UNIT 3 - Enforceability in registered system Flashcards
Which one or more of the following transactions will require registration at Land Registry?
A) A sale of an unregistered freehold title.
B) The grant of a lease, by deed, for a term of 3 years.
C) The transfer of an unregistered freehold estate by means of an assent
D) The grant of a lease for a term of 8 years.
CORRECT ANSWERS A,C,D - S4 Land Registration Act 2002 contains a list of those transactions which require registration at Land Registry. The list includes the sale, gift, mortgage or assent of a freehold or leasehold which has more than seven years left to run.
TRUE OR FALSE
To find out the identity of an owner of a registered title you should look at the Property Register of the title at Land Registry.
FALSE - The details of the owner of the property will appear in the Proprietorship Register of the title.
TRUE OR FALSE
The doctrine of overreaching does not apply in registered land.
FALSE - The doctrine of overreaching does apply to beneficial interests under a trust which exist in registered land, in the same way as it applies to unregistered land. Only beneficial trust interests may be overreached in either system - overreaching does not apply to any other third party rights.
Which ONE of the following statements is CORRECT?
A) The relevant date for assessing actual occupation for the purposes of Schedule 3 paragraph 2 LRA 2002 is the date of registration of the purchase.
B) The relevant date for assessing actual occupation for the purposes of Schedule 3 paragraph 2 LRA 2002 is the date of completion of the purchase.
C) The relevant date for assessing whether an interest protected by Schedule 3 paragraphs 1 or 3 LRA 2002 is enforceable against a buyer is the date of exchange of contracts.
D) The relevant date for assessing whether an interest protected by Schedule 3 paragraphs 1 or 3 LRA 2002 is enforceable against a buyer is the date of registration of the purchase.
CORRECT ANSWER B - The relevant date for Schedule 3 paragraph 2 is completion (see Abbey National v Cann). The relevant date for the other overriding interests under paragraphs 1 and 3 is also the date of completion of the purchase.
Fred has an equitable lease of a piece of registered land. He is in actual occupation of the land.
Which ONE of the following statements is CORRECT?
A) Schedule 3 paragraph 2 LRA 2002 makes Fred’s occupation binding on the registered proprietor of the land.
B) Schedule 3 paragraph 2 LRA 2002 makes Fred’s equitable lease binding on a purchaser of the land.
C) Schedule 3 paragraph 2 LRA 2002 makes Fred’s occupation binding on a purchaser of the land.
D) Schedule 3 paragraph 2 LRA 2002 makes Fred’s equitable lease binding on a purchaser of the land provided that his overriding interest is entered on the register.
E) Schedule 3 paragraph 2 LRA 2002 makes Fred’s occupation binding on a purchaser of the land provided that his overriding interest is entered on the register.
CORRECT ANSWER B - Schedule 3 paragraph 2 makes Fred’s proprietary right, ie his equitable lease, binding on a purchaser of the land. An overriding interest does not have to be registered to be binding.
Which ONE of the following statements is CORRECT?
A) In registered land, restrictive covenants are overriding interests
B) An interest which overrides a registered title is only binding if you have notice of it
C) Overriding interests must be registered in the Charges Register of the title.
D) A legal lease for 7 years is an overriding interest.
CORRECT ANSWER D - A legal lease for 7 years is an overriding interest under Schedule 3 paragraph 1, LRA 2002. The other statements are false. A restrictive covenant will not fall within Schedule 3 paragraph 2 as the person with the benefit is unlikely to be in actual occupation of the burdened land. Notice is a concept relating to unregistered title only. There is no requirement to register overriding interests - they are automatically binding.
Which one or more of the following statements are CORRECT?
A) A lease granted by deed for a term of 7 years must be registered as it is a registrable disposition.
B) A right under s 30 Family Law Act 1996 will be protected by Schedule 3 paragraph 2 LRA 2002 if the claimant is in actual occupation.
