Webcast

Question 1

What does the property register contain?

Answer 1

Description of the land, example postal address
Filed plan (showing boundaries)
Freehold or leasehold
Details of rights that benefit the land

Question 2

What does the proprietorship register contain?

Answer 2

Identifies the owners of the land (name and address)
The grade of the title
Restrictions

Question 3

What does that charges register contain?

Answer 3

Legal mortgages
Restrictive covenants
Estate contracts
Home rights
Easements

Question 4

What is an overriding interest?

Answer 4

Interests that can bind a purchaser even though they are not on the title register.

Question 5

The title register is divided into three parts. Which of the following would not appear:
A) statement saying freehold or leasehold
B) postal address of the property
C) details of easements that benefit the land
D) details of easements that burden the land

Answer 5

D.

Question 6

Which of the following would not appear in the proprietorship register:
A) name of the owners
B) notices, example spouses home rights
C) restrictions which limit the power of the registered proprietor to deal with their land
D) the grade of title for the estate, example title absolute

Answer 6

B, these are entered on the charges register.

Question 7

When does first registration occur?

Answer 7

Where an event triggers the need for the registration of an estate that is currently unregistered.

Question 8

What triggers the need for first registration?

Answer 8

• transfer of freehold estate
• grant of legal lease more than 7 years
• transfer of legal lease with more than 7 years to run
• s4 LRA 2002 lists some leases which are registerable even though they are for less than 7 years if they take possession 3 months after it was granted
• grant of a first legal mortgage over a freehold estate with more than 7 years left to run

Question 9

How long to do have to register an estate and what happens if you don’t?

Answer 9

2 months beginning on the date the triggering event occurs. If you don’t s7LRA 2002 makes the transfer or grant of the legal estate void.

Question 10

By reference to s4 LRA 2002 consider whether the following event triggers compulsory first registration. An elderly father who owns the unregistered freehold estate gifts the property to his adult daughter?

Answer 10

Yes transfer of a freehold estate is a triggering event.

Question 11

With reference to s4 LRA 2002 consider whether the following event triggers compulsory first registration of the leasehold estate. j owns an unregistered freehold estate and he grants R by deed a 10 year legal lease to commence immediately?

Answer 11

Yes, granting a lease of longer than 7 years will be a triggering event.

Question 12

By reference to s4 LRA 2002 consider whether the following event triggers compulsory registration of the leasehold estate. E owns an unregistered freehold estate and grants H by deed a 2 year lease which commences 4 months after the date it was granted?

Answer 12

Yes, granting a legal lease of any length with be a triggering eventing it commences more than 3 months after the date of grant.

Question 13

What types of registration are there?

Answer 13

• substantive registration - giving the freehold/leasehold it’s own register and unique title number
• registration of a right belonging to a third party - option to purchase

Question 14

Under s27 LRA 2002 what dealings must be registered?

Answer 14

• every transfer of a registered estate, even if less than 7 years in leasehold estates
• grant of a lease for more than 7 years
• grant of a lease of any length taking effect 3 months after it was granted
• the grant of a legal charge
• express grant/reservation of a legal easement

Question 15

What is the effect of not registering?

Answer 15

S27 LRA 2002 says if it is not completed by registration the legal estate remains with the seller and the buyer acquires the equitable ownership of the property.

Question 16

By reference to s27 LRA 2002 consider whether the following dealing with land must be registered to operate at law. H is the registered proprietor of the house. He makes a gift of his property to his adult son?

Answer 16

Yes, any transfer of estate must be registered to operate at law, the son cannot acquire the legal estate until registered.

Question 17

By reference to s27 LRA 2002 consider whether the following dealing with land must be registered to operate at law. S is the registered proprietor of the house. Grants M by deed an 8 year lease?

Answer 17

Yes. More than 7 years and therefore needs to be registered under s27.

Question 18

By reference to s27 LRA 2002 consider whether the following dealing with land must be registered to operate at law. C is the registered proprietor of the house. He grants A by deed a 2 year lease of the house to commence immediately?

Answer 18

No s27 is for 7 years or more.

Question 19

By reference to s27 LRA 2002 consider whether the following dealing with land must be registered to operate at law. M is the registered proprietor of the house. She grants P by deed a 2 year lease to commence in 4 months when P returns from working abroad?

Answer 19

Yes, even though less than 3 years it doesn’t commence immediately.

Question 20

B grants C a right of way across his drive. The right is not granted by deed and is expressed to last for 5 years. C does NOT register this transaction under s27 LRA 2002. What type of interest does C acquire?

Answer 20

Equitable easement. It is only equitable as it has not been registered (as required by s27 LRA 2002).

Question 21

How can you register an interest on the title register?

Answer 21

By notice or registration.

Question 22

What is a notice?

