⇒ The system of land charge registration was introduced by the Land Charges Act 1925 and has since been codified in the Land Charges Act 1972.
⇒ Section 2 of the Land Charges Act 1972 provides a list of equitable rights in rem which can be registered as a land charge in the register of land charges. So a land charge is the generic label for this list of equitable rights in rem.
⇒ The most important of these land charges are as follows:
⇒ Note: beneficial rights under trust cannot be registered. They are dealt with through the doctrine of overreaching (see here).
⇒ The registration of an equitable right in rem as a land charge is deemed to constitute actual notice of that right to a transferee/purchaser of the burdened land (Law of Property Act 1925, section 198 (1)). In other words, registering equitable interests as land charge ensures they bind future transferees/purchasers of the land.
⇒ Thus the enquiry as to whether an equitable right in rem binds a transferee/purchaser is not whether or not the transferee is equity's darling (which normally focuses on whether he/she has notice of the right), but whether or not the equitable right is registered as a land charge.
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⇒ The consequence of failing to register a registrable land charge (i.e. one of the equitable rights in rem listed in the Land Charges Act 1972, section 2) depends on type of land charge and nature of the transferee on the burdened land.
⇒ Unregistered class A, B, C(i)-(iii) and F land charges are void against (i.e. donβt bind) a purchaser (LCA 1972 s.4) of any interest in the land who gives valuable consideration.
⇒ Unregistered class C(iv) and D land charges are void against (i.e. do not bind) a purchaser of a legal estate in the land who gives money or moneyβs worth (Land Charges Act 1972, section 4).
⇒ Note: all land charges, even if unregistered, will be valid against a non-purchaser (e.g. if the land is transferred by gift).
⇒ Note: an unregistered land charge will not bind a purchaser of the unregistered land, even if he/she knew about the charge prior to the purchase.
⇒ See, on the voidness rule, the case of Midland Bank v Green [1981].
⇒ Land charges are registered against the owner of the burdened estate at the time of their creation (Land Charges Act, section 3(1), NOT against the title of the land.
⇒ So, a person wishing to purchase unregistered land must therefore search the land register against the names of all previous estate owners revealed in the 'root of title'.
⇒ You must be absolutely clear for the exam if a right is registrable as a land charge. If it is, then check the rules above on the consequences of non-registration. If not, then we ask if it is:
⇒ Some other helpful legal resources on land charges:
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