA 1972: Class D(iii) – equitable easement
s2(7) LCA 1972: Class F – spouse’s right to occupation of a matrimonial home
(ii) the effect of registration
s198 LPA 1925: registration of the land charge is deemed to constitute actual notice
(iii) the effect of a failure to register a land charge
s4(6) LCA 1972: an estate contract and Class D land charge shall be void against a purchaser for
money or money’s worth
Midand Bank v Green (1981):
- G’s father gave G an option to purchase a farm (unregistered land)
- The option to purchase was not registered as a land charge
- Following an argument, G’s father sold the farm to G’s mother for £500 (the value of the
farm was £40,000)
- Issue: whether s4(6) LCA 1972 applied so that the sale to the mother defeated G’s option to
purchase
- money or money’s worth “There is nothing here which suggests, or admits of, the
introduction of a further requirement that the money must not be nominal.”
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- The option to purchase was defeated, although G’s mother knew that the sale of the farm to
her was to defeat G’s option to purchase
s4(8) LCA 1972: a class F land charge shall be void against a purchaser of land
(b) non registrable rights
(i) overreaching
s2(1)(ii) LPA 1925: A conveyance to a purchaser of a legal estate in land shall overreach any
equitable interest whether or not he has notice thereof, if the conveyance is made by trustees of
land
(ii) doctrine of notice
a. actual notice
the purchaser has actual knowledge of the right another person has in the land he is about
to purchase
b. imputed notice
the purchaser’s agent has knowledge of the right another person has in the land he is about
to purchase
c. constructive notice
the purchaser is deemed to have had actual notice of another person’s right in the land he is
about to purchase, if the purchaser would have known about it after making a reasonably
careful inspection of the land
a reasonably careful inspection of land entails:
i. calling for good root of title that is at least 15 years old
ii. inspecting the land charges register
iii. physically inspecting the land
iv. making enquiries of all persons in actual occupation
Kingsnorth Finance v Tizard (1986):
- KF had received constructive notice of Mrs T’s occupation of the house as their
inspector was aware that Mr T had lied about being single, and also that children
lived in the house
- Therefore, KF was bound by Mrs T’s beneficial interest
2. Registered land
1. Overreaching
s2(1)(ii) LPA 1925: A conveyance to a purchaser of a legal estate in land shall overreach any equitable
interest whether or not he has notice thereof, if the conveyance is made by trustees of land
2. LRA 1925
(a) voluntary registration
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s2(1) LRA 1925: freehold land
s48(1) LRA 1925: leases over 21 years
s49(1)(f) LRA 1925: easement, mortgage
s50(1) LRA 1925: freehold restrictive covenant
(b) unregistered interests that override a registered disposition
s70(1)(a) LRA 1925: easement
Celsteel v Alton (1985): legal and equitable easement
s70(1)(f) LRA 1925: adverse possession
s70(1)(g) LRA 1925: right of a person in actual occupation
s70(1)(k) LRA 1925: leases up to 21 years
City Permanent Building Society v Miller (1952): legal lease only
3. LRA 2002 (with effect 13 October 2003)
(a) compulsory first registration
(i) events that trigger compulsory first registration
s4(1)(a) LRA 2002 ; s4(2) LRA 2002: a transfer of an unregistered freehold / leasehold with over 7
years remaining
s4(1)(c) LRA 2002: a lease over 7 years in unregistered land
s4(1)(g) LRA 2002: first legal mortgage of unregistered land
(ii) timeline to complete registration
s6(4) LRA 2002: 2 months
(iii) failure to register in time
s7(1) LRA 2002: the transaction is not legal
(b) compulsory registration
(i) what must be registered
s27(2)(a) LRA 2002: a transfer
s27(2)(b)(i) LRA 2002: leases over 7 years
s27(2)(d) LRA 2002: an easement expressly acquired in a deed
s27(2)(f) LRA 2002: a legal charge
(ii) the effect of registration
s29(1) LRA 2002: if a registrable disposition of an estate is made for valuable consideration, the
completion of the disposition has the effect of postponing any interest affecting the estate
immediately before the disposition whose priority is not protected
s29(2)(a)(i) LRA 2002: the priority of an interest is protected if it is the subject of a notice in the
register
EN71 & 72: “valuable consideration” does not include: (i) nominal consideration in money ; (ii)
marriage
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(iii) the effect of a failure to register
s27(1) LRA 2002: if a disposition is required to be completed by registration, it does not operate
at law until the registration requirements are met
(c) exclusions
s33(a)(i) LRA 2002: trust of land
s33(b)(i) LRA 2002: lease for 3 years or less
s33(b)(ii) LRA 2002: leases not required to be registered
s33(c) LRA 2002: restrictive leasehold covenant
(d) voluntary registration
(i) title
s3(1)(a) LRA 2002: unregistered legal estate
s3(3) LRA 2002: legal lease (in unregistered land) with more than 7 years left
(ii) other rights
a. notice
i. what is a notice - s32(1) LRA 2002: a notice is an entry in the register in respect of an
interest
ii. validity of the notice - s32(3) LRA 2002: the fact that an interest is the subject of the
notice does not mean the interest is valid
iii. who can apply - s34 LRA 2002: a person who claims to be entitled to an interest may
apply for entry on the register in respect of that interest
iv. types of notices: agreed notice - s34(2)(a) LRA 2002 ; unilateral notice - s34(2)(b) LRA
2002
v. the effect of entering / failure to enter a notice:
s29(1) LRA 2002: if a registrable disposition of an estate is made for valuable
consideration, the completion of the disposition has the effect of postponing any
interest affecting the estate immediately before the disposition whose priority is not
protected
