Land 4 Flashcards
What are the two methods of demonstrating ownership of land?
- Traditional system: unregistered system* Modern system: system of land registration introduced by the LRA 1925 repealed by the LRA 2002The two systems run in parallel
What does it mean when a seller deduces title to the buyer?
They prove that they own the land they are contracting to sell* Traditionally: production of documents (good root of title and unbroken chain of 15 years minimum)Modern: download a copy of title from HMLR
What is the traditional way of deducing title?
Producing documents commencing with a good root of title demonstrating an unbroken chain of ownership for a minimum of 15 years
What are the four main documents that would make up unregistered title?
- Conveyance on sale (transfer for valuable consideration)2. Deed of gift (no money exchanged)3. Mortgage deed4. Assent (transfer from a PR to a beneficiary)Note: each should be checked to ensure no defects e.g. it is properly signed and stamp duty is paid
What are the four requirements of a good root of title?
- At least 15 years old at the date of the contract for sale2. Deal with the whole legal and equitable interest in the property3. Contain adequate description of the property4. Do nothing to cast doubt on title
What is the epitome of title?
A chronological list of all the documents, together with a copy of each
What does the seller send to the buyer when deducing title?
The epitome of title (original deeds are only sent on completion when sale proceeds have been received)
What is ‘investigating title’?
The process of checking the documentation provided to ensure that a seller owns what they are purporting to sell. The main task of investigating title falls to the buyer’s solicitor, and this is done prior to exchange of contracts. Any queries about the title are known as ‘requisitions’.
What is a requisition?
A query made by buyer’s solicitor regarding title before exchange of contracts
When does title to unregistered land pass?
Completion (when purchase price is paid and document of transfer and title documents are handed to the buyer’s solicitor)
When does an application to HMLR for first registration of the buyer’s title need to be made?
Within 2 months of completion
How are third party interests in unregistered land generally discovered?
- Investigating the title* Carrying out conveyancing searches* Advising the buyer client to physically inspect the land.
Are buyers bound by the following third party interests:* Legal interests* Equitable interests capable of registration as land charges* Equitable interests not capable of registration as land charges* Unregistered interest which override first registration
- Legal: Yes, regardless of notice* Equitable interests capable of registration as land charges: only if registered* Equitable interests not capable of registration as land charges: Only if they have notice of them * Unregistered interest which override first registration: Yes, regardless of notice
What will a buyer of a legal estate purchase it subject to?
Any legal interest which subsists, whether or not they were aware
How are legal interests generally discovered?
Checking the deeds, or inspecting the propertyNote: the interest would have been created by deed so it would be in the epitome of title given to the buyer’s solicitor
When is a buyer bound by equitable interests?
When they have notice of them
What is required for most equitable rights and interests to be enforceable against subsequent buyers?
Registration with Land Charges Department of HM Land Registry
What are the 8 most common charges in the Land Charges Register?
C* C(i) puisne mortgage i.e. a mortgage not protected by the deposit with the lender of the title deeds e.g. a second legal charge* C(ii) limited owners charge (rare)* C(iii) general equitable charge not covered in the other categories (rare)* C(iv) estate contract, e.g. a contract to purchase, an option agreement, right of pre-emption, or similar.D* D(i) Relates to tax paid on death (rare)* D(ii) Restrictive covenants* D(iii) Equitable easementsF* F statutory right of occupation of non-owning spouse/civil partner
Barclays Bank holds a first legal charge over a piece of unregistered land. The unregistered title deeds to the land will be deposited with Barclays as security for the loan. If Halifax Bank is willing to lend more money to the landowner, how will their interest be protected?
Halifax Bank will have a second charge and will protect their interest by registering a C(i) land charge against the name of the landowner.
A owns a piece of land and has contracted to sell it to B, but completion of the purchase will not take place for another three months. The risk to B in this situation is that A might try to sell the land to someone else. How can B protect his interest?
Registration of the contract between A and B as a C(iv) estate contract will put any other potential buyer of the land on notice that A has already contracted to sell the land to B.
What are the two Class C land charges relevant to the SQE?
- C(i): Puisne mortgage, i.e. a mortgage not protected by deposit of title deeds, e.g. a second legal charge2. C(iv): Estate contract, e.g. a contract to purchase
What are the two Class D land charges relevant to the SQE?
- D(ii): Restrictive covenant2. D(iii): Equitable easement
A conveyance might contains a restrictive covenant on the land being sold stating that the land shall be used only as a residential dwelling. How can this covenant bind the buyer?
If the covenant is registered as a D(ii) land charge, this constitutes notice of the covenant and will bind a buyer of the land.
What is the relevance of registration of these land charges?
They constitute notice