Land Reg interests part

Question 1

if registered to land subject to? two types of interest?

Answer 1

INTERESTS ENTERED ON REG
any interested into reg relating to the estate - first time= at tiem of acquistion the estate was unreg there will be those interests regsitered as land charges under lca 1972

-OVERERIDING INTERESTS- first time- sch1
reg=complete sub transc of reg land= sch3

Question 2

what mainly deal with in exam?

Answer 2

overrding interests first

Question 3

process of both before on reg? for estates

Answer 3

Exchange contract complete ,signed deed transfer sent everything off to land register, purchaser new prop and now become reg land alright, if theres unreg 3rd parryty prop rights which affect unreg title will they bind the purchaser

Question 4

what about interests and reg land?

Answer 4

if unreg cant bind but if tehy unreg fit within overring interests can bind on reg too.

Question 5

what do overriding interests go against?

Answer 5

mirror principle that reg shoudl reflect not only who owns land but any 3rd parties affecting it

Question 6

increasing marks?

Answer 6

extra added info

Question 7

interests which override first reg?

Answer 7

sch1 will override reg-override the estate of a first registered proprietor (freeholds -S.11 LRA & leaseholds S.12 LRA).

Question 8

what are the 3 types of overriding interests in sch1?

Answer 8

• legal leases of 7 yrs or less in duration
• interests of persons in acc occ
• legal easements or profits

Question 9

what about sch 1 and 3?

Answer 9

The interests which override a first registration as listed in Schedule 1 are similar to but slightly wider than those overriding registered dispositions in Schedule 3.

sch 3 more signif and better to study

Question 10

Unregistered Third Party Interests which Override and Bind a Purchaser of Registered Land?

Answer 10

The following rights will bind a purchaser of a pre-existing Registered Title even though they do not appear on the Land Register, S.29 LRA). (Broadly similar to those in Schedule 1 but slightly more restricted in nature in places!).

Question 11

Schedule 3(1) LRA 2002:

Answer 11

Leasehold estates for 7 years or less
These override and will bind a purchaser of a registered disposition.

5 yr= legal lease, not on land reg as cant go on reg not long enough- e.g go to land lord lease for this time not on reg- but they do override and bound - u can vol reg but noone ever does- less = deed- unreg - but binding and overrrding

if over 7 you need to register or wont give you legal lease- not enough under sch 3 1 having deed

-could be in Australia time of completion doesn’t matter as it is legal elase all u have to do is turn up

Question 12

general rule for leases?

Answer 12

Legal leases – general rule- legal lease have to be by deed if lease is 3 yrs or less it can be legal lease if falls s.54 (2) lpa short leases

.g if u shake hands and agree 400 quid a month monthly legal tenancy under s54 2 so lease of 3 yrs or less can be lgal even though purely moral , you don’t need it, that will be legal leqase under sch 3 1` , deed requirements set out in s1 s2

e.g .g if robyn let house out 2 months b4 sell to me freehold , old bhosue charge 100 quid a month free hold take lease cause override each month les than 3 yrs could be yearly lease less than 3 so leases (legal) not eq legal lease override under s3 1

Question 13

what should we remember with legal leases and eq leases?

Answer 13

legal lease over seven years must be reg to make leg- automatically entered on reg of freehold land to which they relate - s38 lra 2002- so purchaser of land bound

eq-must be entered as notice on reg by holder of interest in order to be binding - if failed needs to satisfy req to enforce

Question 14

what is the most important category?

Answer 14

Schedule 3(2): The Interests of persons in actual occupation

Question 15

what about Schedule 3(2): The Interests of persons in actual occupation ?

Answer 15

Most important category of overriding interest.
Protects third parties who have property rights and who are in ‘discoverable’ actual occupation of the land at the time of practical completion & also it seems registration of the land purchase. See Abbey National v Cann (1991) and Thompson v Foy (2009).

Question 16

question you should ask with acc occ?

Answer 16

q ask you self: are there any parties here in actual occupation?- if yes the occ has to be reasonably discoverable under reasonable inspection has to be patent (discoverable) so if are in physical act occ of alnd in completion of purchase – are they physical and do they have prop rights bc if they were in physical ac op of alnda t time of purchase and this is same for sch 1

-buyer beware should have inspected- you shoudl have made enquiry- responsible for conseq if dont

Question 17

when will it be binding on purchaser?

