Land Registration Flashcards
(30 cards)
Title Registration
First compulsory registration: -S4 LPA02 of freehold fee simple absolute possession.
And legal leasehold of 7 years+.
Registration upon transfer of unregistered land- will be triggered.
Land Registration Act 1925/2002
Title is registered NOT the land.
Transaction driven- primary aim is to ensure the quick, efficient and inexpensive transfer of estates and interests in land while ensuring that 3rd party interests in land are properly protected.
Three fundamental principles of land registration
Mirror
Curtain
Insurance
Mirror principle
Reflect the totality of rights and interests concerning the title.
However the role unregistered interests which override ruin the reflection of the mirror.
- any third party purchaser should rest assured that they are fully protected.
Curtain Principle
Some equitable interests should be left behind the ‘curtain’.
A person who wishes to buy registered land that is subject to a trust need only concern themselves with legal title.
As the equitable interest behind the curtain will be overreached transferring the equitable interest in land into the money the purchaser has paid.
Williams + Glyn’s Bank v Boland 1981
Bank’s failure to look behind curtain and discover the wife’s equitable interest meant that the mortgage lost priority to the rights of the borrower’s wife.
Husband registered title in husbands name to be held on trust for himself and his wife held the equitable interest.
Husband mortgaged land to bank. Did Bank’s mortgage take effect subject to wife’s equitable interest.
Held that wife’s interests took priority over banks.
Insurance Principle
If title is duly registered it is guaranteed by state.
There is statutory indemnity for any purchaser who suffers loss.
Insurance principle provides assurance and confidence to purchasers.
LRA02 - Operation of Registered Land: 4 types of title.
1) Absolute title
2) Good leasehold title
3) Possessory title
4) Qualified title
Absolute title
-Effects ascribed by S11 LRA02
- fullest recognition of rights.
-REGISTERED PROPRIETOR GRANTED WITH FULL FEE SIMPLE.
-ALL BENEFITS FOR ESTATE BUT SUBJECT ONLY TO NOTICES AND OVERRIDING INTERESTS - Schedule 1 LRA02.
applies to freehold legal title/ rare for leasehold.
Good leasehold title
Proprietors of long leasehold are registered with good leasehold.
Proprietor has strong title except that it is subject to any interests affecting landlord freehold/superior title
Registration: S58 LRA02
Title by registration after conclusive entry on to register.
Basic Priority Rule -S28 LRA02
If the transferee is not a purchaser, it is inherited/gift etc, S28 of LRA stipulates that the transferee who has not paid for the land! should take it as it come.
Subject to all prior property rights, irrespective of whether those property rights were entered on the register.
Special Priority Rule - S29 LRA02
If transferor has given valuable consideration under s29 LRA02.
When title registered takes land free from all existing property rights- purchaser should only be bound by property rights entered on register.
Except; *registered charges *overriding interests within schedule 3;
*protected registered interests,
Halifax v Popeck (2008)
Fraudulent transfer- transfer was found to be not for value under s28, even though it was portrayed by parties/conveyancing documents as a sale.
If not for valuable consideration then takes under s28 which means take title subject to all interests which pre-date the disposition to him.
Unregistered interests which override under LRA02
The LRA02 act modified the act with regards to impact of unregistered but binding rights.
Schedule 1 LRA02 - Unregistered interests which override at first registration.
-Legal leases 7 years or less will override without being registered at first registration.
Schedule 1 para 2: interests of persons in actual occupation
A personal claiming an overriding interest must prove that he holds a property interest in the land that is to be first registered and that he is in actual occupation of the land at the relevant time.
Actual occupation
Schedule 1 para 1 limits the legal reach of the overriding interest to the land actually occupied
Each case turns on its own facts and Lord Wilberforce in Williams & Glyns Bank v Boland (1981) stated that the words ‘actual occupation’ should be given their ordinary meaning and be interpreted as such.
Actual occupation: Chokar v Chokar Linklending vBustard Abbey National v Cann Lloyds Bank v Rosset Malory v Cheshire Homes
Does not necessarily involve personal presence of the person claiming to occupy.
Chokar: absence due to giving birth represented actual occupation.
Bustard: absence due to presence at psychiatric unit represented actual occupation. - persistent intention to return = actual occupation.
Abbey National: actual occupation through presence of an agent/representative on your behalf.
Lloyds Bank v Rosset - builders on the premise can constitute actual occupation.
Malory: derelict land that was unusable, actual occupation through acts of minimal use such as erecting a fence.
Hypo- Mortgage Services v Robinson (1997)
Williams and Glyn’s Bank v Boland (1981)
The mere presence of children with parents absent does not constitute actual occupation, since children are a shadow of their parents.
Boland: wives do not occupy premises as mere shadows of their husbands.
Chaudhury v Yavuz (2011)
Using an easement does not amount to actual occupation of the servient land; as it is simply the exercising of a right.
Schedule 1, para 3: legal easements and profits a pendre
Prior to first registration these rights would have bound the estate as legal rights binding the whole world.
In many instances these legal interests will in face be entered against the title at first registration and will then cease to overriding.
The burden will be made against the servient title and an entry will be made on the title of the dominant land, indicating that the right is to be enjoyed by the estate.
Schedule 1, paras 4-9
Other permanent overriding interests
Schedule 3.Unregistered interests which override a registered disposition.
Broadly similar to schedule 1, just narrower primarily because schedule 3 operates where there has been a transfer of land to a new aim.
Primary aim of the LRA02 is to ensure that the transferee of registered land is fully aware of as many adverse interests as possible before he takes the transfer.
