Registered And Unregistered Land Notes

• Interests in Land

  Legal Interests

  - Preliminary issues:

  • does grantor have legal capacity? (e.g. not owner of equitable lease).

  • does interest have legal capacity? s1(2) LPA 1925: (a) easements/profits for freehold/leasehold period (if not specified: assumed same period as grantor’s estate); (b) rentcharge; (c) charge by way of legal mortgage; (d) similar charge; (e) landlord’s right of entry.

  - Creation formalities:

  • 1. deed (s52(1) LPA 1925)

  • 2. registration:

    • registered land – any express grant (s27(2) LRA 2002: transfer of legal estate; 7+ year legal lease; expressly granted legal easement, legal charge);

    • unregistered land – mortgage (s4(1)(g) LRA 2002).

  - Transfer formalities:

  • assignment: deed (s52(1) LPA 1925).

    • if failed could be equitable interest (estate contract) if s2 LP(MP)A 1989 compliant.

  • conveyance: transfer of interests implied (s62 LPA 1925) unless contrary intent expressed (s62(4)).

  remedy if infringed: damages by right + equitable remedies at court’s discretion.

  Equitable interests

  - Types of equitable interest:

  • 1. inherently equitable (s1(3) LPA 1925: any interest not in s1(2) LPA 1925): e.g. restrictive covenant, estate contract (inc. option + right of pre-emption [s115 LRA: interest from time created]); beneficial interest under trust (express declaration: s53(1)(b) LPA 1925 formalities), easement for uncertain period.

  • 2. granted by holder of equitable estate.

  • 3. failed legal interest (Walsh v Lonsdale: failed deed estate contract if s2 LP(MP)A compliant + capable of specific performance): e.g. equitable easement (no deed/registration); equitable mortgage/charge (no deed/registration); equitable lease (only contract/no deed/registration).

  - Creation formalities:

  • 1. inherently equitable: s53(1)(a) LPA 1925: in writing, signed by grantor.

    • (express trust of land: s53(1)(b) LPA 1925: evidenced in writing signed by settlor).

  • 2. estate contracts: s2 LP(MP)A 1989: in writing, all express terms, signed by both parties.

    • (+ must be capable of specific performance: clean hands etc.)

    • inc. failed legal interests (Walsh v Lonsdale).

    • options to purchase: original grant (Spiro v Glencrown Properties).

    • right of pre-emption (Bircham & Co v Worrell Holding; s115 LRA 2002: interest from time granted.).

    • NOT oral agreements to exchange (Sharif v Sadiq) invalid.

  • EXCEPTIONS: no writing needed – implied trusts (s53(2) LPA 1925 + s2(5) LP(MP)A 1989); proprietary estoppel: reliance to detriment (Gillett v Holt).

  - Transfer formalities:

  • s53(1)(c) LPA 1925: in writing, signed by grantor or authorised agent.

  • contract to transfer: s2 LP(MP)A 1989.

  • conveyance: transfer of interests implied (s62 LPA 1925).

  remedy if infringed: only equitable remedies, at court’s discretion (clean hands: Coatsworth v Johnson; although only not if breach gross + wilful – Porter v Taswell).

  Licence: (if no legal or equitable interest) – mere personal right, revocable at will, will not bind 3^rd parties.

  Enforcement of 3^rd party interests against a purchaser

  [Structure:

  • 1. identify interest.

  • 2. set out formalities (for creation + protection).

  • 3. apply (+ consider different possibilities)].

  Registered Land

  - 1. registrable dispositions (s27(2) LRA 2002: created by registration): +7yr legal lease, expressly granted legal easement, legal charge, right of entry.

  • registered: notice entered on charges register by registrar (s38 LRA 2002) binding.

  • not registered: possibly equitable, if valid contract capable of specific performance.

  - 2. interests protected by notice in charges section of register (s32 LRA 2002): estate contract (option to purchase, right of pre-emption, equitable lease), equitable easement, restrictive covenant, FLA 1996 right.

  • notice entered: binding (s29(2) LRA 2002)

    • (FLA right: no vacant possession until cancelled by Family Law Courts – s33 FLA 1996).

  • notice not entered: not binding against purchaser for valuable consideration (s29(1) LRA 2002).

    • even if buyer has notice (De Lusignan v Johnson).

    • unless overriding: Sch 3 para 2: actual occupation (but s31 FLA 1996: FLA right cannot be overriding).

    • exception: fraud (Lyus v Prowsa).

  - 3. interests under a trust: protected by restriction on proprietorship section of register (s40 LRA 2002).

  • overreached: will not bind purchaser (equitable interest transferred to purchase monies).

    • conveyance by 2+ trustees or trust corp. (s2(1)(ii) LPA 1925).

    • payment to 2+ trustees or trust corp. (s27 LPA 1927).

    • City of London BS v Flegg: overreaching overriding interest (e.g. occupation etc.) defeated.

  • not overreached: binding if overriding interest under Sch 3 para 2.

    • payment to 1 trustee not overreached (Williams & Glyn’s Bank Ltd v Boland).

  - 4. overriding interests: bind even though not registered (s29(2) LRA 2002).

  • 1. Sch 3 para 1: legal leases 7/- yr.

  • 2. Sch 3 para 3: implied legal easement – if: a. known to purchaser; b. obvious on reasonable inspection; c. used within 1 year.

  • 3. Sch 3 para 2: any interest of person in actual occupation – if: a. apparent on reasonable inspection; b. known to purchaser; + no failure to disclose when asked by interest holder.

    • AO at date of completion (Abbey National v Cann).

    • actual occupation: q. of fact + degree.

      • temporary absence irrelevant (Chhokar v Chhokar: hospital; Link Lending v Bustard: furniture + visits + bills)

      • long absence = no AO (Stockholm Finance v Garden Holdings:...

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