Answer 17

under this provis where the holder of the interest can establish

• interest he holds is prop-legal or eq and not excluded by lra 2002
• interest existed at time of dispo
• were in acc occ to which the interests relates and either:
• the occ would be obv upon a reasonably careful inspection of land
• even if not obv the purchaser had actual knowledge of itnerst

failed case- hogson v marks failed to disclose interest if eenquiry of it- purchaser should make enquiry of actual holder of interest not enough to make enquires of registered owner

Question 18

examples of acc occ?

Answer 18

some physical presence on land which itself has degree of permanace or continuity

• temporary absence event at time of dispo may not preventing finding of acc occ - need reason e.g absence due to birth in hosp chokar v chokar - stockhiolm was more of a lenghty period
• persoitiiant intention to reutn to prop e.g in mental home-linklending v bustard = acc occc

Question 19

when must acc occ be established?

Answer 19

exist at time of transfer of land e.g when tranfer of deed is executed- abbey antional

e con- transfer (deed) and registation happens same time

Question 20

what is acc occ test?*

Answer 20

(i) It is the actual occupation of the third party right holder not the right itself which must be reasonably discoverable.
Test is: Would the transferee purchaser would have discovered the right holder’s actual occupation if he had made a reasonably careful inspection of the property?
Trial judge will resolve this question on evidence available.
(ii) Further, even if the actual occupation is not apparent on a reasonable inspection, the third party interest will still bind purchaser if he had actual knowledge of the property right.

Question 21

eg of test?**

Answer 21

(iii) Further, third party right will not override IF purchaser made inquiry of the right holder and asked for disclosure of the right and the third failed to disclose the same when he reasonably could have expected to do so.

The inquiry must be the correct one, such as the question :

E.g What property rights (if any) do you have in relation to this property?

if they dont register pruchaser bound

Question 22

what about personal rights?

Answer 22

Personal rights are excluded from section e.g licences.

e.g lodger licensee I can buy house and chuck u out, whereas acc occ cant kick u out= overriding interest

Question 23

what only falls within this section and examples?

Answer 23

Only property rights fall within section,
e.g options, (Webb v Pollmount (1966)

• Beneficial interests under trusts which are not overreached, (Williams & Glyn’s Bank v Boland (1981)
• Rights to rectify leases Blacklocks v J.B Developments (1982)

Question 24

other property rights in detail (cut down)?

Answer 24

Options 2 purchase Webb- had sit where had a land lord free holder has a tenant of a commercial prop , the landlord granted the tenant an option 2 purchase the landlords free hold, an option to purchase is a state contract , land lord gave tenant the right to cumpolsury purchase land lods free hold good as get it haldf the market value but the landlord then sold registered freehold to new landlord the tenant jumps up and wants to excertions option of purchase against new landlord the question was did the option bind new purchaser new landlord, the option to purchase very common in land law to a property right given to 3rd partyt- esate contract have to comply s2 , has to be consideration, now if option is valid normally to protect the option holder should have asked to register option as an acconomance against title, so should have registered both of your option as a burden against my land in charges part of land reg, so when robyn bought land she been bound by option, tenant didn’t do thatm prop right u can reg that, when didn’t change of lanflord purchaser u buy from me q was good option count as overrding interest, yes bc tiem u bought freehold from me you were still an acc occ cause tenant there with many yrs to go on lease and that acc occupation gave u a protefctive status so any prop rights you ahd could be overridn under 71 g lra 1925 now s3 2 2002 so wbb v pollmout 3rd party tenant had option- acc occ rendered option enforceable against new purchaser change of land as overding interest under s3 2- 1 type of prop right u can override but you need option holder to be acc occ and time
- Williams bank v boland = registered land wife and man she contributed cowonership in eq he remorgtated behind her back to Williams gyns back they get charge over land adanvance mortage money to him , she say he cant reposess against her, so she puts in defence and argues advanced rto 1 trustee not 2 so theres was no overreaching so she has an un overreached beneficial interest and court agrees and as unoverrwched = overriding interest- and she was ann acc occ and time of compelteiton she was and was lviign there just didn’t know what as going on- sch 3 2 – more infor 36 mins fcomplettion and register
Rights to rectify leases –block of flats built made into 4 flats on land – sells freehold to property hoders to- the 3 blocks had been sold all falts empty apart from flat 3 etc the purchaser flat 3 90 yr lease to young coule but rest of flats empty then he says are any overrding interest in relation to flats we said no then another letter saying double check and 90 yr lease u have exhnage of contract, completeltion and form of deed its like freehold now one xhncgae of contract the contract relseas ehasd a landlords repairing convenet which means that – ny lease which was compelted to the couple by deed , theyd left off landlords repairing coveneant so there was not reapiring obligation on landlord that means that rights to rectify completion , because fromalr elsease didn’t reflect contractuak and cause there was omission formal lease by deed = discrepancy gives tenants right in eq to sek rectification of final release against land lord the right to rectify a legal doc is an equitable property right itself that defect gave the tenant against landlord an equitable right of rectification to claim rectification , it was held in black locks that was a prop right and as tenan in occupation= overding interest , they said are there any overriding interet and they said no we didn’t tell truth , there was there was a right to rectify- msi rep falsestatement of fact which induces the contract we say no but did send another letter sayin to check so we had a trial , my arg duty was for them to check but breach of contract the tenants had right to rectify against these people th, landlord to override breac of contract fight it out and sort of draw get some but not all but then – contract and land law connected in conveyancing – right to rectify a lease to make it reflect agreement realse is treated as eq formal prop right so can override and bind a purchaser

