topic 2- registration, estate and interests

Question 1

unregistered land

land registeration act 1925 and the land charges register

Answer 1

↳unregistred system is complex and has weaknesses
land registration act 1925- registration of titles (may be more than one title)
↳registration of freehold and long leasehold estates
↳registration of mortages and charges
↳overriding interests- not on the register but were still protected
↳state guarantee

land charges act 1972 (replaced land charges act 1925
↳reduces the scope of the doctrine because more was on the register
↳registration of a charge is notice (LPA 1925 s198 [1])

when dealing ith a beneficial interest under a trust, purchaser will be bound unless purchaser is equity’s darling

Question 2

land registration act 2002

Answer 2

the purpose of the bill [sic,] is a bold and striking one. it is to create the necessary legal framework in which registered conveyancing can be conducted electronically

moves away from registration of title to title by registration where it “will be the fact of registration and registration alone that confers title”
↳a means of managing the enforceability of property rights in land
↳a way of tackling complexity, by providing a central record of title to land
↳each individual register describes the estate and tells us about interests over the land

Question 3

what are the ambitions of the LRA 2002

Answer 3

↳facilitate and speed up conveyancing
↳protect purchasers
↳assure security and land transactions
↳bring more titles within the registration system
- efficency
- transparency
- certaunty ans simplicity

‘ensuring that capital can circulate freely in the economy by making land readily available as security’

Question 4

what are the three principles that underpin land registration act 2002

Answer 4

• mirror principle
• insurance principle
• curtain principle

mirror principle
↳register is the accurate and conclusive reflection of interests affecting land (note but there are overriding interests)

insurance principle
↳accuracy of the register is gauranteed
↳if the register is found to be innaccurate and an individual is adversely affected then they will recive compensation
↳but overriding interests are excepted

curtain principle
↳the purchaser is not concerned with matters behinf the entries on the register
↳trust which affect land will not be enteres on the register
↳overriding interests

Question 5

what is the signiface of the LRA 2002

Answer 5

• transforms fundemental basis of entitlement to land from possession or deeds as good root of title to registration as the source of title
• under the LRA 2002, the ‘basis of title .. is not possession, but the register itself’ - law com 254
• ‘[A] large shift in the philisophical basis of english land law away from the phenonmenon of possession and towards the ideology of ownership’- gray & gray, elements of land law (4th edn, OUP 2005)

Question 6

what do we know about the LRA 2002

Answer 6

it moves the focus from the deed to registration as the basis of the title

it adresses two key questions…
1. what estates and interests exist over the land?
2. is a purchaser bound by those interests?

land registration act 2002
- underpinned by three principles
(a) mirror
(b) curtain
(c) insurance

Question 7

what is the land registration act - 2002 application first registration of title

Answer 7

unregistered land
↳compulsory registration (increase numbers)
↳transfer of a qualifying estate (valuable consideration, any consideration gift, order of the court, [artition etc)
↳ a lease greater than seven years, or taking effect after three months

non-compliance (section 7)
‘if the requirment of registration os not complete, the transfer is void as regards the transfer, grant or creation of a legal estate’ [LRA 2002, 7 (1)]

Question 8

when does a trust arise

Answer 8

(a) explicitly [express]
(b) impliedly [informal]

where the legal title (name on the deed) is separated from the equitable title (ownership)

Question 9

dispositions of registered land part 3- LRA 2002

Answer 9

LRA 2002
- registrable dispositions LRA 2002 s27
- interest protected by notice or restriction LRA 2002 s32/s33/s40
- overriding interests LRA 2002 schedule 3

Question 10

LRA 2002 s27- registerable dispositions

Answer 10

s27 dispositions to be registered
(1) if a disposition of a registered estate or registered charge is required to be completed by registration, it does not operate at law until the relevant registration requirments are met

required to be completed by registation to operate at law

Question 11

LRA 2002 s27- registerable dispositions

Answer 11

in the case of a registered estate, the following are the dispositions which are required to be completed by registration-
(a) a transfer
(b) where the registred esata in land, the granr if a term of years absolute-

↳(i) for a term of more than seven years from the date of the grant
↳(ii) to take effect in possession after the end of the period of three months beginning with the date if the grant
↳(iii) under which the right to possession is discontinuous
↳(iv) in pursuance of part 5 of the housing act 1985 (c. 68) (the right to buy or)
↳(v) in circumstances where section 171 A of that act applies (disposal by landlord which leads to a person no longer being secure tenant)

(c) where the registered estate is a franchise or manor, the grant of a lease.

