In the coming months we will be publishing a series of 'module reviews', providing a brief outline of our first-year modules at Newcastle University to help students get a basic understanding of each topic. In the month of November, we will be looking at land law, which is another one of the seven required modules to obtain a qualifying law degree.
Moving into the final article in this land law series, we will be looking at land registration as a whole and the distinction between registered and unregistered land, which are two entirely separate systems of law in the UK. Most land in the UK is now registered and there is hope that eventually all land will be registered, however as both remain in existence it is important to be aware of the differences.
DISCLAIMER: all information in these module reviews are taken from our own notes and research so please do not cite this in your work.
Registered vs Unregistered Land
As mentioned, the registered and unregistered land systems are completely separate in the UK and very different, most notably in their governing legislation. Registered land is governed by the Law of Property Act 1925 (LPA), the common law (CL) and the Land Registration Act 2002 (LRA), whereas unregistered land is governed by the LPA, CL and the Land Charges Act 1972 (LCA).
In registered land, the title of the land is registered in the Land Registry with details of the current owners registered against it, guaranteeing them ownership and increasing the value of the property. On the contrary, unregistered land is, unsurprisingly, not registered and the title remains in the deeds to the property which a prospective purchaser must investigate to be confident of their rights.
There are some rules that don't differ however, such as overreaching, which applies to both unregistered and registered land. Simply put, overreaching is when the purchaser hands money over to the previous owners and they gain the beneficial interest in the property. To achieve overreaching, under section 2 LPA 1925, payment to two trustees or a trust corporation will do so and this means any beneficial interests in the property will be removed so they do not affect the new title owner.
Land Registration
Under section 3 LRA 2002, fee simple in absolute possession estates (where the owner is a full owner, e.g. has purchased the land) and leases of longer than three years may be voluntarily registered. Contrastingly, some land requires registration, for instance following a triggering event (section 4 and 6 LRA 2002) such as when an estate is transferred, a lease is granted for more than seven years and when a legal mortgage is created. In a situation where an estate is transferred, registration must occur within 2 months of the purchase or the transfer will be void and the estate will be returned to the seller under section 7 LRA 2002.
There are three key principles relevant to registered land: mirror, curtain and insurance. Firstly, the mirror principle is the idea that the register (consisting of three parts - property, proprietorship and charges) reflects the title and interests affecting all land. The curtain principle is the idea that interests that don't affect the purchaser are kept off the register, as listed in section 33 LRA 2002, as some may not be suitable for public knowledge (e.g. if a parent contributes to the purchase price). Finally, the insurance principle guarantees that the state will pay compensation for loss caused by errors in the register under section 103 and schedule 8 LRA 2002.
External Interests
Often, there may be people other than the legal owners that help contribute to the purchase price of a property, for instance family members, and therefore their contribution needs to be protected. Those who contribute money may be regarded beneficiaries and they may be protected through restrictions on the register. The laws surrounding this can be found in s40-s44 LPA 1925 but they effectively enforce overreaching to ensure beneficiary's interests are protected and they get their money back. The nature of the restriction means their name isn't listed on the register (under the curtain principle), however it is vital that a restriction is entered or the beneficiary could lose the money they put in to the property.
Other interests may also be entered on the register to be protected through notices under section 32 LRA 2002. Section 27 lists all interests which must be registered and will not operate unless the necessary requirements are met. There are also overriding interests, such as actual occupation, easements and leasehold estates, which 'override' the interests of the purchaser, as listed in schedule 1 and 3 LRA 2002.
Dealing with Registered Land
Under s23 and s27 LRA 2002, the registered owner has the right to do as he pleases with his land, for instance he may sell, transfer or gift it to another person. When property is sold, provided this is registered, the purchaser is only bound by interests listed on the register, overriding interests and registered charges under s29 LRA 2002.
This completes our land law topic summaries. I hope you have enjoyed these/found them useful however as always if you have any questions please don't hesitate to get in touch!
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