Introduction to the Unregistered Land and Registered Land Regimes

OVERVIEW OF LAND REGIMES

• Definition of Land Regimes:     * Unregistered Land: The title of the land has never been registered in the Land Register. Certain interests can still be protected via the Land Charges Register (LCR).     * Registered Land: The title is officially registered in the Land Register. For protection, subsequent owners must ensure their title is registered.

• Historical Evolution:     * Prior to $1925$: The legal system was based on the Feudal System where "possession" (or seisin) served as the root of title.     * $1925$ Property Legislative Reform: This reform introduced a system of land registration, simplified conveyancing, and standardized legal titles and interests. It aimed to reduce fragmentation and shifted the root of title from mere possession to formal registration.     * $2002$ Property Legislative Reform: A further conveyancing revolution aimed at modernize the system for the $21\text{st}$ century.

KEY LEGISLATION

• Law of Property Act $1925$ (LPA $1925$): The foundational act for modern land law, dividing estates and interests.

• Land Registration Act $1925$ (LRA $1925$): The initial framework for the registered land regime.

• Land Charges Act $1925$ (LCA $1925$): Established rules for land charges in unregistered land (later replaced).

• Land Charges Act $1972$ (LCA $1972$): Governs the current Land Charges Register for unregistered land.

• Land Registration Act $2002$ (LRA $2002$): The current governing legislation for registered land in England and Wales.

• Settled Land Act $1925$: Part of the $1925$ reform package.

• Administration of Estates Act $1925$: Focused on the management of land following death.

CLASSIFICATION OF PROPRIETARY RIGHTS

Under $S1 \text{ LPA } 1925$, rights in land are categorized based on whether they are legal or equitable.

• Legal Estates ($S1(1) \text{ LPA } 1925$):     * An estate in fee simple absolute in possession (Freehold).     * A term of years absolute (Leasehold).

• Legal Interests ($S1(2) \text{ LPA } 1925$):     * Easements: Rights over another's land for a specific purpose.     * Rentcharges: An annual sum of money charged on land.     * Legal Mortgages: A charge by deed by way of legal mortgage.     * Rights of Entry: Rights reserved to a lessor or rentcharge owner.

• Equitable Interests ($S1(3) \text{ LPA } 1925$):     * All other estates, interests, and charges in or over land take effect as equitable interests. Examples include interests under a trust, oral agreements for leases, or restrictive covenants.

• Requirements for Legal Rights in Practice:     * Must fall under $S1(1)$ or $S1(2) \text{ LPA } 1925$.     * $S52 \text{ LPA } 1925$: The right must be specified in a deed.     * $S53 \text{ LPA } 1925$: The instrument must be in writing.     * Must be registered where registration is required (e.g., $S27 \text{ LRA } 2002$).     * $S54(2) \text{ LPA } 1925$ Exception: Leases taking effect in possession for a term not exceeding $3 \text{ years}$ can be legal even if created by parol (orally), provided they are at the best rent reasonably obtained without a fine.     * Case - Fitzkriston v Panayi ($2008$): The Court of Appeal held that an oral agreement for $£4,000$ rent was unenforceable because the market rent was between $£12,000$ and $£20,000$; thus, it was not the "best rent."

• Requirements for Equitable Rights in Practice:     * Excluded ab initio from $S1 \text{ LPA } 1925$ definitions per $S1(3)$.     * Instances where no deed was used or no registration occurred.     * Maxim of Equity: "Equity will treat an act as done as it ought to have been done."     * $S2 \text{ LPMPA } 1989$: Agreements in land must be in writing and signed by both parties to be equitable.

THE UNREGISTERED LAND REGIME

• Core Principles:     * Traditionally based on possession.     * Legal rights bind the world at large.     * Equitable rights bind everyone EXCEPT a Bona Fide Purchaser of a Legal Estate for Value Without Notice (BFPFVWN), known as "Equity's Darling."

• Status of Unregistered Land:     * Compulsory first registration began on $1 \text{ December } 1990$.     * Approximately $5 \text{ to } 10 \text{ per cent}$ of land remains unregistered due to a lack of dealings (e.g., land held by the same family for over a century).

• Establishing Title:     * Title Deeds: Establish the Legal Title (Freehold or Leasehold).     * Land Charges Register (LCR): Protects registrable legal interests (puisne mortgages) and various equitable interests.     * Inspection of Land: Used to identify certain equitable interests.

