3. Principles of Unregistered Title to Land

Question 1

What does it mean when a seller deduces title to the buyer?

Answer 1

They prove that they own the land they are contracting to sell

Question 2

What is the traditional way of deducing title?

Answer 2

Producing documents commencing with a good root of title demonstrating an unbroken chain of ownership for a minimum of 15 years

Question 3

What are the four main documents that would make up unregistered title?

Answer 3

1. Conveyance on sale
2. Deed of gift
3. Mortgage deed
4. Assent

Question 4

What are the four requirements of a good root of title?

Answer 4

1. At least 15 years old
2. Deal with the whole legal and equitable interest in the property
3. Contain adequate description of the property
4. Do nothing to cast doubt on title

Question 5

What is the epitome of title?

Answer 5

A chronological list of all the documents, together with a copy of each

Question 6

What is a requisition?

Answer 6

A query made by buyer’s solicitor regarding title before exchange of contracts

Question 7

When does title to unregistered land pass?

Answer 7

Completion

Question 8

What two interests will a buyer of an unregistered legal estate purchase it subject to?

Answer 8

1. Any legal interest over the estate, whether or not they were aware, and
2. Any equitable interest of which they have notice

Question 9

How are legal interests generally discovered?

Answer 9

Checking the deeds, or inspecting the property

Question 10

What must a buyer be to be bound by equitable interests?

Answer 10

On notice of them

Question 11

What is required for most equitable rights and interests to be enforceable against subsequent buyers?

Answer 11

Registration with Land Charges Department of HM Land Registry

Question 12

What are the two Class C land charges relevant to the SQE?

Answer 12

1. C(i): Puisne mortgage, i.e. a mortgage not protected by deposit of title deeds, e.g. a second legal charge
2. C(iv): Estate contract, e.g. a contract to purchase

Question 13

What are the two Class D land charges relevant to the SQE?

Answer 13

1. D(ii): Restrictive covenant
2. D(iii): Equitable easement

Question 14

What does a Class F land charge protect?

Answer 14

Home rights - a non-owning spouse’s statutory right of occupation in the matrimonial home

Question 15

What is a land charge registered against, and who makes the application for it?

Answer 15

It is against the name of the estate owner at the time the land charge was created, not the address of the property, and is applied for by the person who claims the right

Question 16

Is registration of a land charge binding on subsequent owners, and why?

Answer 16

Yes, because registration is actual notice of the interest to all persons

Question 17

What is the consequence of a land charge not being registered?

Answer 17

It is void against a purchaser for value

Question 18

Where an interest does not appear on the list of registerable land charges, what determines whether it binds a buyer?

Answer 18

Binding where they right is legal (ie. easement that is validly created) or cases where the doctrine of notice applies.

Question 19

To what two things does the doctrine of notice apply, and under it, what four things must a buyer show to take free of any equitable interest?

Answer 19

Only applies to equitable interests pre-dating 1925 and beneficial interests under a trust.

To take free, the buyer must show they: are a legal purchaser for value without notice (in good faith)
1. Acted bona fide
2. Were a purchaser for value
3. Acquired a legal estate or legal interest, not just an equitable interest
4. Had no notice of the equitable interest

Question 20

What are the three types of notice that are relevant to the doctrine of notice?

Answer 20

1. Actual
2. Constructive
3. Imputed

Question 21

How is imputed notice defined?

Answer 21

extension of constructive notice to any agent who has been instructed by the purchaser (ie. solicitor, surveyor, acting on its behalf).

Question 22

When will a person be deemed to have constructive notice?

Answer 22

When they would have discovered something with reasonable enquiry

Question 23

What is imputed notice?

Answer 23

Notice given to an agent of a buyer is deemed to be given to the buyer

Things an agent should have known can also be imputed to a principle, i.e. things the agent should have constructive notice of can be imputed to the principle.

Question 24

Why is notice irrelevant in the registered system?

Answer 24

Because interests are either:
1. Registered (and therefore binding on the buyer) or
2. Protected as overriding interests (which automatically bind the transferee irrespective of registration or notice)

Failing that they are not binding and any other notice cannot save them.

Question 25

When do interests which override arise, and what are four examples of them?

Answer 25

Unregistered interests which exist when unregistered land is first registered are deemed to override registration

1. Lease granted for seven years or less
2. Legal easement
3. Local land charge
4. Interest belonging to a person in full occupation

Question 26

Although it hasn’t been covered yet, what is the difference between interests which override in the unregistered system and overriding interests (also called interests that override)?

Answer 26

Interests which override:
- Unregistered system
- Concerns unregistered interests which are essentially sheltered from first registration of unregistered land

Overriding interests
- Registered system

However, they both do roughly concern the same things, e.g. lease for 7 years of less, legal easement, person in occupation.

Question 27

How does an interest which overrides cease to be overriding?

Answer 27

If the buyer is aware of it, they must disclose it to HMLR, after which it is protected by an entry on the register

Question 28

Under the Limitation Act 1980, how long must the owner of an estate in unregistered land allow someone else to occupy it before the lose the right to recover the land?

Answer 28

12 years

Question 29

In relation to unregistered land, what three things must an applicant for adverse possession show with regard to possession?

Answer 29

1. Actual
2. Exclusive
3. Without permission of the landowner

Question 30

What is the reason for the requirement that the land be possessed without permission?

Answer 30

Because the point of adverse possession is that the applicant treat the land as theirs as of right, hence why the law should transfer it to them

Question 31

Where this 12 year period is met, does the legal owner lose the legal title?

Answer 31

No, but they hold the legal estate on trust for the squatter who can apply for registration

Question 32

What is the difference in timing between the passing of legal title in registered versus unregistered land?

Answer 32

transfer of unregistered land effected by deed = legal title passes to the buyer on completion.

transfer of registered land = legal title passes once buyer registers their title at Land Registry.
- in the meantime, seller holds title on trust for buyer.

Question 33

How long does a buyer of unregistered land have to register their title?

Answer 33

Has two months to register the land for the first time. Otherwise, legal title reverts to the seller after that time.

Question 34

What is a legal right in unregistered land that must still be protected by a Land Charges Register entry?

Answer 34

puisne mortgages
class c(i) charge

Question 35

Why is the distinction between equitable and legal interest in unregistered land relevant?

Answer 35

• Legal interests bind the world, including the buyer of the land, whether or not it has notice.
• Equitable interests
  Registered as Land Charge (post-1926)
  Binding via doctrine of notice (pre-1926/implied trusts in land)

Question 36

What effect will an unregistered Land Charge have on subsequent purchasers?

Answer 36

equitable interest would be void against any buyer, whether or not they had notice.

Question 37

How will an equitable right created pre-1926 be binding?

Answer 37

Binding via doctrine of notice - includes actual, imputed, and constructive notice.