Land Registration Flashcards
(124 cards)
Principles of Land Registration
Mirror, curtain and Insurance principle
NOTE: already existed as a foundation underpinning the LRA 1925, can be said to have been introduced by the Torrens system (Sir Robert Torrens, fundamental in introducing registered land in Australia)
LRA 2002 is a joint product of…
Land Registry and Law Comission
Law Commission Consultation Paper in March 2016
The goal of simultaneous completion of transaction and registration through electronic means should not be pursued
4 aims of LRA 2002
E-conveyancing goal in mind, it is transaction driven
1) get as many estates in land registered as possible
2) register all 3rd party rights on registry title of estate against which they are effective
3) limit number and effect of unregistered interests which override
4) if e-conveyancing: creation+transfer of most property rights ONLY through electronic entry on register
LRA 2002: revolutionary or evolutionary?
Dixon: until e-conveyancing (when our understanding of proprietary rights might have to change) –> evolution not revolution to LRA 1925
Ian Clarke: unnecessary question as the changes introduced are profound and far-reaching either way
“Title”
“We” are not a cadastral system, so we register title to land not land itself i.e. the estate, a right of ownership.
Thus, it is possible for one plot of land to have more than one title registered (freehold and leasehold)
What is a registrable state (i.e. Estate that must be registered on its transfer/creation)?
Legal freehold or legal leasehold of OVER 7 YEARS duration.
–> some estates are excluded from being registrable titles for practical reasons (maybe too short to require the protection)
LRA 2002, s. 4: Triggers for compulsory registration of previously unregistered titles
1) conveyance of unregistered freehold estate
2) transfer of existing lease > 7 years left to run
3) grant of a legal lease > 7 out of an unregistered freehold OR unregistered leasehold > 7 years (HERE, leasehold will be registered even if estate out of which it is carved is NOT)
4) creation of a first legal mortgage over unregistered freehold/unregistered leasehold > 7 left –> registration of BOTH mortgage and title over which it is created
S. 58 LRA 2002
Title by registration NOT registration of title. A title that Land Registry investigated and guarantees - ensured by fact of registration itself NOT by documents sent for registration
LRA 2002’s categorisation of 3rd party rights
1) those interests protected by registration to survive sale
2) those overreached, the 3rd party’s interest being converted into its monetary equivalent in the sale price
3) unregistered interests that override
1 December 1990
All land in England and Wales became subject to compulsory first registration - nowadays roughly 85% registered
Title in unregistered land
Title not registered but established by the title deeds of the particular property
4 parts registered land falls into
1) registered titles
2) unregistered titles which override
3) registered protected interests
4) registrable charges (mortgages)
Unregistered interests which override (overriding interests)
Automatic priority without having to be registered –> inherently proprietary (CAPABLE of binding) - legal and equitable
Registrable charges
Essentially mortgages - registered to take effect as legal mortgages, otherwise they may be equitable
What is overreaching?
Process whereby certain equitable rights (only those under a trust of land) which might otherwise have enjoyed protection though registration on occasion of sale to a purchaser for value are swept off the land and converted instead into the TRANSFER MONEY that has just been paid
Stack v Dowden: overreaching defeats overriding, exemplified in Baker v Craggs
Craggs v Baker
THE REGISTRATION GAP LIVES! Abbey National v Cann and Scott v Southern Pacific Mortgages appeared to have resolved it by equating execution of transfer to registration BUT Baker v Craggs said no.
ALSO: When overreaching occurs, a right that would have been protected against a purchaser ceases to be protected, irrespective of whether it also qualifies as an overriding interest
The Mirror Principle
Suggests that the official copy of the register should accurately reflect reality: identity of owner and all other rights enjoyed by 3rd parties should be visible to potential buyer
“The crack in the mirror”
Overriding, hidden interests - despite Mirror Principle it is still advisable and under Schs 1 and 3 of the LRA 2002 necessary to physically inspect the land
Physical inspection of the land
The existence of overriding interests is not a mistake/distortion of Mirror Principle. It recognises that it is impractical/undesirable to make absolutely everything subject to express registration - transient rights (shot leases) or rights too important to be submitted to registration requirement (those benefitting the public interest)
Registration should not replace physical inspection!
The Curtain Principle
Equitable interests in land should be hidden behind the “curtain of a special typeface trust” - purchaser only needs to concern themselves with the legal title (held by trustees) reflected on register.
No need to look behind curtain and worry about beneficiaries
BECAUSE equitable rights will be overreached if proper formalities of purchase observed (s. 2 and 27 LRA)
Equitable interests in curtain principle
Cannot affect purchaser because of overreaching but aren’t completely destroyed: proprietary rights are transferred into equivalent share in money (just paid by purchaser) –> trustees hold money on trust for equitable owner
Williams and Glyn’s Bank v Boland
Bank’s failure to look behind the curtain meant that its mortgage lost priority to the rights of the borrower’s widow (he was the sole legal owner/trustee, she was a beneficiary due to her contributions to purchase price)
Mirror principle fails when the preconditions for statutory overreaching aren’t met –> necessary to look behind the curtain
Concept of alienability
Owner of a property should be able to sell without any hidden rights getting in the way of that sale