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Registered land

Introduction The Land Registration Act 1925 - a system to determine the ownership of land + resolve issues of priorities btw competing interests in land - intended to improve the efficiency of conveyancing, by making it easier to conduct transactions affecting the land The LRA 1925 has been replaced by LRA 2002

Registered with its own independent title - freehold - Lease of >7 yrs - Leases of no more than 7 yrs if (a) discontinuous (b) future leases - Rentcharge; franchise; profit

The introduction of a system of registration of title to land

Only 2 legal estates in land 1) fee simple absolute in possession (freehold ownership) 2) the term of yrs absolute (leasehold ownership) The system of land registration is based upon the registration of freehold and long leasehold estates on a centrally maintained land registered 1) Title to land prior to the introduction of registration All England land titles are HISTORIACALLY derived from grants from the Crown No contemporaneous central record was kept the land to be recorded Until LPA 1925 s52 = compulsory for all transfers of legal estates in land to be made by deed

Proof of gd root of title The vendor of land to be required to prove his title to the land in the absence of any central record of land ownership this COULD be done thr a chain of title deeds The vendors proof of ownership would consist of the deed conveying the land to him, the deed conveying the land to his predecessor in title, and all the other deeds conveying the land to previous owners gd root of title The chain also had to extend back over a substantial period, which has become progressively shorter over the yrs, and is not 15 yrs LPA 1969 s23 If a landowner and his predecessors hv been in possession of the land for this length of time, it is relatively unlikely that any adverse claim will exist against the land but the possibility of adverse claims is not completely eliminated Drawbacks of examination of title deeds alone Some adverse claims may not appear from the examination of title deeds There is a possibility that the key documents might be suppressed by a dishonest vendor - regarded the subdivided land since several properties will trace title to the same root, which will need to be proved by certified copies and not by the original deed; some of the copies may not hv been reproduced well, or damaged or lost On every sale the whole history has to be reexamined for the requisite period, despite the degree of repetition which may be involved Lord Scarman = this system involved the wearisome and intricate task of examining title Williams & Glynns Bank Ltd v Boland [1981] 2) Schemes of registration of deeds Advantages of registration

Advantage of providing a central repository for all such deeds Reducing the possibility that deeds might be suppressed Providing a safeguard against their loss or damage Disadvantages of registration Offered no guarantee as to the validity of the documents Did not obviate the need to conduct a full investigation of title each time land is sold Did not capture non-documentary land transactions 3) The advantages of registration of title A register, maintained to the Land Registry, records details of the land including info about its physical extent; who is currently the owner of it; any rights which exist for its benefit; any mortgages to which it is subj; and any other incumbrances or burdens to which it is subj the purchaser is no longer required to check thr a chain of title deeds The examination of the register should also disclose should also disclose whether there was a M on Osborne House, whether the land was crossed by any rights of way, and whether any leases had been granted 4) The introduction of registration in England Land Registry Act 1862 = first introduced a system of registration Land Transfer Act 1897 = compulsory registration of title in designated areas Land Registration Act 1925 = process of introducing registration of title was accelerated Land Charges Act 1925 = land remaining unregistered, a partial scheme of registration for some important interests was introduced Registration of Title Order 1989 = final stage of the transition was set in place the entire

country was designated an area of compulsory registration Land Registration act 1997 = widened the circumstances in which title to remaining unregistered land must be registered Land Registration Act 1925 Land Registration Act 2002 5) The system of land registration is not intended to be identical in effect to unregistered land HOL = No presumption that the legislation intended to leave the substantive law unchanged Midland Bank Trust Co v Green [1981] The differences btw the land registration system and unregistered land are even more pronounced following the changes made by the Land Registration Act 2002 the system of land registration must therefore be taken on its own terms as an integral whole transforming the law rather than codifying it Lloyds Bank Plc v Carrick [1996]

Key features of the system of land registration

1) The Mirror, Curtain and compensation principles Mirror principle = the register of land ownership is intended to be an accurate reflection of the range of rights with which a purchaser is likely to be concerned (reflecting who owns the land + who has interests affecting the land) Curtain principle = rights with which a purchaser is not concerned are not disclosed on the register, but are hidden behind the curtain of registration Compensation / indemnity principle = where loss is caused thr an inaccuracy in the register, compensation will be paid to anyone who has suffered loss

