Registration of Property Rights p1 Flashcards
(23 cards)
What is the fundamental objective of the Land Registration Act 2002 regarding the register?
The register should be a complete and accurate reflection of the state of title at any given time, enabling online title investigation with minimal additional enquiries.
What are the 4 main purposes of property registration systems?
To protect property rights, simplify creation/transfer, provide clear notice to the world, and offer evidence of title.
What are the three registers under the Land Registration Act 2002 and what information does each contain?
Property Register: Describes the land and estate.
Proprietorship Register: Identifies the owner, class of title, and disposal restrictions.
Charges Register: Records charges and other interests affecting the land.
Which legal estates in land are subject to substantive registration with their own title numbers? (s 2 LRA 2002)
Legal freeholds and legal leaseholds (if term > 7 years unexpired or on transfer/grant if term > 7 years from grant).
What powers does a registered proprietor have? (s.23(1) LRA 2002)
Power to make any disposition permitted by general law and power to charge the estate at law with the payment of money.
What is the significance of registration as proprietor under s. 58(1) LRA 2002?
Registration vests the legal estate in the proprietor, even if it wouldn’t have otherwise been vested in them. This is the ‘magic of land registration’.
How are registrable third-party interests in land protected on the register? What statute applies?
By entering a notice in the Charges Register (s.32 LRA 2002). This protects the priority of the interest.
What is the basic rule for priority of competing interests in registered land? What statute applies?
An earlier interest takes priority over a later one (s. 28(1) LRA 2002).
What is the special priority rule for a purchaser of a registered estate? What statute applies?
A purchaser for valuable consideration takes priority over any pre-existing interest that is not protected by registration or an overriding interest (s.29 LRA 2002).
What are the three ways in which the priority of an existing interest is protected against a purchaser under s.29(2) LRA 2002?
If the interest is a registered charge, the subject of a notice in the register, or falls within any of the paragraphs of Schedule 3 LRA 2002 (overriding interests).
What are ‘overriding interests’? What schedules of the LRA 2002 are relevant?
Interests that are enforceable against a new purchaser even though they do not appear on the register. Schedule 1 (first registration) and Schedule 3 (registered dispositions) are relevant.
What type of leasehold estate is an overriding interest under Schedule 3, Paragraph 1 LRA 2002? What are the conditions?
A legal leasehold estate granted for a term not exceeding seven years. It automatically overrides and doesn’t require actual occupation.
What type of interest can be an overriding interest based on actual occupation? What schedule and paragraph apply?
A proprietary interest belonging to a person in actual occupation of the land at the time of the disposition (Schedule 3, Paragraph 2 LRA 2002).
What are the safeguards for purchasers against overriding interests based on actual occupation? (Sch. 3, para 2 LRA 2002)
An interest is not overriding if the occupier failed to disclose it when reasonably expected to after inquiry, or if their occupation was not obvious on a reasonably careful inspection and the purchaser lacked actual knowledge.
Why are trusts of the family home potentially problematic for purchasers? (s.33 LRA 2002)
Interests under a trust cannot be put on the register (curtain principle). If only one trustee sells, the beneficiary’s interest may still bind the purchaser if they are in actual occupation.
What is ‘overreaching’ in the context of trusts of land? What statutes are relevant?
Sale by two or more trustees removes the beneficial interest from the land to the proceeds of sale (s. 2(2) and s.27(2) LPA 1925).
Does the Land Registration Act 2002 create ‘title by registration’ or merely ‘registration of title’? (ss. 27(1) & 58(1) LRA 2002)
Increasingly leans towards title by registration. Legal title to registrable dispositions doesn’t pass until registration (s. 27(1)), and registration as proprietor can vest title even if not previously held (s. 58(1)).
What interests can be protected by a notice on the register (s.32 LRA 2002)? What cannot (s.33 LRA 2002)?
Leases (3-7 years), equitable interests (e.g., restrictive covenants). Cannot: Leases (under 3 years), interests under a trust of land.
What are the potential consequences of not registering a required disposition of a registered estate? (s. 27(1) LRA 2002)
The disposition does not operate at law until the relevant registration requirements are met. Legal title remains with the previous owner.
Unregistered interests that override registered interests
Malory Enterprises v Cheshire Homes [2002] Ch 216
Illustrates that the determination of ‘actual occupation’ (Sch. 3, para 2 LRA 2002) is fact-dependent. In this case, actions like boarding up windows, erecting ‘no trespassers’ signs, and fencing derelict land were held to constitute actual occupation.
Unregistered interests that override registered interests
Chaudhary v Yavus [2011] EWCA 1314
Shows that mere use of a physical structure (a metal staircase in this case, related to an easement dispute) does not necessarily equate to ‘actual occupation’ for the purposes of Schedule 3, Paragraph 2 of the LRA 2002.
Chhokar v Chhokar [1984] Fam Law 269
Established that ‘actual occupation’ (Sch. 3, para 2 LRA 2002) does not require continuous and uninterrupted presence, but there must be some degree of permanence and continuity and an intention to return if absent.
Link Lending v Bustard [2010] EWCA Civ 424
Provides a list of factors relevant to assessing ‘actual occupation’ (Sch. 3, para 2 LRA 2002), including the degree of permanence/continuity, intentions, reasons for and length of absence, and the nature/circumstances of the person and property. Emphasizes no single test exists.
