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Land Registration Notes

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Land Registration (LRA 2002) Effect of First Registration

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Effect of first registration of Fee Simples o LRA 2002 S.11(2)+(3) In every case, the legal fee simple is vested in the proprietor, regardless of whether that person held such a title
? But this is subject to three exceptions:

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S.11(4)(a) but this is subject to interests protected on the register and (b) overriding interests.

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S.11(5) and where the proprietor is a trustee, the beneficiaries interests bind the proprietor if he has notice of them

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S.11(4)(c) similarly adverse possession binds proprietors with notice of them.
? What about where the first registered proprietor didn't own the land?

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One the face of it RP gets good title but previous owner has some arguments available: o When in actual occupation, the previous owner can assert ownership by way of overriding interest o A claim for alteration of the register may be available

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Effect of First Registration of Leases o S.12(4) Estate vested subject only to
? (a) implied and express covenants
? (b) interests subject to an entry on the register
? (c) overriding interests
? (5) rights of beneficiaries he has notice of. Registrable Interests (where land is not yet registered)

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S.4(2) A qualifying estate is... o s.4(2)(a) Fee Simple o s.4(2)(b) Leases

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Land must be registered where: o S.4(1)(a) Within two months of conveyance of the qualifying estate by sale or gift o S.4(1)(c) the grant out of a qualifying estate
? (i) of a lease/sub lease
? AND (ii) for valuable consideration or by gift o S.4(1)(d) A future lease is granted to take effect after three or more months from grant o S.4(1)(g) On the creation of the first legal mortgage

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Voluntary Registration o Under s.3 land can also be voluntarily registered at any time if land is unregistered

Registrable Dispositions (where the land is already registered and some transaction occurs)

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Dispositions within s.27 o S.27(1): Transactions listed under s.27(2) must be registered - there is no legal title until this has occurred

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o o

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Smith: this is more than a technicality - delay in registration will prejudice purchasers if other interests are protected or some interests become overriding prior to registration.

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However, before registration, purchaser will have equitable interest by virtue of consideration, so long as there is writing to satisfy formality requirements

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They can then try to gain an overriding interest instead (see below). Those required to be registered: S.27(2)(a)Transfers S.27(2)(b)Leases
? (i) Lease of more than seven years

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Smith: is seven years enough?
o If all leases registered, then would clog up Land Registry and be too expensive o Equally, commercial leases have gone done in length so need to be court by the 7 years limit rather than 21 years as per pre 2002.
? (ii) future lease to take effect three or more months after grant
? (iii) discontinuous leases S.27(2)(d) The Express Grant or Reservation of an easement/profit
? Those easements passing under the general words implied into transfers don't need to be registered - they will be overriding interests (see below) S.27(2)(f) grant of a legal charge (mortgage) Effect of Registration S.29(1): Purchasers with Registrable Dispositions made for valuable consideration will gain the lack of Registration Defence and gazump any previous unregistered interests
? In order to gain this, purchasers need to fulfil number of requirements:

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(1)C acquires property right for valuable consideration

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(1)C registers property right

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(1) B's right is not recorded on the register

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S.29(2) There are no overriding interests in force There is no "good faith purchaser" defence
? Midland Bank Trust Co v Green [1981]:

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Lord Wilberforce: o LCA 1972 excludes a requirement of good faith for the lack of registration defence
? Reason for this is that adding this in would bring with it the necessity of inquiring into the purchaser's motives and this would lead to difficulties. o Legislative intention was clearly to eliminate necessity of inquiring into motives and states of mind.
? However, effect of this may be softened by constructive trusts - see below.

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