2) Register maintained by the state The Land Register of ownership of land titles - maintained by the state under the control of the Chief Land Registrar - maintained centrally - by 19 district land registries - self-funding thr the imposition of fees for searches and registrations - open to general public inspection LRA 2002 s66 - an index makes it possible to discover whether any parcel of land is registered LRA 2002 s68 3) The terminology of land registration Register can be - the whole of the register maintained by the Land Registry - the record for each indi title - three separate parts of the record kept for each indi title - describe the directory of all registered titles in electronic storage, the folder for each indi registered title, and the files contained within each folder Only certain rights are capable of being registered independently with their own folder; once registered registered estates Other rights are registered by means of entries against the registered estate to which they relate e.g. legal M: can exist only as a registered charge, recorded by registration against the registered estate to which it relates Full range of other rights exist only as subordinate rights against the land of another e.g. easement, covenants, options and K LRA 1925 rights of this kind could be entered on the register, but only against some other registered title or registered estate minor interests Some minor interests can never be recorded on

the register unregistrable minor interests Certain rights which are automatically enforceable against a person acquiring registered land even when they are not recorded on the register

overriding interests The categories of rights in registered land are not mutually exclusive 4) Registered estates LRA 1925 = recognized 2 kinds of registered estate the freehold and the long lease LRA 2002 s3 = extends the categories of rights - freehold estates LRA 2002 s3(1)(a) + s4(2) (a) - leasehold estates with >7 yrs unexpired LRA 2002 s3(1)(a) and (3) + s4(2)(b) - leases for discontinuous periods LRA 2002 s3(4) - leases taking effect in possession >3 months from the date of their grant LRA 2002 s4(1)(d) + s6(3)(a) - certain leases to which the Housing Act 1985 applies LRA 2002 s4(1)(b), (e) and (f) - rentcharges - franchises profits a prendre in gross 5) Compulsory first registration Land registration was introduced progressively thr a process of voluntary and compulsory registration, the latter operating when certain dealings with land took place Voluntary registration = the owner of a freehold estate, along lease, of a rentcharge, franchise or profit a prendre to apply for it LRA 2002 s3 Compulsory registration = - acquiring a freehold estate, a leasehold estate with at least 7 yrs unexpired, and certain other legal interests to apply for registration LRA 2002 s4 - includes dispositions by will or on intestacy, all registrable estates in land owned by indi will

become registered within a generation LC can add to the events upon which compulsory registration applies LRA 2002 s5 Registration can only becomes compulsory when some specified event occurs, land held by corporations (universities/colleges)or the Crown may remain outside the land registration system for a considerable time 6) Subsequent dealings with registered land Any transfer of registered land require registration of their completion LRA s27 to vest the legal title in the person registered as owner, even if the transaction on which the registration was based was imperfect LRA 2002 s58 7) the format of the register A) property register identifies the land in relation to which the estate exists, by means of a verbal description and reference to a map states whether the estate is freehold / leasehold may contain details of benefits attached to the land, such as easements and restrictive covenants enjoyed over other land of which the registered estate is the dominant tenement Land Registration Rules 2003 (SI 2003/141) r5 if the estate is leasehold, the property register will also contain brief details of the lease Land Registration Rules 2003 (SI 2003/141) r6 the description of the boundaries is normally general only and does not establish the exact line of any boundary, unless the contrary is made clear LRA 2002 s60 B) proprietorship register contains the name and address of the present registered proprietor state the quality of title with which the estate

has been registered Land Registration Rules 2003 (2003/1417) r8 contain details of any restrictions which hv the effect of restricting or limiting the rights of the registered proprietor to dispose of the land C) charges register contain details of 3rd party rights which burden the land 8) Other registrable dispositions LRA 2002 s27 dispositions required to be registered A charge by way of legal M and express legal easements will only be created when the charge or the proprietor of the easement is registered as such on the title to which it relates another way in which the register is intended to reflect accurately the state of title and subsidiary rights In the absence of such registration the M or easement granted will be equitable only and will rank alongside other subsidiary interests as an unregistered minor interest 9) Minor interests LRA 2002 s23 = does not restrict the range of rights affecting land that can be created by the registered proprietor Possible for rights not listed in s27 to be created in the same way for registered land as they can for unregistered land minor interests Most of these rights are equitable rights Many of these rights are capable of being recorded on the register of the land to which they relate recording guarantees that the right will hv priority over any rights subsequently created 10) Overriding interests Bind a purchaser of the land even where they hv not been protected on the register of the estate they affect