Answer 22

S32(1) LRA 2002 defines it as an entry in the register in respect of the burden of an interest affecting a registered estate.

Question 23

Who applies for the interest to be registered?

Answer 23

The person who enjoys the interest.

Question 24

What are the three types of notice?

Answer 24

• agreed notice (owner agrees to entry of a notice)
• unilateral notice (entered without the consent of the owner, they will be informed and have the opportunity to cancel it)
• automatic notice (those interests requiring registration under s27 LRA 2002, example legal charge)

Question 25

What can be registered as a notice?

Answer 25

Everything apart from the items listed in s33 LRA 2002: - interests of a beneficiary under a trust of land - legal lease granted for 3 years or less - restrictive covenant made between landlord and tenant

Question 26

What is the effect of entering a notice on the register?

Answer 26

S29 LRA 2002 says once an interest has been entered onto the charges register by means of a notice it is binding on future owners of the estate.

Question 27

Where are restrictions recorded?

Answer 27

The proprietorship register.

Question 28

What is a restriction?

Answer 28

A restriction on the way a registered proprietorship can deal with his land and defined under s41 LRA 2002.

Question 29

Give an example of a restriction?

Answer 29

Any payment of capital monies to be paid to a trust corporation or at least 2 trustees to ensure overreaching occurs.

Question 30

Are restrictions binding on future owners of the estate?

Answer 30

No.

Question 31

A restrictive covenant in freehold land can be entered on the title register. What is the correct method for entering this interest on the title register?

Answer 31

A notice in the charges register which will bind future owners.

Question 32

In which part of the title register should a restriction appear?

Answer 32

Proprietorship register.

Question 33

S33 LRA 2002 contains a list of interests that cannot be protected by entering a notice in the charges register. Which of the following cannot be entered on the register by notice: A) interest of a beneficiary under a trust of land B) spouses home rights C) restrictive covenants in freehold land

Answer 33

A.

Question 34

What is an overriding interest?

Answer 34

Interests that bind the purchaser even though they do not appear on the title register.

Question 35

Where can we find information regarding overriding interests?

Answer 35

Schedule 1 and 3 LRA 2002.

Question 36

What is contained within schedule 1?

Answer 36

It provides a list of interests which override first registration of title.

Question 37

What is contained within schedule 3?

Answer 37

It deals with dealings with an estate that is already registered. Example, selling house which is already registered.

Question 38

Is a lease an overriding interest?

Answer 38

A legal lease that is granted for 7 years or less is an overriding interest (schedule 3(1)).

Question 39

What if I rent a flat in May to start in Sept, will my lease be an overriding interest?

Answer 39

If it is granted for less than 7 years and commences more than 3 months after it is granted it cannot be an overriding interest as s27 LRA 2002 requires this type of lease to be registered with its own title number.

Question 40

What is schedule 3 paragraph 2 concerned with?

Answer 40

It deals with an interest belonging to a person in actual occupation of the land. They must have a right in the land as well as actual occupation to be overriding.

Question 41

What kind of right may an occupier have?

Answer 41

Legal lease, equitable lease, interest of a beneficiary under a trust and an estate contract (option to purchase). Home rights cannot be an overriding interest.

Question 42

What is in occupation?

Answer 42

It must be established there is a degree of permanency and continuity and there must be personal belongings on the premises with an intention to return.

Question 43

According to Abbey. National v Cann when must a person be in actual occupation for the purposes of schedule 3 paragraph 2 LRA 2002?

Answer 43

A person must establish that they are in actual occupation at the date of the transfer of legal estate. If these are still in existence at the date of registration, the rights can constitute an overriding interest and bind the purchaser.

Question 44

In Abbey v Cann why was Mrs C deemed not to be in actual occupation on the date of completion of the mortgage?

Answer 44

Physical presence is required not just an entitlement to be there in law. Here Mrs Cs actions of moving in furniture 35 minutes before completion of the sale did not constitute actual occupation.

Question 45

What is the effect of a temporary absence so that the occupier is not in physical occupation of the property at the relevant time? Consider the approach in Chhokar v Chhokar?

Answer 45

You can be I actual occupation without physically being there at the time. There must be a degree of permanence and continuity and have personal belongings in the property with the intention of returning. Presence of belongings alone will not suffice.

Question 46

In Abbey v Cann the court said that occupation is a concept which may have different connotations according to the nature and purpose of the property which is claimed to be occupied. Use the case of Malory Enterprises v Cheshire Homes to illustrate this?

Answer 46

In M the land was awaiting development and therefor uninhabitable. Occupation was satisfied still as they had erected and maintained fences surrounding the premises and adopted measures to exclude trespassers.

Question 47

In Link. Lending v Bustard what factors did the court list as being relevant to the decision of whether a person is in actual occupation?

