Registered Land

Question 1

Before 1926 what kind of title in land must you have had to be able to enforce a right against a purchaser?

Answer 1

Legal

Question 2

What do we call that class of interests which do not need to appear on the land register?

Answer 2

Overriding interests

Question 3

When did the LRA 2002 come into force? What is the significance of this?

Answer 3

13 October 2003. Slightly different transitional provisions apply to interests that existed before this date.

Question 4

There are three parts to a land register. What are they? What does each one include?

Answer 4

1. Property register - address of property
2. Proprietorship register - owner of property
3. Charges register - any charges over the property

Question 5

What section of the LRA 2002 also grants a register to a leasehold exceeding seven years?

Answer 5

s27(2)(b)(i)

Question 6

Which statutory provision tells us what estates/interests have to be registered to become legal?

Answer 6

s27(2) LRA 2002

Question 7

What are the estates/interests that s27(2) LRA 2002 says must be registered as part of their creation?

Answer 7

(a) freehold (written in the Act as ‘transfer’);
(b) leasehold/’term of years absolute’ greater than seven years;
(c) don’t worry…something about mansions;
(d) express grant or reservation of interest falling under s1(2)(a) LPA 1925 ie easement that is equivalent to a freehold or leasehold;

Question 8

Section 27(2) LRA 2002 does not include every kind of interest, yet to be enforceable other interests should still be entered on the ‘charges register’. Which provisions tell us that all interests are enforceable on a disponee and must be entered on the charges register?

Answer 8

Sections 28 - all interests are enforceable against a disponee;
Section 29 - but they must be entered on the charges register if they are to be enforced against a third party.

Question 9

Which provision of the LRA 2002 describes the nature and effect of a notice on the charges register?

Answer 9

s32

Question 10

Does the fact that there is a s32 notice on the charges register mean the interest is valid?

Answer 10

Not necessarily (s32(3))

Question 11

Which interests are excluded from being included in the charges register according to s33 LRA 2002?

Answer 11

(a) (i) an interest under a trust of land
(b) (i) lease less than three years
(c) a restrictive covenant relating to rented premises

Question 12

What is the effect of failing to enter a notice on the charges register if a purchaser has registered their new estate?

Answer 12

It is not enforceable against them (s29(1) unless it is an overriding interest (s29(2)(a)(ii).

Question 13

If a buyer is aware of an unregistered interest may he still take the estate free of the interest?

Answer 13

Yes (De Lusignan v Johnson nb. this case was decided under the LPA 192 and not the new LRA 2002).

Question 14

In which case did the court enforce an interest in an estate despite it not being registered, because the court would not allow the LRA 2002 to be used as an instrument for fraud?

Answer 14

Lyus v Prowsa Developments

Question 15

What were the facts in Lyus v Prowsa Developments?

Answer 15

Lyus agreed a contract with a developer to purchase a part of his estate. The developer, however, went bankrupt and the bank, which had financed the estate, sold it on to Prowsa who agreed to honour Lyus’ contract. Prowsa sold on to another purchaser who refused to honour Lyus’ contract, which was still unregistered. The court ordered the property to be held on constructive trust for Lyus.

Question 16

Give an example of a restriction on a property and how a disponee may overreach it?

Answer 16

If two or more people are shown on the proprietorship register, the registrar will enter a restriction notice. To overreach the purchaser must pay their money to at least two trustees (s2(1)(ii) and s2(2) LPA 1925).

Question 17

Which provision tells us what a restriction is?

Answer 17

s40 LRA 2002

Question 18

How may you describe the process of overreaching?

Answer 18

It detaches the beneficial interests from the land and transfers them to the money paid by the purchaser to the two trustees.

Question 19

Was overreaching successful in the case of Williams & Glyn’s Bank v Boland? Why or why not?

Answer 19

No. The husband held the mortgaged property on implied trust for himself and his wife. He was the only trustee. The bank could only take the property subject to the wife’s overriding interest as she was in actual occupation.

Question 20

Which case may we compare with Williams & Glyn’s Bank v Boland?

Answer 20

City of London Building Society v Flegg

Question 21

How were the City of London Building Society able to overreach the interest of Mr. and Mrs. Flegg?

Answer 21

Mr and Mrs. Flegg were living with a married couple, who were the registered legal owners. They had contributed to the purchase price and argued they had an overriding interest. The building society were able to overreach because they had two trustees, the couple, who they could pay.

Question 22

Where do we find the list of overriding interest?

Answer 22

Schedule 3 LRA 2002

Question 23

What are the overriding interests listed in paras 1-3 of schedule 3 LRA 2002?

