Unregistered Land

Question 1

What legislation introduced the unregistered land database?

Answer 1

Land Registration Act 1925 (now updated in LRA 2002)

Question 2

How do you prove ownership of unregistered land?

Answer 2

Ownership of estates and interests proved by TITLE DEEDS

Question 3

What is a “good root of title”?

Answer 3

Evidence of ownership dating back at least 15 years (LPA 1969, s23)

Question 4

Legal rights bind the world means…?

Answer 4

Legal estates and interests (unregistered) will take priority according to the chronological order in which they are acquired (earliest takes priority etc)
(does not apply to puisne mortgages)

Question 5

Equitable rights bind only those people whose consciences are affected by them! These are..?

Answer 5

1) Interests governed by the Land Charges Act
2) Interests governed by overreaching
3) Interests governed by BFPVLEWN (bona fide purchaser for value of a legal estate without notice of the relevant equitable interest

Question 6

What does the Land Charges Act s2 do?

Answer 6

Tells us which rights are registerable

Question 7

Land Charges Act s2 Class B

Answer 7

Statutory charges on land arising automatically under an Act of Parliament

Question 8

Land Charges Act s2 Class C

Answer 8

(i) Puisne mortgage (i.e. a legal mortgage of unregistered land where the mortgagee does not hold the title deeds)

(ii) Limited owner’s charge

(iii) General equitable charge (e.g. equitable mortgage)

(iv) Estate contract, including an option to purchase and a right of pre-emption

Question 9

Land Charges Act s2 Class D

Answer 9

(i) Inland Revenue charge

(ii) Restrictive covenant created after 1925

(iii) Equitable easements created after 1925

Question 10

Land Charges Act s2 Class E

Answer 10

Annuity (marriage…) created before 1926

Question 11

Land Charges Act s2 Class F

Answer 11

Matrimonial home right arising under s.30 of the Family Law Act 1996
(note: this is a statutory right, NOT an equitable or proprietary interest)

Question 12

what is the affect of registration?

Answer 12

Bind future purchases

Question 13

Consequences of failure to register charges…

Answer 13

A registrable land charge which is not registered in the Land Charges Register prior to the purchase of the relevant land is VOID as against a purchaser.
(will not bind interests to future purchases)

Question 14

who is a “purchaser”

Answer 14

“… any person (including a mortgagee or lessee) who, for valuable consideration, takes any interest in land …” (LCA 1972, s.17)

Question 15

What did Midland Bank v Green [1981] change?

Answer 15

must be a “purchaser in good faith”
and
only needs “adequate compensation” (rather than valuable)

Question 16

Voidness Rule…

Answer 16

An interest which is capable of registration under the Land Charges Act 1972 but has not been registered is:

VOID as against a purchaser (as specificied under s.4)

BUT it remains ENFORCEABLE against:
a squatter
a purchaser who has engaged in fraud (high standard)
a purchaser who is prevented from denying the validity of the interest as a result of proprietary estoppel

Question 17

Promissory Estoppel

Answer 17

if you make a promise and those who were promised relied on that promise to their detriment

Question 18

How does the Land Charges Register work?

Answer 18

A person who acquires a registrable interest must register it
Registration is against the name of the current owner
Interest registered in the CORRECT CLASS, NAME and ADDRESS

Question 19

What must a prospective purchaser do?

Answer 19

Check Land Charges register as they will be bound by those interests (search against estate and predecessors in title)

Question 20

what happens if the search by the registery is incorrect?

Answer 20

Purchaser may obtain compensation (from the Land Charges Registry) for any loss suffered as a result of the binding interest, provided:
○ Purchase takes place after 1st January 1970; and
○ Purchaser did not have actual knowledge of the registered interest at the time of the purchase; and
○ Interest is registered against name of an estate owner not revealed in good root of title or any later documents of title.
(Law of Property Act 1969, s.25)

Question 21

What is an overreachable right?

Answer 21

• Applies particularly to beneficial interests under trusts of land.
• These rights are NOT registrable under the Land Charges Act 1972.
• Purchaser (including mortgagee or lessee) who pays capital money to TWO or more trustees, or a trust corporation, is NOT affected by these rights (i.e. the purchaser will not be bound by a beneficiary’s equitable interest under a trust).
(Law of Property Act 1925, ss.2 and 27)

Question 22

Forms of notice (bona fide principle)

Answer 22

• Actual notice – interests which the purchaser actually knew about at the time of the purchase
• Constructive notice – interests which the purchaser should have discovered through inquiry and inspection (LPA 1925, s.199(1)(ii)(a))
• Imputed notice – interests which the purchaser’s agent actually knew about, (or should have discovered) (LPA 1925, s.199(1)(ii)(b))

Question 23

Equitable rights governed by bona fide purchaser with notice principle…

Answer 23

Takes priority is can be proven and has notice

Question 24

What rights are governed by bona fide principle…

Answer 24

1. Beneficial interests under trusts of land that have not been overreached (e.g. Kingsnorth Finance v. Tizard [1986] 1 WLR 783)
2. Other equitable rights that are not registrable under the Land Charges Act 1972 :
   ○ Restrictive covenants created before 1st January 1926
   ○ Equitable easements created before 1st January 1926
   ○ Equitable easements enforceable through proprietary estoppel (e.g. E. R. Ives Investments Ltd v. High [1967] QB 379)
   ○ Equitable rights of entry (e.g. Shiloh Spinners Ltd v. Harding [1973] AC 691)

Question 25

Land Charges Act s2 Class A

Answer 25

Statutory charges on land arising on application under an Act of Parliament