CATEGORY 1: INTERESTS REGISTRABLE UNDER THE LAND CHARGES ACT 1972

Certain land charges must be registered in the LCR (administered by the Land Registry) against the name of the estate owner ($S3(1) \text{ LCA } 1972$).

• Classes of Land Charges ($S2 \text{ LCA } 1972$):     * Class A: Rents/annuities/principal money created pursuant to an Act of Parliament (not by deed).     * Class B: Similar to Class A but not created pursuant to the application of any person.     * Class C:         * $C(i)$ (Puisne Mortgage): A legal mortgage not protected by a deposit of title deeds.         * $C(ii)$ (Limited Owner's Charge): Equitable charge acquired by a tenant for life for discharging liabilities like capital transfer tax.         * $C(iii)$ (General Equitable Charge): An equitable charge not secured by documents and not arising under a trust/settlement.         * $C(iv)$ (Estate Contract): A contract to convey/create a legal estate, including options to purchase or rights of pre-emption.     * Class D:         * $D(i)$: Inland Revenue charge (for Capital Transfer Tax).         * $D(ii)$: Restrictive Covenants (entered into on or after $1 \text{ January } 1926$, excluding those between lessor/lessee).         * $D(iii)$: Equitable Easements (created on or after $1 \text{ January } 1926$).     * Class E: Annuities created before $1 \text{ January } 1926$ not registered previously.     * Class F: Spouse's or civil partner’s right of occupation under the Family Law Act $1996$.

• Effect of Registration ($S198 \text{ LPA } 1925$):     * Registration constitutes actual notice to the entire world. Registered interests bind purchasers.

• Consequences of Non-Registration:     * $S199 \text{ LPA } 1925$: Notice is irrelevant; if it’s registrable but not registered, it is void against a purchaser.     * Case - Hollington Bros v Rhodes ($1951$): An equitable lease ($C(iv)$) was not registered. A third-party purchaser took the land free of the lease even though they had actual notice of the lessee's occupation.     * Case - Midland Bank v Green ($1981$): A father granted his son an option to purchase a farm for $£40,000$ in $1961$. The son did not register the option ($C(iv)$). In $1967$, the father sold the land to the mother for $£500$ to defeat the option. Held: The option was void. The court does not inquire into the adequacy of consideration if it is real. Good faith is irrelevant to the strict requirement of registration.

• Search Protocols ($S17 \text{ LCA } 1972$):     * Purchasers must search against the exact name of previous estate owners.     * Case - Diligent Finance Co v Alleyne ($1972$): Wife registered a Class F charge against "Erskine Alleyne." The correct name was "Erskine Owen Alleyne." The mortgage company searched the correct name; the wife's charge was held not to bind the mortgagee.     * Case - Oak Co-operative BS v Blackburn ($1968$): Registration against "Frank David Blackburn" instead of "Francis David Blackburn" was held binding on a purchaser who failed to search or searched the wrong name.

CATEGORY 2: EQUITABLE INTERESTS THAT ARE OVERREACHABLE

• Definition of Overreaching:     * As described by Martin Dixon, overreaching sweeps equitable interests off the land and into the capital money paid. The rights are transformed into cash equivalent to the equitable share.

• Requirements for Overreaching ($S2 \text{ and } S27 \text{ LPA } 1925$):     * The interest must be capable of being overreached (e.g., interests under a Trust of Land).     * Capital money must be paid to at least $2 \text{ trustees}$ or a trust corporation.     * The purchaser takes the legal title free of these beneficial equitable interests.

• Applicable Interests:     * Express trusts, co-ownership, resulting trusts, and constructive trusts.     * Case - Birmingham Midshires Mortgage Services Ltd v Sabherwal ($2000$): Confirmed which rights are excluded from land charges classification.