(d) the express grant or reservation of an interest of a kind fakking within section 1(2)(a) of the LPA 1925 (c.20), other than one which is capable of being registered under part 1 of the commons act 2006

(e) the express grant or reservation of an interest of a kind falling within section 1(2)(b) or (e) of the LPA 1925 and

(f) the grant of legal charge

(3) in the case of regustered charge, the following are the dispositions which are required to be completed by registration-
(a) a transfer, and
(b) the grant of a sub-charge

Question 12

how to transfer a legal estate?

Answer 12

formalities
↳exchange of contracts compliant with the LP (MP) Act 1989 s2
↳must be by deed (LPA 1925 s52)
↳must comply with the requirments of the LP (MP) Act 1989 s1

registration
↳to take effect of law it must be completed by registration (LRA 2002
↳if registered, then
↳LRA 2002 s26- rights unlimited unless there is an entry on the register or overridinf interests- rules of priority (LRA 2002 s28, s29, s30)- later

Question 13

what is ‘(d) the express grant or reservation of an interest of a kinf failing within section 1(2)(a) of the LPA 1925

Answer 13

easment

Question 14

what is ‘(e) the express grant or reservation of an interest of a kinf falling within section 1 (2) (b) or (e) of the LPA 1925

Answer 14

rent charge and right if entry

Question 15

what is ‘(f) the grant of a legal charge)

Answer 15

mortgage

Question 16

what is the basic rule of the LRA 2002 s28

Answer 16

basic rule
(1) except as provided by section 29 & 30, the priority of an interest affecting a registred estate or charge is not affected by a disposition of the estate or charge
(2) it makes no difference for the purposes of this section whether the interest ot disposition is registred

Question 17

what is the effect of disposition on priority LRA 2002 s29

Answer 17

s29 effect of registred disposition: estates
(1) if a registrable disposition of a registred estate is made fot valuable consideration completion of the disposition by registration has the effect of postponinh to the interest under the disposition any interest affecting the estate immediately before the disposition whose priority is not protected at the time of registration

(2) for the purposes of subsection (1), the priority of an interest is protected (a) in any case, if the interest-
(i) is a regustred charge or the subject ig a notice in the register,
(ii) falls within any of the paragraphs of shedule 3

Question 18

what is meant by valuable consideration

LRA 2002 132 (1)

Answer 18

↳ the LRA 2002 132 (1) “valuable consideration” does not include marriage consideration or a normal consideration

so what is vlauable consideration?

in Midland Bank, the house of lords considered the meaning of “valuable consideration” in the land charges act 1925. Lord Wilberforce said that “valuable consideration” is “a term of art which precludes any inquiry as to adequacy… it is an expression denoting an advantage conferred or detriment suffered”. This interpritation appears to treat the concept of valuable consideration as broadly equivalent to consideration in contract

Lod wilberforce- Midland Bank Trust co Lts v Green [1981] AC 513, 531

Question 19

what are the effects of LRA 2002 s29

3 bullet points

Answer 19

↳if the house is sold for valueable registration the new owner is only bound by the interests that are:
↳protected by a notice
↳ or dall with schedule 3

Question 20

what are the other interests where priority is protected by registration

Answer 20

↳an express easement LRA 2002 s27 (d)
↳legal charge (a legal mortage) LRA 2002 s27(f)
↳an express right of entry and estate charge (LRA 2002 s27 (e))

what are these interests?
interests which must be completed by registration LRA 2002 s27
if these interests are completed by registration thay are protected by s32 notice

Question 21

what is the LRA 2002 s32 notices

Answer 21

nature and effect
1. a notice is an entry in the register in respect of the burden of an interest affecting a registered estate or charge
2. the entry of a notice is to be made in relation to the registered estate or charfe affected by the interest concerened.
3. the fact that an interest is the subject of a notice does not necessarily mean that the interest is valid, but does mean that the priority of the interst, if valid, is protected for the purposes of section 29 & 30.

