Land - Title / Doctrine of Notice LGS 20

Question 1

LRA 2002 Expanded sheme of registration to include:

Answer 1

Legal estates, franchises, rentcharges and Profits a Prendre.

Question 2

Requirement of Registration is triggered by any of 4 events

Answer 2

Transfer of a qualifying estate - unregistered freehold in land or unregistered leashold estate with more than ssven years ot run, either for consideration or as a gift.

The grant out of a qualifying estate of a lease for more than seven years from the date of grant for valuable or other consideration or by way of gift.

(iii) the grant out of a qualifying estate of a lease (of whatever length) that will take effect in possession more than three months from the date of the grant; and
(iv) the creation of a ‘protected’ first legal mortgage (as defined by LRA2002).

Question 3

1.3.2 FAILURE TO REGISTER

Answer 3

Where requirement to register applies under s.4 LRA 2002, transferee or the borrower of relating to the estate is under a duty to apply for first registration during the period for registration s.6 LRA 2002, usually this period os 2 months befining with the trigger event.

s.6 In an attempted transfer, the legal estate will revert to the transferor who holds it on a bare trust for the transferee.

S.7 In all other cases tgrant takes effect as a contract to grant the relevant legal estate

Question 4

Voluntary Registration

S.3

1 / 2nd class that can be registerd

Answer 4

Extended category of interests that may be registered to one of 7 classes or graded.

(a) Absolute freehold: the most common, person registered if the registrar considers title is such that a willing buyer could properly be advised by a competent professional adviser to accept. The registered proprietor will take estate with all subsisting benefits, and subject only to entries on the register, interests that override registration (Sched 1 LRA 2002) and certain rights of adverse possession (‘squatters’ rights).
(b) Qualified freehold: a rare title, where the registrar considers the title is subject to some reservation.

Question 5

following 5 Classes that may be voluntarily registered

Answer 5

(c) Possessory freehold: where the title is based on adverse possession, or the title deeds have been lost.

(d) Absolute leasehold: is similar to absolute freehold, and is only given when the superior title is registered or has been approved by the registrar. This title is also subject to all the express and implied terms of the lease.
(e) Good leasehold: this is given when the superior title has not been registered or approved.
(f) Qualified leasehold
(g) Possessory leasehold

Question 6

3. REGISTRABLE DISPOSITIONS

Answer 6

S.27 LRA 2002 Dispositions that must be registered of a registered estate i.e. other transactions. Will only be binding if registered.

(i) any transfer of a registered estate (subject to certain exceptions);
(ii) any grant of a lease for a term of more than seven years out of a registered title;
(iii) any express grant of a legal interest as defined in s.1(2) LPA 1925 (subject to certain exceptions; and
(iv) the grant of a legal charge (mortgage).

Question 7

4. OWNER’S POWERS

authority?

Answer 7

: ss. 23-26 LRA 2002. - Conclusive as to the powers of disposition

Owner entitled to make dispositions if he is registered,

The disponee may assume there are no limations unless there is an entri to that effect in the register.

Question 8

5. PRIORITIES REGARDING REGISTERED DISPOSITIONS

S.29 LRA 2002

Answer 8

Purchaser for valueable consideration takes the registered estate subject to interests noted on the register and interests which override.

Question 9

6. INTERESTS PROTECTED BY ENTRY ON THE REGISTER: THIRD PARTY RIGHTS
   s. 27 LRA 2002

Answer 9

any interest that is not registered as a registrable disposition and does not override must be protected by an entry on the register.

after 2003 the only entry methods that can be used to protect these interests will be Notices, Restrictions and Cautions against First Registration.

Question 10

6.1 Notices (ss. 32-39 LRA 2002)

(3)

Answer 10

agreed (with the consent of the registered proprietor) or unilateral

Registrar will enter them on charges register of a title and will be used to protect brudens on the land such as restrictive covenants, easements and rights of occupation .

Notices are not used to protect trusts of land or restrictive covenants in leases.

Question 11

6.2 Restrictions (ss. 40-47 LRA 2002)

(3)

Answer 11

Regulate circumstances in which a disposition relating to a registered interest or charge may be made, by imposing conditions under which an entry may be made on the register.