• Case Law on Overreaching:     * Case - Williams & Glyn’s Bank v Boland ($1980$): A husband mortgaged a house where the wife had a beneficial interest through contributions. Since money was paid to only $1 \text{ trustee}$ (the husband), overreaching did not occur. The wife's interest remained binding on the bank as an overriding interest.     * Case - City of London Building Society v Flegg ($1988$): The Browns and Fleggs co-purchased a property ($50/50$ contribution). Browns (the trustees) mortgaged the property. Money was paid to $2 \text{ trustees}$. Held: The Fleggs' interests were overreached and detached from the land to the proceeds of sale. The Bank took the land free of their interest.     * Case - State Bank of India v Sood ($1997$): Mortgaged family home for business debts. No immediate capital money was paid (future borrowings). Held: No purchase money needs to be paid to trigger overreaching if the conveyance is by $2 \text{ trustees}$. The bank took the land free of equitable rights.     * Case - HSBC v Dyche ($2009$): Overreaching will not occur if the transaction involves fraud by the trustees.

CATEGORY 3: RESIDUAL EQUITABLE INTERESTS AND THE DOCTRINE OF NOTICE

Interests that are neither registrable as land charges nor overreachable are subject to the Doctrine of Notice.

• Examples:     * Equitable fee simple under a bare trust.     * Equitable mortgages without deposit of title deeds.     * Restrictive covenants created before $1926$.     * Restrictive covenants in a lease.     * Equitable easements created before $1926$.     * Licenses by estoppel (proprietary estoppel).     * Rights under a constructive trust (where only $1 \text{ trustee}$ exists).

• The Doctrine of Notice Rule:     * Legal rights bind the world.     * Equitable rights bind everyone except the Bona Fide Purchaser of a Legal Estate for Value Without Notice (BFPFVWN).

• Elements of the BFPFVWN Plea:     * Bona Fide: Acting in good faith, without unconscionable conduct (Pilcher v Rawlins $1872$).     * Purchaser of Legal Estate: Must buy a legal estate. Gift/inheritance does not count.     * Alternative Value: Consideration in money or money’s worth. Does not have to be full market value (Midland Bank v Green), but cannot be nominal (Nurdin & Peacock plc v DB Ramsden & Co Ltd $1999$).     * Without Notice: No knowledge of the third-party interest. If elements are met, the purchaser takes the land free of the interest.

• Types of Notice ($S199 \text{ LPA } 1925$):     * Actual Notice: Subjective knowledge. Must come from a reputable source, not "vague rumors" (Bamhart v Greenshields; Lloyds v Banks).     * Constructive Notice: Objective knowledge one would have found if proper inquiries/inspections were made. Includes physical inspection of land and investigation of title.         * Case - Kingsnorth Finance v Tizard ($1986$): Husband claimed he was single on a mortgage application. Wife lived there daily but was out during an arranged Sunday inspection. Agent noticed signs of children but was told the wife moved out. Held: The discrepancies should have alerted the bank to make further independent inquiries. Bank had constructive notice of the wife's interest.     * Imputed Notice: Knowledge possessed by the purchaser's agent (e.g., solicitor) is deemed to be known by the purchaser.

THE REGISTERED LAND REGIME

• Three Fundamental Principles:     * Mirror Principle: The register is an accurate and conclusive reflection of the title. (Note: Overriding interests are a "crack" in the mirror).     * Curtain Principle: Purchasers need not look behind the register (e.g., trust details are hidden).     * Insurance Principle: Accuracy is guaranteed by the state; any loss resulting from errors/rectifications is compensated by indemnity.

• The Land Register Parts:     * A: Property Register: Describes the land and estate (Freehold/Leasehold), address, map plan, and rights (e.g., mines and minerals excluded, benefit of footpaths).     * B: Proprietorship Register: Identifies the owner, class of title (e.g., "Title Absolute"), price paid (e.g., $£78,000$), and restrictions (e.g., "No disposition by a sole proprietor… under which capital money arises").     * C: Charges Register: Lists burdens on the land (e.g., restrictive covenants, registered charges/mortgages in favor of Building Societies).

THE 2002 LEGISLATIVE REFORM AND THE LRA 2002 CATEGORIES

• Promoting Registration:     * Voluntary ($S3$): Owners can choose to register.     * Compulsory ($S4$): Events triggering registration (sale, lease for over $7 \text{ years}$).     * Crown Land ($S79$): Making Crown land registrable.

• Operation of LRA $2002$:     * $S27$: Legal ownership does not pass until the purchaser is registered as the new proprietor. Changes must be notified within $2 \text{ months}$.     * $S28$: Transferees without value (donees) are bound by all pre-existing rights.     * $S29$: Purchasers for value are only bound by interests on the register or interests that override.     * $S58$: Entry on the register is conclusive as to title.

