SUMMARY OF PRINCIPLES FROM LAST WEEK

  • Ownership of Land:

    • We do not have ownership of land; rather, we have possession.

    • Possession serves as evidence of title, which in turn is evidence of the right to possession.

    • Quality of possession is determined by the doctrine of tenures and estates.

  • Tenure:

    • Defined as a bundle of rights concerning land.

  • Estate:

    • Refers to the period during which those rights will last.

  • Definitions of Land:

    • Three broad definitions consider the expansive meaning of land.

REGISTERED LAND PART 1

  • Central Question of English Land Law:

    • The critical question addressed is: When will a purchaser of land be bound by the rights that third parties have in relation to that land?

  • Learning Outcomes:

    • Develop a deep appreciation of the “central question” in English Land Law.

    • Awareness of the methods applied to tackle this question since 1925.

    • Ability to critically assess the effectiveness of the solutions offered.

    • Understand the differences between substantive and procedural justice and their impact on the operation of registered land.

THE CENTRAL QUESTION OF LAND LAW

  • Why It Is Difficult:

    • 1st Issue: There are various ‘ownership’ rights, including different types of estates (e.g., freehold and leasehold) that allow for both horizontal and vertical ownership.

    • 2nd Issue: Numerous third-party interests exist in land, such as easements, covenants, and options to purchase, complicating title and ownership.

    • 3rd Issue: The primary aim of English Land Law is to exploit and maximize the use of land plots—this necessitates recognizing numerous third-party interests and a clear, efficient conveyancing process.

EXAMPLES AND PRACTICAL SCENARIO

  • Illustrative Example (Pre-1925):

    • David ‘owns’ Somerset Acres.

    • He grants the land to his son Peter for life, and then to his grandson David, on the condition they remain Christian.

    • If they do not, the land reverts to David’s granddaughter Tracy.

    • Third-Party Interests:

    • John: Holds an equitable easement for walking across the land.

    • Jane: Holds a legal easement for crossing the back garden.

    • Richard: Has an agreement to purchase two acres for £50,000 within five years.

    • Steven: Claims a covenant restricting land use for farming.

    • Shane wishes to purchase Somerset Acres.

    • Estates in Existence:

    • Life Estate (Freehold) (Legal and Equitable)

    • Conditional fee simple in remainder (Equitable)

    • Interests in Existence:

    • Easement (Equitable) / Easement (Legal)

    • Option to Purchase (Equitable)

    • Covenant (Legal and Equitable).

PRACTICAL STEPS IN CONVEYANCING (PRE-1925)

  • Steps include:

    • Identify the land to purchase (e.g., Somerset Acres).

    • Negotiate price and terms.

    • Sign the contract of sale.

    • Identify the good root of title.

    • Inspect the land before finalizing.

    • Completion of sale.

  • Good Root Definition:

    • Must be at least 15 years old from a clear chain of title.

  • Legal vs. Equitable Interest:

    • Legal Interest: Binds the world without regard to the purchaser's knowledge.

    • Equitable Interest: Binding only if the purchaser knew about it or should have known through inspections (Doctrine of Notice).

SOLUTIONS TO LAND LAW ISSUES

  • Threefold Solution Post-1925:

    1. Reduction in the number of legal estates and interests.

    2. Reform of unregistered land.

    3. Introduction of registered land.

LAND LAW REFORM: LAW OF PROPERTY ACT 1925

  • Key Provisions:

    • Only the following estates in land are capable of being conveyed at law:

    1. An estate in fee simple absolute in possession (Freehold).

    2. A term of years absolute (Leasehold).

  • Capable Interests under LPA 1925**:

    • Those capable of being conveyed at law include:

    • An easement, rights akin to an estate in fee simple or term for years absolute.

    • A rent charge in possession.

    • A legal mortgage charge.

    • All other estates, interests, and charges take effect as equitable interests.

REFORM OF UNREGISTERED LAND

  • Three Categories of Equitable Interest:

    1. Registerable as a Land Charge under the Land Charges Act 1972.

    2. Dependent on the Doctrine of Notice (where interests are not registerable).

    3. Overreachable equitable interests.

  • Land Charges Act 1972 Overview:

    • Class C Charges (e.g., puisne mortgage, general equitable charge).

    • Class D Charges (e.g., inland revenue charges, freehold covenant created post-1926).

    • Class F Charges (e.g., spousal right to occupation).

DOCTRINE OF NOTICE

  • Types of Notice:

    • Actual Notice: The purchaser is aware of the interest.

    • Constructive Notice: A reasonable purchaser would have been aware of the interest following due diligence.

    • Imputed Notice: Knowledge from the purchaser's agent is attributed to them.

OVERREACHING IN LAND LAW

  • Overreaching Concept:

    • A problem arises when land is held on trust, potentially binding the purchaser with equitable interests.

    • The doctrine of overreaching allows the beneficial interest to convert from a land interest into a monetary interest for the purchaser, ensuring they take free of any beneficial interest.

INTRODUCTION OF REGISTERED LAND

  • Key Concepts:

    • Registration assigns a specific plot number and details all estates and interests against the plot.

    • Key Aims:

    1. Mirror Principle: The register should reflect all land interests accurately.

    2. Curtain Principle: The purchaser needs not look beyond the register for information on land.

    3. Insurance Principle: The state guarantees the register, compensating losses due to errors.

STRUCTURE OF THE LAND REGISTER

  • Property Register:

    • Describes the land, identifies the estate title, and details interests benefitting the land.

  • Proprietorship Register:

    • Specifies the title class and the registered owners, listing any restrictions on disposal.

  • Charges Register:

    • Details third-party rights affecting the title, including registered charges and covenants.

TYPES OF PROPERTY RIGHTS

  • Unregistered Land Definitions:

    • Legal Estate, Legal Interest, Equitable Interest.

  • Registered Land Categories:

    • Registered Estates, Registered Interests, Overriding Interests.

LAND REGISTRATION ACT 2002

  • Registered Estates:

    • Types being Freehold and Leasehold granted for durations more than 7 years.

  • Classes of Title upon First Registration:

    • Freehold Classes:

    • Absolute Freehold, Qualified Freehold, Possessory Freehold.

    • Leasehold Classes:

    • Absolute Leasehold, Good Leasehold, Qualified Leasehold, Possessory Leasehold.

TRIGGERING COMPULSORY REGISTRATION

  • Compulsory Registration Conditions:

    • Transfers of qualifying estates (Freehold and Leasehold above 7 years).

    • Granting leases above 7 years or starting in the future.

CONSEQUENCES OF NON-REGISTRATION

  • Registration failure results in:

    • Void transfer of the legal estate.

    • Previous owners holding in trust for the new owner, resulting only in equitable interest.

    • Costs must be covered by the person failing to register upon resolution.

NEXT MOVEMENT IN STUDY

  • Types of Property Rights and transition from unregistered to registered land.