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1

LRA 2002 Expanded sheme of registration to include: 

Legal estates, franchises, rentcharges and Profits a Prendre. 

2

Requirement of Registration is triggered by any of 4 events 

Transfer of a qualifying estate - unregistered freehold in land or unregistered leashold estate with more than ssven years ot run, either for consideration or as a gift. 

The grant out of a qualifying estate of a lease for more than seven years from the date of grant for valuable or other consideration or by way of gift. 


(iii) the grant out of a qualifying estate of a lease (of whatever length) that will take effect in possession more than three months from the date of the grant; and

(iv) the creation of a ‘protected’ first legal mortgage (as defined by LRA2002).
 

3

1.3.2 FAILURE TO REGISTER

Where requirement to register applies under s.4 LRA 2002, transferee or the borrower of relating to the estate is under a duty to apply for first registration during the period for registration s.6 LRA 2002, usually this period os 2 months befining with the trigger event. 

s.6 In an attempted transfer, the legal estate will revert to the transferor who holds it on a bare trust for the transferee.

 

S.7 In all other cases tgrant takes effect as a contract to grant the relevant legal estate 

4

Voluntary Registration 

 

S.3

 

1 / 2nd class that can be registerd

Extended category of interests that may be registered to one of 7 classes or graded. 

 

(a) Absolute freehold:  the most common,  person  registered if the registrar considers title is such that a willing buyer could properly be advised by a competent professional adviser to accept.  The registered proprietor will take estate with all subsisting benefits, and subject only to entries on the register, interests that override registration (Sched 1 LRA 2002) and certain rights of adverse possession (‘squatters’ rights).
      
(b) Qualified freehold: a rare title, where the registrar considers the title is subject to some reservation.

5

following 5 Classes that may be voluntarily registered 


(c) Possessory freehold: where the title is based on adverse possession, or the title deeds have been lost.

(d) Absolute leasehold: is similar to absolute freehold, and is only given when the superior title is registered or has been approved by the registrar.  This title is also subject to all the express and implied terms of the lease.

(e) Good leasehold: this is given when the superior title has not been registered or approved.

(f) Qualified leasehold

(g)  Possessory leasehold

6

3. REGISTRABLE DISPOSITIONS

S.27 LRA 2002 Dispositions that must be registered of a registered estate i.e. other transactions. Will only be binding if registered. 

 

(i) any transfer of a registered estate (subject to certain exceptions);

(ii) any grant of a lease for a term of more than seven years out of a registered title;

(iii) any express grant of a legal interest as defined in s.1(2) LPA 1925 (subject to certain exceptions; and

(iv) the grant of a legal charge (mortgage).  

7

4.  OWNER’S POWERS

 

authority?

: ss. 23-26 LRA 2002. - Conclusive as to the powers of disposition

Owner entitled to make dispositions if he is registered, 

The disponee may assume there are no limations unless there is an entri to that effect in the register. 

8

5.  PRIORITIES REGARDING REGISTERED DISPOSITIONS

 

S.29 LRA 2002 

Purchaser for valueable consideration takes the registered estate subject to interests noted on the register  and interests which override. 

9

6. INTERESTS PROTECTED BY ENTRY ON THE REGISTER: THIRD PARTY RIGHTS

 

s.27 LRA 2002

any interest that is not registered as a registrable disposition and does not override must be protected by an entry on the register. 

 

after 2003 the only entry methods that can be used to protect these interests will be Notices, Restrictions and Cautions against First Registration. 

 

 

10

6.1 Notices (ss. 32-39 LRA 2002)

 

(3) 

agreed (with the consent of the registered proprietor) or unilateral

 

Registrar will enter them on charges register of a title and will be used to protect brudens on the land such as restrictive covenants, easements and rights of occupation . 

 

Notices are not used to protect trusts of land or restrictive covenants in leases. 

11

6.2 Restrictions (ss. 40-47 LRA 2002)

 

(3) 

Regulate circumstances in which a disposition relating to a registered interest or charge may be made, by imposing conditions under which an entry may be made on the register.