Answer 47

She was in actual occupation because: - her furniture remained in the property - she had a continuing intention to occupy - she was prevented from living there by an order under the Mental Health Act but wanted to return home - she had supervised visits to the property and continued to pays related to the property

Question 48

How can a purchaser break free from overriding interests?

Answer 48

- if the person with the interest was asked about it before the transfer of the property and they said no - if the persons occupation would not have been obvious on a reasonably careful inspection of the property AND they did not have knowledge of the interest at the time

Question 49

What does schedule 3 paragraph 3 deal with?

Answer 49

Legal easements, it will only apply to implied easements and not those expressly created.

Question 50

What are the three conditions set out in schedule 3 paragraph 3?

Answer 50

Only one needs satisfying for an overriding interest: - if the purchaser has actual knowledge of the easement - if the easement would have been obvious on a reasonable inspection of the land - if the easement had been exercised within one year before the transfer

Question 51

L was registered owner of a house. 6 months ago he granted T by deed a 2 year lease of the house. The lease was not registered. Last month he sold the house to P. Can T successfully claim to have an overriding lease under schedule 3 paragraph 1 LRA 2002?

Answer 51

Yes as the lease falls within schedule 3(1) and will therefore constitute an overriding interest which will bind P.

Question 52

L is the registered owner of a house. Two months ago she granted T by deed a one year lease to commence in 4 months. The lease was not registered. Last week she sold the house to Y. Could T successfully claim to have an overriding interest under schedule 3(1) that binds Y?

Answer 52

No. A legal lease which does not commence for 3 months or longer must be registered by virtue of s27 LRA 2002.

Question 53

C is registered owner of a house. Last year he granted his neighbour H a right of way across his driveway to last for 8 years. The grant of the easement was made by deed and not registered. Last month he sold the house to A. Could H claim an overriding interest that binds A under schedule 3(3) LRA 2002?

Answer 53

No schedule 3(3) only applies to implied easements. As it was granted by deed it should be registered pin order to be legal (s27 LRA).

Question 54

R is registered owner of a house. Six months ago he granted S a four year lease of the house and she immediately started living there. The lease was granted by a written document which was not a deed as the document had been signed but not witnessed. The lease was not registered. Last month R sold the house to J and S claims she has an overriding interest that binds J. Which statutory provision could she rely on?

Answer 54

Schedule 3(2). She could not claim under schedule 3(1) as she has an equitable lease.

Question 55

What does s28 of the LRA 2002 say?

Answer 55

All interests that were in existence before the registered estate was transferred will be binding on the new owner with the exception of s29.

Question 56

What does s29 LRA 2002 say?

Answer 56

A person who acquires a registered estate for valuable consideration and completes their purchase by registration takes the land subject to those interests protected by notice on the register and ingests that are overriding.

Question 57

Who does s29 LRA 2002 apply to?

Answer 57

Only to a transferee who BUYS a registered estate and gives valuable consideration for this and then registers themselves as new owners. It doesn't apply to gifted land (all interests will be bound).

Question 58

What is overreaching?

Answer 58

It applies to the interest of a beneficiary under a trust of land. It's a means by which a new owner of land can ensure they will not be bound by anyone who may have a beneficial interest under a trust. For overreaching to occur the capital monies must be paid to a trust corporation or 2 trustees (s27 LRA).

Question 59

What does overreaching do?

Answer 59

It converts the interests of equitable owners from an interest in the land to an interest in the capital monies such as the sale proceeds.

Question 60

What does the phrase, overreaching beats overriding, mean?

Answer 60

If overreaching occurs, this trumps any potential overriding interest the beneficiary may normally be able to claim due to being in actual occupation of the property.

Question 61

L and J are married. Last year J purchased a house with money she inherited. J was registered as the sole proprietor. L and J have been living in the house as their matrimonial home but last week J sold the house to E. Will E be bound by L spousal home rights?

Answer 61

Only if L registers the home rights by entering a notice prior to the sale to E. It is not overriding as The Family Law Act 1996 s31(10) excludes them from being so.

Question 62

3 years ago E and N purchased a house with Ns mother L. They each paid 1/3 of purchase price but only E and N were registered as proprietors. All 3 lived in the house together. E and N sold the house to I. Will I be bound by Lydia's interest of a beneficiary under a trust of land?

Answer 62

No, Ls interest had been overreached as the money will have been paid to E and N. The interest moves to the money.

Question 63

J inherited a house from her grandad. C has an estate contract (option to purchase within 5 years, which Js grandad granted to her last year by a valid contract. The estate contract has not been registered. Is J bound by Cs option to purchase?

Answer 63

Yes as she is not a purchaser for value and therefore comes within s28 not s29. She will be bound by all existing interests.

Question 64

The title register is divided into 3 parts, what are they?

Answer 64

Property register Proprietorship register Charges register