Professional Documents
Culture Documents
will decline submitting to it?” . 24 I suggest: *UCL Juris. Rev. 7 many would.
S.R.Simpson believes that it might be difficult “ to find staff of adequate calibre at the
sort of salary justified by the amount of work available, particularly if there is extensive
decentralisation” .25 It will be even more difficult to find quality staff if they are to have
to work for a year without any pay. Most, lacking the necessary private finance, will look
elsewhere for employment. In this instance I would suggest that the current approach is
more likely to fulfil Bentham's Object than his own suggestion.
Very important here as elsewhere is the computerisation of the land registration system,
which should be complete by 1998.26 As I mentioned above, Jeremy Bentham urged the
use of the manifold method of writing for the exemplars of documents, in order to save
time, energy, and money. Had Bentham known of computers, he would have advocated
their use in the same terms, except that the considerable benefits of computerisation
would have been described as much more than a “ treat” . Fewer physical searches of
the records need to be carried out by staff, and the system, by minimising operating
costs, will rapidly repay the initial expense. It provides internal efficiency, speedy access,
and is less prone to mistake, loss, or fraud. Fewer mistakes will be translated into fewer
claims against the Registry for indemnities (see below), contributing to the minimisation
of cost. The current Chief Land Registrar is correct to consider that computerisation “
offers the prospect of further simplification of conveyancing” .27
2. The second Object was that delay should be minimised. “ Delay” , writes S.R.Simpson,
“ is not always recognised as being as important as it is” . 28 Certainly in the past there
have been considerable delays, perhaps of six months before a title was registered. It
was once objected that “ in practice the clogged administration machinery means homes
standing empty, deals falling through, and higher property prices” . 29 The reason for the
delays was said to be “ an over-worked and under-staffed organisation” . Since those
days of the booming property market, things have changed.
According to the Annual Report for 1993-94, over 99% of all applications for official
searches and office copies are dispatched within two days, and many are provided over
the telephone or via the direct access service. 30 Furthermore, the Registry promises
customers that it will strive to offer a faster service, and publish targets alongside
performance. However, worryingly, the Registry also promises to “ provide an extra fast
service on payment of an additional fee” .31
Although this might be a recognition of commercial reality, the principle is obnoxious.
Land registration should be seen as a public service, before which everyone is equal.
One commentator has warned that this “ could be a recipe for more people receiving
worse service” .32 It might mean that wealthy individual or corporate landowners
routinely jump the queue, the extra fee being of no consequence to them. Delay should
be minimised, but it is unfair to make delays *UCL Juris. Rev. 8 dependent on how
much you can afford to pay. Bentham condemned the practice of charging extra fees for
an accelerated service in any area of officialdom. Where such a fee system operates, a
corrupt functionary is given the incentive and the opportunity to slow down the standard
process so that customers are bound to pay extra.33
3. The third Object was that the aptitude of the functionaries should be maximised.
Bentham believed that employees should be paid salaries as opposed to fees. He once
wrote that remuneration by fees is “ in an eminent degree unapt” in “ every official
situation whatsoever” .34 Employees of the Land Registry are paid salaries, to some
extent performance related. This is based on annual staff appraisals which ensure that
performance is not merely a matter of output. Monitoring of the quality of work, for
example, also plays a part, which would meet with Bentham's approval.
A second concern of his was the kind of qualifications customarily called for, which he
brands “ much worse than useless: it is a source of delusion, producing confidence
where confidence has no ground to stand on” , that is, specifying someone as a member
of a class of people exercising a profession, and taking some sort of oath of office. 35
Today's arrangements again live up to Bentham's principles. Under the 1925 regime, the
Chief Land Registrar had to be a barrister of at least ten years' standing. No such
restrictive rules survive. This is entirely sensible, considering that one of the greatest
figures in the history of world land registration, Sir Robert Torrens, was not a lawyer.
Bentham, who wanted a transparent system of appointments to any public office, would
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be pleased to note that since the Registry became an Executive Agency, the appointment
of the Registrar has been an open competition, advertised in the national press, and run
by the Lord Chancellor's Department, with the help of representatives from the Law
Commission and the Civil Service Commission. All that is required is evidence of good
management ability. No longer is the appointment as secretive as the appointment of a
judge. Other positions are also advertised, and although some posts require legal
training, others are often filled by “ home-grown” employees showing the necessary
administrative or management skills.
