Registered Land Land Law Revision Notes PDF

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Registered land law notes lots of academic learning here....

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Land Law, Chris Bevan (2018) Chapter 1 Principles of Registered Land The Land Registration Act 2002 governs land registry today. Around 88% of titles in land are now registered as of 2017. When we talk of land being registered we mean that the title to land has been recorded in a register that is maintained, controlled and overseen by Land Registry a State institution officially named Her Majesty’s Land Registry. More than one title can be recorded to a piece of land such as the freehold and the leasehold estate in land over the same piece of area. The idea is that the register will provide a comprehensive account of the ownership of land in England and Wales which bind that land rather than the old system of ‘title deeds conveyancing’ which was determined by who held the physical paper copies of the title deeds. Every title is given a unique title number – this gives a comprehensive as possible picture of the land and the interests that affects it. Gray and Gray explain how it works by stating that each substantive registered title number effectively identifies a major interest around which are clustered register entries relating to a range of minor interests. The operative distinction is therefore between large forms of estate ownership and all other kinds of interest in the land which enhance diminish or qualify such ownership. The LRA 2002 is supplemented with the Land Registration Rules which add flesh to the bones of the Act. It was only until 1990 that on the sale of land, the land would then have to be registered per the Title Order 1989. A land register has as its aim to provide potential purchasers to find out about a particular plot of land and to determine whether the party selling it has the power to do so and whether the land to be purchased will be acquired free from or encumbered by pre-existing rights operating over it. Interested parties are also able to mitigate or guard against risk in dealings with land. When we are buying land we want to know that it is free from unwelcome rights such as mortgages, rights of way, or other individual rights that may burden it. Registration serves as a form of protection for purchasers and interest-holders and this notion of registration as protection can be explained in terms of the wider advantages of this system. Land registration allows for a complete and accurate reflection of the state of land at any given time so that title to land can be investigated with the minimum additional enquiries and inspections as a fundamental objective per the Law Commission. The old system used to be costly in investigations as the vendor had to demonstrate 15 years of good title which the purchaser must then inspect. Registered titles are easier to verify and therefore suggests and decrease in the amount of forgery, it is the fact of registration that guarantees title rather than the dusty bulky title deeds conveyancing. A registered system also records the rights and interests in the land that affect it, as these rights are enforceable and binding against the purchasers this is incredibly important. However, this will not negate all of them because overriding interests are interests that are not registered but nevertheless can be binding on the purchasers. It can also encourage more accurate plans of plots of registered land which reflect the true extent of land. O’Connor notes the economic benefits of increases transferences of land to reap the economic rewards that can be created from the land’s use. If they feel that their land is secure they will be more likely to invest in improving it. There were a number of issues with the LRA 1925 as found by the Law Commission in their 1998 Consultation Paper. It stated that the LRA 1925 legislative scheme was complex, the inconclusiveness of the register as a result of large category of interests (overriding) that were enforceable against purchasers even though they were not on the register, the so called registration gap between the date of the transaction and the date that land was registered, and the antiquity of the legislation. The Commission in its 2001 Report, noting the experiences of other Commonwealth countries that, the two systems of land should not necessarily be kept in alignment and that registered land principles should not be constrained by attempting to mirror the unregistered ones.

General Overview of the Land Registration Act 2002 Notice: Under the LRA 2002 notice is no longer a means of determining the enforceability of proprietary rights in registered land. The doctrine of notice plays no role in the registered land system. This was where a bona fide purchaser of a legal estate for value will take the land free of prior unregistered equitable interests provided she does not have notice (actual, constructive or imputed) of these interests. It is the fact of registration that determines enforceability. A purchaser of registered land takes the land subject to the estates, rights and interests recorded in the register and not determined by the knowledge of the purchaser and good faith is also irrelevant. This fits with the aim of the 2002 Act to reduce to a minimum the amount of investigations and inquiries that have to be made and inspections of land which are clearly incompatible with the doctrine of notice. Four Group Categorisation of Rights: Overlap between these groups is possible and it is not found in the Statute itself. An option to purchase land or a short legal lease is capable of protection by way of entry of notice but it can also amount to an overriding interest. Substantively Registerable Estates - Only legal estates are capable of being substantively registered, meaning that these estates are registered in their own right, generate a title and are provided with their own title number. This includes the fee simple (freehold) and the legal terms of years (leasehold) granted for more than seven year per sections 2,3,4,27 or LRA 2002. A registerable disposition is where land that is already registered a transfer of a freehold estate or the granting of a lease of more than 7 years and this disposition must be completed by registration if it is to operate at law. Failure to do so will mean the transferee will only get an equitable title in the land. Interests which must be completed by registration to be legal – Section 27 LRA 2002 lists a series of dispositions (dealings with land) which are required to be registered. These are dispositions of an estate or charge which has already been registered. These are called registerable dispositions and these can only operate at law if they are completed by registration and the relevant registration requirements are met in schedule 2 of the Act. These include the transfer of a registered title, grant of a registered estate of a lease of more than 7 years, or an expressly created legal easement or legal charges (mortgages). Other Third Party Interests Capable of Protection on the Register – These are not required to be registered, cannot be substantively registered and are not overriding interest but can be protected by registering them against the estate they affect. If registered, these will take priority and will be binding on successors. Under the LRA 1925 these were called minor interests. These are called interests capable of protection including many easements and covenants as well as options to purchase. Protection is achieved by entering a notice which ensures the priority of the right. Pretty much all property interests can be protected in this way expect a few listed such as interests under a trust, leases granted for 3 years or less and restrictive covenants between a lessor and lease. Unregistered Interests Which Override – These are interests which aren’t registered and not appearing on the register are binding on any person who acquires an interest in registered land whether on first registration or where there has been a registerable disposition of a registered estate completed by registration. These are provided for in Schs 1 and 33 of the LRA 2002: short lease of 7 years or less, implied legal easements, and the interests of people in actual occupation of land. It is a key feature of the LRA 2002 that any mistakes on the register can be corrected called altercation in Schedule 4 of the LRA and if that constitutes a rectification under Schedule 8 of the LRA 2002 and loss has been suffered as a result of that mistake an indemnity may be payable. Conveyancing process for registered land – A copy from the Land Registry is acquired after an initial offer. A transfer of a registered estate only takes affect at law once it had been completed by registration, until then the seller remains the legal owner of the land though the buyer is the owner in equity from the moment the contracts are exchanged. Once the Land Registry has completed the registration, the buyer will receive a copy of the registered title from Land Registry.

