Unregistered Land

Question 1

The role of title deeds

Answer 1

Ownership for unregistered land must be evidenced by the owner producing title deeds for the land and have good root of title to prove that ownership. A root of title is a deed which must show an unbroken chain of ownership and date back to at least 15 years from the date the landowner is trying to dispose of the land.

Question 2

The role and importance of title deeds

Answer 2

The land may be still registered with the HM Land Registry however if owner is unable to produce good root of title, it may affect the class of title they are granted.

Question 3

Classes of title granted by HM Land Registry

Answer 3

Absolute title - the best class and is a guarantee to the landowner against any other person trying to claim a legal interest in the land.
Possessory title - where the landowner cannot get produce sufficient documentary evidence to prove ownership
Qualified title - granted if there is a specific defect in the title
Good leasehold title - where someone tries to register their leasehold interest for the first time but the freehold has not been registered

Class of title can affect saleability of a property

Question 4

Legal rights

Answer 4

‘Bind the world’ - binds any buyer whether they knew about it or not. Except for puisne mortgage (second mortgage of unregistered land where title deeds are retained by the first mortgagee) - Registration of the land charge is necessary to protect the mortgagee’s interest.

Question 5

Equitable rights

Answer 5

Protected by:
(A) Land Charge; or
(B) the doctrine of notice

Question 6

Land Charge

Answer 6

Estate Contract
Restrictive Covenant
Equitable Easement
A home right
Puisne mortgage

Must be registered as a land charge to be binding.

Question 7

Failure to register Land Charge

Answer 7

Void against a buyer for money’s worth of a legal estate. The knowledge of the buyer is irrelevant.

Question 8

Equitable rights are binding by the doctrine of notice

Answer 8

The doctrine of notice:
- bona fide - in good faith
- purchaser for value - purchase either a freehold or leasehold for valuable consideration, will not apply to someone who purchases an equitable interest or someone who has been gifted or inherited land
- without notice - if buyer has actual, constructive or imputed notice they will be bound.

Question 9

Notice

Answer 9

Actual - aware of the equitable interest from conversations or vague rumours
Constructive - should have known about it had they made reasonable enquiries
Imputed - extends constructive notice to any agent instructed by a purchaser I.e solicitor

Question 10

Overreaching

Answer 10

Mechanism by which the buyer can take property free of the interests of any person with a beneficial interest under a trust. The purchaser must pay the purchase money to at least two trustees or a trust corporation. The interests of any person holding a beneficial interest under the trust then lift from the property and shift to the sale proceeds.