Unregistered Land Law
Unregistered land - Answer-land whose title has not been registered under land registration provisions e.g. LRA 2002 or LPA 1925, usually land which is infrequently transferred
LPA 1925 s1(1) - Answer-legal estates - leasehold and freehold
LPA 1925 s1(2) - Answer-legal ...
Unregistered land - Answer-land whose title has not been registered under land registration provisions
e.g. LRA 2002 or LPA 1925, usually land which is infrequently transferred
LPA 1925 s1(1) - Answer-legal estates - leasehold and freehold
LPA 1925 s1(2) - Answer-legal interests
LPA 1925 s1(3) - Answer-equitable interests
LPA 1925 s1(8) - Answer-equitable charges and estates = equitable interests
Legal rights in unregistered land - Answer-bind everyone, regardless of whether they had notice of it
unregistered land 1st Step - Answer-Is it registrable under Land Charges Act 1972 s2 categories?
-if registered correctly, it is binding under s198(1).
-if it is included in the categories but not registered, does not bind UNLESS (under s4(6) the purchaser
did not pay money/ money's worth for the property)
-defective registration: court may still allow priority (Horrill v Cooper). incorrect name does not usually
bind. LCA 1972 s11(5-6) priority period of 15 days
LCA 1972 s4(6) - Answer-if an interest should have been registered under LCA but wasn't, it isn't binding
unless the purchaser did not pay money/ money's worth for the property
Horrill v Cooper - Answer-even if registration under LCA is defective, court may still allow priority
LCA 1972 s11(5-6) - Answer-if registration under LCA is defective, courts give a priority period of 15 days
from issue date of certification is permitted after the search, in which the transaction must be completed.
interests registered after this period will not be binding
unregistered land 2nd Step - Answer--if the interest cannot be registered under LCA 1972, move onto
overreaching
-overreaching detaches the interest and it then operates as an equitable interest attached to the
'purchase' monies
-2 conditions under LPA 1925 s27(2) = there must be a purchase AND money paid to 2 or more trustees
-LPA 1925 s2(3) says certain rights are excluded e.g. easements and restrictive covenants
LPA 1925 s2(3) - Answer-says certain rights are excluded from overreaching e.g. easements and
restrictive covenants
HSBC Bank v Dyche and Anor - Answer-raised the idea of good faith in overreaching but this is an
irrelevant consideration
Bray on overreaching - Answer-overreaching = a 'substitution of subject matter of the trust' as the
beneficiary's interest in the equitable ownership of the land transforms into an equitable ownership of the
money
Diligent Finance v Alleyne - Answer-Class F used. Rather than writing her husband's full name, she only
used his first name (not middle). Bank didn't find her Class F right and court said she should have
included his middle name because they were in a close relationship, she would have known his middle
name and should have written it down
Standard property Investments v British Plastics Federation - Answer-Registration of land charges must
be made against the right name -- as it appears on conveyance-- if this is not done, registration is a
nullity.
Oak Co-operative Building society v Blackburn - Answer-Woman registered her estate contract Class C
against Frank instead of Francis (real name). Francis mortgaged with building society and the record was
not found. The estate contract was brought to the bank's attention. Court gave judgment in her favour
because Frank is a normal way to express the word Francis. Because she knew him as Frank, she would
not have to use the name registered on his titles.
Williams & Glyn's Bank v Boland - Answer--there was a physical presence, with all the rights that
occupiers have
, • Mr Boland had legal title of the matrimonial home (legal estate) he was the registered owner
• Mrs Boland made ... contribution to the purchase-price mortgage so she had a beneficial interest in the
house
• Mr Boland set up a mortgage on the house (bank didn't make any enquiries of either wives) and
defaulted on the payment
• The husband held the property on trust for both himself and his wife as equitable tenants in common in
proportions equal to their respective purchase price contributions
• The Bank tried to repossess the house
• Mrs Boland claimed an overriding interest (beneficial interest/ actual occupation)
• Bank argued that her name was not registered under legal title so the interest was not valid
• Held - the beneficial interest is actually overriding under section 70(1)g of the Land Registration Act
1925. Beneficial interest in actual occupation for a spouse is prioritised over a legal charge
- actual occupation should take natural meaning
- Wilberforce 'There was physical presence, with all the rights that occupiers have, including the right to
exclude all others except those having similar rights.' + purpose of statute is to give protection to those
living in occupation
City of London Building Society v Flegg - Answer-• The Maxwell Brown couple purchased a house for
£34,000
• Half of the purchase price was funded by Mrs Maxwell Brown's parents: the Fleggs
• Legal title was with the Maxwell Brown
• Both couples occupied the house
• In 1982 the Maxwell Browns, in breach of trust, mortgaged the property for £37,500 to City of London
Building Society
• The Fleggs were unaware of this mortgage and the Maxwell Browns used the money for their own
purposes.
• The Maxwell Browns subsequently defaulted on the mortgage payments and City of London Building
Society brought an action seeking possession of Bleak House.
• The Fleggs tried to say they had a beneficial interest (contribution to the purchase price) and this
translates through as an overriding interest under s70(1)g LRA 1925 as actual occupiers
• City of London Building Society claimed that the Flegg's interest had been overreached since they had
paid the capital moneys to two trustees.
• The trial judge found for the Building Society. This decision was reversed by the Court of Appeal. City of
London Building Society appealed to the House of Lords.
• Held: The Flegg's interest had been overreached. Their right existed only in the proceeds of sale. Once
overreaching operated to detach the beneficial interest from the land to the proceeds of sale there is no
longer an interest in land capable of being an overriding interest. City of London Building Society
therefore took free of the Flegg's interest.
Effect of Boland and Flegg cases - Answer--overriding interests can be overreached when it is executed
by two trustees. Boland's right could not be overreached because the money was paid to a sole trustee.
-But in that case (Boland) the interest of the wife was not overreached or overridden because the
mortgagee advanced capital moneys to a sole trustee. If the wife's interest had been overreached by the
mortgagee advancing capital moneys to two trustees there would have been nothing to justify the wife in
remaining in occupation as against the mortgagee. There must be a combination of an interest which
justifies continuing D occupation plus actual occupation to constitute an overriding interest. Actual
occupation is not an interest in itself
unregistered land 3rd step - Answer-if the interest has not been overreached, the doctrine of notice
applies. equitable right binds everyone EXCEPT a bona fide purchaser without notice of the legal estate
Gray and Gray on notice - Answer-the equitable doctrine of notice is nowadays marginal
LPA 1925 s199(1) - Answer-constructive notice - what the purchaser or mortgagee ought to be aware of
or what they would have discovered by making reasonable inquiries
registered land - Answer-title has been registered under LRA 2002 or LPA 1925 in the records
administered and maintained by Land Registry
registered land category 1 - Answer-registrable dispositions requiring substantive registration/ must be
registered to be protected under LRA 2002 section 27
-binds everyone if registered
-protects legal estates and interests
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