Is registration of land compulsory?
Any landowner may choose to voluntarily register unregistered land. However, all land must be registered on the occurrence of a triggering event if that event took place after 1 December 1990
5 triggering events for land registration
A conveyance on sale of freehold land
An assent
A deed of gift
A grant of lease for a term exceeding 7 years
An assignment on sale of a lease having a term exceeding 7 years
A consequence of failing to register a piece of land
if registration is not completed within 2 months means the transfer of the legal estate to the buyer becomes void and the legal estate reverts to the seller.
the disposition takes effect of the contract made for valuable consideration to grant the lease mortgage and the legal estate will revert to the original transferor who holds on rest as a bare trustee.
A bare trustee whose only duty is to follow the instruction of the beneficiary of the trust in relation to the trust assets
The cost of remedying the failure will be on the defaulting party.
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5 classes of title
Absolute freehold title Qualified title Possessory title Good Leasehold title Absolute Leasehold Title
Explain
Absolute freehold title
fee simple freehold absolute in possession best class of title
only restricted by interests which are entered on the registered
overriding interests
Explain
Qualified title
Very rare
a specified right otherwise implied by the effect of registration
Explain
Possessionary title
it is most commonly given when an application for registration is based on adverse possession of the land in question rather than based on the production of the unregistered titled deed/
Possesoory title has the same effect as absolute title but it does not exclude the enforceabiltiy of any right affecting the title which subsisted on the date of first registration
Explain
Good Leasehold title
This class of title is otherwise an absolute leasehold title if not because that the freehold title has not been produced to HMLR on application to register.
the guarantee implied by the registration does not extend to the freehold estate.
Explain
Absolute Leasehold title
HMLR will award an absolute/unqualified leasehold title only where it has inspected all superior leasehold titles and the freehold title
Explain title upgrade
A title can be upgraded for
possessory title if registration is unchallenged for 12 years since it was granted
all forms of qualified leasehold titles can be upgraded to absolute if the freehold has been inspected
this is known as curative effect of registration
Apart from leasehold and freehold titles (estates in land), what kind of estates can only be registered?
Rentcharges
Franchises
Profits a prendre in gross
Explain caution
when an unregistered land is about to enter the register, any owner of an interest in the concerned piece of land should issue a caution so HMLR can ascertain that interest
the owner of the estate can apply to cancel that caution unless an objection is made by the interest owner
A caution must be made with reasonable cause and a duty of care is owed to any person who suffers damage if a caution is entered without reasonable cause.
When exactly does the title pass from the seller to the buyer
the legal estate only passes to the buyer after completion when the registration of disposition is completed at HMLR
Definition of notice in the registered system
A notice is an entry in the register in respect of the burden of an interest affecting a registered estate or charge (LRA 2002 s.32(1))
There are two types of notice: an agreed notice and unilateral notice
What is a unilateral contract?
A unilateral notice is registered without the consent of the registered proprietor. The applicant must complete the application form (UN1) stating on what grounds the notice is made.
the rules on cancellation and removal is similar to caution, in which the same duty of care and response for the beneficiary of interest within a prescribed period apply.
Standard restriction for tenant in common
No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court
Explain overriding interests
overriding interests are interests that are binding on both the registered proprietor and a person who acquires an interest in the property albeit they do not appear on the register of the title.
3 kinds of overriding interests
Lega
leases less than seven years
Legal easements or profits a prendre
Interests of Persons in Actual Occupation (beneficiary under a trust)
For an easement to be capable of having overriding status, it must
be a legal easement and it cannot be expressly created. To fit in this category the easement must arise from implied grant or reservation or by prescription (long use)
it must be registered either under the Commons Act 2006 or known to the buyer, obvious on reasonable inspection, or it has been exercised within 1 year of disposition.
Restriction on interests of persons in actual occupation to apply
IF a buyer has made an enquiry of an occupier and they failed to disclose their occupation, the occupier will not have an overriding interest.
IF the occupation was not obvious on a reasonably careful inspection of the land at the time of the disposition and the interest was not in the actual knowledge of the buyer when the disposition occured.
What constitutes actual occupation
there degree of permanence and the continuity of presence
The intention and wishes of the person concerned
The length of any absences and the reasons for the absence
the nature of the property
the personal circumstances of the person concerned
Are the rights of occupation enjoyed by a non-owning spouse or civil partner an overriding interest?
No. The spouse or civil partner will register their home right as a notice on the registered proprietor’s register of title
3 kinds of third party interests in registered land
Legal estates
Equitable interests
Overriding interests
Limitation Act 1980 and adverse possession in registered land
All the squatter acquires in a registered land is the right to apply for registration of title at the end of the period of adverse possession (10 years vs 12 years). In the unregistered system, the right to recover land by the estate owner will be lost under the Limitation Act 1980