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Flashcards in Land - Unregistered Title / Charges LGS 19 Deck (34)
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1

If Unregistered Title 

Investigate Title Deeds,

Search Land Charges Register, 

Make enquiries about equitable interests that might exist behind a trust of land in accordance with the doctrine of notice. 

Rules mainly in LPA 1925 and Land Charges Act 1925-75

2

If title is registered 

 

(2) 

Investigate Land Register, 

 

Rules contained in LRA 2002 

3

Unregistered Title to Land

Duties on Conveyance 

The Seller

  • S.44 LPA Must prove title by producing deeds evidencing ownership for at least the last 15 years 

 

4

Unregistered Title to Land

Duties on Conveyance

The Buyer

 

(2) 

Inspect deeds to ensure seller owns all land and that there are no gaps in title or discrepancies. Purchaser has constructive notice of matters that would be revealed by investigation of the title deeds. 

Inspection of the deeds not conclusive as to the existence of third party rights as not all will e registered as charges under the LCA 

5

Land Charges  UNREGISTERED TITLE

LCR in Plymouth. 

6 Classes of Charge

C D and F most important. 

The equitable interest of a beneficiary under a trust is not included. 

6

S.4 LCA 1972: 

Class C

 (i)   a puisne (puny –lesser 2nd or 3rd charge) mortgage i.e. a legal mortgage not protected by deposit of title deeds.  

(ii)C2 not relevant.

C (iii) (less important) general equitable charge i.e. any equitable charge, not protected by a deposit of title deeds.

C (iv) (important) an estate contract i.e. a contract to create or convey a legal estate or interest, including aoption to purchase and or to renew a lease. Particluarly important if there will be a long period between exchange and registration.
 

 

 

 

7

S.4 LCA 1972: 

Class D 2 and 3 

 

(4) - 2 Pairs 

Class D
D (ii)   a restrictive covenant created after 1925 and those not contained in a lease
• With these the doctrine of notice still works.

D (iii) an equitable easement (and probably an equitable profit a prendre) created after 1925
• Legal easement is unregistered and binds the world.
 

8

Class F

 

(4)

Class F
A charge under the Family Law Act 1996.  This gives a spouse or civil partner a right to
occupy a dwelling owned by the other spouse or civil partner. 

Not equitable interest. - Protection for some one not on title, 

Not a right under implied trust / contributing money. 

Used if marriage is breaking down. 

9

General 

 

(2)

Registration of a land charge must be against the names of the estate owners, not against the land itself. 

 

Land Charges reister is a register of names and party intersts against the name of the owner of the burdened property. 

10

The Effect of Registration of a Land Charge:  s.198 LPA 1925

 

(3)

Where an interest is registrable, the common law rules as to notice are displaced

s198 L.P.A. 1925, registration is deemed to constitute actual notice to all persons for all purposes connected with the land affected.

A prospective purchaser will have notice of any interest registered irrespective of the state of his actual knowledge. 

11


 Method of Search

 

(4)

purchaser must search against the names of all estate owners of the land he is buying since 1925. 

 

s.10 LCA purchaser should obtain an official search certificate that is conclusive in favour of a purchaser for value provided the the application did not raise misunderstanding and was against the correct name of the owner. 

Official search certificate gives purchaser period of protection for 15 days from new charges, and will take free during this period UNLESS 

charge registered pursuant to priority notice before or after search certifcate 

12

Diligent Finance Ltd v Alleyne [1972] 

 

(2)

Mrs Alleyne registered charge against the wrong name of the property owner, but claimed that her registered charge bound the mortgagee - she lost her case. 

 

Mortgagee had a search certificate on which they could rely under s 10 (4) Land Charges Act 1972.

13

Oak Cooperative Building Society v Blackburn [1968] 

 

(3)

Both the purchaser and morgtagee had made errors as to the name of the charge. 

The Buidling Society used a different name while purchaser used abbreviated name   - 2 errors vs 1 

 

Registration against fair approximation of the correct name is effective agianst some one who does not search or does so against the wrong name. 

14

The Effect of Non-Registration of a Land Charge

S. 4 LCA 1972


(a) Registrable incumbrances in classes A, B, C(i)-(iii) and F, if not registered in the appropriate register before completion of the purchase are void against a purchaser for VALUE of  ANY INTEREST (legal or equitable) in the land charged.

(b) Registrable incumbrances in classes C(iv) and D(i)-(iii) if not duly registered (as above) are void against a purchaser for MONEY OR MONEY'S WORTH of a LEGAL estate in the land charged.

In either case the purchaser's ACTUAL knowledge is immaterial: s.199(1) (i) LPA 1925.

15

Midland Bank Trust Company v Green [1981] 

 

(3)

Son failed to register an option given by estate owner / father - to purchase the farm at a low price for 10 years under C(iv) charge. 

 

Family had a dispute and was sold to wife who knew of the option. 

 

It was void against a purchaser of legal estate for money or money's worth as it had not been registered. 

