Enforcement of interests over registered land

Question 1

What are the categories under the LRA 2002 which determine whether an estate/interest is binding on new owners of land?

Answer 1

• registrable dispositions
• interests protected by entry
• overriding interests

Question 2

What is the basic rule of priority?

Answer 2

Interests will take priority over later dispositions

Question 3

What is the exception to the basic rule of priority?

Answer 3

disposition for value will take priority over pre-existing rights except those protected on register and overriding

Question 4

When do registrable dispositions operate at law?

Answer 4

When registration completed

Question 5

What are the registrable dispositions?

Answer 5

• Transfer of existing registered freehold/leasehold estate
• Grant of new lease more than 7 years
• Express legal easements
• Grant of legal mortgage
• Grant of landlord’s right of entry

Question 6

How may equitable interests be protected?

Answer 6

• entry of notice
• entry of a restriction

Question 7

What kind of interests is entry of notice for?

Answer 7

Intended to last beyond change of ownership

Question 8

What equitable interests can be protected by notice?

Answer 8

• Restrictive covenants on freehold land
• Estate contracts
• Equitable easements
• Equitable leases
• Legal lease more than 3 years up to 7 years

Question 9

What equitable interests cannot be protected by notice?

Answer 9

• beneficial interest in a trust of land and
• short legal leases (3 years or less)

Question 10

What kind of interests is entry of a restriction for?

Answer 10

Not intended to last indefinitely

Question 11

What is entry of a restriction commonly used for?

Answer 11

Beneficiary of interest in a trust of land

Question 12

Where there is an entry of a restriction on a registered title regarding a beneficial interest under a trust of land, what must occur?

Answer 12

Overreaching

Question 13

What types of land does overreaching apply to?

Answer 13

Registered and unregistered

Question 14

What is required for overreaching?

Answer 14

Capital money paid to at least two trustees

Question 15

What is the effect of overreaching?

Answer 15

Beneficial interest transferred into capital money

Question 16

What happens to the beneficial interest under a trust if overreaching does not occur?

Answer 16

Interest remains but only binding if holder is in actual occupation

Question 17

What are overriding interests?

Answer 17

bind a purchaser for value, whether buyer or lender, even though not protected by registration

Question 18

What are the overriding interests for registered land?

Answer 18

• legal leases 7 years or less
• equitable interests by people in actual occupation
• implied legal easements or profits a prendre

Question 19

what are classic examples of qualifying equitable interests in land?

Answer 19

• Equitable interests in a trust of land
• Equitable leases
• Options to purchase

Question 20

What are the exceptions to actual occupation for overriding interests?

Answer 20

1. inquiry made and occupier failed to disclose
2. a. occupation would not have been obious on reasonably careful inspection and
   b. person to whom disposition made does not have actual knowledge

Question 21

When will an implied legal easement be binding as an overriding interest?

Answer 21

• New owner knew about it
• New owner did not know but obvious on reasonable inspection or
• Exercised within 12 months immediately before disposition