registration of property rights

basic rule - s.28 LRA 2002

an earlier interest in land takes priority over a later one.

​​”Except as provided by sections 29 and 30, the priority of an interest affecting a registered estate or charge is not affected by a disposition of the estate or charge.”28(1) LRA 2002

special rule - s.29 LRA 2002

a purhcaser for valuable consideration takes the land free from any pre-exisiting interests unless those interests are:

• protected by a noitce on the reigster

• an overriding interest

• a registered charge

what section of LRA explains how existing interests are protected against an incoming purchaser?

s.29(2)

how are existing interests protected against an incoming purchaser

an earlier interest will still bind the purchaser where 1) it is on the register 2) is an overriding interest

what is a notice?

an entry on the register protecting third party interests against a disposition for value

where is a notice found?

Charges register

what is an overriding interest?

an exception to the register system —> exception to normal priority rules

interest is enforceable and therefore binding on a new purchaser of land

Right in land that binds a new purchaser automatically even though it is not entered on the register

sch1

interests that override first registration of land

sch 3

interests which override a registered disposition of land - land being transferred

2 key types of overriding interests

short leases of less than 7 years

an interest belonging to someone in actual occupation of the land

short leases of less than 7 years requirement

must be a legal lease - either created by deed or a term of less than 3 years giving immediate possession at market rent (exception to deed rule)

an interest ebelonging to someone in actual occupation of the land requirements

1. must be a proprietary right (ot personal)

2. the person must be in actual ocupation of the land at the time when the land is transferred

leading case in assessing actual occupation

Link Lending v Bustard

what are the two safeguards to overriding interests in sch3, para 2

1. where a person has inquired before the diposition and the person with the right failed to disclose that right when he could have reasonably have beene expected to

   1. an interest which 1) isn’t obvious on reasonable inspection 2) the buyer genuinely does not know

when is a trust created?

when someone who is not the legal owner of land contributing the purchasing price —> gets an equitable interest

static security

dynamic security

overreaching

moving benefiical interests from land to the money from the sale of the property