Answer 23

1. legal leases not exceeding seven years
2. any interest held by a person in actual occupation
3. legal easements acquired by implied grant/reservation or by prescription

Question 24

In what three situations only will an unregistered legal easement acquired by implied grant/reservation be enforceable against a purchaser for value?

Answer 24

(a) if the purchaser is aware of the easement; or
(b) it is obvious on the reasonable inspection of the land; or
(c) the easement has been exercised within one year prior to disposition.

Question 25

When will a person in actual occupation holding a beneficial interest not be able to override?

Answer 25

1. If the person does not disclose their interest on reasonable inquiry; or
2. the interest belongs to a person who is not obviously in occupation on reasonable inspection and the purchaser has no knowledge of the interest.

Question 26

What happened in Webb v Pollmount?

Answer 26

The plaintiff had a lease with an unregistered option to purchase the freehold. He was able to enforce the option as an overriding interest.

Question 27

What happened in Hodgson v Marks?

Answer 27

The plaintiff transferred the legal interest to Mr. Evans without intending to transfer the beneficial interest. Evans sold the property to Marks and absconded. Hodgson remained in actual occupation all the time. Marks took possession subject to Hodgson’s right.

Question 28

Can actual occupation be by proxy? What three cases considered this question?

Answer 28

A step-daughter could not act as proxy for the owner (Strand Securities v Caswell);
In obiter Lord Oliver suggested a caretaker could occupy on behalf of his employer (Abbey National Building Sociey v Cann);
weekly visits by a cleaner nor fortnightly visits by the owner’s driver were sufficient for occupation by proxy (Stockholm Finance v Garden Holdings Inc).

Question 29

In Williams & Glyn’s Bank v Boland, Lord Wilberforce ‘actual occupation’ should be given its ordinary meaning? What was the issue with applying this in Lloyd’s Bank v Rosset?

Answer 29

The property was semi-derelict and being developed.

Question 30

How did the bank argue that Mrs. Rosset was not in actual occupation in Lloyd’s Bank v Rosset?

Answer 30

The bank argued Mrs. Rosset needed to be in actual occupation when the legal charge was executed and having builders did not constitute actual occupation.

Question 31

What did the court hold in Lloyd’s Bank v Rosset?

Answer 31

The relevant date for actual occupation is the date of completion of contracts not registration and the intensity of occupation must be measured against the state of the premises.

Question 32

Legal easements, whether express or implied, will always bind a purchaser, but what if an equitable easement is not entered on the notice register? Can one ever claim they are in actual occupation on the basis of an equitable easement?

Answer 32

A right of way could not ever form the basis for actual occupation (Holaw (470) Ltd v Stockton Estates Ltd).
In Chaudhary v Yavux, Lloyd LJ suggested in obiter that some easements, depending on their nature, might form the basis for an argument of actual occupation.

Question 33

At what time did Thompson v Foy say a person should be in actual occupation?

Answer 33

At the time of grant (ie transfer of the deed) and possibly registration.

Question 34

What is the effect of a charge under the Family Law Act 1996?

Answer 34

It gives the spouse or civil partner an interest in the home

Question 35

What rights does s30 FLA 1996 give the spouse/civil partner?

Answer 35

The right not to be evicted if in occupation (except by order of the court) and the right to enter and reside if not in occupation (with leave from the court).

Question 36

How long according to s31 FLA 1996 does the spouse/civil partner’s rights last?

Answer 36

Until the end of the marriage/civil partnership through death, divorce or dissolution unless the court extend (s33(5)) or remove this right (s33(3)).

Question 37

Does a charge under FLA 1996 give the spouse/civil partner the right to the proceeds of sale when property is disposed?

Answer 37

No

Question 38

What happened in Kaur v Gill?

Answer 38

A marriage broke down and the husband sold the house to a blind man and his family. The wife was living with her family and entered a charge on the house a few days before the disposition was completed. The court took the purchaser’s circumstances into account and terminated the wife’s charge.

Question 39

If there is a mistake in the register how is it rectified?

Answer 39

Schedule 4 LRA 2002 allows the registrar or the court to alter the register if there has been fraud or the parties consent.

Question 40

Which schedule of the LRA 2002 allows a party who has lost due to the register being rectified an indemnity?

Answer 40

Schedule 8

Question 41

In Chhokar v Chhokar the wife was held to be in actual occupation, but where was she at the time the house was sold by her husband?

Answer 41

In hospital giving birth

Question 42

Where was the plaintiff in Link Lending v Bustard when the court held her to be in actual occupation?

Answer 42

In a residential care home sectioned under the Mental Health Act 1983. She did make brief visits to the property and she had left furniture behind.