Enforcement of interests over registered land

Question 1

Enforcement of interests in registered land?

Answer 1

Land registrations act 2002
- 3 categories of estates and interests and explains what must be done in order to make those estates and interests binding on new owners of the servient land
- Registrable dispositions
- Interests protected by entry
- Overriding interest
Basic rule of priority in LRA s28 – it states an interest of whatever kind will take priority over later dispositions.
S29 provides an exception to this rule – where there is a disposition of a registered estate for valuable consideration.

A disposition of a registered estate for valuable consideration.
- It will take priority over any pre-existing rights in the land except those which have been protected on register or those which are overriding interests.
- This means that s28 and normal rules of priority is limited in scope to transactions not made for valuable consideration – where new owner is done. – (someone who has been gifted the land)

Question 2

Registrable dispositions?

Answer 2

Some transactions – such as registrable dispositions must be completed by registrations.
- Do not operate at law until registration has been completed – compulsory registration.
Express legal easement – it’s a registrable disposition – once formalities of deed have been met, must be submitted of registration and easement will not be legal until it has been properly registered.
- Easement will then appear on property register of dominant land in charge of burdened land and will bind a purchaser for valuable consideration.
Grant of a legal mortgage
- Is a registrable disposition
- Mortgage must be created by deed and submitted for registration.
Grant of a landlords right of entry
- Known as forfeiture – is a registrable disposition – must be created by deed and submitted for registration.

Question 3

Interests protected by entry of notice?

Answer 3

• A notice is the appropriate way to protect an interest which is intended to last beyond a change of ownership
• Notice is intended to bring any relevant equitable interests to attention of a purchaser.
• Legal leases granted more than 3 years and up to 7 years do not have to be protected by notice – as they will bind as overriding interest.

EXAMPLES
Equitable easements
Estate contracts

Question 4

Interests protected by entry of a restriction?

Answer 4

• Restriction in proprietorship register is appropriate way to protect an interest which is not intended to last indefinitely.
• Impose conditions which must be met before dispositions can be registered.

Question 5

Overreaching?

Answer 5

• Applies to interests in trusts of land and to NO OTHER INTEREST
• Governed by LPA 1927 s2 and s27 and applies equally to registered and unregistered land
• A purchaser to ensure it takes the land free of any equitable interest held by a beneficiary must overreach the interest.
  How?
• A purchaser must make sure the capital money is paid to at least two trustees. Has effect of transferring equitable interests form land to monies paid.
  How does a restriction trigger overreaching
• If a restriction is entered in land in respect of an interest in a trust of land – it will require the purchaser to pay monies to two trustees.
• This trigger overreaching and ensures a purchaser/lender will take the land free of the trust interests.

Question 6

Overriding interests?

Answer 6

Interests which will bind a purchaser for value, whether a buyer or lender even though they have not been protected by registration
- Overriding interest defeated the purpose of the mirror principle and undermine integrity of register
- Continue existence is limited but is problematic
- Safety net for those who cannot reasonably take steps to protect their interests in land

Main categories
- If there is a registerable disposition the new registered proprietor will take land subject to any overriding interest.
- Where land is registering list of overriding interests is set out in LRA 2002 sch 3
- Legal leases granted for a term of seven years or less
o If lease is short doesn’t make sense to have to register
- Equitable interest held by people in actual occupation of land
o Protects people whose interests has arisen informally – under implied trust to take formal steps to protect these. In order for it to hold
o Must be an interest in land – qualifying proprietary interests in land rather than a personal right AND must be in actual occupation – some degree of permeance, not defeated by temporary absences, given plain meaning
o EXCEPTIONS – if did not disclose this when could have reasonably expected them to where it would not have been obvious on reasonable inspection of land, and the person to whom disposition is made does not have actual knowledge at the time.
- Implied legal easement to profit a prendre.
- Sch 3 para 3
- Will be binding if
- New owner knew about it
- New owner didn’t know but it was obvious enough n reasonable inspection of land
- It has been exercised within 12 months immediately before disposition.