Useful for trust property can be used to ensure beneficial itnerests under the trust will be over reached.

**A restriction may be entered without consent of registered proprietor. **

Question 12

7. PRIORITIES BETWEEN INTERESTS AFFECTING REGISTERED ESTATES
   s. 28 (1) LRA 2002

And

s.29 LRA 2002

Answer 12

General rule - priority determined by date of creation not registration for things like equitable mortgages.

However Registered dispositions for valuable consideration will take priority over earlier interests if those earlier interests are not protected in one of the prescribed ways.

Ss.28 and 29 largely mean doctrine of notice has no application to registered title.

Question 13

8. INTERESTS NOT PROTECTED BY ENTRY ON THE REGISTER: THIRD PARTY RIGHTS THAT OVERRIDE REGISTRATION

Schedule 12 LRA 2002

Answer 13

sched 12 provides a framework within which existing overriding interests retain their overriding status subject to certain conditions.

Question 14

9. LRA 2002 AND THIRD PARTY RIGHTS WHICH OVERRIDE REGISTRATION

S.71 LRA 2002

(3)

Answer 14

2002 Act Referes to unregistered interests which override first registration.

imposes a duty on the applicant for first registration or registration of a dealing with a registered estate to disclose such information as the rules may require about overriding interests affecting the estate.The registrar will then have the opportunity to enter these interests on the register. Once registered they no longer over ride.

There is however no sanction if the applicant fails to disclose the existence of such interests, and the interests remain overriding even if undisclosed.

Question 15

9.1 Unregistered interests which override first registration: s.11 and Sched 1 LRA 2002.

Answer 15

On first regisration the proprietor will take subject to interests that over ride including

9.1.1 A leasehold estate in land granted for a term not exceeding 7 years (with exceptions).

9.1.2 The interest of a person in actual occupation in relation to the land of which that
person is in occupation.

9.1.3 A legal easement or profit a prendre.

Question 16

9.2 Unregistered interests which override registered dispositions: s.29 and
Sched 3 LRA 2002.

Answer 16

On the disposition of a registered estate, the disposition is subject to entries on the register, and any interests affecting the estate listed in Sched 3 LRA 2002. INc =

9. 2.1 A leasehold estate in land granted for a term not exceeding 7 years and which is not a registrable disposition.
10. 2.2. An interest belonging to a person in actual occupation. ………….
    inc. an interest belonging to a person in actual occupation except for an interest of whome enquiry made and not disclosed or on inspection would not have been obvious and the person inspecting does not know of

Question 17

HSBC Bank v Dyche (2009) EWHC 2954 (Ch)

Answer 17

Gives indication of type of enquiries the purchaser should make

Protection is afforded to those in physical occupation of the parts of the land actually occupied, and protection can be denied if the occupation is not obvious or has not been disclosed by the occupier in circumstances where it would have been reasonable to do so.

Question 18

Strand Securities Ltd v Caswell [1965]

Answer 18

In order to constitute overriding interest, actual occupation and some proprietary interest were required. Without either one, person cannot estabilsh the overriding interest.

In caswel, owner had prioprietary interest but no occupation and daughter had occupation as a licensee but no interest. There was no overriding interest.

Question 19

Williams and Glyn’s Bank Ltd v Boland [1981

Chhokar v Chhokar [1984]

Abbey National Building Society v Cann [1990]

Answer 19

Actual occupation - Lord wilberforce stated was a question of fact to be interpreted in plain english.

Temporary abscense for holidays or hospital treatment would not destroy occupation, occupation via an angent was a possibility.

Parking on an unidentified part of land would not suffice, nor would laying carpets or furniture.

Question 20

City of London Building Society v Flegg [1988] AC 54

Thompson v Foy [2009]

Link Lending Ltd v Bustard [2010]

Answer 20

The interest of a beneficiary in occupation of the property under a reulting or constructive trust could qualify as an overriding interest, but could be overreached.

confirmed the need for physical presence (although this could be achieved by a representative).