Vital to the aptitude of the functionaries is training. Bentham would be pleased to see
the “ strong emphasis” which the Land Registry puts on its internal training
programmes.36 Whilst it must be appreciated that a source such as the Land Registry's
Annual Report might be the subject of bias, in this instance it would seem unlikely that
an Executive Agency, naturally imbued with principles of competition and efficiency,
would be disinterested in training. The Registry is now seeking a more flexible approach
to training, and has embarked on programmes on team-working at all levels, to
complement the move to smaller multi-skilled working groups. At management level,
there are regular courses and workshops on personnel matters, and the Registry has
participated in a Cabinet Office project to identify the training and development needs of
managers in customer-focused organisations. *UCL Juris. Rev. 9 Another important
matter in this context is the admittance of the private sector to the regime, discussed
above. In sum, there does appear to be a strong commitment to maximising the
aptitude of the “ functionaries” .
4. The fourth Object was that the aptitude of the machinery should be maximised, and
Bentham believed that this could be secured by giving the head registrar the sole
responsibility for reforms, because only he has the necessary practical experience of the
system In this country, the Chief Land Registrar has a quite extensive quasi-judicial
capacity to determine day-to-day matters in the operation of the register, but his
decisions are subject to the control of the High Court. As Lord Denning MR put it, he is
not allowed “ by his practice to make bad law” . 37 Nevertheless, Curtis and Ruoff
comment that “ the English Chief Land Registrar possesses wide judicial powers of a kind
and extent undreamed of” in other countries. 38 Bentham would presumably applaud
this.
Regarding reform, the Registry merely, in its words, continues to “ contribute to
legislative proposals” .39 The Registry's “ subordinate legislation” , such as the Fee
Orders that set the fees for searches of the register and so on, is made not by the
Registrar alone, but by the Lord Chancellor, with the advice of the Rule Committee,
which is made up of the Chief Land Registrar, a judge of the High Court, and delegates
of the Bar, the Law Society and the Ministry of Agriculture Fisheries and Food. The
Registrar does have a major role here. It is he who calls the Committee, and it is his
opinion which will be accepted in principle, subject to specific objections from the other
interested parties. He therefore has “ some legislative responsibilities” , but not the
sweeping powers Bentham advocated.40
There are reasons for this. Despite the Registrar's unparalleled knowledge of the system,
there is a problem of accountability. He is appointed by the Lord Chancellor, and is
responsible for submitting an annual report to the Lord Chancellor. Hence the Registrar
is not accountable to the public in the same way as elected Members of Parliament are,
and as a dissatisfied public will tend to blame the Government for any failings in the
operation of what the public sees as a public service, it is appropriate that Parliament
has the final say in major reforms of the system.
As an Executive Agency, the Land Registry does, after all, come under the overall
responsibility of Parliament. Bentham sees no danger in the Registrar having such
power, for his proposals are said to exclude any conflicts of interest. However, Bentham
himself recognises that the tiniest chink can be exploited by the unscrupulous, and given
the complexity of the land registration system, I would find this unsettling. Bentham
does advocate the security provided by a power of the legislature to disallow the head
registrar's amendments, but to my mind the Registrar's proposals should require positive
approval by the legislature.
Another issue relevant to the maximisation of the aptitude of the machinery is the
introduction of performance targets and formal quality assurance techniques, which,
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according to the Annual Report, has led to “ a significant reduction in the number of
reported errors. Some 40% *UCL Juris. Rev. 10 fewer certificates are now being
returned for correction” .41 Of course, cynics might accuse lawyers of not doing their jobs
properly.
5. The fifth Object was that the efficiency of the registration process should be
maximised, with the use of a comprehensive map. Bentham would have no complaints
here. Every registered title can be identified on the official title plan. Extracts of accurate
large scale Ordnance Survey maps are used to index the position, extent and title
numbers of all registered land. In addition to the filed plan, the register provides a short
written description of the location and extent of the property.
The Ordnance Survey is involved in the continuous updating of its maps, which ensures
that they are as accurate as any map could be in a rapidly changing world. Some say
that we should adopt the alternative approach to boundary identification of the Torrens
system, under which the precise line of the boundary is guaranteed by an official mark.