Question 25

cases Case Law to be Read under Schedule 3(2) LRA 2002 & former S.70(1)(g) LRA 1925?

Answer 25

Williams and Glyn’s Bank v Boland [1981] AC 487;
Abbey National v Cann [1991] AC 56.
Chokkar v Chokkar [1984] Fam Law 129
Webb v Pollmount [1966] Ch 584
Blacklocks v Godalming Ltd [1962] Ch 183
Hodgson v Marks [1971] Ch 892
City of London Building Society v Flegg [198] AC 54
Birmingham Midshires v Sabherwal (2000) 80 P & CR CA 256
Thompson v Foy [2009] EWHC 1076 (Ch)
HSBC Bank v Dyche [2009] EWHC 2954
Link v Bustard (2010)

Question 26

Schedule 3(3): Certain Legal Easements & Profits?

Answer 26

Old legal easements which pre-date LRA 2002 continue to override a purchaser of a registered title Sched 12 para 9 LRA 2002.

Question 27

what about new legal easements?

Answer 27

For easements expressly created after LRA 2002 entered force 13.10.2003, these require protection by entry on register, whether legal or equitable (i.e easements by Deed or created by written contract).
Such express easements not so registered are equitable only and are outside section and do not override.

old override
new need to be reg to override

Question 28

so what overrides within this section for modern easements?

Answer 28

Thus it is impliedly granted legal easements which override and fall within the section. (i.e easements arising under S.62 PA, Wheeldon v Burrows doctrine or arising by prescription, common intention or necessity).

e.gif done 20yrs without permission openly without force and permission 20yrs law presumes that you have required grant of easement to you, if done for long enough you can get an easement e.g right of way, easement by prospection don’t need to register can voerrride

E.g when I sell house after 20yrs can go court against robyn easement against prescription , but go court have to prove use of 20yrs of it
-read as written

Question 29

what do you have to satisfy in addition for it to override?

Answer 29

In addition to override such easements will only override IF any one of the following conditions are satisfied:-

• the impliedly granted legal interest is within ‘the actual knowledge’ of the person to whom the disposition is made;
• the legal interest would have been obvious on a reasonably careful inspection of the burdened land;
• the person entitled to the benefit of the impliedly granted interest proves that it has been exercised in the period of one year ending with the day of the disposition.

Question 30

Protection of Property Rights on the Land Register?

Answer 30

Property interest which are not overriding interests to be binding on a purchaser of the land must be registered using the appropriate ‘device’. There are 3 types of device:

Question 31

what are the three types of devices?

Answer 31

1.A Notice records the substance of the property interest which will be binding on the purchaser.S.32/34 LRA, Most property rights of third parties can be protected by Notice, e.g options to purchase, easements, freehold covenants and equitable rights arising by proprietary estoppel and mere equities.

