L3_-_General_Principles_2_-_14.10.2024__1_

Overview of Property Law

The following notes summarize the key concepts covered in Property Law Lecture 3 at the Institute of Law Jersey, providing a comprehensive understanding of property law's principles and frameworks.

Learning Outcomes

• Understanding key definitions and concepts in property law.

• Explaining the nature of 'overreaching' and its implications.

• Understanding the operation of land charges registration systems.

• Analyzing the simplification of conveyancing through the 1925 reforms.

• Evaluating the enforceability of third-party rights against purchasers of unregistered land.

Systems of Title: Registered vs Unregistered

Registered Title

• There are two main systems of property title in England and Wales: registered and unregistered.

• Ownership is demonstrated through the Land Registry, where each qualifying estate is assigned a unique title number.

  • The register includes details such as ownership and any interests that affect the land.

• Transfer of ownership requires the new owner to register as the proprietor.

Unregistered Title

• Unregistered land refers to parcels of land not recorded in the official register.

  • Ownership is proven through title deeds, which trace ownership history.

• Legal framework under the LPA 1925, s52(1), dictates that a freehold estate is only transferable by deed.

• Title deeds illustrate the 'root of title' and can contain interests that affect ownership.

• Unregistered land often includes a mechanism for protecting certain interests through the Land Charges Register, a vast majority of current titles are now registered, reflecting a gradual reduction in unregistered titles.

Understanding Unregistered Land and Its Study

• To prove ownership, one must consult the title deeds.

• Both the registered and unregistered systems address third-party rights but follow different rules.

• The aim of distinguishing these systems is to simplify conveyancing processes.

Pre-1925 Legal Framework

Transfer of Legal Title

• Prior to the 1925 reforms, legal titles required a deed for transfer.

• Title deeds served as proof of ownership and provided information about third-party rights, which might bind a purchaser.

Rights: Legal vs Equitable

• Legal rights are universally binding on all purchasers regardless of their knowledge of these rights.

• Equitable rights are only binding unless a purchaser learned of them through actual notice, constructive notice, or imputed notice.

Example Case Study: Pre-1925 Regime

• In 1920, John granted a legal easement to Sarah and an equitable easement to Jack.

• In 1922, when John sold the land to Sally, questions would arise regarding the binding nature of these easements on Sally.

1925 Reforms

Goal of Reforms

• The complex nature of title deeds made ownership difficult to ascertain, potentially impacting purchasers adversely.

• The reforms aimed to streamline the conveyancing process and provide clearer terms related to ownership.

Legislative Changes

• The LPA 1925 introduced new legal estates: Fee simple absolute (freehold) and Term of years absolute (leasehold).

• It established a more robust system for registering third-party rights, facilitated by the Land Registration Act 1925.

Conveyancing in Unregistered Title System

• The unregistered title regime benefitted from the overall reforms, maintaining a need to track title history but with simplified requirements.

• Third-party interests continue to present challenges, and thus the system of overreaching was introduced to convert equitable rights into monetary shares upon sale.

Understanding Overreaching

Definition and Purpose

• Overreaching applies primarily to equitable interests, facilitating the sale of land without cumbersome checks for familial or trust-related rights.

• The intention is to promote the free exchange of property.

Limitations

• The system does not apply to grantees of easements, and transactions must be conducted in good faith.

Doctrine of Notice in Unregistered Title

• The purchaser's diligence in uncovering existing rights on a property directly affects their liability.

• Notable cases illustrate how physical occupation and prior dealings hold significance in establishing notice and rights.

Disadvantages of Unregistered Conveyancing

• The need for extensive searches increases complexity, especially regarding multiple estate owners over time.

• Some equitable interests remain unprotected unless formally registered, creating potential pitfalls for purchasers.

These notes provide an in-depth exploration of property law principles, focusing on both theoretical and practical implications, particularly in the context of the 1925 reforms.