In general, there is no such guarantee in this country, but there do not seem to be many
problems, and the cost or burden of sending officials out to validate every boundary in
the country would surely outweigh the benefit. The only real problem in this country is
that mentioned already: not all of the territory of the country is registered land, and
none of this regime will be available to owners of unregistered land.
6. The sixth Object was that the extent of the coverage of the process should be
maximised. The first and most important divergence between our system and Bentham's
proposals under this Object is that even though the scope of registration of title has
been extended to all parts of the country, many titles remain unregistered. Information
is held by the Registry on no less that 14.7 million of about 22 million property titles in
England and Wales.42 However, according to one commentator, two million titles will
remain unregistered even in 2011.43 This is because land may be transferred without
being sold, so avoiding the compulsory registration provisions. As S.R.Simpson explains,
“ until registration of title is complete, England and Wales will be saddled with a
defective register” .44 Clearly, many of the potential benefits of a register of title are lost
if another system still has to be maintained. This is certainly a damning indictment of the
present system, but there are excuses. An immediate requirement for all land to be
registered would flood the registry with work.
The second divergence is that the record of each individual title may not contain every
single piece of relevant information. Most controversially, there are some interests,
known as “ overriding interests” , which are valid even if not registered by the interested
person. Bentham believed that all interests should be included, for the expense would be
“ next to nothing” . One example of an overriding interest is the interest of a person “ in
actual occupation” of a property, within the meaning of the Land Registration Act
1925.45 He will be entitled to remain there in accordance with his right even if he has not
registered his interest at the Registry.
*UCL Juris. Rev. 11 There is in fact a good reason for the institution of overriding
interests. The idea is that they are matters which it would be unreasonable or not
sensible to require registration of, because they are easily discovered by an intending
purchaser. At one time, the courts' interpretation of the concept of “ actual occupation”
accorded with this, when the occupation had to be “ actual and apparent” . 46 However,
the Court of Appeal overturned this, and held that there was no such need. This is a
major blemish on the so-called “ mirror principle” - that the register should accurately
reflect the full state of the title. As Vinelott J put it, “ it is quite clear that there can be
cases where a purchaser may make the most searching inquiries without discovering
that the land in question is in actual occupation of a third party” .47
Nor is that the end of the matter. No registered title is ever quite conclusive. The court
and the Registrar have jurisdiction to “ rectify” the register in certain defined
circumstances, and this is another example of how confidence in the register might be
misplaced. However, the rectification of the register is at least essentially discretionary.
Further, in sympathy for the reasonable expectations of an innocent purchaser who has
taken up possession, the register normally should not be rectified against such a person,
except to give effect to an overriding interest or a court order. 48 As Roger Smith says,
the “ grounds for rectification should be both clear and precise” . 49 If rectification were
freely available, it would, as the Law Commission recognises, be “ productive of future
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50
uncertainty and contrary to the raison d'etre of registration of title.”
The system of registration would then fail in its aim of providing security for
expectations, and fail to fulfil Bentham's ideals. As a consequence of saying that
registration of title provides a “ state guarantee of title” , there is a system of
indemnification which essentially compensates anyone who suffers loss as a result of the
deficiency of the register. When the register is rectified, or not rectified, the person who
suffers loss might be entitled to an indemnity. In this way his expectations might not be
quite as disappointed as they would be.
A gaping hole in this system is the fact that a purchaser who suffers loss by reason of a
person holding an overriding interest is not entitled to an indemnity. The system of
indemnity should be extended. It is acknowledged that a title is lost by virtue of the
existence of an overriding interest so infrequently that this extension would not lead to a
marked impact on fees, or on the expense of running the system, and this “ insurance”
would lead to a greater confidence in the register.
The existence of overriding interests would not be too great a departure from Bentham's
ideals if their existence had to be easily apparent, and if the indemnity provisions were
extended. In fact, their existence in these circumstances may be positively supported. At
present this is not the case. The Law Commission continues to believe that it “ may be
unjust to require that a particular interest be protected by registration” , but “ in the
interests of certainty and of simplifying *UCL Juris. Rev. 12 conveyancing” , the class
of such an interest “ should be as narrow as possible” , including only such interests as it
is not reasonable or not sensible to require to be registered. 51
Bentham also urges that the register should be available for use free of charge to the
public. The Registry in fact does charge certain fees for its service, which do not directly
take into account ability to pay. In this instance, our system fails to live up to Bentham's
principles. Among the arguments in favour of free substantive registration is that it is in
the general interest of economic development and social progress that title should be
secure and that real property should be easily transferable. The state, as well as the
individual, benefits.
