Registration of title and protection of interests - The register and proof of ownership

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Overview

Land registration plays a key role in property law, facilitating clear transactions and safeguarding ownership rights. This guide delves into the essentials of title registration, the principles behind ownership documentation, and the legal structures protecting land interests. We'll explore differences between registered and unregistered land, examine the Land Registration Act 2002 (LRA 2002), and discuss the mirror and curtain principles. Additionally, the impact of human rights on property rights is considered. This material is designed for SQE1 FLK2 exam candidates, enhancing their knowledge and application of these important land law concepts.

The Legal Framework: Land Registration Act 2002

The Land Registration Act 2002 is central to modern land registration in England and Wales, regulating the creation, maintenance, and effects of the title register, aiming for a complete and reliable record of property ownership and interests.

Key Provisions of the LRA 2002

  1. Section 29: Addresses the effect of registered dispositions on priority.
  2. Schedule 3: Lists the overriding interests affecting registered proprietors.
  3. Sections 23-26: Outline the powers of disposition for registered proprietors.
  4. Section 58: Confirms the register's conclusiveness.

Priority Rules

The Act introduces a detailed priority system:

  • Basic Rule (Section 28): Earlier interests generally take precedence over later ones.
  • Exception (Section 29): A registered disposition for value can override prior interests, except overriding interests and those protected by a register notice.

Registered vs. Unregistered Land

Understanding the difference between registered and unregistered land is essential for property transactions and related legal matters.

Registered Land

Under the LRA 2002, registered land offers a system of title by registration with features like:

  • Title Guarantee: The state guarantees the title, adding security and simplifying conveyancing.
  • Public Register: Managed by HM Land Registry, ensuring transparency and easy access to information.
  • Types of Title: Covers freehold and leasehold interests exceeding seven years.

Unregistered Land

Unregistered land relies on title deeds and the doctrine of notice, with key elements including:

  • Title Deeds: Ownership verified through historical documents, requiring detailed examination.
  • Doctrine of Notice: Purchasers are bound by interests they are aware of, whether actual, constructive, or imputed.

Conveyancing Distinctions

  1. Registered Land:

    • The register is primary evidence of title.
    • Recognizes three grades of title: absolute, qualified, and possessory.

  2. Unregistered Land:

    • Requires a root of title investigation (typically 15 years).
    • Applies the doctrine of notice, affecting purchasers.

The Mirror Principle: A Key Concept

The mirror principle in land registration suggests the register should fully reflect all property interests, showing the actual state of the title.

Theoretical Foundations

  • Completeness: Ideally, the register should thoroughly reflect the property's legal status.
  • Transparency: All relevant interests should be visible to buyers or interested parties.

Practical Limitations

  1. Overriding Interests: Some interests affect purchasers despite not being on the register.
  2. Off-Register Interests: Some interests, like short-term leases, need not be registered.
  3. Curtain Principle: Certain interests, such as trusts, remain invisible on the register.

Case Law Illustration

In Flegg v Prest [1987] UKHL 12, the House of Lords discussed the balance between the mirror principle and overriding interests, ruling that buyers took free from unregistered beneficial interests, underlining registration's importance while recognizing the principle's limits.

Overriding Interests: Challenges to the Mirror Principle

Overriding interests are a notable exception to the mirror principle, affecting land transactions as they bind buyers without being registered.

Key Categories of Overriding Interests (Schedule 3 of the LRA 2002)

  1. Short Leases: Leases of 7 years or less.
  2. Legal Easements: Visible rights of way or enforceable easements.
  3. Rights of Persons in Actual Occupation: Safeguards occupiers with proprietary rights.
  4. Local Land Charges: Charges imposed by local authorities.

Case Law Analysis

Williams & Glyn's Bank Ltd v Boland [1981] AC 487 highlights the importance of overriding interests, where a wife's beneficial interest bound the bank due to her actual occupation.

Example: The Impact of Overriding Interests

Consider a scenario where a purchaser finds an unregistered easement after buying a property relying on the register. This underscores how overriding interests can unexpectedly affect a buyer's rights.

The Role of Human Rights in Land Registration

The Human Rights Act 1998 (HRA 1998) influences the legal landscape of land registration, integrating the European Convention on Human Rights into domestic law.

Key Provisions

  • Article 1 of Protocol No. 1: Safeguards the right to peaceful enjoyment of possessions.
  • Article 8: Protects the right to private and family life, impacting cases of eviction or land use restrictions.

Intersection with Land Registration

The integration of human rights in land registration has led to important legal changes:

  1. Proportionality: Courts assess if property rights interferences are justified by legitimate aims.
  2. Positive Obligations: The state may need to actively safeguard individuals' property rights.

Case Law Analysis

In JA Pye (Oxford) Ltd v United Kingdom (2007) 46 EHRR 45, the European Court of Human Rights examined whether adverse possession laws were compatible with human rights protections, finding the laws balanced and proportionate.

Conclusion

Navigating the complexities of land registration is essential for SQE1 FLK2 exam success and future legal practice. Key takeaways include:

  1. Understanding registered vs. unregistered land and their effects on conveyancing.
  2. Recognizing the mirror principle's limitations due to overriding interests.
  3. Identifying the categories and effects of overriding interests on transactions.
  4. Familiarity with the Land Registration Act 2002.
  5. Comprehending the intersection of human rights with property law.

By developing a thorough grasp of these legal ideas, candidates can approach the FLK2 exam with confidence and prepare for a successful career in property law, equipped to analyze complex scenarios and balance competing interests effectively.