Land Law

LARGE GROUP 3
Student Guide

Registered Land and Enforceability of Third Party Rights

Context

The Land Registration Act 1925 was introduced to simplify and speed up the process
of buying and selling property in England and Wales. The overarching principle was
that everything a buyer or lender would want to know about a property should be
found on one document. Originally, registration was not compulsory and, although a
compulsory system was introduced gradually on a regional basis, there are still large
areas of land that rarely, if ever, change hands and so are still unregistered such as
the large estates of land owned by the Crown and some of the universities.

Land registration law changed little from 1925 until the Land Registration Act 2002
came into force in 2003. That Act governs all aspects of land registration and is
designed to lead to the registration of all land in England and Wales. Building on to
the introduction of ownership of registered title, you are going to become more
familiar with the variety of information that is entered on the register.

The purchase of a property is the single biggest expense that most people will ever
incur. Clearly a property lawyer must understand, and be able to advise on, all
aspects of registered land. In the course of your career you are likely to be
approached by sellers and lenders, buyers who may also be borrowers, and those
with third party rights over land, all of whom will need your help in relation to land
matters.

Outcomes

By the end of this Large Group you should be able to:

1. Explain typical entries on a register of title.

2. Understand the ways in which registrable interests and overriding interests are
created and protected in registered conveyancing.

3. Apply the relevant law on registered title including, in particular, schedule 3

paragraph 2 Land Registration Act 2002 to a factual situation.

4. Interpret documentation relevant to registered land.

Preparation

Watch the media clip entitled Land Registration – Title & Registration (3 minutes 56
secs in length – the clip refers to official copies attached to this Student Guide).

Make a note of the key points in relation to the layout of the Register and the various
entries that you might find recorded against a title.

1. Introduction

a) Principles of Registration

Mirror Principle

Curtain Principle

Insurance Principle
2. When Title must be registered (The Land Registration Act 2002 (“LRA 2002”)
and the Land Registration Rules 2003.

a) When title must be registered: triggering events – s4 LRA 2002.

b) Subsequent dispositions – s27 LRA 2002.

3. What goes where?

Activity: What goes where?

Watch a media clip entitled “Land Registration – Title and Registration” explaining
the layout of the Register and the types of entry you might find in each section. Note
the terms used and where the various entries are to be found on the Register. The
specimen Register referred to is found on the next page.

OFFICIAL COPY OF REGISTER ENTRIES

This official copy shows the entries subsisting on the register on XXXX at 14.45 : 32
This date must be quoted as the ‘search from date’ in any official search application
based on this copy.
Under s.67 of the Land Registration Act 2002 this copy is admissible in evidence to the
same extent as the original.
Issued on XXXX by HM Land Registry.
This title is dealt with by Nottingham (East) District Land Registry

Land Registry
TITLE NUMBER : NG12345
Edition date: 17 September 2004

___________________________________________________________________
________
A: Property Register
This register describes the land and estate comprised in the title
COUNTY DISTRICT
NOTTINGHAMSHIRE RUSHCLIFFE

1. (12 January 1970) The freehold land shown and edged with red on the plan of
the above title filed at the Registry and being 12 Central Avenue, South
Bridgford, Nottingham, NG2 5GR.
2. The land has the benefit of the following rights granted by the Conveyance
dated 23 December 1969 referred to in the Charges Register:-

“TOGETHER with the use (in common with all others entitled to the like user)
of all drains sewers gutters channels spouts passages ways chimney stacks
and other like conveniences now used in common between the messuage
and hereditaments hereby conveyed and the adjoining messuage and
hereditaments known as Number 10 Central Avenue aforesaid he the
Purchaser his heirs and assigns contributing equally with the owner or owners
for the time being of the said adjoining messuage Number 10 Central Avenue
aforesaid towards the expense of the repair and maintenance thereof”.

___________________________________________________________________
________
B: Proprietorship Register
This register specifies the class of title and identifies the owner. It contains any
entries that affect the right of disposal.

TITLE ABSOLUTE

1. (9 August 2002) PROPRIETOR: CHURCHILL PROPERTIES LTD (Co. Reg.