Useful for trust property can be used to ensure beneficial itnerests under the trust will be over reached. 

 

A restriction may be entered without consent of registered proprietor. 

12

7. PRIORITIES BETWEEN INTERESTS AFFECTING REGISTERED ESTATES

 

s.28 (1) LRA 2002

 

And 

 

s.29 LRA 2002 

General rule - priority determined by date of creation not registration for things like equitable mortgages.

 

 However Registered dispositions for valuable consideration will take priority over earlier interests if those earlier interests are not protected in one of the prescribed ways.  

 

Ss.28 and 29 largely mean doctrine of notice has no application to registered title. 

13

8. INTERESTS NOT PROTECTED BY ENTRY ON THE REGISTER: THIRD PARTY RIGHTS THAT OVERRIDE REGISTRATION

 

Schedule 12 LRA 2002 

sched 12 provides a framework within which existing overriding interests retain their overriding status subject to certain conditions.

14

9.      LRA 2002 AND THIRD PARTY RIGHTS WHICH OVERRIDE REGISTRATION

 

S.71 LRA 2002

 

(3)

2002 Act Referes to unregistered interests which override first registration. 

 

imposes a duty on the applicant for first registration or registration of a dealing with a registered estate to disclose such information as the rules may require about overriding interests affecting the estate.The registrar will then have the opportunity to enter these interests on the register. Once registered they no longer over ride. 

 

There is however no sanction if the applicant fails to disclose the existence of such interests, and the interests remain overriding even if undisclosed.

15

9.1 Unregistered interests which override first registration: s.11 and Sched 1 LRA 2002.

On first regisration the proprietor will take subject to interests that over ride including 

9.1.1   A leasehold estate in land granted for a term not exceeding 7 years (with exceptions).

9.1.2 The interest of a person in actual occupation in relation to the land of which that
person is in occupation.
              
9.1.3   A legal easement or profit a prendre.
 

16

9.2 Unregistered interests which override registered dispositions: s.29 and
Sched 3 LRA 2002.

On the disposition of a registered estate, the disposition is subject to entries on the register, and any interests affecting the estate listed in Sched 3 LRA 2002. INc = 

9.2.1   A leasehold estate in land granted for a term not exceeding 7 years and which is not a registrable disposition.

 

9.2.2. An interest belonging to a person in actual occupation. ………….

inc. an interest belonging to a person in actual occupation except for an interest of whome enquiry made and not disclosed or on inspection would not have been obvious and the person inspecting does not know of 
 

17

HSBC Bank v Dyche (2009) EWHC 2954 (Ch)

Gives indication of type of enquiries the purchaser should  make 

 

Protection is afforded to those in physical occupation of the parts of the land actually occupied, and protection can be denied if the occupation is not obvious or has not been disclosed by the occupier in circumstances where it would have been reasonable to do so.

18

Strand Securities Ltd v Caswell [1965] 

In order to constitute overriding interest, actual occupation and some proprietary interest were required. Without either one, person cannot estabilsh the overriding interest. 

 

In caswel, owner had prioprietary interest but no occupation and daughter had occupation as a licensee but no interest. There was no overriding interest. 

 

19

Williams and Glyn’s Bank Ltd v Boland [1981

 

 

Chhokar v Chhokar [1984]

 

Abbey National Building Society v Cann [1990] 

 

Actual occupation - Lord wilberforce stated was a question of fact to be interpreted in plain english. 

 

Temporary abscense for holidays or hospital treatment would not destroy occupation, occupation via an angent was a possibility. 

 

Parking on an unidentified part of land would not suffice, nor would laying carpets or furniture. 

20


City of London Building Society v Flegg [1988] AC 54

 

Thompson v Foy [2009] 

Link Lending Ltd v Bustard [2010] 

The interest of a beneficiary in occupation of the property under a reulting or constructive trust could qualify as an overriding interest, but could be overreached. 