Titles in Registered Land Unregistered to registered land happens in two ways, section 3 deals with voluntary registration and section 4 deals with compulsory registration. Section 4 LRA 2002 LRA 2002 contains a number of events that will trigger compulsory registration of previously registered titles. These triggering events are contained un s.4 of the Act and cover common dealings with the land. Under s.4 some events include the transfer of unregistered land freehold/leasehold with more than 7 years to run, the grant of a lease for a term of more than 7 years, the grant of a reversionary lease for any term where the lease is to take effect more than 3 months after the grant and the grant of a protection for legal mortgage. Registration will need to be completed within 2 months per s.6(4), it can be extended on application to the Land Registry per (5) if there are good grounds for doing so. Once registered there is a break from the old unregistered system and from then on, this forms the basis for all subsequent dealings with the land. Under s.58 the conclusiveness of the title will be guaranteed, and the legal estate will be vested in the person if they are on the register. This is a system of title by registration as opposed to registration of title. Registration confers title on the registered proprietor even where there has been no conveyance of the legal estate to that proprietor. This means that people can rely on s.58 as having the title even if there has been in error as a result of fraud. However, they then will be subject of a rectification order. Walker v Burton (2013) Swift 1st v Chief Land Registrar (2015) This case held that “It is registration rather than the quality of the prior disposition which creates and constitutes the proprietor’s title to the registered estate or charge see s. 58(1) LRA 2002. This is certainly the view of the editors of Ruoff & Roper … and it was the view of the Law Commission when it produced its report on land registration which led to the passing of the LRA 2002.” The case law confirms the conclusive effects of registration under s.58. Registration guarantees title, subject to claims to alteration and rectification of the register. The point is this: whether a claim to rectification succeeds is to be decided by reference to the specific provisions on rectification and succeed or fail, the register is conclusive unless and until it is altered.

The Effect of First Registration – Four Classes of Title When an application for first registration is made, they will send the title deeds to the land with the appropriate Land Registry forms to the office. The Land Registrar will investigate the root of the title and consider the validity of the application and then determine the class of title is to be granted depending on the nature of the documentation available and by considering the wider factual circumstances as to the title. At the same time the person will add the interests that affect the land that are discovered. There are four classes of title – absolute, qualified, possessory and good leasehold. Absolute Title - This is the gold standard and is available to freehold and leasehold land – absolute freehold and absolute leasehold. Section 9(2) to freehold and s.10(2) to leasehold. This vests the estate in the proprietor subject only to entries on the register and to any overriding interests affecting the land per s.11(3)-(5). The leasehold is the same but is bound to the restrictive covenants express and implied per Section 12(4), obligations and liabilities in the lease. Qualified title is where there is some defect in the title, per section 9(4) as to the freehold and 10(3) as to the leasehold. This registration is like above but subject to additionally estates, rights or interests that are expected from registration per s.11(6) freehold ands.12(70 leasehold. For obvious reasons, qualified title is a far less attractive class of title and in particular is comparatively rare with Land Registry reluctant to grant it. Possessory Title is where there is insufficient documentary evidence of title whether freehold or leasehold on their application to first registration. This is only used if a claim is based on adverse possession or the title deeds have been destroyed or otherwise lost. This is the same as absolute title save to any adverse interest existing at the date of registration and not just interests for which there is an entry in the register and overriding interests. This is not ideal as the person may find themselves bound by undiscovered interests affecting the land.