Question 21

1

Legal estates, franchises, rentcharges and Profits a Prendre.

Answer 21

LRA 2002 Expanded sheme of registration to include:

Question 22

1

Transfer of a qualifying estate - unregistered freehold in land or unregistered leashold estate with more than ssven years ot run, either for consideration or as a gift.

The grant out of a qualifying estate of a lease for more than seven years from the date of grant for valuable or other consideration or by way of gift.

(iii) the grant out of a qualifying estate of a lease (of whatever length) that will take effect in possession more than three months from the date of the grant; and
(iv) the creation of a ‘protected’ first legal mortgage (as defined by LRA2002).

Answer 22

Requirement of Registration is triggered by any of 4 events

Question 23

1

Where requirement to register applies under s.4 LRA 2002, transferee or the borrower of relating to the estate is under a duty to apply for first registration during the period for registration s.6 LRA 2002, usually this period os 2 months befining with the trigger event.

s.6 In an attempted transfer, the legal estate will revert to the transferor who holds it on a bare trust for the transferee.

S.7 In all other cases tgrant takes effect as a contract to grant the relevant legal estate

Answer 23

1.3.2 FAILURE TO REGISTER

Question 24

1

Extended category of interests that may be registered to one of 7 classes or graded.

(a) Absolute freehold: the most common, person registered if the registrar considers title is such that a willing buyer could properly be advised by a competent professional adviser to accept. The registered proprietor will take estate with all subsisting benefits, and subject only to entries on the register, interests that override registration (Sched 1 LRA 2002) and certain rights of adverse possession (‘squatters’ rights).
(b) Qualified freehold: a rare title, where the registrar considers the title is subject to some reservation.

Answer 24

Voluntary Registration

S.3

1 / 2nd class that can be registerd

Question 25

1

(c) Possessory freehold: where the title is based on adverse possession, or the title deeds have been lost.

(d) Absolute leasehold: is similar to absolute freehold, and is only given when the superior title is registered or has been approved by the registrar. This title is also subject to all the express and implied terms of the lease.
(e) Good leasehold: this is given when the superior title has not been registered or approved.
(f) Qualified leasehold
(g) Possessory leasehold

Answer 25

following 5 Classes that may be voluntarily registered

Question 26

1

S.27 LRA 2002 Dispositions that must be registered of a registered estate i.e. other transactions. Will only be binding if registered.

(i) any transfer of a registered estate (subject to certain exceptions);
(ii) any grant of a lease for a term of more than seven years out of a registered title;
(iii) any express grant of a legal interest as defined in s.1(2) LPA 1925 (subject to certain exceptions; and
(iv) the grant of a legal charge (mortgage).

Answer 26

3. REGISTRABLE DISPOSITIONS

Question 27

1

: ss. 23-26 LRA 2002. - Conclusive as to the powers of disposition

Owner entitled to make dispositions if he is registered,

The disponee may assume there are no limations unless there is an entri to that effect in the register.

Answer 27

4. OWNER’S POWERS

authority?

Question 28

1

Purchaser for valueable consideration takes the registered estate subject to interests noted on the register and interests which override.

Answer 28

5. PRIORITIES REGARDING REGISTERED DISPOSITIONS

S.29 LRA 2002

Question 29

1

any interest that is not registered as a registrable disposition and does not override must be protected by an entry on the register.

after 2003 the only entry methods that can be used to protect these interests will be Notices, Restrictions and Cautions against First Registration.

Answer 29

6. INTERESTS PROTECTED BY ENTRY ON THE REGISTER: THIRD PARTY RIGHTS
   s. 27 LRA 2002

Question 30

1

agreed (with the consent of the registered proprietor) or unilateral

Registrar will enter them on charges register of a title and will be used to protect brudens on the land such as restrictive covenants, easements and rights of occupation .

Notices are not used to protect trusts of land or restrictive covenants in leases.

Answer 30

6.1 Notices (ss. 32-39 LRA 2002)

(3)

Question 31

1

Regulate circumstances in which a disposition relating to a registered interest or charge may be made, by imposing conditions under which an entry may be made on the register.