 

confirmed the need for physical presence (although this could be achieved by a representative).  

21
1

Legal estates, franchises, rentcharges and Profits a Prendre. 

LRA 2002 Expanded sheme of registration to include: 

22
1

Transfer of a qualifying estate - unregistered freehold in land or unregistered leashold estate with more than ssven years ot run, either for consideration or as a gift. 

The grant out of a qualifying estate of a lease for more than seven years from the date of grant for valuable or other consideration or by way of gift. 


(iii) the grant out of a qualifying estate of a lease (of whatever length) that will take effect in possession more than three months from the date of the grant; and

(iv) the creation of a ‘protected’ first legal mortgage (as defined by LRA2002).
 

Requirement of Registration is triggered by any of 4 events 

23
1

Where requirement to register applies under s.4 LRA 2002, transferee or the borrower of relating to the estate is under a duty to apply for first registration during the period for registration s.6 LRA 2002, usually this period os 2 months befining with the trigger event. 

s.6 In an attempted transfer, the legal estate will revert to the transferor who holds it on a bare trust for the transferee.

 

S.7 In all other cases tgrant takes effect as a contract to grant the relevant legal estate 

1.3.2 FAILURE TO REGISTER

24
1

Extended category of interests that may be registered to one of 7 classes or graded. 

 

(a) Absolute freehold:  the most common,  person  registered if the registrar considers title is such that a willing buyer could properly be advised by a competent professional adviser to accept.  The registered proprietor will take estate with all subsisting benefits, and subject only to entries on the register, interests that override registration (Sched 1 LRA 2002) and certain rights of adverse possession (‘squatters’ rights).
      
(b) Qualified freehold: a rare title, where the registrar considers the title is subject to some reservation.

Voluntary Registration 

 

S.3

 

1 / 2nd class that can be registerd

25
1


(c) Possessory freehold: where the title is based on adverse possession, or the title deeds have been lost.

(d) Absolute leasehold: is similar to absolute freehold, and is only given when the superior title is registered or has been approved by the registrar.  This title is also subject to all the express and implied terms of the lease.

(e) Good leasehold: this is given when the superior title has not been registered or approved.

(f) Qualified leasehold

(g)  Possessory leasehold

following 5 Classes that may be voluntarily registered 

26
1

S.27 LRA 2002 Dispositions that must be registered of a registered estate i.e. other transactions. Will only be binding if registered. 

 

(i) any transfer of a registered estate (subject to certain exceptions);

(ii) any grant of a lease for a term of more than seven years out of a registered title;

(iii) any express grant of a legal interest as defined in s.1(2) LPA 1925 (subject to certain exceptions; and

(iv) the grant of a legal charge (mortgage).  

3. REGISTRABLE DISPOSITIONS

27
1

: ss. 23-26 LRA 2002. - Conclusive as to the powers of disposition

Owner entitled to make dispositions if he is registered, 

The disponee may assume there are no limations unless there is an entri to that effect in the register. 

4.  OWNER’S POWERS

 

authority?

28
1

Purchaser for valueable consideration takes the registered estate subject to interests noted on the register  and interests which override. 

5.  PRIORITIES REGARDING REGISTERED DISPOSITIONS

 

S.29 LRA 2002 

29
1

any interest that is not registered as a registrable disposition and does not override must be protected by an entry on the register. 

 

after 2003 the only entry methods that can be used to protect these interests will be Notices, Restrictions and Cautions against First Registration. 

 

 

6. INTERESTS PROTECTED BY ENTRY ON THE REGISTER: THIRD PARTY RIGHTS

 

s.27 LRA 2002

30
1

agreed (with the consent of the registered proprietor) or unilateral

 

Registrar will enter them on charges register of a title and will be used to protect brudens on the land such as restrictive covenants, easements and rights of occupation . 

 

Notices are not used to protect trusts of land or restrictive covenants in leases. 

6.1 Notices (ss. 32-39 LRA 2002)

 

(3)