Why do overriding interests still exist? The concept of overriding interests is relevant only to land that is registered at the Land Registry. If you are the owner of land affected by one of these overriding interests, you will still be subject to it on and after 13 October, because it was an overriding interest when you acquired the land.
What are overriding interests?
· Why do overriding interests still exist? The concept of overriding interests is relevant only to land that is registered at the Land Registry. If you are the owner of land affected by one of these overriding interests, you will still be subject to it on and after 13 October, because it was an overriding interest when you acquired the land.
When does an interest lose its overriding status forever?
Why do overriding interests still exist? The concept of overriding interests is relevant only to land that is registered at the Land Registry. If you are the owner of land affected by one of these overriding interests , you will still be subject to it on and after 13 October, because it was an overriding interest when you acquired the land.
What happens when you buy a piece of land with overriding interests?
An overriding interest is any interest in land which “overrides” registration, i.e. it is still valid and enforceable against land even though it is not registered against the land’s title. Examples of overriding interests include certain rights of occupation, easements, leases for …
How does overriding status work?
Overriding interest is an English land law concept. The general rule in registered conveyancing is that all interests and rights over a piece of land have to be written on the register entry for that land. Otherwise, when anyone buys that piece of land, the interests will not apply to the purchaser, and the rights will be lost. Overriding interests are the exception to this general rule. Overriding …
When were overriding interests invented?
Overriding interests were created by the Land Registration Act 1925 (LRA 1925).
What is the crack in the mirror principle?
There appears to be a contradiction between the idea behind registered land and the group of overriding interests in registered land. This contradiction leads to the distortion of the mirror image which many call the 'crack' in the 'mirror principle'.
What is the difference between LRA 1925 and 2002?
LRA 2002 repealed LRA 1925, not only simplify the law by maintaining an accurate record of all the rights and alongside interests held by others that affect the land, but also to give certainty the basic concepts engrossed by the 1925 Act as it can be very clearly evident that 2002 Act revolves around the original and ...
What is a disposition in land Law UK?
The Shorter Oxford English Dictionary defines it as 'the action of getting rid of, or making over'. In the context of the Act however, it will quickly be seen that it. has a wider meaning as a registered proprietor can make a disposition without 'getting rid' of his interest in the land.
Should overriding interests be registered?
You must disclose overriding interests when making an application for first registration or for registration of a registrable disposition of the registered estate.
Do overriding interests need to be registered?
Overriding interests are interests that are not registered at the Land Registry, but which still bind a party who acquires land that is subject to that interest. For example, an interest that belongs to a person in actual occupation will override the first registration of the land affected by that interest.
Does the LRA 1925 still apply?
The Land Registration Act 1925 (LRA) was an act of Parliament in the United Kingdom that codified, prioritised and extended the system of land registration in England and Wales. It has largely been repealed, and updated in the Land Registration Act 2002.
Are overriding interests protected?
S. 29(2)(a)(ii) Land Registration Act 2002 gives priority to overriding interests even though they are not protected on the register.
Can overriding interests be overreached?
An overriding interest which arises out of the interest of a person in actual occupation, or out of any other equitable interest or power to which section 2 of the Law of Property Act 1925 applies, does not defeat overreaching.
What is a Disponee in land law?
A disponee, therefore, includes people who are not only transferred the freehold estate, but also individuals who take rights smaller than the freehold over a registered estate e.g. that might be a lease, a charge, an easement, etc.
What is a reversionary lease UK?
Related Content. A lease that takes effect when an existing lease has expired. However, the expression "reversionary lease" is also used to mean any lease where possession is delayed to a future date.
Are there any restrictive covenants?
Examples of Restrictive Covenants These are some of the most common Restrictive Covenants: Limiting uses of the land. Not making alterations to the property. Not using the property for business purposes.
What is overriding interest?
Overriding interest is an English land law concept. The general rule in registered conveyancing is that all interests and rights over a piece of land have to be written on the register entry for that land. Otherwise, when anyone buys that piece of land, the interests will not apply to the purchaser, and the rights will be lost.
What happens if you buy a piece of land?
Otherwise, when anyone buys that piece of land, the interests will not apply to the purchaser, and the rights will be lost. Overriding interests are the exception to this general rule. Overriding interests need not be registered to bind any new owner.
Why are short term leases excluded from the rental market?
Short-term leases (tenancies/leases of less than seven years) were excluded because to include them would entail large workloads of registration and on the basis of continuing a fluid rental and subletting market, where break clauses can be specified at will, restricted to a minimum one month's notice in the residential setting by the Landlord and Tenant Act 1985.
Is overriding interest a standard question?
The existence of overriding interests is a standard question in a transaction — it must be confirmed, denied or 'not known' under the standard property information form used across England and Wales. Nonetheless a right to light on the land or neighbouring land and clear, well-trodden paths across a garden or smallholding for example would be considered constructive knowledge under the deemed inspection of the property under Standard Condition 3.1.2 (b) of Standard Conditions of Sale, present in accordance with the principle of caveat emptor ( lat. buyer beware ).
What are overriding interests?
Overriding interests are currently defined in Schedule 1 and Schedule 3 of the Land Registration Act 2002. Those contained in Schedule 1 will automatically bind any purchaser of land on the first registration of that land despite not being granted or reserved by the title deeds for that land. Similarly, those contained in Schedule 3 will bind subsequent purchasers of land despite existing “off” the register. In many cases these interests are far from insignificant and can have far-reaching and adverse effects on property transactions. They include (amongst other things) leases for a term of seven years or less, the rights of persons in actual occupation, legal easements, customary and public rights and profits à prendre. Equally, a number of these interests are now archaic (for example, franchises and rights to mines and minerals in land registered before 1898) and their continued ability to defeat the registered title or title deeds (in the case of unregistered land) must be questionable.