Taking automatic priority to any rights which are subsequently acquired by a person in the land The list of overriding interests is set out in 2 schedules to the LRA one for 1st registration (Sch 1) + one for subsequent registration (Sch 3) Most prominent category = the rights of a person who is in occupation of the land at the time that another right comes into existence and is registered A purchaser of land may find that it is subj to 3rd party interests which were not revealed on the register a prospective purchaser cannot rely on the register alone to satisfy himself whether there might be any adverse interests affecting the land 11) Eliminating the complexity of equitable ownership from the register Problems of the old system Equitable ownership of land thr a trust Their existence was not generally evident from the title deeds of land particularly true of resulting or constructive trusts The legislation of 1925 introduced a means by which, as far as possible, equitable ownership need not appear on the register, and indeed cannot be recorded on the register (list out in LRA 2002 s33) Overreaching cures the problem Overreaching provides a mechanism whereby a purchaser of land can be sure that he will acquire it free from any existing beneficial interests by paying the purchaser price to at least two legal owners, who would be the trustees holding the land subj to the trust. If this condition is met the trust interests no longer affect the land and the purchaser will take his title unencumbered by them. The interests of the beneficiaries are not

destroyed by overreaching, but transferred to the purchaser moneys in the hands of the trustees Beneficial interests under a trust are concealed behind the curtain of registration 12) Facilitating electronic conveyancing LRA 2002 ss91 & 93 = provisions which will enable the introduction of electronic conveyancing Current arrangement = the execution of a deed of transfer > submitted by the purchaser to the Land Registry > registration Future = - a deed disposing of a registered estate or charge can be made electronically s91 - the Land Registry can establish a secure electronic network which will provide conveyancers with direct access to the register of titles s92 - rules may be made requiring K and deed dealing with registered estates and rights recorded on the register to be made electronically and recorded simultaneously on the register to eliminate the time gap that currently exists btw the execution of a deed or of a K and its registration no K or deed will be effective unless it is simultaneously registered 13) Accuracy of the register guaranteed Powers given to the Court and to the Land Registrar to rectify or amend the register LRA 2002 s65 + Sch 4 The register is conclusive as to title LRA 2002 s11 Where there is a doubt about the quality of the title, the Land Registrar can reflect this in the type of registration, thereby qualifying or limiting the extent of the guarantee of title LRA 2002 ss9,10 The register is not conclusive as to the validity of matters other than title to a registered estate LRA 2002 s32

LRA 2002 contains complex provisions under which compensation is payable to persons who hv suffered loss as a result of a mistake in the register, or in consequence of the correction of a mistake in the register LRA 2002 s103 + Sch 8

Registration of title to land

1) Interests which may or must be registered The scope is same as above A rentcharge = a right to receive a rent payable by the owner of freehold land A franchise = a right granted by the Crown in yrs gone by to enjoy rights which at common law were reserved to the Crown e.g. the right to hold a fair or a market or to salvage wrecks in various parts of territorial waters Profit 2) First registration of title to unregistered land A) When must title be registered for the 1st time? Certain events renders it compulsory to apply for registration When a freehold estate or a lease with >7 yrs unexpired is sold, transferred by way of gift LRA 2002 s4(1)(a), or mortgaged by way of 1st legal mortgage LRA 2002 s4(1)(g), or where one of the leasehold estates described in the previous paragraph is granted out of a freehold or leasehold estate LRA 2002 s4(1)(c) Necessary for the persons to whom the transfer or grant has been made to apply for the interest to be registered LRA 2002 s6(1) + (3) Where the interest granted is a M, then it is the owner of the estate out of which the M is granted who must apply for the estate to be registered LRA 2002 s6(1) + (2) The compulsory registration of rentcharges,