2.A Registered Charge
A legal mortgage existing in relation to registered land can only be created by a registered charge, S. 23 LRA. This charge is then registered over the land which has been mortgaged, with a charge being entered on the land register in favour of the mortgagee, e.g bank/building society.-If you lend money to me mrtage created by deed and morgattee one lending money wil put charge voer prp[ in q the charge be prt yo fland reg and use device by charge= CHARGEMORTAGAE= REG CHARE

3.Restrictions
A restriction regulates the circumstances in which a disposition of the registered title may be entered on the register by recording the conditions that must be met before a disposition of the land can be registered.
Typically beneficial interest behind trusts are protected by means of a restriction being entered on the Land Register of the land in question.– Deal with family type property rights (trust) constructive/expressed trust etc., can protect benefiicla interest in my porproty by restrictionwoukd be put in propr reg – conditions musr be met befoee reg prop can deal with prop,

Question 32

two types of notices?

Answer 32

Two types of Notice exist:-
‘Agreed Notices’ and ‘Unilateral Notices’.

Both give the third party property right protection and the transferee of the registered title takes subject to the right so protected.

Property Rights protected by such a Notice will be those of a commercial nature:
Options to Purchase
Estate Contracts
Freehold Covenants
Easements
Rights of Pre-Emption, Charging Order, estoppels, equities, leases under 7 years.

Question 33

what about unilateral notices?

Answer 33

With a unilateral Notice the registered is informed and can object within a time period and demand the third party prove his interest or lose it.
If acceptable evidence of the right is forthcoming, a new Agreed Notice can be entered on the register.
If no acceptable evidence is forthcoming of the interest, & and the matter is in dispute, it will be referred to the LRA Adjudicator to HM Land Registry for resolution one way or another.

Question 34

what about restrictions?

Answer 34

E.g Where two or more persons are registered as joint proprietors there is an obligation on the Land Registrar to enter a restriction to ensure overreaching occurs on any future disposition of the land, S. 44 LRA 2002.
Restrictions may also be entered by beneficiaries, to ensure that certain obligations under the trust are complied with by the registered legal owners of the land/trustees, when seeking to sell or transact with the land, e.g an obligation to obtain the beneficiaries prior written consent to the transaction in accordance with any such trust provision, S.42 LRA 2002.
Restrictions seek to control the power of the registered proprietor to deal with title
Read as written-if ur tenants I common joint tenant in eq one dies the other c=gets whole if 2 eq serpate but one in common if a dies b doesn’t get a share
Join ten in eq= expressed trust if no ev then will enter a restriction

Restrictions are something put on reg by beneficiares normally which puts some sort of restriction that trustee scan do with land like consult ebenficiaries first

Question 35

overreaching and reg land? when does this apply?

Answer 35

Overreaching is the process whereby certain equitable rights in land are swept off the land and switched to the purchase money paid for the land bought.

purchaser of trust of land can takr land free from beneficial interests under than trust- it can only applt to interests capable of exisitng without beign attached to land e.g ben itnerests under trsut as exist in money aswell over land

Question 36

conditions for overreaching?

Answer 36

Only certain equitable rights are so capable, i.e beneficial interests behind a trust of land, or under a strict settlement.
See City of London BS v Flegg (1988)
Equitable easements, options and leases etc can never be overreached.

Question 37

stat conditions for overreaching?

Answer 37

The sale by the registered proprietor must amount to an overreaching transaction (S.2(1) and 27 LPA).
Overreaching Transactions:-
(a) Where sale of land is made by two or more trustees, see City of London B.S v Flegg (1988), State Bank of India v Sood (1997) contrast Williams & Glyn’s v Boland (1981)
(b) Where transaction is made under provisions of Settled Land Act 1925
(c ) Mortgagee exercising its power of sale
(d) Court ordered sale under S.14 TOLATA

Question 38

how does overrreaching work?

Answer 38

paying purchase monies to atleast 2 trustees- s 2 27 lpa 1925 -interest effectively detached from land so that purchaser may take free from it - interest rests in money paid, rather than existing on land -d epending on terms will either distrubute moneya mong bene or reinevest- city v flegg succ - willlaims = unsuccessful

Question 39

alteration of ladn reg?

