The Registered Regime in Registered Land

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Registering rights in rem

Proprietary rights/interests (i.e. rights in rem) are registered against the estate they burden on the charges register.

  • In other words, in registered land, rights in rem can be registered on the land register. Registration of a right in rem on the land register is known as a notice.
  • "A notice is an entry in the register in respect of the burden of an interest affecting a registered estate or charge" (Land Registration Act 2002, section 32(1)). In other words, a notice is where the burden of a right in rem is entered on the register against the state which they impact.

Which rights can be registered?

In other words, we must determine which right in rem can be protected by a notice in the register against the state they burden.

The general reference to "interest" (Land Registration Act 2002, section 32(2)) indicates that ALL right in rem (i.e. both legal or equitable right in rem) can be registered against the estate they burden, unless expressly excluded.

Section 33 of the Land Registration Act 2002 lists various "excluded interests" i.e. a list of right in rem that may not be protected by a notice in the land register. It includes, the beneficial interest under trust (section 33(a)(i)) and the leasehold estate for a term for 3 years or less (section 33(b)(i)).

  • In other words, all right in rem (i.e. proprietary interests) can be registered except the beneficial interest under trust and the leasehold estate for a term of three years or less.
  • However, these "excluded interests" are protected by Schedule 3 of the Land Registration Act 2002.

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CONTENT

Registration and establishing legal status

As mentioned in the notes on rights in the introductory topic notes, section 1 of the Law of Property Act 1925 lists those right in rem which are capable of being given legal status (e.g. freeholds, leaseholds, easements, mortgage). Rights in rem not listed can only take effect in equity (Law of Property Act 1925, section 1(3)) e.g. beneficial interest under a trust.

Again, in registered land, a right in rem capable of being legal will only actually acquire legal status if created with the requisite formality:

To achieve legal status most right in rem burdening registered land require at least a deed. However, some rights in rem REQUIRE additional formalities in order to achieve legal statussection 27 of the Land Registration 2002 (registrable dispositions).

Additional formality under the registered regime: LRA 2002 section 27

Under section 27 of the Land Registration 2002, it says that some right in rem in registered land require an additional formality before they gain legal status. They are known as dispositions of a registered estate which are required to be "completed by registration" in order to "operate at law".

These dispositions include:

For example, if Tim grants a lease of 8 years to you over his house (Blackacre) that interest will need to be registered by way of notice on Blackacre's charges register in order for you to acquire a legal lease i.e. the disposition (a grant of a legal lease for a term more than 7 years out of a registered estate) only gets legal status when registered by way of notice. Note, this is, of course, in addition to to the requirement of having a deed.

Another example is, if Tim grants you an easement to use his driveway that easement will need to be entered onto the charges register by way of notice in order to be legal. Again, this is in addition to the requirement of having a deed.

Other land burdens

All other land burdens which are not registrable dispositions (i.e. not in the list in section 27(1) of the Land Registration Act 2002), or excluded by Section 33 of the Land Registration Act 2002 (see above), may be protetcted by notice (i.e. registered on the charges register of the estate title).

  • So registrable dispositions is a formality requirement that enables certain things to be legal (e.g. legal easement) and thus bind a transferee/purchaser
  • Any other interests (i.e. not registrable dispositions or excluded by s.33) may be protected by notice as to bind transferees/purchasers
  • S.29 LRA 2002 provides, in effect, that a purchaser of the registered estate for valuable consideration takes free of any interests which are not overriding and not protected by notice on the charges register. This means that it is essential for anyone entitled to such an interest to ensure it is protected in this way.

Where is registration not required?

Other proprietary interests (i.e. right in rem) may not need to be registered in order to bind a transferee:

  • Short leases up to 3 years can be created orally and will achieve legal status.
  • Leases between 3-7 years need only be created by deed to get legal status.
  • However, leases over 7 years need to be created by deed and registered (as this is one of the registrable dispositions) in order to achieve legal status.

Where is registration not required?

If a right fails to take effect in law it can potentially take effect in equity.

It will take effect in equity if there is a pre-conferment contract OR a failure to confer the legal right, so long as Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 is complied with. See the notes on this here.

*Exam tip*

Come back to these notes once you have learnt about easements, mortgages, covenants, etc. If you are struggling now, going through the notes on those topics should help you understand this.

Some other helpful legal resources on the registered regime:

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