franchises or profits a prendre, but voluntary registration of these rights is possible LRA 2002 s3 Register franchises or manors, if they are not registered within a period of 10 yrs from the commencement of the LRA 2002, they will cease to be enforceable against land following first registration or following a registrable disposition of land which has already been registered, unless their existence has been noted against the registered estate affected LRA 2002 s117 A failure to apply for registration within 2 months s6(4) = the transaction will fail to transfer, grant or create a legal estate s7 Subj to a discretion given to the Land Registrar to extend the time limit s6(5) , it will be necessary to repeat the transaction to make gd the deficiency LRA 2002 s8 The grantee will enjoy an equitable interest in the land pending registration s7(2). Although this may be vulnerable to subsequent dealings with the land by the grantor B) Grades of title awarded on 1st registration of ownership 1st time = the Land Registrar is required to investigate the title of the person seeking to be registered as owner Register the land with a class of title appropriate to the degree to which the owner has been able to satisfy him of their entitlement Freehold ownership the land registrar may grant absolute, possessory or qualified title Leasehold ownership absolute, possessory, qualified or gd leasehold title Absolute = where the registrar is of the opinion that the persons title is such as a

willing buyer could properly be advised by a competent professional adviser to accept LRA 2002 s9(2) Gd leasehold title = where the registrar is satisfied about the quality of a leasehold interest, but has not approved the lessors title to grant the lease Qualified title = where the reservations relate to a specific matter such as the absence of a sufficiently long root of title, or to the fact that a key document cannot be furnished, and no copy is available s9(3) Possessory title = where the reservations are more general, the person seeking registration is in actual occupation of the land s9(5) C) Upgrading title The registrar has power to upgrade title if he is satisfied in relation to the matters which gave rise to the initial registration with qualified, possessory or gd leasehold title LRA 2002 s62 Registration with possessory title will normally be upgraded to title absolute or gd leasehold title after the registered proprietor has been in possession for 12 yrs LRA 2002 s62(4) + (5) D) The effect of 1st registration vest legal title in the person registered as proprietor, even if there any hv been some defect in the title presented to the registrar LRA 2002 s11(freeholds) s12 (leaseholds) if the registration is not with title absolute, and is also subj to 1) any adverse rights recorded on the register for the property 2) overriding interests and 3) any rights acquired by adverse possession of which the registered proprietor has notice if the 1st registration related to leasehold property, then the registration is also subj to

the express and implied covenants which relate to the lease LRA 2002 s12(4) E) Overriding interests applying on 1st registration The overriding interest set out in Sch 1 of the Land Registration Act 2002 diff from that of subsequent registered disposition and that of LRA 1925 LRA 1925 s70 The rights which are treated as overriding interests on 1st registration are legal rights which would hv been binding on the owner of unregistered land, even though the owner may hv been unaware of their existence including 1) legal easement and profits a prendre LRA 2002 Sch 1 para 3 2) customary and public rights LRA 2002 Sch 1 paras 4 +5 3) legal leases which are not themselves registrable estates LRA 2002 Sch 1 para 1 4) certain rights to mines and minerals LRA 2002 Sch 1 paras 7 to 9 5) for a transitional period of 10 yrs, franchises, manorial rights, Crown rents, common law obligations to repair or contribute to the cost of repairing embankments, sea or river walls, and payments in lieu of tithes 6) local land charges LRA 1925 Sch 1 para 6 7) the interests of persons in actual occupation are overriding interests, including equitable interests LRA 1925 Sch 1 para 2 A person is in occupation does not in itself create any new rights (must hv a legal or an equitable interest rather than simply a personal rights) Williams & Glyns Bank Ltd v Boland [1981] Categorization of a right as overriding gives it no special status other than priority over certain subsequent transactions Fairclough v Salmon [2006]

F) The dual operation of unregistered and registered land rules Voluntary registration = the rules regulating to 1st registration of registered land will operate on their own Compulsory registration = there will be a sequential application of the rules relating to unregistered land and those relating to first registration G) Subsequent dealings with the registered legal ownership Must take place thr the application of the rules set out in the LRA 2002 H) Cautious against 1st registration A person with an interest in unregistered land can register a caution against 1st registration LRA 2002 s15 The cautioner must be notified by the registrar of any proposal to register the estate concerned, and given an opportunity to object within a fixed period LRA 2002 s16 (usually 15 working days Land Registration rules 2003 r53) Lodging a caution is not a substitute for registering a registrable legal estate since a caution against 1st registration procured by a person entitled to a fee simple absolute in possession or a term of yrs absolute expires automatically two yrs after the Land Registration Act 2002 comes into force LRA 2002 Sch 12 para 14 3) Land which is already registered A) Multiple registered estates in relation to the same physical land Possible for there to be more than one independently registered estate in relation to the same physical tract of land as we register the estate in land rather than the physical land