What is overriding interest in registered land?
Overriding interests in registered land have long been and remain a controversial area of debate for practitioners and academics alike . This debate has only accelerated in recent years with the advent of electronic conveyancing and its potential to require that all interests in land must be created through the act of electronic registration.
Is sentimentality an acceptable concession to make in a land registration regime?
This approach does, however, assume that sentimentality is an acceptable concession to make in a land registration regime and this, in itself, creates a fundamental tension. Indeed, chancel repair liability (the obligation to contribute to the repair of the chancel of the local parish church) was an overriding interest under the pre-2002 Act regime. This is no longer the case, however, and since October 2013 chancel repair liability will only bind purchasers of land if the burden is registered on the title for that land. This shows that our land registration regime is capable of expecting beneficiaries of (previously) overriding interests to protect their interests by registration.
Is overriding interest outside of registration?
Overriding interests are created “outside” the act of registration (whether manual or electronic) and this is not only contrary to the agenda of electronic conveyancing but may not be possible in the future under such a regime.
Is the area of overriding interests contentious?
To conclude, the area of overriding interests is deeply contentious and this is unlikely to change in the immediate future. In recent years attempts have been made to limit their scope and it is accepted that the creation of overriding interests in the future may be more difficult with electronic conveyancing.
Is there an argument in favour of overriding interests in unregistered land?
The argument in favour of overriding interests in unregistered land may be stronger as no title will yet have been registered at the Land Registry but the expectation on persons seeking to enforce proprietory interests to register that interest should remain unchanged. The responsibility falls on the Land Registry and Government to amend Section 4 of the Land Registration Act 2002 to require all overriding interests currently contained in Schedules 1 and 3 of the Land Registration Act 2002 to trigger first registration and only bind purchasers if registered.
What is an overriding interest?
2. Overriding interests. Overriding interests are interests to which a registered title is subject, even though they do not appear in the register. They are binding both on the registered proprietor and on a person who acquires an interest in the property.
What is the purpose of reducing the scope of some overriding interests?
reducing the scope of some overriding interests. providing for the eventual abolition of others. requiring people applying for registration to provide information about unregistered interests, so that notice can be entered in the register in respect of them.
When did the Land Registration Act lose its overriding status?
designating certain interests that were to lose their overriding status - this happened at midnight on 12 October 2013 (section 117 of the Land Registration Act 2002)
When is an interest not protected?
in the case of dispositions only, an interest is not protected if inquiry was made of the person claiming it before the disposition took place, and they failed to disclose it when they could reasonably have been expected to do so (Schedule 3, paragraph 2 (b) of the Land Registration Act 2002).
Is a trust of land an overriding interest?
However, an interest under a trust of land can have overriding status, if it otherwise qualifies.
Which provision protects an interest belonging to a person in actual occupation, so far as relating to land of which
the basic provision protects “an interest belonging to a person in actual occupation, so far as relating to land of which he is in actual occupation”
Do you have to disclose your interest in a business?
You must disclose any such interest (unless it is an interest of a kind mentioned in Interests not to be disclosed) that is within the actual knowledge of the person applying for registration. There is no need to carry out any special investigation, although you might need to explain to your client what interests should be disclosed.
What are overriding interests?
Overriding interest include leases under 7 years, legal easements and profits a prendres, public rights of way, local land charges, mines and minerals, franchises, manorial rights, a right to rent reserved to the Crown, non statutory rights in respect of an embankment or sea or river wall, right to payment in lieu of a tithe, a right in respect to the repair of a church. In addition, under Para 2 Sch 3, any interest belonging to a person in actual occupation.
What is overreaching in land?
Overreaching operates to transfer the rights from the land to the proceeds of sale. There is therefore no longer any interest in land capable of being protected by actual occupation. This position was stated in:
What is a group of overriding interests?
This group of overriding interests is described as well-recognised burdens that are easily discoverable, although they cannot be conveniently entered onto the register.
What would happen if equitable interests were construed narrowly and excluded from para (a)?
Here, Scott J held that, if equitable interests were construed narrowly and excluded from para (a), then there would exist a wide category of overriding interests, despite being undiscoverable by a purchaser of the servient tenement.
What is the problem with s.70?
One problem with s.70 (1) (a) is whether or not equitable easements come within the category of overriding interests.
Why is the duty of enquiry placed on the purchaser?
Clearly, the duty of enquiry is placed on the purchaser in order to take the land free of overriding interests.
Who said "how then is a purchaser or mortgagee to carry out such inspection as "ought reasonably be made
Judge John Finly QC stated in that case: 'How then is a purchaser or mortgagee to carry out such inspection as "ought reasonably be made" for the purposes of determining whether the possession and occupation of the property accords with the title offered?' (pp.
Can a person be in occupation if the vendor appeared in occupation?
In addition, there may be actual occupation through the agency of another person and if the vendor appeared in occupation, a person can still be in actual occupation. This surely illustrates the deepening of the 'crack' in the 'mirror principle' of registered land. In order to narrow the 'crack', the class of overriding interests may be made more ...
Who is the burden of investigating and identifying persons to whom to put enquiries?
The burden of investigating and identifying persons to whom to put enquiries will be put onto the purchasers and conveyancers.