Good Leasehold – Absolute leasehold title requires the Registrar to be able to verify the landlord/leasor’s title from which the lease was granted. This may not always be straightforward especially in cases of very long leases. Good leasehold may be registered per Section 10(3), this is the same as absolute title save that it is subject to any estates, rights and interests affecting the landlord’s freehold. This is a strong title with the caveat however that the landlord’s freehold has not been verified. These four hierarchies with absolute title and good leasehold title being the stronger more secure titles and the qualified and possessory title being the weaker. Section 62 allows for changes and upgrades to be made. This would be appropriate where missing title documentation (limiting title to possessory title) is subsequently located or where a defect in the title (limiting title to qualified title) is no longer operating.

The Meaning of Registered Dispositions – Section 27 LRA 2002 This is key to a registered land system that the register is as accurate and up-to-date as possible. To assist this, LRA 2002 provides that any subsequent dealings with registered land must be completed by registration. These registerable dispositions are provided for in 2.27 LRA 2002. Section 27(2) lists them as follows: ＋ Transfer of a registered fee simple ＋ Transfer of a registered lease (any duration) ＋ Grant out of a registered estate of a lease for a term exceeding 7 years ＋ ‘…’ of a lease to take effect after three months from the date of grant (reversionary lease) ＋ Grant out of a registered estate of a discontinuous lease ＋ Grant or reservation of a legal easement ＋ Grant of a legal charge/mortgage Registerable dispositions must be completed by registration. These are provided for in Schedule 2 of the Act. The disposition will have no effect in law unless it has been registered and at best will take effect in equity per Section 27(1). This will inevitably arise the issue of regulatory gap where the land has been disposed before the registration and then subsequent dealings with the land will take place without it being on the register affecting arising third party rights or other dealings with the land. Baker v Craggs (2016) – Regulatory Gap Charleton sold part of their farmland to Craggs. Craggs failed to lodge a complete land plan when applying to register the transfer and as such was not registered as owner of the farm until 2012. In that interim regulatory gap period, Charleton transferred other land to Bakers. This purported in the conveyance to give the Bakers a right of way over the land already sold to Craggs. Transfer to Bakers was registered before Craggs. Thus Craggs would therefore be bound by his right of way unless he could show that he was in actual occupation but this has been overridden when the Bakers paid the purchase price to two trustees. Continue from Page 55

Martin Dixon, Modern Land Law (11th edn 2018) Chapter 4: Unregistered Land Unregistered Land: An Introduction to the System of Unregistered Conveyancing As we have seen in Chapters 1 and 2, land law and the conveyancing system in England and Wales underwent radical reform with the LPA 1925 Act. It was not until December 1990 that all land in England and Wales was under first registration of title compulsory. Although the amount of land that remains unregistered is small today, there is a residual need to understand the basic structure of unregistered land even though it is of diminishing importance. Unregistered land means that the title to the land is established under the old system of title deeds and is not to be found in the register of titles governed by the LRA 2002. The system operates completely separately from the system of registered land. They still deal with the same types of proprietary rights such as freeholds, leaseholds, easements and covenants and they share the concept of overreaching. The distinction between legal and equitable interests is still of crucial importance when considering dealings with unregistered land, although the doctrine of notice has been replaced in all but a few instances by the partial system of registration referred to above (land charge system). The legal title of freehold and leasehold have the same character whether in unregistered or registered land. With an equitable estate (e.g. an equitable lease) the estate owner also enjoys full rights over the land subject to the difficulties affecting all equitable interests in unregistered conveyancing that is they rank second to any previously created equitable right and are vulnerable if there is a sale of a legal estate in the and to a purchaser for valuable consideration. Interests are of the same type in each system. There are easements, mortgages, covenants, profits and coownership rights, options and estoppels as these are creatures of the substantive law. They are examples of proprietary rights that may exist over someone else’s land (over their estate in it). However, the way in which these effect another person’s land is different from registered land. There are four main categories: legal rights; equitable rights that are registerable; equitable rights that are not registerable because they are subject to overreaching; and equitable rights that are neither overreachable nor registerable under the LCA 1972. Legal Interests Legal interests in another person’s unregistered land such as easements, mortgages, and leaseholds are automatically affective against the land owner over which they exist even if they were granted by someone other than the land owner. They will bind automatically any person coming into ownership or occupation of the land, be they a purchaser, recipient of a gift, devisee under a will or an adverse possessor. ‘Legal rights bind the whole world’. There is a clear distinction between legal and equitable estates and interests. This turns on the scope of s.1 LPA 1925, no further enquiries are then needed. The state of mind of the transferee is not relevant. These are easily discoverable such as a tenant for three years or less with a legal lease may have no deed but will be obvious of his existence on the land. A puisne mortgage is a legal mortgage over land for which the documents of the title of the mortgage land have not been despotised with the mortgage (lender) usually because an earlier legal mortgage already exists and this earlier lender has the documents. These can instead be registered under Class C(i) of the LCA 1972. Equitable Interests Registerable These require registration under the LCA 1972. The majority of them fall into this category such as easements, restrictive covenants, equitable mortgages, equitable leases and estate contracts. In order to bind the purchaser or unregistered land, a land charge must be regi...