itself e.g. leasehold estate is registered + the freehold estate is registered as well both will hv a cross-reference to the other Possible for land to fall out of the system of registered land e.g. unregistered freehold grants a lease for 12 yrs (>7 yrs hv to be registered); after the expiry of 12 yrs, there would cease to be any registered interest in relation to the tract of land B) Dealings with registered interests Once an estate in land has been registered the dealings with that registered estate which fall to be governed by the registered land rules A leasehold estate has been registered, but the freehold has not been registered, dealings with the lease are governed by the LRA 2002 Dealings with the freehold fall outside the ambit of the registered land system Once the freehold estate has been registered, all subsequent dealings will be governed by the registered land system 4) The land certificate The registered proprietor of land is provided with a copy of the entry for his title on the register a land certificate LRA 2002 Sch 10 para 4 A land certificate = only evidence of title, NOT be regarded as the equivalent of title deeds Used to be that the land certificate had to be provided to the Land Registry when a charge was submitted for registration or when the land register entry was amended LRA 1925 s65 + s64 (1) no longer a requirement LRA 2002 Sch 10 para 4(c)

Dispositions of registered land

1) The owners powers of disposition LRA 2002 s23 the registered proprietor / s24 a person entitled to be registered as proprietor has: power to make a disposition of any kind permitted by the general law in relation to an interest of that description EXCEPTION = although the registered proprietor can charge the estate at law with the payment of money ,he cannot do this by way of a M by demise or by sub-demise, but only by way of a charge by way of legal M which must then be registered as a registered charge LRA 2002 s23(1) 2) Requirement of registration An owner has an obligation to register certain dispositions or dealings registrable dispositions Consequences of failure to register The right to priority over certain earlier rights will be lost Priority for the registrable disposition over all subsequent rights will be lost Disposition does not operate at law, it only create equitable rights LRA 2002 s27(1) The previous registered proprietor continues to appear on the register as proprietor he continues to be able to exercise owners powers may create rights which may themselves be registrable dispositions and so take priority over it 3) Wt dispositions are registrable? The list of registrable dispositions = s27 of the LRA 2002 List 1) transfers of the registered estate LRA 2002 s27(2)(a) 2) expressly created easements LRA 2002 s27(2) (d) 3) expressly created rentcharges LRA 2002 s27(2) (e)

4) charges by way of legal M LRA 2002 s27(2)(f) 5) newly granted leases if they are LRA 2002 s27(2)(b) i) for > 7 yrs ii) they take effect in possession >3 months from the date of their grant iii) they are for discontinuous periods iv) they fall within certain provisions of the Housing Act 1985 or v) they are leases of a franchise or manor LRA 2002 s27(2)(c) The registration will take effect by means of the appropriate entry in the register of the registered estate concerned, and in cases where this is applicable, the creation of a new registered estate or title LRA 2002 Sch 2 4) Dispositions other than registrable dispositions There are some rights which should be protected but are not registrable dispositions The system 1) recognize the existence of an unfettered variety of rights 2) provides a method for recording the existence of rights on the register 3) provide wt is intended to be a comprehensive set of rules for determining the priority of rights where two or more rights come into conflict The LRA 2002 achieves this thr the overlapping application of minor interests, overriding interests and overreachable interests

Protecting minor interests

LRA 1925 = 3rd P interests could not be registered the owners of such interests were able to protect them on the register by entering a caution, notice, inhibition or restriction LRA 2002 = 3rd P interests could be registered