s29(2)(a)(i) LRA 2002: the priority of an interest is protected if it falls is the subject of
a notice in the register
b. restriction
i. what is a restriction – s40(1) LRA 2002: a restriction is an entry on the register
regulating the circumstances in which a disposition can be subject to
ii. who can apply – s43(1) LRA 2002: a registered proprietor / anyone who has a sufficient
interest
iii. the effect of entering / failure to enter a restriction:
s41 LRA 2002: where a restriction is entered, no entry in respect of a disposition to
which the restriction applies may be made
(e) unregistered interests that override first registration
(i) categories
Schedule 1 Para 1 LRA 2002: legal leases up to 7 years
Schedule 1 Para 2 LRA 2002: an interest belonging to a person in actual occupation
Schedule 1 Para 3 LRA 2002: a legal easement
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(ii) the effect of having an overriding interest
s11(4)(b) LRA 2002 ; s12(4)(c) LRA 2002: the estate is vested in the proprietor subject to the
unregistered interests under Sch 1
(f) unregistered interests that override registered dispositions
(i) categories
a. Schedule 3 Para 1 LRA 2002: legal leases up to 7 years
City Permanent Building Society v Miller (1952): legal lease only
b. Schedule 3 Para 2 LRA 2002: an interest belonging to a person in actual occupation
i. Definition
Williams v Glyns Bank v Boland (1980): “what is required is physical presence”
ii. actual occupation in cases of temporary absence
Chhokar v Chhokar (1984): a short lived absence does not negate actual occupation as
presence of possessions is evidence of occupation
Stockholm Finance Ltd v Garden Holdings (1995):
- “Not only the length of any absence, but also the reason for it, may be material (a
holiday or a business trip may be easier to reconcile with continuing and unbroken
occupation than a move to a second home, even thought the duration is the same
in each case)”
- “But there must come a point at which a person’s absence from his house is so
prolonged that the notion of his continuing to be in actual occupation of it
becomes insupportable, and … that point must have been reached in this case”
Link Lending v Bustard (2010): there was “a sufficient degree of continuity and
permanence of occupation, of involuntary residence elsewhere, which was satisfactorily
explained by objective reasons, and of a persistent intention to return home when
possible, as manifested by her regular visits to the Property”
Saeed v Plustrade (2001): Counsel conceded that the exercise of a parking easement
meant that the owner of the car was in actual occupation of the space
Chaudhary v Yavuz (2011): “this confuses "actual occupation" with "actual use", and
that the correct view is that the enjoyment of a right such an easement over burdened
land does not amount to actual occupation of the land for this purpose”
iii. exceptions
Schedule 3 Para 2(b) LRA 2002: an interest of a person of whom enquiry was made and
who failed to disclose their right when could reasonably have been expected to
Schedule 3 Para 2(c)(i),(ii) LRA 2002: an interest of a person whose occupation would
not have been obvious on a reasonably careful inspection of land ; AND the purchaser
had no actual knowledge of that interest
c. Schedule 3 Para 3 LRA 2002: a legal easement
i. applies to implied legal easements only
ii. exceptions - Schedule 3 Para 3 LRA 2002:
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- the purchaser had no actual knowledge of the easement ; AND it would not have
been obvious on a reasonably careful inspection of land OR
- in use for less than one year before the disposition
(ii) the effect of having an overriding interest
s29(1) LRA 2002: if a registrable disposition of an estate is made for valuable consideration, the
completion of the disposition has the effect of postponing any interest affecting the estate
immediately before the disposition whose priority is not protected
s29(2)(a)(ii) LRA 2002: the priority of an interest is protected if it falls under Sch 3
(g) alteration *** applicable only to University of London students taking Property Law at Level 6
Sch 4 Para 2(1) LRA 2002: the court may make an order for alteration alteration of the Register to
correct a mistake, update the Register or give effect to any right excepted from registration
Sch 4 Para 3(2) LRA 2002: there can be no alteration to the Register without consent of the
proprietor in relation to land he possesses, unless –
- he has by fraud or lack of proper care caused or substantially contributed to the mistake; or
- it would be unjust for the alteration to not be made
NRAM v Evans (2017): ‘mistake’ “What constitutes a mistake is widely interpreted and is not
confined to any particular kind of mistake. It is suggested therefore that there will be a mistake
whenever the registrar would have done something different had he known the true facts at the
time at which he made or deleted the relevant entry in the register, as by: (i) making an entry in the
register that he would not have made or would not have made in the form in which it was made; (ii)
deleting an entry which he would not have deleted; or (iii) failing to make an entry in the register
which he would otherwise have made”
(h) indemnity *** applicable only to University of London students taking Property Law at Level 6
Sch 8 Para 1(1) LRA 2002: a person in entitled to be indemnified if he suffers a loss by reason of the
alteration to the Register or any mistake on the Register
Sch 8 Para 1(2)(b) LRA 2002: a person is regarded as having suffered loss if he is claiming in good
faith under a forged disposition
Swift 1st v Chief Land Registrar (2015): “the Law Commission considered paragraph 1(2)(b) to be
consistent with the principle that registration confers substantive rights on the proprietor even
under the forged disposition and that its loss is to be regarded as prejudicial to the title
notwithstanding that the transfer or charge was void”