Learning Outcomes
This article explains land charges in unregistered land, including:
- The statutory registration system under the Land Charges Act 1972
- Interests that must be registered to be enforceable against a purchaser
- Consequences of non-registration across relevant classes
- The doctrine of notice for equitable interests outside the land charges regime
- SQE1-style assessment focus and question areas
SQE1 Syllabus
For SQE1, you are required to understand the enforceability of third-party rights in unregistered land, especially the system of land charges and the doctrine of notice, with a focus on the following syllabus points:
- the statutory registration system for land charges under the Land Charges Act 1972
- which interests must be registered to be enforceable against a purchaser
- the effect of registration and non-registration of land charges
- the operation of the doctrine of notice for interests outside the land charges regime
- the meaning of key terms such as estate contract, restrictive covenant, and puisne mortgage
- name-based registration against the estate owner and the practical implications of variants of names
- the conclusiveness of search certificates under s 10 LCA 1972 and the priority period under s 11 LCA 1972
- differences in voidness rules under s 4 LCA 1972 for different classes (including Class F home rights)
- the limited role of the doctrine of notice in unregistered land post-1926 and its continuing relevance to trusts and pre-1926 covenants/easements
- the concept and effect of overreaching on beneficial interests under a trust of land
Test Your Knowledge
Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.
-
Which of the following interests must be registered as a land charge to be enforceable against a purchaser of unregistered land?
- legal lease for 10 years
- equitable mortgage
- restrictive covenant created in 1980
- legal easement
-
What is the effect of failing to register an estate contract as a land charge?
- It is void against a purchaser for value of a legal estate
- It is still enforceable if the purchaser had actual notice
- It is void only if the purchaser is a volunteer
- It is always enforceable
-
Which of the following best describes the doctrine of notice?
- It applies to all legal interests in land
- It determines whether certain equitable interests bind a purchaser
- It is irrelevant to unregistered land
- It applies only to registered land
Introduction
When dealing with unregistered land, the enforceability of third-party rights depends on a statutory registration system and, in some cases, the doctrine of notice. The Land Charges Act 1972 introduced a register for certain interests—called land charges—which must be registered to bind a purchaser. Land charges operate independently from the registered land system and are recorded against the name of the estate owner, not the property. Many equitable interests created on or after 1 January 1926 are brought within the land charges regime; beneficial interests under trusts and some older rights remain outside and are governed by the doctrine of notice and by overreaching.
Key Term: land charge
A statutory entry on the Land Charges Register protecting certain interests in unregistered land, such as restrictive covenants, equitable easements, and estate contracts.Key Term: Land Charges Act 1972
The statute that governs the registration and enforceability of land charges in unregistered land.Key Term: Land Charges Department
The central department (administered by HM Land Registry) that maintains the Land Charges Register for unregistered land interests.
Land charges and the Land Charges Act 1972
The Land Charges Act 1972 (LCA 1972) sets out a system for registering specific interests affecting unregistered land. Registration is not against the land itself, but against the name of the estate owner at the time the interest is created. This name‑based approach creates practical issues: the holder of the interest must know exactly how the estate owner’s name appears in the deeds and should consider variations, abbreviations, maiden names, and initials when searching.
Key Term: name-based registration
Entries are made against the estate owner’s name (as it appears in the title deeds) rather than the property address.
Registration is made at the Land Charges Department, not on the registered title held at HM Land Registry. Where land later becomes registered (on a triggering event), existing land charges continue to bind according to their nature and priority.
Classes of land charges
The LCA 1972 divides land charges into several classes. The most relevant for SQE1 are:
- Class C(i): Puisne mortgages (legal mortgages not protected by deposit of title deeds)
- Class C(iv): Estate contracts (including options and equitable leases)
- Class D(ii): Restrictive covenants (not between landlord and tenant)
- Class D(iii): Equitable easements
Key Term: puisne mortgage
A legal mortgage over unregistered land not protected by the deposit of title deeds, requiring registration as a land charge.Key Term: estate contract
An agreement giving a right to acquire a legal estate in land in the future, such as an option or contract for sale.Key Term: restrictive covenant
A promise restricting the use of land, usually enforceable in equity, and registrable as a land charge if created after 1925.Key Term: equitable easement
A right over land that is not legal due to lack of formality or duration, registrable as a land charge if created after 1925.
Other classes exist and may appear in practice:
- Class C(ii): A limited owner’s charge (rare) protecting certain expenditure recoverable from land under settlements.
- Class C(iii): A general equitable charge, often used to protect equitable mortgages where the mortgagee does not hold the title deeds.
- Class F: Home rights under the Family Law Act 1996 (statutory occupation rights of a non‑owning spouse or civil partner).
- Class A and Class B: Statutory charges created by or arising under legislation (uncommon in SQE1 scenarios).
- Class E: Certain pre‑1926 annuities (rare in modern practice).
Key Term: home right (Class F)
A statutory right of occupation under the Family Law Act 1996, registrable as a Class F land charge to bind purchasers of unregistered land.