protect such interests by entering a notice or a restriction 1) Protecting an interest by entering a notice A) Wt is a notice? A notice = an entry in the register in respect of the burden of an interest affecting a registered estate or charge LRA 2002 s31(1) Notice will only be appropriate for the protection of interests which are not created by means of a registrable disposition e.g. protection of equitable interests such as equitable leases, easements or restrictive covenants, or of an estate contract affecting the land S33 = certain interests cannot be protected by the entry of a notice e.g. a beneficial interests arising under a trust of land and a lease for a term of less than 3 yrs B) Procedure for entering a notice Any person who claims to be entitled to the benefit of an interest affecting the registered land may apply to the registrar for the entry of a notice in the register in respect of the interest LRA 2002 s34(1) Agreed notice = if the applicant is the registered proprietor, the registered proprietor consents to the entry of the notice, or the registrar is satisfied of the validity of the applicants claim to the interest in Q LRA 2002 s34(3) / Land Regulation Rules 2003 r81 Unilateral notice = may be without the consent of the registered proprietor ,but the registrar must give notice of the entry to the registered proprietor LRA 2002 s35(1) / Land Regulation Rules 2003 r89 The unilateral notice entered in the register must indicate that it is unilateral and identify the beneficiary of the notice LRA 2002 s35(2) (a)

indicate that the validity of the beneficiarys interest has not been established and accepted the registered proprietor of land is entitled to apply to the registrar for the cancellation of a unilateral notice, but the registrar must first give the beneficiary of the notice an opportunity to oppose its cancellation s36 C) The effect of entering a notice An interests will enjoy priority over any subsequently created interests in the land 2) Protecting an interest by entering a restriction A) Wt is a restriction? A restriction = an entry in the register regulating the circumstances in which a disposition of a registered estate or charge may be subj of nay entry in the register LRA 2002 s40(1) The restriction may prohibit either indefinitely s40(2)(b)(i) for a specific period of time s40(2)(b)(ii) until the occurrence of a specified event s40(2) (b)(iii) Restrictions are particularly important for protecting beneficial interests in land arising under a trust since such interests cannot be protected by means of a notice A restriction may be entered by the registrar which prevents the proprietor making a registered disposition B) Procedure for entering a restriction S42(1) the registrar may only enter a restriction on the register if it appears to him that it is necessary or desirable to do so for the purpose of: (a) preventing invalidity or unlawfulness in relation to dispositions of a registered estate or charge; (b) securing that interests which are capable of

being overreached on a disposition of a registered estate or charge are overreached; or (c) protecting a right or claim in relation to a registered estate or charge. A restriction cannot be used as a means of protecting the priority of an interest which could hv been protected by the entry of a notice LRA 2002 s42(2) A restriction can only be entered on the application of the registered proprietor s43(1) (a) With the consent of the registered proprietor s43(1)(b) Of by a person who has a sufficient interest in making the entry s43(1)(c) An application for the entry of a restriction is made without the consent of the registered proprietor, the registrar must give the registered proprietor notice of the application and of the right to object to it s45(1)

Priority btw interests in registered land

1) Overreaching of beneficial interests behind a trust Beneficial interests are capable of being overreached in accordance with the provisions of the LPA 1925 Beneficial interests affecting ht eland will be overreached if there is a conveyance, which includes the grant of a legal M, by at least 2 trustees, to whom any capital moneys arising from the transaction are paid Where overreaching takes place, the beneficial interests are eliminated from the land altogether with the consequence that they are incapable of gaining priority over any other interests Issues of priority regarding ht interests of the beneficiaries of a trust of registered land will arise where overreaching has not occurred, which will be the case where the land was owned by a sole registered proprietor Williams & Glyns Bank v Boland [1981] Abbey National v Cann [1991] 2) The basic rule for determining priorities btw interests in registered land The priority btw interests should be determined by the order of their creation LRA 2002 the priority of an interest affecting a registered estate or charge is not affected by a disposition of the estate or charge LRA 2002 s28(1) It makes no difference to the operation of this basic rule whether the interest or disposition is registered LRA 2002 s28(2) Qualification = some circumstances an interest arising under a disposition will gain priority over previously created interests affecting the estate or charge LRA ss29, 30

3) Priority accorded to registered dispositions over unprotected interests S29 = if a registrable disposition of a registered estate is made for valuable consideration, completion of the disposition by registration has the effect of postponing to the interest under the disposition any interest affecting the estate immediately b4 the disposition whose priority is not protected at the time of registration. S29(2) = 4 circumstances in which an interest will enjoy protected priority (2) For the purpose of subsection (1), the priority of an interest is protected (a) in any case, if the interest (i) is a registered charge or the subj of a notice in the register (ii) fails within any of the paragraphs of Schedule 3, or (iii) appears from the register to be expected from the effect of registration, and (b) in the case of a disposition of a leasehold estate, if the burden of the interest is incident to the estate. A) Requirements for registered dispositions to take priority over earlier interests i) The disposition must be of a registered estate ii) The disposition must be made for valuable consideration S29 does not apply to succession on death, or to transfers by way of gift, marriage consideration nor a nominal consideration in money (LRA 2002 s132(1)) There is no clear distinction btw nominal and valuable consideration the sum of 1 pound constituted only nominal consideration for the purposes of a similar provision in the LRA 1925 Peffer