Useful for trust property can be used to ensure beneficial itnerests under the trust will be over reached.

**A restriction may be entered without consent of registered proprietor. **

Answer 31

6.2 Restrictions (ss. 40-47 LRA 2002)

(3)

Question 32

1

General rule - priority determined by date of creation not registration for things like equitable mortgages.

However Registered dispositions for valuable consideration will take priority over earlier interests if those earlier interests are not protected in one of the prescribed ways.

Ss.28 and 29 largely mean doctrine of notice has no application to registered title.

Answer 32

7. PRIORITIES BETWEEN INTERESTS AFFECTING REGISTERED ESTATES
   s. 28 (1) LRA 2002

And

s.29 LRA 2002

Question 33

1

sched 12 provides a framework within which existing overriding interests retain their overriding status subject to certain conditions.

Answer 33

8. INTERESTS NOT PROTECTED BY ENTRY ON THE REGISTER: THIRD PARTY RIGHTS THAT OVERRIDE REGISTRATION

Schedule 12 LRA 2002

Question 34

1

2002 Act Referes to unregistered interests which override first registration.

imposes a duty on the applicant for first registration or registration of a dealing with a registered estate to disclose such information as the rules may require about overriding interests affecting the estate.The registrar will then have the opportunity to enter these interests on the register. Once registered they no longer over ride.

There is however no sanction if the applicant fails to disclose the existence of such interests, and the interests remain overriding even if undisclosed.

Answer 34

9. LRA 2002 AND THIRD PARTY RIGHTS WHICH OVERRIDE REGISTRATION

S.71 LRA 2002

(3)

Question 35

1

On first regisration the proprietor will take subject to interests that over ride including

9.1.1 A leasehold estate in land granted for a term not exceeding 7 years (with exceptions).

9.1.2 The interest of a person in actual occupation in relation to the land of which that
person is in occupation.

9.1.3 A legal easement or profit a prendre.

Answer 35

9.1 Unregistered interests which override first registration: s.11 and Sched 1 LRA 2002.

Question 36

1

On the disposition of a registered estate, the disposition is subject to entries on the register, and any interests affecting the estate listed in Sched 3 LRA 2002. INc =

9. 2.1 A leasehold estate in land granted for a term not exceeding 7 years and which is not a registrable disposition.
10. 2.2. An interest belonging to a person in actual occupation. ………….
    inc. an interest belonging to a person in actual occupation except for an interest of whome enquiry made and not disclosed or on inspection would not have been obvious and the person inspecting does not know of

Answer 36

9.2 Unregistered interests which override registered dispositions: s.29 and
Sched 3 LRA 2002.

Question 37

1

Gives indication of type of enquiries the purchaser should make

Protection is afforded to those in physical occupation of the parts of the land actually occupied, and protection can be denied if the occupation is not obvious or has not been disclosed by the occupier in circumstances where it would have been reasonable to do so.

Answer 37

HSBC Bank v Dyche (2009) EWHC 2954 (Ch)

Question 38

1

In order to constitute overriding interest, actual occupation and some proprietary interest were required. Without either one, person cannot estabilsh the overriding interest.

In caswel, owner had prioprietary interest but no occupation and daughter had occupation as a licensee but no interest. There was no overriding interest.

Answer 38

Strand Securities Ltd v Caswell [1965]

Question 39

1

Actual occupation - Lord wilberforce stated was a question of fact to be interpreted in plain english.

Temporary abscense for holidays or hospital treatment would not destroy occupation, occupation via an angent was a possibility.

Parking on an unidentified part of land would not suffice, nor would laying carpets or furniture.

Answer 39

Williams and Glyn’s Bank Ltd v Boland [1981

Chhokar v Chhokar [1984]

Abbey National Building Society v Cann [1990]

Question 40

1

The interest of a beneficiary in occupation of the property under a reulting or constructive trust could qualify as an overriding interest, but could be overreached.

confirmed the need for physical presence (although this could be achieved by a representative).

Answer 40

City of London Building Society v Flegg [1988] AC 54

Thompson v Foy [2009]

Link Lending Ltd v Bustard [2010]