No. 772918) of Churchill House, Clarence Road, Leeds LS9 7HT.
___________________________________________________________________
________

C: Charges Register
This register contains any charges and other matters that affect the land

1. (12 January 1970) A Conveyance of land in this title and other land dated 23
December 1969 and made between Alan Jackson (Vendor) (1) and Peter
William Faversham (Purchaser) (2) contains the following covenants:-

“The Purchaser with intent and so as to bind the property hereby conveyed
and to benefit and protect the retained parts of the Vendor’s adjoining and
neighbouring land known as number 10 Central Avenue hereby covenants
with the Vendor not to use or allow to be used any dwellinghouse erected on
the property for any purpose other than as a private residence in the
occupation of one family.”

2. (9 August 2002) REGISTERED CHARGE dated 1 August 2002 to secure the

moneys including the further advances therein mentioned.

3. (9 August 2002) Proprietors(s) CORNLAND BUILDING SOCIETY of Society

House, Cornland, Wessex.
___________________________________________________________________
________

END OF REGISTER

NOTE: A date at the beginning of an entry is the date on which the entry was
made in the register

Now answer the following questions:

1. Other than the address, how else is the property identified?

2. In which register would you expect to see details of the legal owner?

3. In which register would you expect to see any third party rights which burden
the property?

4. Which register contains third party rights which benefit the property?

4. Protection of third party rights and interests – the basic principles

a) A purchaser for “valuable consideration” of a registered freehold title takes the

legal estate subject to:

1. Entries appearing on the register

2. Unregistered interests which override the register (“overriding

interests”).

b) Four categories of third party interests:

1. Registrable dispositions
 2. Interests affecting a registered estate (“IAREs”)

3. Trust interests (remember the curtain principle)

4. Overriding interests.

5. Registrable Dispositions

a) Section 27 Land Registration Act 2002 (LRA 2002) – dispositions that must be
completed by registration.

b) Category includes:

1. Creation of a leasehold estate for a term of more than 7 years.

2. A legal easement created expressly.

3. Creation of a legal mortgage.

c) Must be protected by registration. If so protected by the date of registration of

the buyer’s transfer, it will bind the buyer.
6. Interests affecting a registered estate

a) All interests that are not in other categories.

b) Category includes:

1. Restrictive covenants

2. Estate contracts

3. Family Law Act 1996 rights

c) Must be protected by a notice in the Charges register. If notice entered on to

charges register by the date of registration of the buyer’s transfer, the buyer
will be bound by the interest.

7. Categories of overriding interest (OI) under Schedule 3 LRA 2002

Activity 2: Overriding Interests

Answer the following questions:
1. What is the benefit of Overriding interests?

2. What are the three categories of overriding interest?

 3. What interest can never be overriding?

8. Overriding Interests: Proprietary Rights of persons in actual occupation Sch

para 2

a. Proprietary interest

Strand Securities v Caswell [1965]

Williams & Glyn’s Bank v Boland (1981).

b. Actual Occupation

Chhokar v Chhokar [1984]

Link Lending v Bustard [2010]

Kling v Keston Properties Ltd (1985)

9. Sch 3 para 2 (c) (i) and (ii) LRA 2002

“obvious on a reasonably careful inspection of the land” Sch 3 para 2 (c) (i)
and (ii)

Or within the actual knowledge of the transferee at the time of transfer

OR If inquiry was made of the right-holder and he failed to disclose the

interest when he could reasonably have been expected to do so Sch 3 para 3
(b)
10. Effect of an overriding interest on successor in title
 Whichever type of OI it is, must be in existence by the date of completion of
the sale (or mortgage).

11. Summary of key facts

1. The overarching principle of the system of registration is that everything a

buyer or lender would want to know about a property can be found on the
register.

2. Registration of title is now governed by the Land Registration Act 2002 and
the Land Registration Rules 2003.

3. The main events that will trigger first registration are any transfer of title
whether for value or by gift or court order and the creation of mortgages and
legal leases for over 7 years.

4. The state guarantees the registered title to land.

5. The property register will contain a description of the land in the title, together
with any rights enjoyed by the land (and any exceptions) and a reference to a
title plan.

6. A buyer of a registered freehold title takes the legal estate subject to entries
appearing on the Register (which may be registrable disposition or interests
affecting a registered estate) and unregistered interests which override the
Register (“overriding interests”).

7. Registrable dispositions include: leases for more than 7 years, legal

easements created expressly and legal mortgages.
8. IAREs include: restrictive covenants, estate contracts and the FLA 1996
right.