v Rigg [1977] Goulding J the sum of 500 pounds represented more than nominal consideration for the sale of a farm worth 40000 on the open market Midland Bank Trust Co v Green [1981] HOL nominal consideration does not = inadequate / grossly inadequate consideration Lord WIlberforce iii) The disposition must be a registrable disposition A forged transfer would not qualify as a disposition , even where it was made in favour of an innocent 3rd party Malory Enterprises Ltd v Cheshire Homes (UK) Ltd [2002] iv) The disposition must be completed by registration Once registration has taken place that s29 operates Require than the transaction be first completed in the prescribed statutory form (LRA 2002 s 25)and subsequently be submitted for registration B) The special position of leases The grant of a leasehold for <7 yrs and is granted for valuable consideration benefits from the priority advantages of s29 without the need for registration LRA 2002 s29(4) To fall within s29 - the lease must be a legal lease LPA 1925 s1(1) and (3) must hv been granted by deed / must take effect in possession for three yrs or les at a full market rent LPA 1925 s54 C) The irrelevance of notice of unprotected interests A person to whom a registered disposition is made will take subj to the interests of any

occupier of the land concerned if he had actual knowledge of the existence of the interest this interest has an overriding status LRA 2002 Sch 3 para 2(1)(c) An interest affecting the estate will lose priority to a registered disposition if it was not protected at the time of registration even where the person to whom the registered disposition was made had actual knowledge of the existence of the unprotected interest A case trying to reintroduce the concept of notice in reading s29 but resulting in critics Peffer v Rigg [1977]: a house was purchased with money provided by Mr Peffer and Mr Rigg in the sole name of Mr Peffer, who was the registered proprietor, in order to provide a home for their mother-in-law. Mr Rigg therefore enjoyed a half share of the equitable ownership by way of a resulting trust. His beneficial interest was clearly a minor interest, but he took no steps to protect it on the register. Following a marital breakdown Mr Peffe transferred the title to his wife for 1 pound. She was fully aware of the existence of Mr Riggs trust interest at the time that the transaction took place provisions in concern 1) s20(1) (= s 29 LRA 2002 )= a transferee or grantee of a legal estate for valuable consideration would acquire the land free from any unprotected minor interests which were not otherwise overriding (Mr Rigg satisfied s70(1)(g) and so he has unprotected minor interests since he was not in actual occupation) - transferee: should be read to mean purchaser, which is used in s59(6) meaning as a purchaser in gd faith for valuable consideration s20 should also be subj to a requirement of

gd faith on the part of the transferee providing valuable consideration a transferee could not be regarded as hving acted in gd faith where he purchased land knowing of the existence of an unprotected interest, thus reintroducing the concept of actual notice to issues of priority regarding unprotected minor interests to achieve justice Critics of the decision in Peffer v Rigg 1) Mrs Peffer had in fact failed to provide valuable consideration and did not therefore gain the protection of s20(1)at all 2) there was no legitimate reason for equating the position of a transferee or grantee in s20(1) with that of a purchaser in s59(6) 3) even if a requirement of gd faith were to be incorporated into s20(1), there was no reason why it should be equated with the presence of notice (even though s59(6) itself incorporated gd faith, because the term purchaser was used, it also stated that notice was irrelevant clearly refuting the suggestion that the absence of actual notice is synonymous with gd faith) 4) the decision was inconsistent with the underlying philosophy of registration, namely to render the doctrine of notice redundant, which was accepted by higher courts Regarding LRA 2002 s29, the intention of the draftmen to ensure that the concept of actual notice could not be reintroduced so as to protect the priority of an unprotected minor interest which was not otherwise overriding 4) Protected priority accorded to interests entered on the register Priority to any interests which hv been protected on the register either as a registered charge/ by

