Introduction to Land Registration

Question 1

What are the disadvantages of the unregistered land system?

Answer 1

• Very difficult to discover third party interests, where documentation is held by the right-holder themselves.
• There is no state guarantee of accuracy or compensation for error.
• Examining title deeds can be very difficult.
• As there are more documents to read and interpret the conveyancing process may be slower and incur more expensive legal fees for a purchaser.

Question 2

What is the history of land registration?

Answer 2

The LRA 2002 governs the present system of registration. The system was introduced by the LRA 1925.

It was envisaged that land would gradually be registered, region by region. From 1926 onwards central government designated various areas as being areas of compulsory registration, so eventually all of England and Wales would be registered. It was not until 1990 that all of England and Wales became designated as an area subject to compulsory registration.

LR estimates that approximately 13% of land in England and Wales is not registered.

Question 3

What are the advantages of the registered land system?

Answer 3

• Each registered title has a title plan which evidences the full extent of the property and usually also provides information as to who is responsible for the property’s boundaries.
• Once a title is registered a copy of the title can be easily and quickly downloaded from LR.
• Once a person is registered as the title owner that ownership is guaranteed by the State. Therefore, buyers are certain that the title to the land has been investigated and approved before registration. If it is incorrect then an innocent party who has suffered loss can make a claim for compensation against the LR.
• Speeds up the conveyancing process.

Question 4

What is compulsory registration?

Answer 4

Each time that unregistered land is sold for the first time, it must be registered.

Additionally, there are a number of circumstances which trigger compulsory registration. These triggering events apply to registered and unregistered land.

Question 5

Does the LRA 2002 provide for voluntary registration of unregistered land?

Answer 5

Yes, the LR offer reduced registration fees in these circumstances.

Question 6

What are the `triggering events’?

Answer 6

*Transfer of the freehold estate by sale, gift or court order.

*Grant of a lease for a term of more than 7 years.

*Assignment of a lease of unregistered land with more than 7 years to run.

*An assent, vesting assent or vesting deed which is a disposition of the freehold or leasehold with more than seven years to run.

*The grant of a lease to take effect in possession more than 3 months after the date of the grant (i.e. future leases).

*A first legal mortgage of the freehold or a leasehold with more than 7 years to run.