Question 22

what are the interests commonly protected by notice

Answer 22

• equitable easements
• equitable mortages
• restrictive covenants
• equitable leases
• estate contracts (contract for sale)

note s33, beneficial interests under a trust and short leases cannot be protected by entry of a s 32 notice

Question 23

LRA 2002 s33- interest excluded from notice

Answer 23

33 excluded interests
- no notice may be entered in register in respect of any of the following:
(a) an interest under-
(i) a trust of land, or
(ii) a settlement under the settled land act 1925 (c. 18),

(b) a leasehold estate in land which-
(i) is granted for a term of years of three years or less from the date of the grant, and
(ii) is not required to be registered

Question 24

what is a trust of land

Answer 24

two or more persons have an interest in property a trust (may) arise- explicitly (in writing) or impliedly (informally)

informally
- failure of formalities
- or beneficial interest arising under trust

Question 25

how would a beneficial interest arising under trust happen?

Answer 25

family home
- payment to the purchase price (but not on the title deed)
- payment of the mortage (but not on the title deed)
- will - left beneficial interst but not a legal one

if you know anout your interest arising under trust you can entre a restriction on the register

Question 26

LRA 2002 s40- restrictions

Answer 26

nature (1) a restriction is an entry in the register regulating the circumstances in which a disposition of a registered estate or charge may be the subject of an entry in the register.

(2) a restriction may, in particular–
- (a) prohibit the making of an entry in respect of any disposition, or a disposition of a kinf specified in the restriction;
- (b) prohibit the making of an entry-

(i) indefinitely
(ii) for a period specified in the restrictions, or
(iii) until the occurence of an event so specified

(3) without prejudice to the generality of subsection (2)(b)(iii), the events which may be specified include-
- (a) the giving notive,
- (b) the obtaining of consent, and
- (c) the making of an order by the court registar

(4) the entry of a restriction to be made in relation to the registered estate or charge tp which it relates

Question 27

what are the restrictions in the LRA

Answer 27

• a limitation on the power of the registered proprietor to dwal with the property

Question 28

what are the effects of LRA 2002 s29

Answer 28

• if the house is sold for valuable consideration the new owner is only bound by the interests that are

↳protected by a notice
↳ or fall with schedule 3

Question 29

LRA schedule 3 (1) leasehold estates in land

Answer 29

1. leasehold estates in land
   a leasehold easte in land granted for a term not exceeding seven years from the date of the grant, except for-
   (a) a lease the grant of which falls within section 4 (1)(d), (e) or (f)

(b) a lease the grant of which consititutes a registrable disposition

Question 30

LRA schedule 3- interests of persons in actual occupation

Answer 30

interests of persons in actual occupation
2. an interest belonging at the time of the disposition to a person in actual occupation, so far as relating to land of which he is in actual occupation, except for–

(a) an interest under a settlement under the settled land act 1925 (c. 18)

(b) an interest of a person of whom inquiry was made before the disposition and who failed to disclose the right when he could reasonably have been expected to do so;

(c) an interest-
(i) which belongs to a person whose occupation would not have been obvious on a reasonably careful inspection of the land at the time of the disposition and
(ii) of which the person to whom the disposition is made does not have actual knowledge at that time;

(d) a leasehold estate in land granted to take effect in possession after the end of the period of three months beginning with the date of the grant and which has not taken effect in possession at the time of the disposition

Question 31

LRA 2002 schedule 3- interests of persons in actual occupation

Answer 31

an interest belonging at the time of the disposition to a person in actual occupation, so far as relating to land of which he is in actual occupation, except for-

(a) an interest in the land the person occupies

must be a propriety interest not personal interest (permission is a licence and personal)(strand securitied v caswell [1965])

(b) in actual occupation

Question 32

key points for interest arising under actual occupation

Answer 32

the claimant must have
↓
a. an interest in the property
↓
b. the interest must exist at the time of the disposition
↓
c. they must be in actual occupation
↓
d. and must not be included in the exceptions

