Estates and Interests in Registered Land

Estates and Interests in Registered Land

To Answer Questions –

1.)    Identify what the 3^rd party Rights are (from LPA 1925 Act)

2.)    Legal or Equitable?

3.)    Correct formality used to make it legal?

4.)    Is the Purchaser bound?

1) The 3^rd Party Right? & 2) Legal or Equitable?

- LPA 1925 (to find what type of interest/estate)

s.52 = The 6 legal interests/estates must be created by deed:

·         2 legal Estates – Leases & Freehold

s.1 (1)(a)= fee simple, freehold

s.1 (1)(b)= Terms of Years Absolute (TOYA)

·         4 legal interest – all must be TOYA or fee simple to be legal.

                s.1 (2)(a)= Easements (Profit á Pendre)

                s.1 (2)(b)= Rentcharge – only created before 1977. – Rent charge act 1977.

                s.1 (2)(c)= Mortgage

                s.1 (2)(e)= Rights of Entry (when obligation is not met by leaseholder can re-enter)

Equitable interests

                s.1 (3)= All other interests not found in the above sections can only ever be equitable

E.G.: An option/contract is always equitable (e.g. option to renew lease).

– LP (MP) 1989: contract must be         1.) in writing.

                                                                                           2.) all express terms.

                                                                                           3.) signed by/on behalf of both parties.

3) Correct formalities to make it legal?

NB:// Some of these interests must be registered to be legal:

s.27 (2) LRA 2002-

                a.) A transfer

                b.)A legal lease of more than 7 years

                c.) A legal revisionary /legal lease (more than 3 months into the future) of any length.

                d.) A legal discontinuous lease (timeshare) of any length

                e.) A legal charge (mortgage)

                f.) An expressly created legal easement/profit

NB:// a,b,c must have both a separate register of title & entry by notice on the register of freehold. 

4) Is the Purchaser bound by it?

S. 29, Purchaser for ‘valuable consideration’ subject to

a) registered charges & other interests protected by an entry on the register

b) Interests which over-ride under sch. 3.

LRA s.29 Sch.3, interests that override-

                Para  1.) Short leases not exceeding 7 years

                Para  2.) Interest of persons in occupation (actual occupation = obvious on a reasonably

                                                                                            careful inspection of the land)

                Para 3.) Legal Easements and Profits (only legal if registered under s.27)

Equitable interests that come under s.1 (3) can be protected in 2 ways-

s.32 Entry on register by notice – All equitable interests other than beneficial ones can be protected in this way

s.40 restriction – trust/beneficial interests come under this (e.g. property held on trust, must enter restriction to protect benefit.)

But, trust property can be over-reached, upon payment to at least 2 trustees.

Purchaser not bound by Para 2 here, Flegg =  over-reaching to take precedence.