C) An easement for 30 years created by deed should be registered as it is a registrable disposition but may alternatively be protected by Schedule 3 paragraph 2 LRA 2002 as the dominant owner is in actual occupation.
D) A lease for a term of four years created by the formalities set out in s 2 Law of Property (Miscellaneous Provisions) Act 1989 may be protected by a notice on the register as it is an interest affecting a registered estate (s32 LRA 2002) or alternatively by Schedule 3 paragraph 2 LRA 2002 if the tenant is in actual occupation.
E) A mortgage created by deed must be registered on the charges register of the title it affects to be legal under s 27 LRA 2002.
CORRECT ANSWERS D & E - A legal lease for exactly 7 years will be overriding under Schedule 3 paragraph 1 LRA 2002.
A right under s 30 Family Law Act 1996 cannot be protected by Schedule 3 paragraph 2 LRA 2002 - see s 31(10)(b) FLA 1996.
A legal easement for 30 years should be registered as a registrable disposition but cannot be protected by Schedule 3 paragraph 2 LRA 2002 as the dominant owner is not in actual occupation of the land affected.
The lease in statement D is equitable because it does not fall within the parol lease exception, being for more than three years, but is created in accordance with s2 LP(MP)A 1989 - an estate contract. It is an interest affecting a registered estate and is protected by a notice on the charges register. If it is not so protected, it may be elevated to overriding status under Schedule 3 paragraph 2 as it is sufficiently proprietary in nature (and if the other requirements of Schedule 3 paragraph 2 are met).
Statement E is a registrable disposition.
Which one or more of the following interests might appear on the register of a freehold title?
Hide answer choices
A) Leasehold covenant.
B) Legal lease for ten years.
C) Family Law Act right.
D) Restrictive (freehold) covenant.
E) Option.
F) Equitable lease.
CORRECT ANSWERS B, C, D, E & F - Leasehold covenants do not appear on the register. Legal leases for 7 years or less are overriding interests under Schedule 3 para 1 and will also not appear on the register of a freehold title.
TRUE OR FALSE
Under Schedule 3 paragraph 3 Land Registration Act 2002, a qualifying easement must, since 13.10.06, be within the actual knowledge of the buyer and obvious on a reasonably careful inspection of the land and used within the past year.
FALSE - The conditions are alternatives, so the easement must either be within the actual knowledge of the buyer or obvious on a reasonably careful inspection of the land or used within the past year.
A solicitor was asked to advise a client on some third party interests.
Which ONE of the following would be capable of being an overriding interest?
A) A legal lease granted for a term of 8 years in 2019.
B) A legal easement created by implication in 2015.
C) A legal easement created by deed granted for an estate in fee simple in 2006.
D) An equitable lease granted last year for a term of 3 years where the tenant is not in occupation.
E) A licensee in occupation
CORRECT ANSWER B - Schedule 3 para 3 LRA 2002 states legal easements and profits created by implication or prescription after 12 October 2003 are overriding interests. Such easements/profits do not require a deed in order to be legal
Option A is wrong - Schedule 3 para 1 LRA 2002 states a leasehold estate in land granted for a term not exceeding seven years from the date of the grant is an overriding interest. Legal leases for more than 7 years must be registered as they are registrable dispositions (s27 LRA 2002).
Option C - is wrong as it is an expressly granted legal easement or profit and under section 27(2)(d) LRA 2002 it is a registrable disposition.
Option D - is wrong. Despite being for a term of 7 years or less for a lease to be an overriding interest it must be legal as per Schedule 3 para 1 Land Registration Act 2002 and nor does it fall within Schedule 3 para 2 Land Registration Act 2002 as the tenant is not in occupation which is required for it to be an overriding interest.
Option E - is wrong. In order to satisfy the requirements of Schedule 3 para 2 Land Registration Act 2002 there must be a proprietary interest and actual occupation. A licensee does not have a proprietary interest in land so this cannot be an overriding interest.
