Priority of Interest Flashcards
What are the underlying principles of s28 and s27 LRA 2002?
s28 LRA 2002 states that a priority of interest in registered land ranks in order of creation, unless the transaction in question is a registered disposition for value completed by registration.
s27 LRA 2002 - registerable disposition. Failure to register exists only in equity
Principle of Sch 3 LRA 2002
Sch 3 LRA 2002 states that registration will be subject only to the matters on the register which override.
Lists interests capable of overriding a registered disposition such as a short lease or person in actual occupation.
Principle of Sch 4 LRA 2002
Sch 4 LRA 2002 sets out a registrable disposition.
Principle of Sch 7 LRA 2002
Sch 7 LRA 2002 states that failure to register such a transaction means that it is not a legal estate and can take effect in equity only.
Ways to protect an interest in Registered land
Restriction
Notice
How long does a person need to prove squatters rights in Registered and Unregistered land?
10 years - Registered
12 years - Unregistered
Apply to Court to remove if cannot prove.
How can you prove someone is in occupation?
By visiting the property and carrying out careful inspection.
Occupation must be obvious.
Commenced prior to transaction.
Decision made in the case of Chokkar
Court of Appeal held that Mrs Chokkar was in occupation even though she was temporarily absent.
Decision made is case of Link Lending v Hussein
Court held no single test for determining occupation.
Sufficient degree of continuity.
Principle in Abbey National Building Society v Cann
Occupation must exist when the transfer for purchase takes effect.
Principle of s29 LRA 2002
Purchaser bound by any enforceable rights noted on the register and any interests of those that can override.
Including legal easement if registered
Is an AST capable of being an overriding interest
s54 LPA 2002 - A lease is a legal lease and capable of overriding.
A lease under 3 years where regular rent is paid can be created without deed and cannot be protected by a notice.
Tenant vacate at end of the original term or serve notice to quit as per terms of lease.
Is a License capable of being an overriding interest
A license does not give any rights in land and is therefore not capable of overriding.
Equitable not legal as not registered.
Serve notice to quit.
Decision made in case of AIB Group (UK) Plc v Turner and Others [2015]
A person cannot claim occupation through someone else.
Is an unregistered lease capable of being an overriding interest
By virtue of s27 LRA 2002 a lease that has not been registered can take effect in equity only and will not override in their own right.
Rely on occupation.
