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Land Law Section 3 Unregistered Land - Coggle Diagram
Land Law Section 3 Unregistered Land
Title Deeds in Unregistered Titles
Epitome of Title
Defects
Each document in Epitome of Title must be checked to see if it is defective
Eg Not had stamp duty paid
HMLR will not accept 'defective' documents as proof
Eg Not properly signed; or
Chronological
list of
Title Documents
with a
copy
of each attached
Seller must
deduce title to buyer
Deduce = prove they have right to sell
Documents
MUST
:
Commence
with a
GOOD ROOT OF TITLE
Show
at least 15 years of unbroken chain of ownership
Common Documents
Conveyance on sale
Documents transfer of ownership in
transaction for valuable consideration
Deed of gift
Mortgage deed
Evidences lender has
taken charge over land as security ofr loan
Assent
Transfers
land from personal representative
of deceased to
rightful beneficiary
Requisitions and Investigating Title
Requisition is when the Buyer's Solicitor makes
queries about Title Documents
Any outstanding mortgages or charges on the property.
Confirming that there are no disputes over the boundaries.
Verifying easements, covenants, or restrictions affecting the property.
Ensuring compliance with any title conditions in the Registered Title.
Checking the
seller's documentation to ensure they are entitled to sell the land
Passing of Land Titles
Equitable title
passes
the moment Contracts are Exchanged
(Stage 3)
Thus buyer is compelled to continue with sale, even if property becomes damaged after
Legal Title
passes upon completion of purchase
Specifically, when the
deed is signed by the buyer
Within 2
months of completion
, the
purchase
of land by the new owner and the
shift
of
the
title to them, should be
registered with HMLR
Basic Rules of Binding of Equitable Interests
Interests
not Registered
on the Land Charges Register
Registration IN the Charges Register
is
REQUIRED
for Equitable Interests to be binding on
purchasers for VALABLE CONSIDERATION
Otherwise,
Rules of Notice
are relevant for those who get it by
gift/assent
OR for
Beneficial Interest Under a Trust
Interests OVERRIDING on FIRST REGISTRATION do not require notice
Equitable interests are
only binding on future owners if NOTICE is given
Notice can be given either via Land Charges Register (for purchases for valuable consideration) - counts as notice
Or fallback notice rules for gift/assent
Land Charges (on
Land Charges Register
)
Format
Registered
against
the
NAME of the landowner
, NOT the ADDRESS
and thus look out for questions where a land owner’s name is misspelled and a land charge supposedly ‘exists’ against them)
Not effective if name is not correct
Still bind a buyer if they search with the wrong name
Land charges are
registered against the name
of the the
estate owner
at the
date
the land charge was
CREATED
so not against the current owner, they don’t ‘move’ when the land is sold. Thus, the solicitor must check
ALL The names of the current and previous owners of the land
Classes of Land Charge
Class C
C (i)
Puisine Mortgage
Used where a legal mortgage/legal charge on an estate is taken out when a mortgage on it ALREADY exists, so
title deeds can't be taken as security
for lender
C (ii) A
General Equitable
Charge
Eg a
Failed Legal Mortgage
(Distinguish from Puisine Mortgage)
C (iv)
Estate Contract
An
Option Agreement
prospective buyer has the right to purchase the property at any time within a specified period, regardless of whether the seller is willing to sell at that time.
Seller
immediately bound
to sell property
Right of Pre-Emption
for a purchase
Only active once land goes on sale, and seller is not
forced
to agree
Contract
to
purchase land once it DOES go on sale
Class D
D (ii)
Restrictive Covenants
Specifically, the
burden
of them - the
obligation to comply with the restriction
Eg land may only be used for residential purposes
Note you cannot register a Benefit of a Restrictive Covenant in equity
instead is typically protected by annexation - either express in deed or statutory (annexed unless contrary intention shown)
D(iii)
Equitable Easements
Note 'equitable' is specified because unlike all the above, you
can
have legal easements
Class F
Matrimonial Homes' Rights
(
NOT AN INTEREST IN LAND)
Cannot repeat this enough; this is NOT an INTEREST in land, include the others
Nonetheless, it is enforceable by registry on the Charges Register
This Protecting a
non-owning
spouse or civil partner’s
statutory right of occupation
of the
matrimonial
home
Separate from an Equitable Beneficial Interest in the home (eg as tenants-in-common), where spouse has contributed to purchase price and occupies the property but the
legal ownership is in the other spouse's name
Fairly common to Register when
Marriage is in Trouble
-> protect
Statutory Right
to live in marriage home
Beneficial Interests Under a Trust (Cannot be Registered as Land Charges; Require Notice)
Beneficial Interest under a Trust can be quite broad
One person (the
trustee
) holds the legal title to the property, while another (the
beneficiary) holds the beneficial interest.