16

Before completion of unregistered transaction

 

2 Cases + point 

Hunt v Luck [1902]

Kingsnorth Finance Company v Tizard [1986] 

 

inspection of the land itself is also necessary,

purchaser of unregistered land may be bound by equitable interests that are not registrable as Land Charges, unless he fails to discover them after making proper enquiries (s.199(1) (ii) LPA 1925).

 

17

Summary 


• Title to unregistered land is proved by a chain of title deeds that can be traced back at least 15 years

• Third party rights in unregistered title are discovered by inspection of the property and/or by search of the Land Charges Register at Plymouth

• The Land Charges Register protects certain types of interests in property – but NOT the interests of a beneficiary under a trust – these are protected by the equitable doctrine of notice

• Registration of a Land Charge is deemed to be actual notice to all persons

• Non-registration renders registrable interests void against certain types of purchaser

• These rules will become less significant as compulsory registration of title affects an increasing number of titles to property in England and Wales

18
1

Investigate Title Deeds,

Search Land Charges Register, 

Make enquiries about equitable interests that might exist behind a trust of land in accordance with the doctrine of notice. 

Rules mainly in LPA 1925 and Land Charges Act 1925-75

If Unregistered Title 

19
1

Investigate Land Register, 

 

Rules contained in LRA 2002 

If title is registered 

 

(2) 

20
1

  • S.44 LPA Must prove title by producing deeds evidencing ownership for at least the last 15 years 

 

Unregistered Title to Land

Duties on Conveyance 

The Seller

21
1

Inspect deeds to ensure seller owns all land and that there are no gaps in title or discrepancies. Purchaser has constructive notice of matters that would be revealed by investigation of the title deeds. 

Inspection of the deeds not conclusive as to the existence of third party rights as not all will e registered as charges under the LCA 

Unregistered Title to Land

Duties on Conveyance

The Buyer

 

(2) 

22
1

LCR in Plymouth. 

6 Classes of Charge

C D and F most important. 

The equitable interest of a beneficiary under a trust is not included. 

Land Charges  UNREGISTERED TITLE

23
1

Class C

 (i)   a puisne (puny –lesser 2nd or 3rd charge) mortgage i.e. a legal mortgage not protected by deposit of title deeds.  

(ii)C2 not relevant.

C (iii) (less important) general equitable charge i.e. any equitable charge, not protected by a deposit of title deeds.

C (iv) (important) an estate contract i.e. a contract to create or convey a legal estate or interest, including aoption to purchase and or to renew a lease. Particluarly important if there will be a long period between exchange and registration.
 

 

 

 

S.4 LCA 1972: 

24
1

Class D
D (ii)   a restrictive covenant created after 1925 and those not contained in a lease
• With these the doctrine of notice still works.

D (iii) an equitable easement (and probably an equitable profit a prendre) created after 1925
• Legal easement is unregistered and binds the world.
 

S.4 LCA 1972: 

Class D 2 and 3 

 

(4) - 2 Pairs 

25
1

Class F
A charge under the Family Law Act 1996.  This gives a spouse or civil partner a right to
occupy a dwelling owned by the other spouse or civil partner. 

Not equitable interest. - Protection for some one not on title, 

Not a right under implied trust / contributing money. 

Used if marriage is breaking down. 

Class F

 

(4)

26
1

Registration of a land charge must be against the names of the estate owners, not against the land itself. 

 

Land Charges reister is a register of names and party intersts against the name of the owner of the burdened property. 

General 

 

(2)

27
1

Where an interest is registrable, the common law rules as to notice are displaced

s198 L.P.A. 1925, registration is deemed to constitute actual notice to all persons for all purposes connected with the land affected.

A prospective purchaser will have notice of any interest registered irrespective of the state of his actual knowledge. 

The Effect of Registration of a Land Charge:  s.198 LPA 1925

 

(3)

28
1

purchaser must search against the names of all estate owners of the land he is buying since 1925. 

 

s.10 LCA purchaser should obtain an official search certificate that is conclusive in favour of a purchaser for value provided the the application did not raise misunderstanding and was against the correct name of the owner. 

Official search certificate gives purchaser period of protection for 15 days from new charges, and will take free during this period UNLESS 

charge registered pursuant to priority notice before or after search certifcate 


 Method of Search

 

(4)

29
1

Mrs Alleyne registered charge against the wrong name of the property owner, but claimed that her registered charge bound the mortgagee - she lost her case. 

 

Mortgagee had a search certificate on which they could rely under s 10 (4) Land Charges Act 1972.

Diligent Finance Ltd v Alleyne [1972] 

 

(2)

30
1

Both the purchaser and morgtagee had made errors as to the name of the charge. 

The Buidling Society used a different name while purchaser used abbreviated name   - 2 errors vs 1 

 

Registration against fair approximation of the correct name is effective agianst some one who does not search or does so against the wrong name. 

Oak Cooperative Building Society v Blackburn [1968] 

 

(3)