• Categorization of Interests ($LRA 2002$):

    * A. Registrable Estates: Legal estates ($S1 \text{ LPA } 1925$) like Freehold/Leasehold. Failure to register results in the purchaser only obtaining equitable title ($S7$).     * B. Registrable Charges: Legal mortgages ($S23$). Must be registered ($S27$) to remain legal interests.     * C. Interests Protected by Registration: Equitable interests protected by entering a "Notice" ($S32$).         * Agreed Notice ($S34$): With consent.         * Unilateral Notice ($S34(2)(b)$): Without consent (can be challenged).         * Restrictions ($S40$): Prevent a certain dealing unless conditions are met (used for overreaching).     * D. Interests that Override: Bind the land without being on the register. Doctrine of notice is irrelevant.

OVERRIDING INTERESTS (SCHEDULE 1 AND 3 LRA 2002)

• Schedule 3 Category 1: Short Leases     * Leases not exceeding $7 \text{ years}$ override registrable dispositions.

• Schedule 3 Category 3: Legal Easements and Profits     * Legal easements/profits created by law bind the land even if not on the register.

• Schedule 3 Category 2: Rights of Occupiers     * Replaces $S70(1)(g) \text{ LRA } 1925$. To bind a purchaser/mortgagee, $3 \text{ elements}$ are required:         1. Interest in the land: Must be a proprietary right, not personal (National Provincial Bank v Ainsworth $1965$).             * Proprietary: Equitable lease (Skipton BS v Clayton), Tenancy by estoppel (Grace Rymer Inv v Waite), Option to purchase (Webb v Pollmount), Interest under a trust (Boland).             * Not Proprietary: Children living with parents (Hypo-Mortgage v Robinson), Matrimonial rights under FLA $1996$ (NPB v Ainsworth).         2. Actual Occupation: Question of fact, not law (Boland).             * Requires physical presence (Hodgson v Marks).             * Temporary absence (hospitalization) is okay if there is an intention to return (Chhokar v Chhokar; Link Lending v Bustard).             * Fleeting presence is insufficient (Stockholm Finance v Garden Holdings).             * Must exist at the time of the disposition (Abbey National BS v Cann).         3. Visibility or Knowledge:             * Occupation must be obvious on a reasonably careful inspection of the land;             * OR the purchaser/mortgagee had actual knowledge of the interest.             * Exception: If the person in occupation failed to disclose the interest when inquired, they cannot claim protection.

• Conflict between Overreaching and Overriding:     * Overreaching always trumps overriding interests. If money is paid to $2 \text{ trustees}$, the interest is detached from the land and cannot override registration (City of London BS v Flegg; State Bank of India v Sood).

OVERVIEW OF LAND REGIMES

Definition of Land Regimes:
Unregistered Land: The title of the land has never been registered in the Land Register. Certain interests can still be protected via the Land Charges Register (LCR).
Registered Land: The title is officially registered in the Land Register. For protection, subsequent owners must ensure their title is registered.

Historical Evolution:
Prior to 1925: The legal system was based on the Feudal System where "possession" (or seisin) served as the root of title.
1925 Property Legislative Reform: This reform introduced a system of land registration, simplified conveyancing, and standardized legal titles and interests. It aimed to reduce fragmentation and shifted the root of title from mere possession to formal registration.
2002 Property Legislative Reform: A further conveyancing revolution aimed at modernizing the system for the 21st century.

KEY LEGISLATION

Law of Property Act 1925 (LPA 1925): The foundational act for modern land law, dividing estates and interests.
Land Registration Act 1925 (LRA 1925): The initial framework for the registered land regime.
Land Charges Act 1925 (LCA 1925): Established rules for land charges in unregistered land (later replaced).
Land Charges Act 1972 (LCA 1972): Governs the current Land Charges Register for unregistered land.
Land Registration Act 2002 (LRA 2002): The current governing legislation for registered land in England and Wales.
Settled Land Act 1925: Part of the 1925 reform package.
Administration of Estates Act 1925: Focused on the management of land following death.