The effect of registration
Registration of a land charge gives notice to the world. Once registered, the interest will bind any purchaser of the legal estate for money or money's worth, even if the purchaser has no actual knowledge of the interest. For some classes, registration binds a wider category of purchasers.
Section 198 LPA 1925 provides that registration is deemed to constitute actual notice from the date of registration. In practice:
- Registered Class C(iv), D(ii), and D(iii) charges bind a purchaser for money or money’s worth of a legal estate; volunteers remain bound.
- Registered Class C(i) (puisne mortgages) and Class F (home rights) are void against a purchaser of any interest unless registered; they must be registered to affect any purchaser.
Key Term: purchaser of a legal estate for money or money's worth
A person who acquires a legal estate in land in return for valuable consideration, such as money, goods, or services.Key Term: purchaser for value
A person who acquires an interest in land for valuable consideration, not as a gift or inheritance.
The effect of non-registration
If a registrable interest is not registered as a land charge, it is void against a purchaser of the legal estate for money or money's worth. This is true even if the purchaser had actual notice of the interest. The strict rule was emphasised in leading authority, confirming that failure to register cannot be cured by a purchaser’s knowledge.
Important distinctions under s 4 LCA 1972:
- Unregistered Class C(i) (puisne mortgage) and Class F (home rights) are void against a purchaser of any interest unless registered before completion.
- Unregistered Class C(iv) (estate contract), D(ii) (restrictive covenant), and D(iii) (equitable easement) are void against a purchaser for money or money’s worth of a legal estate unless registered before completion. A volunteer is bound even if the land charge is unregistered.
There are limited equitable workarounds in rare cases, for example where a failed registration might coincide with a constructive trust or proprietary estoppel arising from unconscionable conduct. These are exceptions and fact‑specific; the default position remains that registrable interests must be registered to bind purchasers.
Worked Example 1.1
A enters into a contract to buy unregistered land from B. B later sells the land to C, who pays full market value and has no knowledge of A's contract. The contract was not registered as a land charge. Is C bound by A's contract?
Answer:
No. The estate contract is void against C because it was not registered as a land charge. C takes free of A's interest, even if C had actual notice.
Worked Example 1.2
D grants E an equitable easement over unregistered land in 1990. E fails to register the easement as a land charge. D sells the land to F, who pays money for the legal estate. Is F bound?
Answer:
No. The equitable easement is void against F because it was not registered as a land charge.
The doctrine of notice
Some equitable interests in unregistered land are not registrable as land charges. These include beneficial interests under a trust and pre‑1926 restrictive covenants and easements. Whether these bind a purchaser depends on the doctrine of notice as codified in s 199 LPA 1925. The doctrine applies only where the interest is not registrable as a land charge.
A purchaser who is a bona fide purchaser for value of a legal estate without notice takes free of such equitable interests. The term purchaser is wide and includes mortgagees and lessees acquiring legal estates or interests.
Key Term: doctrine of notice
The rule that certain equitable interests bind a purchaser only if the purchaser has actual, constructive, or imputed notice of the interest.Key Term: bona fide purchaser for value without notice
A person who acquires a legal estate in land for value and without actual, constructive, or imputed notice of an equitable interest.
Worked Example 1.3
G contributes to the purchase price of unregistered land, but is not named on the title deeds. The legal owner sells the land to H, who pays full value and has no knowledge of G's interest. Is H bound?
Answer:
No. If H is a bona fide purchaser for value without notice, H takes free of G's equitable interest.Key Term: overreaching
A mechanism that removes certain equitable interests (e.g., beneficial interests under a trust of land) from the land and transfers them to the purchase money when paid to at least two trustees or a trust corporation.
Beneficial interests under a trust of land may be displaced by overreaching where the purchase money is paid to two trustees (or a trust corporation). If overreaching occurs, the purchaser takes free of the beneficiaries’ rights, and the beneficiaries’ claims attach to the sale proceeds. If the purchase money is paid to a single trustee, overreaching does not occur and the purchaser may be bound unless they qualify as Equity’s Darling.
Worked Example 1.4
I sells unregistered land held on trust for himself and J to K for full value. K pays the entire purchase money to I as sole trustee. J claims a beneficial interest. Is K bound?
Answer:
Potentially, yes. Payment to a single trustee does not overreach J’s beneficial interest. K will only take free if K qualifies as a bona fide purchaser of the legal estate for value without notice of J’s equitable interest.
Actual, constructive, and imputed notice
- Actual notice: The purchaser actually knows of the interest.
- Constructive notice: The purchaser would have discovered the interest by making reasonable enquiries or inspecting the land. This includes:
- careful inspection of the property (e.g., signs of use suggesting an easement, or occupation by someone other than the seller)
- scrutiny of deeds, plans, and any annotations revealing equitable interests
- targeted enquiries of occupiers, where occupation is apparent
- Imputed notice: The purchaser's agent (e.g., solicitor or surveyor) has actual or constructive notice; this is attributed to the purchaser.