means of the entry of a notice LRA 2002 s29(2)(a) (i) 5) Priority accorded to overriding interests A) Wt are overriding interests? Priority to any interest which falls within any of the paragraphs of Sch 3 Sch 3 specifies 14 categories of unregistered interests which override registered dispositions They gain priority over later interests even though they are not protected by any entry on the register B) Overriding interests under the LRA 1925 Overriding interests were introduced by the LRA 1925 which provided that a purchaser of a legal estate would take the land subj to any overriding interests affecting it (these categories no longer apply) s20(1)(b) LRA 1925 S70(1) of the 1925 Act provided for 2 different types of overriding interests - s70(1)(a) easements - s70(1)(g) rights + actual occupation - s70(1)(k) legal leases for 21 yrs or less - s70(1)(f) adverse possession when the title is disposed, the squatter can still be protected as he has overriding interests i) Specific interests enjoying overriding status Majority of the para in s70(1) of LPA 1925 provided that specific interests were to enjoy overriding status by virtue simply of being interests of that description These rights are generally either of great civic importance ii) Other interests capable of enjoying overriding status if the relevant statutory criteria were satisfied S70(1) also had the effect of conferring overriding status on the rights enjoyed by

ppl who were in actual occupation of the land, or receiving rent and profits from it Elevated to overriding interests if s70(1) (g) was satisfied Williams & Glyns Bank Ltd v Boland [1981]: Mr Boland was the sole registered proprietor of his matrimonial home, and he held it on trust for himself and his wife, who was entitled to a share of the equitable ownership by way of a resulting trust. He subsequently granted a M of the house to a bank, which entered its charge on the register. Mr Boland was unable to keep up the necessary M payments and the bank sought to repossess and sell the property. Mrs Boland argued that her equitable interest under a trust for sale was binding on the bank so that it was not entitled to possession HELD: HOL = even though Mrs Bolands interest was a minor interest which had not been protected on the register of title, and that the bank was otherwise entitled to statutory priority under s20(1) of the LRA 1925, she was a person who was in actual occupation of the land and her interest was binding under s70(1)(g) C) Overriding interests under the LRA 2002 Retain the concept of overriding interests as interests which enjoy priority over later interests even though they h not been protected on the register Reduced the number of specific interests which are accorded overriding status Reduced the scope of the protection conferred on the rights of the occupiers of land Overriding interests are set out in Sch 3

D) Interests capable of enjoying overriding status under para 2 Para 2 of Sch 3 replaces s70(1)(g) of LRA 1925 Para 2 of Sch 3 confers overriding status on the interests of those who are in actual occupation of land, but NOT accord overriding status to the interests of those who are merely in receipt of rent and profits from the land i) Only interests in land can enjoy overriding status ii) Trust interests which hv been overreached cannot form the subj matter of an overriding interest iii) The owner of the interest must hv been in actual occupation of the land at the date of the disposition E) Wt is meant by actual occupation? i) Occupation is a straightforward question of fact ii) Actual occupation requires a sufficient physical presence on the land iii) Residence is not required to establish actual occupation iv) Occupation by the physical presence of a representative v) Actual occupation preserved thr temporary absence by symbolic occupation vi) Is symbolic occupation alone enough to constitute actual occupation? vii) Occupation of part of the land F) The date at which actual occupation must be established G) Was the occupation obvious H) Loss of overriding status if the occupier failed to disclose his rights i) The inquiry must be made by the prospective purchaser or his agent ii) The inquiry must be addressed to the person

entitled to the right or her agent iii) The inquiry must be made as to the existence of rights in the land iv) It must be reasonable to expect the occupier to disclose his right I) Actual knowledge of the interest of an occupier whose occupation would not hv been obvious on a reasonably careful inspection of the land 6) Circumstances in which an unprotected interest may gain priority over a registered disposition even though it is not overriding A) An unprotected interest may be binding by means of an independent constructive trust i) An independent constructive trust will not arise merely because the transferee had actual notice of the existence of an unprotected interest ii) An independent constructive trust will not arise merely because the transferee had agreed to take the land subj to interests affecting it in general iii) An independent constructive trust will not arise unless there was detrimental reliance by the transferor in consequence of the transferees agreement to take title subj to a specific interest B) An unprotected interest may be binding because of fraud i) Deliberate schemes to defeat unprotected interests ii) A person who acquires land in a fiduciary capacity is not entitled to rely on statutory priority