CLASSIFICATION OF PROPRIETARY RIGHTS

Under S1 LPA 1925, rights in land are categorized based on whether they are legal or equitable.
Legal Estates (S1(1) LPA 1925):

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

• A term of years absolute (Leasehold).
  Legal Interests (S1(2) LPA 1925):

• Easements: Rights over another's land for a specific purpose.

• Rentcharges: An annual sum of money charged on land.

• Legal Mortgages: A charge by deed by way of legal mortgage.

• Rights of Entry: Rights reserved to a lessor or rentcharge owner.
  Equitable Interests (S1(3) LPA 1925):

• All other estates, interests, and charges in or over land take effect as equitable interests. Examples include interests under a trust, oral agreements for leases, or restrictive covenants.

Requirements for Legal Rights in Practice:

• Must fall under S1(1) or S1(2) LPA 1925.

• S52 LPA 1925: The right must be specified in a deed.

• S53 LPA 1925: The instrument must be in writing.

• Must be registered where registration is required (e.g., S27 LRA 2002).

• S54(2) LPA 1925 Exception: Leases taking effect in possession for a term not exceeding 3 years can be legal even if created by parol (orally), provided they are at the best rent reasonably obtained without a fine.

• Case - Fitzkriston v Panayi (2008): The Court of Appeal held that an oral agreement for £4,000 rent was unenforceable because the market rent was between £12,000 and £20,000; thus, it was not the "best rent."

Requirements for Equitable Rights in Practice:

• Excluded ab initio from S1 LPA 1925 definitions per S1(3).

• Instances where no deed was used or no registration occurred.

• Maxim of Equity: "Equity will treat an act as done as it ought to have been done."

• S2 LPMPA 1989: Agreements in land must be in writing and signed by both parties to be equitable.

THE UNREGISTERED LAND REGIME

Core Principles:

• Traditionally based on possession.

• Legal rights bind the world at large.

• Equitable rights bind everyone EXCEPT a Bona Fide Purchaser of a Legal Estate for Value Without Notice (BFPFVWN), known as "Equity's Darling."

Status of Unregistered Land:

• Compulsory first registration began on 1 December 1990.

• Approximately 5 to 10 percent of land remains unregistered due to a lack of dealings (e.g., land held by the same family for over a century).

Establishing Title:

• Title Deeds: Establish the Legal Title (Freehold or Leasehold).

• Land Charges Register (LCR): Protects registrable legal interests (puisne mortgages) and various equitable interests.

• Inspection of Land: Used to identify certain equitable interests.

CATEGORY 1: INTERESTS REGISTRABLE UNDER THE LAND CHARGES ACT 1972

Certain land charges must be registered in the LCR (administered by the Land Registry) against the name of the estate owner (S3(1) LCA 1972).
Classes of Land Charges (S2 LCA 1972):

• Class A: Rents/annuities/principal money created pursuant to an Act of Parliament (not by deed).

• Class B: Similar to Class A but not created pursuant to the application of any person.

• Class C:

  • C(i) (Puisne Mortgage): A legal mortgage not protected by a deposit of title deeds.

  • C(ii) (Limited Owner's Charge): Equitable charge acquired by a tenant for life for discharging liabilities like capital transfer tax.

  • C(iii) (General Equitable Charge): An equitable charge not secured by documents and not arising under a trust/settlement.

  • C(iv) (Estate Contract): A contract to convey/create a legal estate, including options to purchase or rights of pre-emption.

• Class D:

  • D(i): Inland Revenue charge (for Capital Transfer Tax).

  • D(ii): Restrictive Covenants (entered into on or after 1 January 1926, excluding those between lessor/lessee).

  • D(iii): Equitable Easements (created on or after 1 January 1926).

• Class E: Annuities created before 1 January 1926 not registered previously.

• Class F: Spouse's or civil partner’s right of occupation under the Family Law Act 1996.

Effect of Registration (S198 LPA 1925):
Registration constitutes actual notice to the entire world. Registered interests bind purchasers.

Consequences of Non-Registration:

• S199 LPA 1925: Notice is irrelevant; if it’s registrable but not registered, it is void against a purchaser.

• Case - Hollington Bros v Rhodes (1951): An equitable lease (C(iv)) was not registered. A third-party purchaser took the land free of the lease even though they had actual notice of the lessee's occupation.