It should, however, be recognised that the fees for searches, office copies and the like
are very modest, and have been consistently reduced due to increasing efficiency.
Further, the Land Registry is committed to strive to continue to reduce charges, and to
ensure that the fees charged reflect the costs of the service. 52 This system of fixed
charges will mean that the amount charged never actually reflects the cost of the
individual dealing - either the customer will lose out by being over-charged, or the
Registry will lose out by undercharging. As Bentham puts it, fees “ can not be so
adjusted as to bear exact proportion to the value of the subject which it affects” . 53 At
this level it will only be a matter of a few pence, but it is as well to remember how
meticulous Bentham was in his calculations of utility.
As regards fees for substantive registration, the Land Registry follows the principle that
the greater transactions subsidise the smaller ones. This means that the smaller
transactions can be done more cheaply, which is likely to help the worse off. This system
is slightly more expensive to administer than a fixed charge system, because the figures
need to be calculated. Although Bentham urges the cost of running the system to be
minimised, and although this approach in effect over-charges those involved in larger
transactions, I suggest that he would approve of this help for the worse off in view of the
fact that his wish for entirely free service is not fulfilled.
Another matter which can be considered here is the extent to which the register is
accessible to the public. Bentham would presumably support openness in the register. In
the words of the 1857 Royal Commission Report, “ in the earlier periods of our history
publicity was considered essential in almost all dealings with landed property” , but our
register has traditionally been quite private. 54 This was seen as typical of Britain's
obsession with secrecy, but was overturned in the Land Registration Act 1988, following
the Law Commission's view that openness would not constitute a real invasion of an
individual's privacy, but would help simplify conveyancing. Most entries can now be
inspected by anyone, on payment of a small fee. John Sweetman believes that house
ownership, as a matter of home life, is a “ purely private” matter, and would prefer that
the category of persons allowed access be somewhat widened to include potential
Page
Books:
Dowson and Sheppard, Land Registration, 2nd ed., 1956.
Dicey, A.V., Law and Opinion in England, 1905.
Fortescue-Brickdale, Methods of Land Transfer, 1914.
Gray, K., Elements of Land Law, 2nd ed., 1992.
Holdsworth, W.S., Essays in Law and History, 1946.
Keeton and Schwarzenberger, Jeremy Bentham and the Law, 1948.
Long, D.G., Bentham on Liberty, 1977.
Ruoff, Curtis and Ruoff on the Law and Practice of Registered Conveyancing, 2nd ed.,
1965.
Simpson, A.W.B., A History of the Land Law, 2nd ed., 1986.
Simpson, S.R., Land Law and Registration, 1976.
Articles and Essays:
Anonymous, “ I Have a Dream” , (1992) Cony 101.
*UCL Juris. Rev. 15 Anonymous, “ Ample Funds: Poor Performance” , (1987) Estates
Gazette 1437.
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Bentham, J., “ Outline of a Plan of a General Register of Real Property” , in The Works
of Jeremy Bentham, Bowring (ed.), vol. v, p.417. Bentham, J., “ Commentary on Mr.
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v, p.387.
Bentham, J., “ Principles of the Civil Code” , in The Theory of Legislation, Ogden (ed.),
1931, p.110.
Bentham, J., “ On Retrenchment” , in The Collected Works of Jeremy Bentham: Official
Aptitude Maximised, Expense Minimised, P.Schofield (ed.), Appendix B, p.342.
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P.Schofield (ed.), Appendix C, p.386.
Smith, R., “ Land Registration Reform - The Law Commission's Proposals” , (1987) Cony
334.
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Cases, Statutes, and Other Instruments:
Hodgson v Marks (1971) Ch 892.
Kling v Keston Properties Ltd (1983) 49 P & CR 212.
Land Registration Act 1925.
Land Registry Annual Report and Accounts 1993-94.
Land Registry Explanatory Leaflet “ On-Line” .
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Law Commission Report No. 158.
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Strand Securities Ltd v Caswell (1965) Ch 958.
UCL Juris. Rev. 1995, 2, 1-15
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