The legal owner is obliged to manage the land for the benefit of the beneficiary.
Resulting trust:
Two friends buy a plot of land together, but the legal title is only in one friend's name. The other friend, who contributed to the purchase price, has a beneficial interest under a resulting trust, even though their name is not on the title.
N.B
This specific case becomes an Overriding Interest
if the other friend's also in actual occupation (both under First Registration and in Registered Land)
Express Trust, etc:
If a property is held in the name of one person but they hold it "on trust" for someone else, the beneficial owner has an interest. For example, a parent might hold unregistered land on trust for their child, where the child has the beneficial interest.
Example: A mother holds legal title to a family home for the benefit of her children. The children have the beneficial interest in the property, entitling them to a share of the property’s value, even though the mother holds the legal title.
Doctrine of Notice applies here
Binding
UNLESS
bona fide buyer for valuable consideration of legal estate
WITHOUT NOTICE
(
ANY of the 3 forms of notice)
The Doctrine of Notice (BUITs, Pre-1926 Interests, AND ANY INTERESTS that CANNOT BE REGISTERED AS LAND CHARGES - eg equitable easement)
Applies when interest
CANNOT
be registered on Land Charges register
3 types:
Actual Notice
Buyer has
actual
knowledge
of interest
; sufficient to bind
Constructive Notice
Had a person made
reasonable inquiry
, they'd have
discovered the interest
* -
STILL BINDS THEM*
This doesn't mean just physical land; means checking docs, etc
A prudent buyer/solicitor will make all necessary enquiries so that any evidence of equitable interests or rights is uncovered
Imputed Notice
Either
ACTUAL
OR
Constructive
notice that is GIVEN TO AN
AGENT
of the buyer
So the
Buyer will be bound
by things their
solicitor/agent/surveyor
was told of (actual notice),
but
ALSO of anything the solicitor/agent/surveyor SHOULD HAVE DISCOVERED
with reasonable enquiry
Unregistered Interests that Override First Registration
When unregistered land is FIRST REGISTERED,
it becomes subject to unregistered interests which ‘override first registration’
(you must register unregistered land when you buy it the first time around)
The buyer should Report to HMLR and update to add it to Land Registry before Registration
List
● A
lease granted for seven years or less
;
● Sarah has a 5-year lease on a shop. The land is sold and registered for the first time. Sarah’s lease still binds the new owner, even though it's unregistered.
● A
LEGAL easement
● John has a right to drive across his neighbor’s land (right of way). When the land is registered for the first time, John’s easement binds the new owner, even though it’s unregistered.
● A local
land charge
● Local council imposes a conservation restriction on a property. When the property is registered for the first time, the restriction still applies to the new owner.
● An
interest belonging to a person in actual occupation so far as relating to the land they occupy
● Jane has an equitable interest in her home because she contributed to its purchase. She lives in the house when it’s sold, and her interest binds the new owner due to her actual occupation.
Why?
The reason legal easements are classified as overriding interests on first registration is to
ensure their protection during the SHIFT from unregistered to registered land
. Even though
legal easements are already binding under common law in unregistered land
, ->
the registration system
needs to protect these rights and guarantee that they are carried forward into the new registered regime
, ensuring purchasers of registered land remain bound by them, just as they would have been in unregistered land.
Certain legal interests can ONLY BE PROTECTED when REGISTERING LAND by ADDING THEM TO THE LAND CHARGES REGISTRY
-> so that when land is registered, they're still there
Remember, while the land is still unregistered, they're protected as
legal docs
because they're made with a deed, for example (but obv can't be on Title Register since Title Register is only for registered land)
But
some
, such as easements and leases, are
important enough
that they're protected even if they're NOT registered
All Legal Interests are automatically binding on Unregistered Land
Adverse Possession
It is
possible
to
acquire title to land
by fact of
possession
, rather than production of documents.
Adverse possession = process of
acquiring title to land by dispossessing the previous holder
and
occupying the land
Owner might lose Title to Land If Occupied By Another for 12 years
If someone with an estate in land allows it to be occupied by someone else (‘often called a squatter’) for
12 years, the owner loses the right to recover the land
Consequently, they end up
holding the land ON TRUST for the squatter,
Squatter is
entitled to APPLY FOR REGISTRATION IN (instead of) THE LEGAL OWNER'S PLACE
, and
then and only then does legal possession of the land shift
to the squatter
After a period (typically 12 MORE years) with no challenges, the squatter may apply to upgrade this to an absolute freehold title.
(if no competing claims are made in that 12 year period, remember, title's till only possessory here)
Squatter must show:
They have
actual physical possession
of the land
The
possession in exclusive to the applicant
The possession of the land is
without the permission of the owner
When may it happen?
Deliberate
Mistake, eg accidental occupation of a boundary