A solicitor is acting for a buyer of a house. The house has a registered freehold title and the seller is a sole registered proprietor. The seller’s solicitor tells the buyer’s solicitor that the house is subject to a covenant which states that it must only be used for residential purposes. The buyer also tells his solicitor that when the seller’s mother showed him around the house, she commented that the house had been a good investment for her and her son and she hoped it would be for the buyer too.
Which ONE of the following statements best explains whether the buyer may be bound by the issues affecting the title to the house?
A) The covenant is a positive covenant and the buyer will be bound by it if it is noted in the Charges Register of the title. However he may be bound by any trust interest which the seller’s mother has in the house even if it is not protected by an entry on the title register.
B) The covenant is a positive covenant but the buyer will not be bound by it even if it is noted in the Charges Register of the title. He will only be bound by any trust interest which the seller’s mother has in the house if there is a restriction in the Proprietorship Register to protect it.
C) The covenant is a restrictive covenant and the buyer will be bound by it if it is noted in the Charges Register of the title. He will also be bound by any trust interest which the seller’s mother has in the house if it is protected by an entry on the title register.
D) The covenant is a restrictive covenant and the buyer will be bound it if it is noted in the Charges Register of the title. He may also be bound by any trust interest which the seller’s mother has in the house even if there is no entry on the register in respect of it.
E) The covenant is a restrictive covenant and the buyer will be bound by it if it is noted in the Charges Register of the title. He will only be bound by any trust interest which the seller’s mother has in the house if there is a restriction in the Proprietorship Register to protect it.
CORRECT ANSWER D - Despite being worded in a positive way, the substance of the covenant is restrictive (meaning that Options A and B are wrong). In the registered system a restrictive covenant must be protected by a notice on the Charges Register in order to bind successors in title.
As regards the seller’s mother, she may have a trust interest if she invested money in the house. This trust interest may be overriding if she is also in actual occupation of the house and the conditions of Schedule 3 para 2 of the Land Registration Act 2002 are satisfied. Overriding interests bind even though there is no mention of them on the registered title (Option C is therefore wrong).
Finally, whilst a beneficiary can register a restriction on the Proprietorship Register, this does not protect the trust interest, instead, it alerts a potential buyer of the need to overreach the trust interest. As a result, Option E is wrong.
A few years ago, a woman purchased a property for her and her civil partner to live in together. Title to the property is registered and the woman is named as the sole registered proprietor on the Register of Title. Recently, the woman and civil partner haven’t been getting on and the civil partner has moved out of the property. The civil partner is concerned that the woman might try to sell the property and so she decides to instruct a solicitor to provide her with some advice on whether she has any interest and what she needs to do to protect it, if anything.
Which ONE of the following statements best describes the civil partner’s position?
A) The civil partner appears to have a statutory right to occupy the property under the Family Law Act 1996 which does not need to be registered because it is a type of overriding interest.
B) The civil partner appears to have a statutory right to occupy the property under the Family Law Act 1996 which should be protected by registering a notice in the Charges Register.
C) The civil partner appears to have a statutory right to occupy the property under the Family Law Act 1996 which should be protected by registration of a Class F Land Charge in the Land Charges Register.
D) The civil partner cannot have a statutory right to occupy the property under the Family Law Act 1996 because she is not in occupation of the property.
E) The civil partner cannot have a statutory right to occupy the property under the Family Law Act 1996 as she did not contribute to the purchase price of the property.
CORRECT ANSWER B - Under section 30 of the Family Law Act 1996, where a couple are married or in a civil partnership, and the property is in one name only, the non-owning spouse or civil partner will have a statutory right to occupy (also known as a “home right”) the matrimonial or civil partnership home. The conditions are that they are married or in a civil partnership and the property is or was intended to be the matrimonial or civil partnership home. In registered land, this right should be protected by registration of a notice in the Charges Register.
Option A is wrong as a statutory right of occupation under the Family Law Act 1996 can never be an overriding interest.
Option C is wrong because the Land Charges Register only applies to unregistered land and we are told that the property is registered.