• Case - Midland Bank v Green (1981): A father granted his son an option to purchase a farm for £40,000 in 1961. The son did not register the option (C(iv)). In 1967, the father sold the land to the mother for £500 to defeat the option. Held: The option was void. The court does not inquire into the adequacy of consideration if it is real. Good faith is irrelevant to the strict requirement of registration.

Search Protocols (S17 LCA 1972):
Purchasers must search against the exact name of previous estate owners.

• Case - Diligent Finance Co v Alleyne (1972): Wife registered a Class F charge against "Erskine Alleyne." The correct name was "Erskine Owen Alleyne." The mortgage company searched the correct name; the wife's charge was held not to bind the mortgagee.

• Case - Oak Co-operative BS v Blackburn (1968): Registration against "Frank David Blackburn" instead of "Francis David Blackburn" was held binding on a purchaser who failed to search or searched the wrong name.

CATEGORY 2: EQUITABLE INTERESTS THAT ARE OVERREACHABLE

Definition of Overreaching:
As described by Martin Dixon, overreaching sweeps equitable interests off the land and into the capital money paid. The rights are transformed into cash equivalent to the equitable share.

Requirements for Overreaching (S2 and S27 LPA 1925):

• The interest must be capable of being overreached (e.g., interests under a Trust of Land).

• Capital money must be paid to at least 2 trustees or a trust corporation.

• The purchaser takes the legal title free of these beneficial equitable interests.

Applicable Interests:

• Express trusts, co-ownership, resulting trusts, and constructive trusts.

Case - Birmingham Midshires Mortgage Services Ltd v Sabherwal (2000): Confirmed which rights are excluded from land charges classification.

Case Law on Overreaching:

• Case - Williams & Glyn’s Bank v Boland (1980): A husband mortgaged a house where the wife had a beneficial interest through contributions. Since money was paid to only 1 trustee (the husband), overreaching did not occur. The wife's interest remained binding on the bank as an overriding interest.

• Case - City of London Building Society v Flegg (1988): The Browns and Fleggs co-purchased a property (50/50 contribution). Browns (the trustees) mortgaged the property. Money was paid to 2 trustees. Held: The Fleggs' interests were overreached and detached from the land to the proceeds of sale. The Bank took the land free of their interest.

• Case - State Bank of India v Sood (1997): Mortgaged family home for business debts. No immediate capital money was paid (future borrowings). Held: No purchase money needs to be paid to trigger overreaching if the conveyance is by 2 trustees. The bank took the land free of equitable rights.

• Case - HSBC v Dyche (2009): Overreaching will not occur if the transaction involves fraud by the trustees.

CATEGORY 3: RESIDUAL EQUITABLE INTERESTS AND THE DOCTRINE OF NOTICE

Interests that are neither registrable as land charges nor overreachable are subject to the Doctrine of Notice.
Examples:

• Equitable fee simple under a bare trust.

• Equitable mortgages without deposit of title deeds.

• Restrictive covenants created before 1926.

• Restrictive covenants in a lease.

• Equitable easements created before 1926.

• Licenses by estoppel (proprietary estoppel).

• Rights under a constructive trust (where only 1 trustee exists).

The Doctrine of Notice Rule:

• Legal rights bind the world.

• Equitable rights bind everyone except the Bona Fide Purchaser of a Legal Estate for Value Without Notice (BFPFVWN).

Elements of the BFPFVWN Plea:

• Bona Fide: Acting in good faith, without unconscionable conduct (Pilcher v Rawlins 1872).

• Purchaser of Legal Estate: Must buy a legal estate. Gift/inheritance does not count.

• Alternative Value: Consideration in money or money’s worth. Does not have to be full market value (Midland Bank v Green), but cannot be nominal (Nurdin & Peacock plc v DB Ramsden & Co Ltd 1999).

• Without Notice: No knowledge of the third-party interest. If elements are met, the purchaser takes the land free of the interest.

Types of Notice (S199 LPA 1925):

• Actual Notice: Subjective knowledge. Must come from a reputable source, not "vague rumors" (Bamhart v Greenshields; Lloyds v Banks).

• Constructive Notice: Objective knowledge one would have found if proper inquiries/inspections were made. Includes physical inspection of land and investigation of title.

• Case - Kingsnorth Finance v Tizard (1986): Husband claimed he was single on a mortgage application. Wife lived there daily but was out during an arranged Sunday inspection. Agent noticed signs of children but was told the wife moved out. Held: The discrepancies should have alerted the bank to make further independent inquiries. Bank had constructive notice of the wife's interest.

