Registered Land

 Registration means *the registration of title and not the deed.

 Procedures for registration are governed by the *Land Registrations Act (LRA) 2002

Situations where a compulsory registration is required

 *S. 4 of LRA provides for this.

1) *Transfer of an unregistered free hold or a lease hold.
- If it is a lease hold at the time of the transfer, it must have at least seven
years to run
- Moment the land is registered, a file will be opened and the title of the new
purchaser is registered.
- If the lessee of the unregistered land wants to sell the lease, free holder will
be registered as the proprietor.
2) *When there is a grant of a TOYA, for more than seven years.
- After 2002, when the land is leased for the first time, from that point
onwards it will be considered as the registered land.
3) *When there is a grant of a TOYA and would take effect in possession after three
months from the date of grant (future lease)
- Here the duration of the lease is irrelevant.
4) *First legal mortgage protected by title deeds is created out of unregistered land.
 Unless and until one of the above takes place, an unregistered land will remain
unregistered.

*Why are we to encourage parties to get their lands registered?

 LRA 2002 provides it is beneficial for either party.

 Squatters can take over unregistered land than they could take over registered land.
 What would be the position if a situation like S. 4 does not occur? Couldn’t it be
possible for the owner of the land to still register the land?

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  To assist such situation, there is a *voluntary conversion regime. ; *S.3 of LRA 2002
allows voluntary registration.
 *Under S.3 categories that are entitled for voluntary registration
1) The FSAP owner
2) Person with a TOYA at least seven years to run.
3) A person with a discontinuous lease.
- It is a lease for terms of years, to take effect only during a specified period of
the year. eg – shops leased for “sri paada” season.

 *In a registered land, there are certain transactions that cannot occur without the
land registrar been notified. That means the law would not recognized such
transaction as valid unless the requisites are satisfied. *Such transactions are called,
Regisrable Dispositions.
 S. 27 deals with such rights.
 S. 27(1) – provides, *registrable disposition is not legal until the registration is
completed.

 *Registrable dispositions that must be registered are provided in S. 27(2)

1) Transfer of a fee simple + TOYA
2) Grant of a TOYA for more than seven years.
3) Grant of a TOYA which would take effect in possession after three months of the
grant.
4) Discontinuous leases.
5) Easements granted for a period equivalent for a FSAP or TOYA ( legal easements)
6) Express grant or reservation of a rent charge or right of re- entry.
7) Grant of a legal charge ( legal mortgage)
- When creating the legal mortgage, it would become a registrable disposition.
This will even include transfer or grant of a sub charge.

 Registrable dispositions as above, will take effect only upon registration.

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  Once it is registered it is binding on any purchaser.
 *Once a disposition is registerd , disponee will get good title ; S. 27(1)
 S. 29(1) –* once a disposition is registered, it has the effect of defeating the interests
which are not registered at the time of registration. (Interests other than provided in
S. 27(2)).

Interests which are not fallen within S.27 (2). *(life interests, trust and other equitable
interests)

 If such rights are to be protected, such rights have to be *ENTERED by way of a

notice or restriction in the register.
 Such notice can be agreed or unilateral
- Agreed notice – *application to enter the notice has been made by the
proprietor or made by the interest holder with the consent of the proprietor.
- Unilateral Notice – *application is made only by the interest holder. The
registrar will enter such notice only after obtaining the consent of the
proprietor.
- If the proprietor objects, then the burden will be on the applicant show that
it is necessary to make the entry.
 Leases less than three years *cannot be protected by entering a notice. ( equitable
leases)
 Leases from 3-7 years *can be protected by entering a notice.
 Restrictive covenants between landlord and tenant cannot be protected by entering
a notice.
 Beneficiary’s interest under a trust *cannot be protected. *There the beneficiary
should enter a restriction.
 If the interest was duly protected, *at the time of the regisrable disposition,
disponee takes subject to it.

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Position of a purchaser of a registered land.*

 Should register he land as required by S. 27(2)

 If registrable dispositions are duly registered, purchaser will be bound by those.
 If interest other than in S. 27(2), are protected by entering a notice or restriction,
purchase will be purchasing he land subject to those interests. ( however there are
exceptions for that)

*Purchaser of a registered land will be bound by

1) All the registrable dispositions if registered.

