⇒ 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.

• As mentioned previously, the scheme of Land Charges Registration was designed to replace the pre-1926 position where equitable rights in rem would bind a transferee of land if they were not equity's darling (thus replacing the uncertain notice doctrine).

⇒ 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:

• Estate Contracts (Class C(iv)) e.g. contracts to purchase a legal estate in land
• Restrictive covenants entered after 1 Jan 1926 (section 2(5)(ii) – Class D)
• Equitable easements entered after 1 Jan 1926 (section 2(5)(iii) – Class D)

⇒ 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.

⇒ 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. don’t bind) a purchaser (LCA 1972 s.4) of any interest in the land who gives valuable consideration.

• So if the equitable right in rem is unregistered and falls within class A, B, C(i-iii) or F it is void against a purchaser (i.e. the equitable right will not bind a future purchaser) of any interest in the land
• Section 17 of the Land Charges Act 1972 tells you what a purchaser is: a person who, for valuable consideration, takes any interest in the land (equitable or legal).
• So, a person buying the legal or equitable freehold/leasehold will get the land free from the unregistered land charges so long as they gave 'valuable consideration' (e.g. money).

⇒ 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 money’s worth (Land Charges Act 1972, section 4).

• In other words, if the unregistered equitable right in rem is a Class C(iv) or D those rights will not bind a purchaser of the legal estate (nb: not just any interest in the land) in the land who gives money or money's worth (i.e. the consideration must take money form).
• So, alternatively, a purchaser of the equitable freehold will be bound by an unregistered land charge under these classes (as it specifically mentions it must be a legal estate).

⇒ 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:

• A legal interest? If so, it is binding on a purchaser automatically.
• An equitable interest? If so, whether it is binding depends on whether the purchaser was a bona fide purchaser for value without notice (i.e. equity's darling).

⇒ Some other helpful legal resources on land charges:

• Quizlet
• Oxford Law Trove