Land Law - The Principles of Unregistered Title to Land

Question 1

Deducing title

Answer 1

Seller proves ownership of land through documentary evidence such as:

• Conveyance on sale (documents transfer of ownership in exchange for money)
• Deed of gift (where no money is exchanged)
• Mortgage deed (documents that a lender has lent money to the owner and has taken a charge over the land)
• Assent (transfers land from personal representative to the correct beneficiary)

Question 2

Proving Ownership

Answer 2

• Good root of title
• Unbroken chain of ownership
• Minimum period of 15 years

Question 3

Good root of title

Answer 3

Document must be at least 15 years old at time of contract, must deal with whole of legal and equitable estate, must contain an adequate description of property and do nothing to cast doubt on the title

Question 4

Epitome of Title

Answer 4

Chronological list of documents of title with copies attached (not the originals)

Question 5

Legal Interests

Answer 5

Buyer bound irrespective of whether they had notice of it because they should have known about it

Buyer should have investigated the title (through their solicitor) which would have revealed interest

Question 5

Equitable Interests

Answer 5

Buyer bound only if they had notice of it

Registration as a land charge constitutes notice

Question 6

Classification of Land Charges

Answer 6

Most commonly registered

C(i): puisne mortgage (lender does not hold title deeds)

C(iv): estate contract (protects an agreement to purchase land in the future)

D(ii): restrictive covenant

D(iii): equitable easement

F: home occupation rights (for non-owning spouse or civil partner) - not actually an interst in land but is enforceable against third parties

Registered against owner’s name at the time charge created not property

If charge not properly registered then it does not constitute notice unless the buyer had some other notice

Question 7

Interest in Land Charge

Answer 7

Registration = notice

Question 8

Unprotected interest

Answer 8

Puisne mortgages, equitable mortgages and matrimonial homes rights the unprotected interest will not be binding on a purchaser of ANY **interest in land for valuable consideration **

Agreement to marry constitutes valuable consideration

However, if land is gifted then it would be binding as no valuable consideration given

Question 9

Restrictive covenants, equitable easements and estate contracts

Answer 9

Can be protected by a land charge

If not protected with a land charge they will not be binding on purchaser of a legal estate for money or money’s worth

‘Money or money’s worth’ = does not include marriage or civil partnership as valuable consideration

Question 10

Beneficial interest under a trust

Answer 10

Cannot be protected by a land charge

Only binding on a buyer if they had notice of it

Question 11

Doctrine of Notice

Answer 11

Applies only to interests created pre-1926

Buyer will take free of equitable interest if buyer can show they are equity’s darling

Equity’s darling = bone fide purchaser of a legal estate for value without notice

Bone fide = acted in good faith

For value = buyer for valuable consideration

Without notice = had no notice of beneficial interest

Question 12

Notice

Answer 12

1. Actual notice: buyer actually knows about interest
2. Constructive notice: interest would have been obvious on reasonable inspection. Buyer deemed to have notice of what a reasonable inquiry would have revealed
3. Imputed notice: if your agent knew something about an interest that knowledge will be imputed to buyer as well

Question 13

Unregistered interests which override first registration

Answer 13

Capable of binding buyer when they purchase a piece of property which is being registered with Land Registry for first time (i.e. buyer did not know about them)

1. Lease granted for 7 years or less
2. Legal easement
3. Local land charge
4. Interest of someone in actual occupation

Sufficiently important that they are automatically binding when unregistered title becomes registered

Question 14

Adverse Possession of Unregistered Land

Answer 14

If someone with estate in land allows land to be occupied by someone else for 12 years the owner loses right to recover land

Original owner retains the legal title but they hold the legal estate on trust for the squatter

Person in occupation, to register their title, needs to show:

1. Have had actual physical possession of land
2. Possession is exclusive to them (e.g. fenced or walled in)
3. Possession is without permission of landowner (if squatter has asked to use the land a claim will fail

Squatter must have treated land as their own as their right

Successful claim likely to result in award of possessory title

Question 15

Equitable Title

Answer 15

Passes on exchange of contracts

Therefore, buyer can and should insure property from point of exchange

Question 16

Legal title

Answer 16

Passes on completion

Application to HMLR for first registration of buyer’s title must be made within two months of completion