9. Overriding interests include: legal leases for a term not exceeding 7 years,
proprietary interests belonging to a person in actual occupation of the land (if
certain conditions are fulfilled) and legal easements arising otherwise than
by express creation (i.e. by prescription or implication) if certain conditions
are fulfilled.
 Appendix

Land Registration Act 2002

Part 3 DISPOSITIONS OF REGISTERED LAND
Registrable dispositions

27 Dispositions required to be registered

(1) If a disposition of a registered estate or registered charge is required to be

completed by registration, it does not operate at law until the relevant
registration requirements are met.

(2) In the case of a registered estate, the following are the dispositions which
are required to be completed by registration—

(a) a transfer,

(b) where the registered estate is an estate in land, the grant of a term of
years absolute—

(i) for a term of more than seven years from the date of the grant…

(c) [Not reproduced]

(d) the express grant or reservation of an interest of a kind falling within

section 1(2)(a) of the Law of Property Act 1925 (c. 20) [an easement,
 right, or privilege in or over land for an interest equivalent to an estate in
fee simple absolute in possession or a term of years absolute] , other
than one which is capable of being registered under the Commons
Registration Act 1965 (c. 64),

(e) [Not reproduced] and

(f) the grant of a legal charge.

(3) – (5) [Not reproduced]

(6) Rules may make provision about applications to the registrar for the purpose
of meeting registration requirements under this section.

(7) In subsection (2)(d), the reference to express grant does not include grant
as a result of the operation of section 62 of the Law of Property Act 1925 (c.
20).

Part 4 NOTICES AND RESTRICTIONS

Notices
32 Nature and effect

(1) A notice is an entry in the register in respect of the burden of an interest

affecting a registered estate or charge.

(2) The entry of a notice is to be made in relation to the registered estate or

charge affected by the interest concerned.
 (3) The fact that an interest is the subject of a notice does not necessarily
mean that the interest is valid, but does mean that the priority of the interest,
if valid, is protected for the purposes of sections 29 and 30.

Restrictions
40 Nature

(1) A restriction is an entry in the register regulating the circumstances in

which a disposition of a registered estate or charge may be the subject of an
entry in the register.

(2) A restriction may, in particular—

(a) prohibit the making of an entry in respect of any disposition, or a

disposition of a kind specified in the restriction;

(b) prohibit the making of an entry—

(i) indefinitely,

(ii) for a period specified in the restriction, or

(iii) until the occurrence of an event so specified.

(3) Without prejudice to the generality of subsection (2)(b)(iii), the events

which may be specified include—

(a) the giving of notice,

(b) the obtaining of consent, and

 (c) the making of an order by the court or registrar.

(4) The entry of a restriction is to be made in relation to the registered estate

or charge to which it relates.

Schedule 3
UNREGISTERED INTERESTS WHICH OVERRIDE REGISTERED DISPOSITIONS

Leasehold estates in land

1. A leasehold estate in land granted for a term not exceeding seven years from the
date of the grant, except for—

(a) …

(b) a lease the grant of which constitutes a registrable disposition.

1A. [Not reproduced]

Interests of persons in actual occupation

2. An interest belonging at the time of the disposition to a person in actual occupation,

so far as relating to land of which he is in actual occupation, except for—

(a) an interest under a settlement under the Settled Land Act 1925 (c.18);
 (b) an interest of a person of whom inquiry was made before the disposition
and who failed to disclose the right when he could reasonably have been
expected to do so;

(c) an interest—

(i) which belongs to a person whose occupation would not have been
obvious on a reasonably careful inspection of the land at the time of the
disposition, and

(ii) of which the person to whom the disposition is made does not have
actual knowledge at that time;

(d) a leasehold estate in land granted to take effect in possession after the end
of the period of three months beginning with the date of the grant and which
has not taken effect in possession at the time of the disposition.

2A. [Not reproduced]

Easements and profits a prendre

[Note to students: profits are rare and not covered on this course. A profit is like an
easement but it is a right to take something form another’s land such as the “profit of
estovers” which is a right to take wood].

3. (1) A legal easement or profit a prendre, except for an easement, or a profit a

prendre which is not registered under the Commons Registration Act 1965 (c.
64), which at the time of the disposition—

(a) is not within the actual knowledge of the person to whom the disposition is
made, and

(b) would not have been obvious on a reasonably careful inspection of the
land over which the easement or profit is exercisable.
(2) The exception in sub-paragraph (1) does not apply if the person entitled to
the easement or profit proves that it has been exercised in the period of one
year ending with the day of the disposition.