Registration of title and protection of interests - Dealing with minor interests on the register

The answers, solutions, explanations, and written content provided on this page represent PastPaperHero's interpretation of academic material and potential responses to given questions. These are not guaranteed to be the only correct or definitive answers or explanations. Alternative valid responses, interpretations, or approaches may exist. If you believe any content is incorrect, outdated, or could be improved, please get in touch with us and we will review and make necessary amendments if we deem it appropriate. As per our terms and conditions, PastPaperHero shall not be held liable or responsible for any consequences arising from the use of the content on this page. This includes, but is not limited to, incorrect answers in assignments, exams, or any form of testing administered by educational institutions or examination boards, as well as any misunderstandings or misapplications of concepts explained in our written content. Users are responsible for verifying that the methods, procedures, and explanations presented align with those taught in their respective educational settings and with current academic standards. While we strive to provide high-quality, accurate, and up-to-date content, PastPaperHero does not guarantee the completeness or accuracy of our written explanations, nor any specific outcomes in academic understanding or testing, whether formal or informal.

Master the complexities of minor interests in land registration for SQE1 FLK2 exam preparation.

Overview

Exploring the details of minor interests in land registration is vital for the SQE1 FLK2 exam. This guide focuses on title registration and interest protection, highlighting the relationship between legal and equitable interests. Understanding these concepts prepares candidates for the challenges of property law in the SQE1 FLK2 syllabus, covering essential principles, relevant laws, and key case law crucial for exam preparation and future legal practice.

Legal and Equitable Interests in Land

Differentiating legal from equitable interests is fundamental to property rights and protection within the land registration system.

Defining Legal Interests

Legal interests are recognized and enforceable at common law, binding all subsequent purchasers. The Law of Property Act 1925 lists legal interests like:

  1. An estate in fee simple absolute in possession
  2. A term of years absolute
  3. Certain legal charges
  4. Legal easements and profits à prendre

These interests automatically bind third parties but registering them is often practical.

Equitable Interests Explained

Equitable interests arise from equity principles and include:

  1. Beneficial interests under a trust
  2. Estate contracts
  3. Restrictive covenants
  4. Equitable easements
  5. Equitable charges

They usually require additional protection steps, such as registration, to be enforceable against subsequent purchasers.

Importance of the Distinction

Classification as legal or equitable impacts:

  1. Priority: Legal interests usually have precedence over equitable ones.
  2. Registration Requirements: Legal interests bind automatically, while equitable interests often need registration.
  3. Enforceability: Legal interests apply to all parties, while equitable ones may depend on the notice doctrine.
  4. Remedies: Legal and equitable interests may have different remedies.

Example: If A grants B a legal easement and C an equitable right of way, and A sells the land to D, the legal easement binds D automatically, while the equitable right requires protection to remain enforceable.

The Land Registration Act 2002 and Minor Interests

The LRA 2002 redefined the handling of minor interests in land, creating a more transparent register, essential for SQE1 FLK2 candidates.

Key Provisions of the LRA 2002

  1. Section 29: States that registered dispositions for value take free of unprotected minor interests.
  2. Section 32: Defines "valuable consideration," crucial for Section 29's protection.
  3. Schedule 3: Lists overriding interests that bind purchasers even if unregistered.

Understanding Minor Interests Under the LRA 2002

The LRA 2002 classifies interests as protected or unprotected:

  1. Protected Interests: Entered on the register or overriding interests (Schedule 3).
  2. Unprotected Interests: Not registered and don't fall within overriding categories.

This distinction defines their protection and enforceability.

Overriding Interests

Overriding interests remain binding without registration. Their role is crucial for the SQE1 FLK2 exam.

Statutory Basis and Definition

Schedule 3 lists overriding interests like:

  1. Short leases (up to 7 years)
  2. Legal easements and profits à prendre
  3. Rights of persons in actual occupation
  4. Local land charges
  5. Certain customary and public rights

Key Overriding Interests

  1. Rights of Persons in Actual Occupation: Notable case, Williams & Glyn's Bank v Boland [1981], affirmed overriding status due to actual occupation. Limited by Abbey National Building Society v Cann [1991], which specified acquisition and charge conditions.

  2. Short Leases: Leases under seven years, as clarified in Ashburn Anstalt v Arnold [1989], are valid overriding interests despite deed requirements.

Example: A buys property from B, unaware of C’s unregistered 5-year lease. The lease binds A as an overriding interest under Schedule 3.

Protected Registered Interests

Protected registered interests are vital for system clarity and security. Understanding these is key for SQE1 FLK2 candidates.

Types of Protected Registered Interests

  1. Notices: Entries protecting third-party interests, either unilateral or agreed.
  2. Restrictions: Regulate register entries, often protecting beneficial trust interests.
  3. Cautions against First Registration: Notify cautioners of unregistered land applications.

The Registration Process

  1. Application: Submitted by the interest holder.
  2. Examination: Land Registry reviews applications and evidence.
  3. Entry: Protection is entered if approved.
  4. Notification: Interested parties are informed.

Legal Effects of Registration

  1. Priority: Protects the interest's priority.
  2. Enforceability: Registered interests bind subsequent purchasers.
  3. Notice: Registration informs all land dealings.

Example: D secures an equitable easement with a notice on E's land title. If E sells to F, D's easement remains binding, regardless of F's awareness.

Practical Applications and Exam Relevance

Understanding the interaction between legal and equitable interests, overriding interests, and protected registered interests is crucial for handling complex property law scenarios in the SQE1 FLK2 exam.

Scenario Analysis

Consider this:

G owns a large estate, Greenacre, which is registered land. The following events...