Question 33

an interest in the property that exists

Answer 33

• beneficial interest arising under trust
• an interest that could have been protected on the register and was not
• not a future interest

Question 34

what is ‘actual occupation’?

judicial interpritation of statute

Answer 34

williams & glynns banl ltd v boland [1981] (LRA 1925 s79) - payment to the purchase price (wife)
- ordinary meaning of the word
- what is required is a physical presence

lloyds bank plc v rosset [1989]- no beneficial interest (restoration)
- what constitutes actual occupation depends on the nature and condition of the land

abbey national building society v cann [1991] - payment to the purchase price (mother)
- there is no need for contintued and uniterputed physical presence on the part of the person claiming actual occupation but there must be some degree of premanence and continuity (more than mere fleeting)

chokkar v chokkar [1984]
- if absent must have the intention to return

stockholm finance ltd v garden holdings inc [1995]
- ‘there must come a point at which a persons absence from his house is so prolonged that the notion of continuing in actual occupation’ is unsupportable (15 months)

link lending ltd v bustard [2010]
- involuntary residence in a psychiatric hospital over a year (actual occupation)

Question 35

LRA schedule 3 interest of persons in actual occupation

Answer 35

interests of persons in actual occupation
2. an interest belonging at the time of the disposition to a person in actual occupation, so far as relating to land of which he is in actual occupation, except for-

(a) an interest under a settlement under the settled land act 1925 (c. 18)

(b) an interest of a person of whom inquiry was made before the disposition and who failed to disclose the right when he could reasonably have been expected to do so;

(c) an interest-
i. which belongs to a person whose occupation would not have neen obvioud on a reasonably careful inspection of the land at the time of the disposition, and
ii. of which the person to whom the disposition is made does not have actual knowledge at that time;

(d) a leasehold estate in land grabted to take effect in possession after the end of the period of three months begining with the date of the grant and which has not taken effect in possession at the time of the disposition.

Question 36

LRA schedule 3(2) - remember the exceptions

Answer 36

except for–
(c) an interest-
i. which belongs to a person whose occupation would not have been obvious on a reasonably careful inspection of the land at the tome of the disposition, and

ii. of which the person to whom the disposition is made does not have actual knowledge at that time

Question 37

what is type of inspection?

Answer 37

• not constructive notice (less demanding)
• evidence of another persons presence is sufficent for obvious - le for v le foe [2001]
• more than cursory inspection - link lending ltd v bustard [2010]
• more than intermittent (car parking/bins) - knights contruction (march) ltd v roberto mac ltd [2011]

Question 38

overcoming overriding interests overreaching

Answer 38

interests that override can be overreached

what is overreaching?
if a purchaser of land held on trust of sale who paid the purchase money to two trustees would taje free of the beneficial interests even if the beneficiaries are in actual occupation of the land at the relevant time (LPA 1925 s2)

‘overreaching is a form of magic. it is a doctrine that says that when land is purchased, if and only if certain conditions are met, certain equitable interest cease to affect the land’ cooke, land law (2nd edn, clarendon 2012)

Question 39

the requirments and exceptions to overreaching

Answer 39

• must be payment of capital money (LPA 1925 s2 [1])
• must purchase the legal estate (LPA 1925 s2 [1])
• to two or more trustees (on the title deed, legal title holders) - LPA 1925 s2(2), LPA 1925 s27

The interest must be capable of being overreached
- LPA 1925 s(3)
- Not equitable lease, equitable easement or estate contract

Question 40

what happens when an interest is overreached

Answer 40

• purchaser takes the land inencumbered- free of the equitable interest
• the equitable interest is detached from the land and substituded for money
• • (but what if this was your family home- would you want the money?)

Question 41

what is meant by estate in land

Answer 41

transfer an estate in land (formalities + registration) - to operate at law

Question 42

which parts of the LRA are third party interests (formalities + protection)

Answer 42

• LRA 2002 s27 - completed by registration to operate at law
• LRA 2002 s32 - protected by notice (unless excluded by LRA 2002 s33)
• LRA 2002 schedule 3