Option D is wrong because the right to claim the statutory right of occupation does not depend on the non-legal owner being currently in occupation.
Option E is wrong because a financial contribution is not one of the conditions which needs to be satisfied in order to claim this right.
Last year the current owners of a farm (with a registered freehold title) signed a deed in which they granted their immediate neighbour, a horse riding school, a right to cross their land. A client bought the farm two months ago and has come to see you because she wants to stop the riding school crossing her land. She says the horses churn up the land and make it very muddy.
What advice would you give the client about whether or not she is bound by the riding school’s easement?
A) The easement is an overriding interest which will bind her under schedule 3 paragraph 1 Land Registration Act 2002.
B) The easement was made by deed, is therefore legal and binds the world, including your client.
C) Your client was not party to the deed creating the easement and is therefore not bound by it.
D) The easement is an overriding interest which will bind her under schedule 3 paragraph 3 Land Registration Act 2002.
E) The easement is a registrable disposition which will only bind her if it was completed by registration at Land Registry
CORRECT ANSWER E - The expressly granted easement by deed is a registrable disposition which will only bind your client if it was completed by registration.
Option A is wrong because schedule 3 para 1 relates to short leases.
Option B is wrong because it is applying the rules which govern unregistered land when the farm has a registered title.
Option C is wrong. An easement is a proprietary interest in land which can bind a purchaser of the land even though they were not party to it.
Option D is wrong because schedule 3 para 3 does not apply to expressly granted easements.
A married couple purchase a registered freehold property with the help of the wife’s parents. The parents contributed half the purchase price and occupy the property. One year after their purchase, the married couple obtain a loan in return for the grant of a mortgage in favour of a lender. The married couple default on the loan and the lender seeks to exercise its power of sale.
Is the lender bound by the interests of the wife’s parents?
A) Yes, the wife’s parents have an overriding interest which is binding on the lender.
B) Yes, the wife’s parents have actual occupation which is binding on the lender.
C) Yes, because the lender has failed to overreach the wife’s parents’ interest.
D) No, because the occupation by the parents occurred after the mortgage was created.
E) No, because the lender has overreached the parents’ beneficial interest under a trust.
CORRECT ANWSER E - The lender paid capital money to two trustees (the married couple). This had the effect of lifting the beneficial interests of the parents (as a consequence of their contribution to the purchase price) from the property and to the proceeds of sale (ie the loan advance from the lender). Option C is, therefore, wrong.
Option A is wrong because although the parents may have a beneficial interest under a trust protected as an overriding interest, such an interest has been overreached by the lender.
Option B is wrong as occupation alone does not create an overriding interest. This must be coupled with a proprietary interest in land.
Option D is wrong because the facts clearly indicate that the parents were in occupation prior to the advance by the lender.
A buyer recently completed the purchase of a registered freehold property (‘the Property’). Yesterday, the buyer moved into the Property and was confronted by the neighbouring landowner who claimed to have a lease of the Property for five years from last year and granted by deed.
Will the buyer be bound by the neighbour’s lease?
A) No, because the lease is a legal lease, and so, should have been registered on the charges register.
B) No, because the lease is equitable by nature and, therefore, not binding on the buyer.
C) No, because the lease is equitable and the buyer will only be bound if a notice has been registered.
D) Yes, because the lease is a legal right and, therefore, binds the world.
E) Yes, because it is a legal lease for a term of seven years or less, and so, automatically protected as an overriding interest.
CORRECT ANSWER E - A lease is capable of being legal. In order to be legal it must be created by deed (s 52(1) LPA 1925). The facts state that the lease is made by deed. Options B and C are, therefore, wrong.
The lease is for five years and, therefore, cannot be registered as a registrable disposition. Option A is, therefore, wrong.
A five-year legal lease is automatically protected as an overriding interest (Sch 3, para 1 LRA 2002). Option D is, therefore, wrong as it relates to unregistered land and the facts state that the Property is registered.