2) Interests which are protected by an entry
3) Overriding interests
4) Interests for which the purchaser is expressly subjected to.
 Purchaser will not be bound by the interests, which are not protected by entering a
notice, *unless he bought the land expressly subject to that interest.
 *Lyus V Prowsa – it would be fraudulent for the purchaser to plea that the interest
was not protected by entering a notice by the interest holder, in a situation where he
bought the land expressly subjected to that interest.
 Purchaser will be bound by *overriding interests. These are interests, in which the
purchaser will be bound even though the interest is not protected by entering a
notice.
 Overriding interests are provided *in Schedule 3 of LRA 2002
1) Grant of a TOYA not exceeding 7 years
2) Interest of a person in actual occupation
Except*
a) Interest under a strict settlement ( now abolished)
b) Interest of a person when an inquiry was made failed to disclose the right in a
situation where he could have been reasonably expected to do so.
c) Occupation of the interest holder would not have become obvious in a
reasonable careful observation (inspection) at the time of the disposition and
the purchaser has no knowledge of the interest.

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 3) Legal easements and profits.
- Which are *not formally granted. But evidence is brought in as to how the
easement is given.
- However if the easement is not been used for one year before the disposition
to the purchaser, then it will not be an overriding interest unless *the
purchaser had the knowledge of the easement or would be obvious in a
reasonable careful observation.

*Number 2 in more detail

 If a person holds a life interest and if the interest holder has not protected his
interest by entering a notice, then the purchaser would purchase free of the interest,
Unless*
- The interest holder could show that he is in actual occupation of the land at
the time the purchase purchased the land.
- In such a situation, interest of the purchaser is overridden.
 However the interest would not be overridden, if the interest holder failed to
disclose true information or if the interest is hidden or dormant.
 If the purchaser has purchased the land subject to the interest - i.e. *has actual
knowledge of the interest, then such interest would be an overriding interest.

*What is meant by actual occupation?

 *Lord Wilberforce in Williams & Glyn’s Bank V Boland

- Dissected ‘actual occupation’ in to two words.
- Actual –* physical presence
- Occupation –* presence on the land.
- Actual + Occupation – *physical presence on the land.
- Accordingly it was contended that the interest holder must be physically
present on the land at the time the transaction takes place.
- Constructive occupation is not actual occupation.

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 - Constructive occupation – *occupying somewhere else and only the
belongings has been sent to the land.
- In *Abbey National Society V Cann (facts in brief)
- Person laid out carpets and moved some furniture.
- But the person himself had not moved in to the house.
- Held – such a person was not in actual occupation.
- In *Strand Securities V Caswell (facts in brief)
- Moved the furniture.
- Uses the premises occasionally for a very short period of time.
- Step daughter had a key and used that key more than the owner did.
- Held the owner was not in actual occupation.

- *Chokkar V Chokkar – significant case.

- Judgment was based on a policy decision.
- Owner’s wife and the baby were not let in to the house by the
husband/owner.
- Husband sold the house.
- The issue was whether the purchaser is bound by the interests of the wife
and the baby.
- *If the strict interpretation of Lord Wilberforce is followed, wife was not in
actual occupation at the time.
- Yet, it was held that the wife’s interest was an overriding interest.
- The decision was policy based.
- The court was influenced by *the public policy and the need to do justice that
the interest holder was a deserted wife in a state of homelessness with no
means to provide for herself and the child. (the decision was based on special
facts)
- It was proposed that the phrase ‘actual occupation’ should be interpreted
*by referring to an objective standard.

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 - Accordingly, it was proposed that, *a person should be deemed to be in
actual occupation, if to a reasonable person, that the person’s occupation of
the premises is obvious.
- The proposition was to avoid the harshness of the Lord Wilberforce’s
definition (interpretation)

The Register.

1) *Proprietorship Register
- It identifies the owner. (FSAP/TOYA)
- Gives information about any limits on powers to dispose of the land.
2) *Property Register
- Identifies the land – the name of the land and the location will be given
- Specifies any benefits operating in its favor.
3) *Chargers Register
- Notices and the restrictions will be entered.
- Lists interests adverse to the land.

Principles of Registration

1) *Mirror principle
- ‘purchaser is bound on what he sees’
- All facts material is to be found on the register.
2) *Curtain Principle
- Under this, purchaser should not be advised not to go beyond the register.
3) *Insurance principle
- When a mistake is taken place on the part of the registry, person who suffers
loss is entitled to be compensated.

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*Why it said that the purchaser of a registered land is better protected?

- Under the registered regime, purchaser is not asked to go beyond the

register.
- Application of the mirror principle and the curtain principle is a good example
for that.

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