Answer 39

Central idea behind Land Registration is that the Register should be as accurate as possible & that it can be RELIED on by all persons dealing with the land.
Errors do occur in practice resulting in inaccuracy.

• s.65 and sch 4 lra 2002 lay down provisions for making alt to reg

Question 40

sch 4?

Answer 40

Schedule 4 dictates that FOUR circumstances can give rise to alteration of the Register:-
(i) In order to correct a mistake
(ii) To bring Register up to date
(iii) To give effect to any legal right or interest that is excepted from the effect of registration
(iv) Registrar’s power to remove superfluous entries
These tend to be administrative alterations aimed at correcting mistakes.

Question 41

what cant we have?

Answer 41

Cant have land law without land registration= basis of coursework

Question 42

Rectification of the Land Register?

Answer 42

More important aspect of changing the register= rectification

The correction of a mistake which could prejudicially affect the title of the registered proprietor is more serious and is known as ‘Rectification’.
Rectification – Special class of alteration of the Register in relation to which an Indemnity can be claimed.
Rectification arises when there is :-
(i) the correction of a mistake and (ii) it ‘prejudicially affects’ the title of a registered proprietor (Schedule 4)

• retification can occur where correction of mistake etc.. MORE SERIOUS – more serious cases= retification-indemnity
• more serious as can affect registered properietr of prop, mistake here does not describe faulty

Question 43

examples of rect?

Answer 43

(i) ‘Mistake’ here does not imply fault but is used in an innocent descriptive sense.

E.g Innocent person registered as proprietor following a purchase from X, but it is then established X fraudulently acquired the title from Y there is a ‘mistake’ when Y is no longer on the register.

E.g See Baxter v Mannion (2011) (adverse possessor ‘mistakenly’ albeit wrongly registered as proprietor when he had not completed his 10 years, gave rise to a rectification claim.

Question 44

more e.gs of rect?

Answer 44

(ii) An alteration effected so as to give effect to an overriding interest is never a ‘rectification’ as such because it does not ‘prejudicially affect’ the title of the registered proprietor, because the overriding interest would always have bound registered proprietor anyway.

• read as written- just cause reg prop didn’t spot it e.g solicitors negligence (surverors neg)
• power to rect serious mistake of reg prop who in actual poss of land can only occur in limited situations

(iii) Rectification against a registered proprietor in physical possession can only occur in certain circumstances:-
(a) where such a registered proprietor consents;
(b) where such a proprietor has caused or substantially contributed to the mistake through want of care or his own fraud

Question 45

further egs of rect?

Answer 45

(c) where it would be unjust not to correct the mistake

discretionay bit ‘UNJUST’ not to correct mistake
-MUST SHOW WHY IT IS UNJUST NOT TO RECTIFY – it is for burdern of proof on applicant to rectify reg

Question 46

what happened in case for c?

Answer 46

Walker v Burton (2012)
Held here that this is not a general power to disturb the title of the proprietor in possession and the existence of a mistake does not itself make it ‘unjust’ not to rectify, but rather applicant seeking rectification must show why it would be unjust not to rectify in the light of the mistake.
Relevant here is whether the applicant has himself been disposed and degree to which registered proprietor has relied on the registration and dealt with the land.

Rees v Peters (2011)
Here the mistake was an omission to register a restrictive covenant against the registered title and mere compensation for losing the benefit of the same would not adequately protect those claiming rectification, thus it was on facts unjust not to rectify.-neighbout promises other neighbour that wont build on land more than 1 house as disrupt other nighbouts view(restrictive cov freehold/0

Question 47

Indemnity?

Answer 47

Coupled with a claim for rectification is also the remedy of being able to claim an indemnity, financial compensation for any loss resulting from a mistake which would have or does result in rectification of the Register. (Schedule 8 LRA 2002).

-for compensating persons who suffer a loss as a result of mistakes in reg are goverened ther s.103 and above

Question 48

Also a claimant for an indemnity must show

either:?

