Interests in Registered and Unregistered Land

Question 1

How is a legal interest created in unregistered land?

Answer 1

An estate or interest which:

is capable of being legal; and
has been created using the correct formalities

is a legal interest which binds the world.

Question 2

Do legal interests in unregistered land need any protection?

Answer 2

No (Except for Pusine mortgages). If it is an interest capable of being legal and has been created using the correct formalities, it will bind the world

Question 3

What types of interests are equitable in unregistered land?

Answer 3

the interest isn’t capable of being legal (e.g. a restrictive covenant); or
the interest is capable of being legal but hasn’t been created using the correct formalities

Question 4

How are equitable interests protected?

Answer 4

Via

(i) a land charge; or
(ii) the doctrine of notice

Question 5

What can be protected as a land charge?

Answer 5

C(iv) Estate contract (lease);

D(ii) Restrictive covenant;

D(iii) Equitable easement;

F Home right

C(i) Puisne mortgage’

These can only be protected by a land charge, not the doctrine of notice!

Question 6

How do you register a land charge?

Answer 6

Against the name of the estate holder, not against the estate.

Question 7

What equitable interests benefit from the doctrine of notice?

Answer 7

(i) equitable interests pre-dating 1925; and

(ii) beneficial interests under a trust whenever created (e.g. actual occupation or co-ownership).

Buyer is bound by these interests unless they are ‘equity’s darling’.

Question 8

Who is ‘Equity’s Darling’?

Answer 8

Bona fide; purchaser for value; of the legal estate or interest

Question 9

What constitutes ‘notice’ under the doctrine of notice?

Answer 9

Actual: Buyer knows of interest;

Constructive: Where the interest was blatant upon a reasonable inspection of the land;

Imputed: E.g. if an agent was aware of the interest, the buyer would be deemed to have had imputed notice through them

Question 10

How does a person create a legal interest?

Answer 10

Via a deed, which must be:

signed by both parties;
be witnessed;
be clear on its face that it’s a deed; and

Question 11

What happens when unregistered land is transferred?

Answer 11

It triggers an event for the first registration of the property.

Any purchaser must ensure that such a qualifying trigger hasn’t arisen previously.

Question 12

What is the time limit for first registration?

Answer 12

2 months.

Question 13

How is an equitable interest protected in registered land?

Answer 13

Through a notice in the charges register of the burdened land, e.g. restrictive covenant, equitable mortgage, equitable lease.

TIC: Proprietorship register restriction.

Question 14

What is the one interest excepted from the compulsory first registration in unregistered land?

Answer 14

The transfer of an unregistered lease with five years left to run.

Question 15

How is a legal lease created?

Answer 15

0-3 years = no formalities;

3-7 years = deed, no registration

7+ years = deed and registration

Question 16

How does the parol lease exception operate and what are the four criterion to be met?

Answer 16

(a) lease must be for 3 years or less;#
(b) lease must take effect in possession (immediate right to possess and enjoy the land);
(c) must be at market rent;
(d) landlord mustn’t charge a fine or premium

Question 17

What four registrable dispositions must be registered in order to have legal effect?

Answer 17

(i) transfer of a registered estate;
(ii) grant of a legal lease for more than 7 years out of a registered estate;
(iii) grant of a legal charge (e.g. a mortgage);
(iv) an expressly granted legal easement or profit (registered against title it relates)

Question 18

What is overreaching? How does it operate?

Answer 18

Overreaching means a buyer takes a property free of any beneficial interests under a trust (doesn’t apply to any other land interest).

The buyer must pay the purchase price to a minimum of two trustees who hold the legal estate. The beneficiary under the trust would have an interest in the money under the trust, rather than the legal estate.

Question 19

What are the three overriding interests?

Answer 19

(i) Leasehold granted for 7 years or less;

(ii) implied easements (necessity, common intention, wheeldon v burrows, s62 LPA 1925);

(iii) a proprietary interest (never easements or licences) + actual occupation

Question 20

How can implied easements override?

Answer 20

If:

(i) purchaser has actual knowledge of easement on date of transfer; or

(ii) existence of right would have been apparent on reasonably careful inspection of the land; or

(iii) easement has been exercised at least once in the past\ year

Question 21

How can the overriding interest of proprietary interest + actual occupation be lost?

Answer 21

(a) if the person holding the interest failed to disclose it when they could have been reasonably expected to do so; and

(b) the person’s occupation was not obvious on a reasonably careful inspection unless the buyer had actual knowledge.