Key Term: actual notice
The purchaser's actual knowledge of an equitable interest.Key Term: constructive notice
Knowledge a purchaser is deemed to have if reasonable enquiries or inspection would have revealed the interest.Key Term: imputed notice
Knowledge of an interest held by the purchaser's agent, attributed to the purchaser.
Common pitfalls include failing to physically inspect the property, overlooking apparent occupation by third parties, or not examining older deeds that still reveal pre‑root interests. Practical diligence reduces the risk of constructive or imputed notice.
Registration process
To register a land charge, the interest must be entered against the name of the estate owner at the time the interest is created. Searches must be made against all relevant names in the title deeds, including prior owners identified in the epitome of title.
Key Term: search certificate
The official certificate issued after a Land Charges Register search; under s 10 LCA 1972 it is conclusive according to its terms.Key Term: priority period
A 15‑day period under s 11 LCA 1972 during which completion takes priority over charges entered after the search, provided completion occurs within the period.
An official search certificate is conclusive in favour of the buyer for the search actually made. If the search returns clear and completion occurs within the 15‑day priority period, land charges registered during that period will not bind the buyer. The certificate is conclusive as to the names searched and the land description used; a defective search (wrong name or inadequate description) may not protect the buyer.
Care is required to search against the precise version of each owner’s name used in the deeds. Where owners have changed names or used initials, prudent practice is to search against reasonable variants.
Worked Example 1.5
J registers a restrictive covenant as a land charge against the wrong name (e.g., "John Smith" instead of "Jonathan Smith"). K buys the land and searches against "Jonathan Smith." Is K bound?
Answer:
No. If the search is made against the correct name and the land charge is registered against a different name, the purchaser is not bound.
Worked Example 1.6
L conducts official searches against all prior estate owners’ names as revealed by the epitome of title. The search certificate is clear. Two days later, M registers a D(ii) restrictive covenant against the current seller’s name. L completes purchase within 10 days. Is L bound?
Answer:
No. The 15-day priority period protects L. Charges registered after the date of the official search do not bind provided completion occurs within the period.
Worked Example 1.7
N and O are married. O is the sole legal owner of the unregistered matrimonial home. N registers a Class F land charge. O sells to P for full value. Is P bound by N’s right?
Answer:
Yes, if the Class F land charge was registered before completion. Class F is deemed actual notice and binds purchasers. If unregistered, it is void against a purchaser of any interest.
Consequences for practice
- Legal interests (except puisne mortgages) bind the world and do not require registration as land charges.
- Puisne mortgages must be protected by C(i) registration to bind any purchaser; without registration they are void.
- Equitable interests that must be registered as land charges (e.g., C(iv), D(ii), D(iii)) are void against a purchaser for value of a legal estate if not registered. Volunteers are bound.
- Equitable mortgages over a legal estate are typically protected as C(iii) general equitable charges; failing to register risks loss of priority against purchasers for value.
- Home rights under the Family Law Act 1996 must be registered as Class F to bind any purchaser of unregistered land.
- Some equitable interests are not registrable (e.g., beneficial interests under trusts; pre‑1926 covenants/easements) and depend on the doctrine of notice; overreaching may displace trust interests when purchase money is paid to two trustees.
- Searches are name‑based. The official search certificate is conclusive for its terms, and the 15‑day priority period protects the buyer against later entries.
Exam Warning
If a question asks whether a purchaser is bound by an unregistered land charge, check whether the interest is registrable. If it is, non-registration means it is void against a purchaser for value, even if the purchaser had actual notice.
Revision Tip
For SQE1, memorise which interests must be registered as land charges and which depend on the doctrine of notice. Practice applying these rules to fact patterns.
Key Point Checklist
This article has covered the following key knowledge points:
- The Land Charges Act 1972 requires registration of certain interests in unregistered land to be enforceable against a purchaser.
- Registration is against the name of the estate owner at the time the interest is created.
- The official search certificate is conclusive as to the search conducted (s 10 LCA 1972) and affords a 15‑day priority period (s 11 LCA 1972).
- If a registrable interest is not registered, it is void against a purchaser of the legal estate for money or money's worth; volunteers remain bound for certain classes.
- Puisne mortgages and home rights have specific voidness rules: they are void against a purchaser of any interest unless registered.
- Legal interests (except puisne mortgages) bind the world and do not require registration.
- Some equitable interests are not registrable and depend on the doctrine of notice; pre‑1926 restrictive covenants and easements fall in this category.
- The doctrine of notice means a purchaser is bound only if they have actual, constructive, or imputed notice.
- Overreaching can remove beneficial interests under a trust from the land when purchase money is paid to two trustees or a trust corporation.
- Practical diligence in inspection and searches reduces risks of constructive or imputed notice.
Key Terms and Concepts
- land charge
- Land Charges Act 1972
- Land Charges Department
- name-based registration
- puisne mortgage
- estate contract
- restrictive covenant
- equitable easement
- purchaser of a legal estate for money or money's worth
- purchaser for value
- doctrine of notice
- bona fide purchaser for value without notice
- actual notice
- constructive notice
- imputed notice
- overreaching
- search certificate
- priority period
- home right (Class F)