• Imputed Notice: Knowledge possessed by the purchaser's agent (e.g., solicitor) is deemed to be known by the purchaser.

THE REGISTERED LAND REGIME

Three Fundamental Principles:

• Mirror Principle: The register is an accurate and conclusive reflection of the title. (Note: Overriding interests are a "crack" in the mirror).

• Curtain Principle: Purchasers need not look behind the register (e.g., trust details are hidden).

• Insurance Principle: Accuracy is guaranteed by the state; any loss resulting from errors/rectifications is compensated by indemnity.

The Land Register Parts:

• A: Property Register: Describes the land and estate (Freehold/Leasehold), address, map plan, and rights (e.g., mines and minerals excluded, benefit of footpaths).

• B: Proprietorship Register: Identifies the owner, class of title (e.g., "Title Absolute"), price paid (e.g., £78,000), and restrictions (e.g., "No disposition by a sole proprietor… under which capital money arises").

• C: Charges Register: Lists burdens on the land (e.g., restrictive covenants, registered charges/mortgages in favor of Building Societies).

THE 2002 LEGISLATIVE REFORM AND THE LRA 2002 CATEGORIES

Promoting Registration:

• Voluntary (S3): Owners can choose to register.

• Compulsory (S4): Events triggering registration (sale, lease for over 7 years).

• Crown Land (S79): Making Crown land registrable.

Operation of LRA 2002:

• S27: Legal ownership does not pass until the purchaser is registered as the new proprietor. Changes must be notified within 2 months.

• S28: Transferees without value (donees) are bound by all pre-existing rights.

• S29: Purchasers for value are only bound by interests on the register or interests that override.

• S58: Entry on the register is conclusive as to title.

Categorization of Interests (LRA 2002):
A. Registrable Estates: Legal estates (S1 LPA 1925) like Freehold/Leasehold. Failure to register results in the purchaser only obtaining equitable title (S7).
B. Registrable Charges: Legal mortgages (S23). Must be registered (S27) to remain legal interests.
C. Interests Protected by Registration: Equitable interests protected by entering a "Notice" (S32).

• Agreed Notice (S34): With consent.

• Unilateral Notice (S34(2)(b)): Without consent (can be challenged).

• Restrictions (S40): Prevent a certain dealing unless conditions are met (used for overreaching).
  D. Interests that Override: Bind the land without being on the register. Doctrine of notice is irrelevant.

OVERRIDING INTERESTS (SCHEDULE 1 AND 3 LRA 2002)

Schedule 3 Category 1: Short Leases

• Leases not exceeding 7 years override registrable dispositions.
  Schedule 3 Category 3: Legal Easements and Profits

• Legal easements/profits created by law bind the land even if not on the register.
  Schedule 3 Category 2: Rights of Occupiers

• Replaces S70(1)(g) LRA 1925. To bind a purchaser/mortgagee, 3 elements are required:

1. Interest in the land: Must be a proprietary right, not personal (National Provincial Bank v Ainsworth 1965).

2. Proprietary: Equitable lease (Skipton BS v Clayton), Tenancy by estoppel (Grace Rymer Inv v Waite), Option to purchase (Webb v Pollmount), Interest under a trust (Boland).

3. Not Proprietary: Children living with parents (Hypo-Mortgage v Robinson), Matrimonial rights under FLA 1996 (NPB v Ainsworth).

• Actual Occupation: Question of fact, not law (Boland). Requires physical presence (Hodgson v Marks). Temporary absence (hospitalization) is okay if there is an intention to return (Chhokar v Chhokar; Link Lending v Bustard). Fleeting presence is insufficient (Stockholm Finance v Garden Holdings). Must exist at the time of the disposition (Abbey National BS v Cann).

• Visibility or Knowledge: Occupation must be obvious on a reasonably careful inspection of the land; OR the purchaser/mortgagee had actual knowledge of the interest.
  Exception: If the person in occupation failed to disclose the interest when inquired, they cannot claim protection.

Conflict between Overreaching and Overriding:

• Overreaching always trumps overriding interests. If money is paid to 2 trustees, the interest is detached from the land and cannot override registration (City of London BS v Flegg; State Bank of India v S