Unregistered interests overriding registered dispositions Flashcards
Where can you find a list of unregistered interests which will override on a sale of registered land?
(a registered disposition)
Schedule 3 of the Land Registration Act 2002
A limited number of further overriding interests are set out in Schedule 12 of the LRA 2002.
What are the commonly encountered overriding interest?
Easements, leases and the interests of persons in actual occupation.
When does a ‘legal’ easement arise?
Through prescription, necessity, implication or the rule in Wheeldon v Burrows.
What should you do if an easement is created by deed?
You must register the easement in the Charges Register of the servient (i.e burdened) land to be legal.
What does it mean if an easement in a deed is not
shown in the Charges Register of the property being purchased?
The buyer will not buy subject to it- the easement will be merely equitable and will not override.
What should the buyer do if there are non-owning occupiers?
Require the occupier to sign a document waiving any possible interest in the property and agreeing to vacate the property on or before completion of purchase.
What should non-owning occupiers do before signing the wavier?
The non-owning
occupier should obtain independent legal advice prior to signing the waiver,
confirming that they understand the nature and effect of doing so.
What must the client be made aware of?
The extent of the investigation carried out and in particular any limitations on this or matters which were not covered.
E.g. a Report on Title
Other types of report may be used depending on the nature of the transaction.
E.g. if a whole business is being acquired the report may form part of a full due diligence document.
How do you satisfy CCS 6.4 in reporting to your client fully?
The material facts and issues, the implications of those issues and the range of solutions available.
