Registered land : Legal & equitable interest Flashcards
What are the three categories of the LRA 2002 for all estates and interests?
As seen before..
- Registrable dispositions
- Interests protected by entry
- Overriding interest
1st category; Legal interest: what is registrable disposition?
These forms of registrable dispositions must be registered to enforce legal interest…
a) transfer of registered freehold and leasehold; compulsory registration.
b) Grant of lease for more than 7 years; compulsory registration.
c) Express grant or reservation of an easement ; registration of deed.
d) Grant of a legal mortgage; registration of deed.
e) Grant of a landlord’s right of entry; registration of deed.
2nd category; Equitable interest: what are interests protected by entry?
No registration requirement BUT for an equitable interest to be binding and enforceable against a third party PURCHASER (it won’t be against a donee) it will depend on…
- Notice ; all equitable interest must be protected by a notice in the charges register.
OR
- Restriction
What do we mean by interests protected by entry of a notice?
NOT A doctrine of notice (unregistered land) - dnt get it twisted
The appropriate way to protect an interest which is intended to last beyond a change of ownership.
Examples of interests..
- Restrictive covenants affecting
freehold land - Estate contracts
- Equitable easements
- Equitable interests
NOT trusts interests!!
What do we mean by interests protected by entry of restriction?
The appropriate way to protect an interest which is not intended to last indefinitely.
! they cannot prevent disposition all together - just impose conditions before it is registered.
example..
the registered proprietor of the land is bankrupt.
The trustee in bankruptcy may enter a restriction to the effect that no disposition of the land may be registered without the his consent
Beneficial interests: what is overreaching?
When trustees sells or mortgages the land there is a risk of the new owner making sure that the beneficiaries do not have rights in the land which could bind.
Solution? Overreaching:
Moving the beneficiary’s interest away from the land and into money PROVIDED THAT the money is paid BY THE BUYER to at least TWO trustees (can’t happen with 1)
Result?
* Buyer or lender now holds the property free from the interests of the beneficiaries.
- Trustees hold the money on trust for the Bs - who now have an interest in the money not the land.
3rd category: what are overriding interests?
Interests which will bind a purchaser for value, whether a buyer or lender, even though they have not been protected by registration.
Schedule 3 of LRA 2002;
Para 1: legal leases for seven years or less .
Para 2: equitable interests held by people in actual occupation
Para 3: : implied legal easements and profits a prendre
Para. 1: why are legal leases for seven years or less an overriding interest?
leases for more than 7 years were seen in registrable dispositions as they bind any new owner.
With shorter leases, they will only bind as an overriding interest as there is just too many of them and unreasonable to expect everyone to register them..
Para. 2: what are equitable interests held by people in actual occupation?
Designed to protect people who do not realise they are in a vulnerable position.
Must be:
- an interest in land; proprietary not personal.
i.e: equitable interests in a trust of land.
AND
- the holder must be in actual occupation of the land .
BUT will not protect those who failed to disclose when could have been reasonably expected to do so.
Para. 3: what are implied legal easements?
They will be binding as an overriding interest if:
a. The new owner knew about it or
b. The new owner did not know about it, but it was obvious on a reasonable inspection of
the land or
c. It has been exercised within the 12 months immediately before the disposition
