week 2 : Land Registration

Land Registration

A system where title to land is recorded in a central register

Statute governing land registration

Land Registration Act 2002

Old statute

Land Registration Act 1925

Title by registration

Ownership depends on being registered as proprietor

HM Land Registry

Government body maintaining land register

Property Register

Part of register describing the land and rights benefiting it

Proprietorship Register

Part showing owner details and class of title

Charges Register

Part showing burdens such as mortgages and covenants

Registrable estates

Legal freehold and leasehold over 7 years

Legal estates

Freehold and leasehold

Compulsory registration

Requirement to register land after certain transactions

Statute for compulsory registration

s.4 Land Registration Act 2002

Trigger for registration

Sale or transfer of freehold

Trigger for registration

Transfer of lease over 7 years

Trigger for registration

Grant of lease over 7 years

Trigger for registration

Creation of first legal mortgage

Mirror principle

Register reflects the full legal position of the land

Exception to mirror principle

Overriding interests

Curtain principle

Equitable interests are hidden from the register

Effect of curtain principle

Purchasers need not investigate trusts

Requirement under curtain principle

Pay at least 2 trustees for overreaching

Insurance principle

State guarantees accuracy of the register

Effect of insurance principle

Compensation for loss due to register errors

Key case for overreaching

City of London Building Society v Flegg (1988)

Binding interests

Registered interests bind purchasers

Unregistered interests

Do not bind unless overriding

Section confirming ownership

s.58 Land Registration Act 2002

Effect of s.58

Registered proprietor is legal owner even if mistaken

Time limit to register

2 months after completion

Failure to register

Legal title does not pass

Result of failure to register

Purchaser gains only equitable interest

Vendor-purchaser trust

Seller holds legal title on trust for buyer

Absolute title

Best class of title with full ownership

Qualified title

Title with defects

Possessory title

Title based on possession without documents

Good leasehold title

Lease valid but landlord title uncertain

Purpose of land registration

To simplify and make land transactions efficient

Advantage of registration

Certainty and reduced fraud

Disadvantage of registration

Overriding interests reduce certainty