Answer 48

(i) that the correction of the mistake has caused loss, e.g where an innocent person is removed as registered proprietor in order to correct a mistake & loses his title.
(ii) An indemnity may arise where the register has been corrected because of a mistake in a way that causes loss to the claimant, but the loss was caused by the mistake before the rectification;

(iii) Where there has been a mistake that would justify rectification but the mistake is not corrected, anyone who suffers loss may claim an indemnity, but the amount of the indemnity necessarily will be assessed according to the loss when the mistake was made, rather than when the register was
rectified.

Question 49

referrring back to hodg with idnem?

Answer 49

written- perhaps free hold cov has reduced value of prop
I would be like hodgson and marks = lodger took over and transferred-judge said never really intended that she wanted to give away = resulting trust the lodger then sold prop to purchaser marks and brought in good faith buys land and finds out old lady there with eq interet, guy bought land screwed over by fraudster claim indemnity because if she claimed retific the man would lose his house although he is isn’t

Question 50

what about if person does it themselves?

Answer 50

A claimant’s own lack of care or fraud can destroy his right to an indemnity or own contributory negligence can reduce any payment awarded.
Most indemnity claims are settled by HM Land Registry, but where the same is not the claimant has 6 years from when claimant became aware of mistake to bring court proceedings for the indemnity Schedule 8(8) LRA 2002
Schedule 8(1) also allows an indemnity to be claimed by other reasons e.g where the loss arises from a mistake in an official search, mistake in an official document, for loss of documents & registrar’s negligence.

e.g -hodsgon if purchaser didn’t even bother isnepcting land or surveryor not asking q could be argument or comp to be reduced

Question 51

what does disposition mean?

Answer 51

transferring to the care or possession of another. The parting with, alienation of, or giving up of property.

Question 52

Constructive Trust on Dispositions ‘Subject to?

Answer 52

In rare cases, where a third party has a property right, which he has not protected by registration, and which is not in the list of overriding interests, the right can be made binding on a Purchaser of the land in question, where the Purchaser takes the transfer of the land ‘subject to’ the third party’s right and has received a benefit for giving such an undertaking, e.g paid less for the land.

Question 53

constructive trusts in nutshell?

Answer 53

-in a nutshell resulting trust can arise where land converyed 1 person to another for free but if strangers equity presmumes don’t want to give land for nothing- prt – presumption in resulting trust- also can arise if 2 people wanna buy a house put in as name and b contributed then a will holdr esulting trust to reflect who paid what

Construction trust are more discretionary- construction trust can oppose where justice and good conscious require , this general idea od constructive trust in rare cases…
More???, 1 other expcetipn to rule where u only bound by reg of where u have right but if personal right sch 3applies

Question 54

cases for personal type of constructive trust?

Answer 54

In such instance the purchaser will take a transfer of the registered title and be bound by the third party right, by means of a ‘Personal Type of Constructive Trust’.
See:
Lyus v Prowsa Developments [1982] 1 WLR 1044; Binions v Evans [1972] Ch 59; Ashburn Anstalt v Arnold [1989] Ch1; IDC Group v Clark [1992] 1 EGLR 187
Lloyd v Dugdale [2002] WTLR 863.

Question 55

reform for land reg:?

Answer 55

The Future: E-Conveyancing

-Far reaching Reform envisaged by Part 8 LRA 2002 – introduction of an electronic conveyancing procedure for creating and transferring interests in land, by conveyancing solicitors with licensed access agreements hooked up to the land registry register.–not there yet,in time you can exchange cotnracts pretty quick, miture exchange contracts deeds and then land reg – they’ll be no need for dr1 deeds etc and then reg clarks wil lose jobs

The combined effect of S.93(2), Schedule 2 and Part 8 of the LRA 2002 is that in time if and when brought into force it will only be possible to create or transfer various interests in land by electronic means communicated via the Land Registry.
In time paper Deeds and written Contracts for creating and transferring interests in land will be rendered irrelevant.

Question 56

process of easements? in exam q

Answer 56

-

Question 57

process of option to purchase? in exam q

Answer 57

-

Question 58

proccess of acc occ? in exam q

Answer 58

-

Question 59

process if lodger? in exam q

Answer 59

-

Question 60

process of contrib with trust in exam q? e.g beneficial interest

Answer 60

-

Question 61

process of overreaching in exam q?

Answer 61

-

Question 62

principle of overrding interests?

Answer 62

-