Protection of right and interests, Rentcharges Act 1977 PDF

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Summary

This document provides notes and explanation about Registrable dispositions, Rentcharge s.1(2)b LPA 1925, Recharges Act 1977 and an example of Effects of the Recharges Act 1977 supported by answer....

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Lecture: " Protection of right and interests, Rentcharges Act 1977." Step 1 Is the right or interest capable of being legal? see s.1 LPA 1925 Step 2 Have the correct formalities been complied with ? see S.53 LPA 1925 and s.2 LP(MP)A 1989

Step 3 Does the right or interest need to be registered in order to be legal? see s.27 Law Registration Act 2002

Registrable dispositions s.27 (1) LRA 2002 If a disposition of a registered estate or registered charge is to be completed by registration, it does not operate at law until the relevant registration requirements are met. i.e the estate or interest will be equitable if not registered.

Rentcharge s.1(2)b LPA 1925 Is a regular financial payment which : - must be in possession (payment not the property) - issuing out of or charged in land - perpetual or for a terms of years absolute.

Recharges Act 1977 - No new rent charges created since 22 August 1977 - Existing rentcharges end on the later of 60 years from wither the date of the Act (22 July 1977) or the date of first payment.

Effects of the Recharges Act 1977- Example Anna sells a freehold estate to Ben in 1975, and reserves a rentcharge with an annual payment of £100. Ben has a fee simple absolute in possession. Anna has a rentcharge: -charged on land - perpetual - she is in possession

ANSWER Ben has a fee simple absolute in possession which is a legal estate and is capable of being legal under s.1 (1) a LPA 1925 . This rent charge was created before the Rent charges Act 1977 - it is valid but it will cease in 2037, unless payment is later. Anna still has a rentcharge for as long as the interest continues and under s.1(2)b LPA 1925 is capable of being legal interest. S.52(1) LPA 1925 applies and therefore it needs to be created by deed in order to be legal (Step 2) Rentcharges are registered under s.27(2)e LRA 2002 in order to be legal. Therefore, this rent charge must be registered to take effect as a legal interest (step3). If not registered is equitable only ....