#4636 - Unregistered Land - GDL Land Law

Categories of interests

1. Legal interests

• Bind the whole world: no need for notice or registration – binds a purchaser simply because it’s legal

• Exception: puisne mortgage (not protected by deposit of title deeds with lender) which must be registered as a land charge

2. Equitable interests subject to registration under the LCA 1972

Land Charges Act 1972 (which replaced LCA 1925)

• Some 3^rd party interests must be registered

• Registration constitutes notice: s199 LPA 1925

• If these interests are not registered, a purchaser of the land is not bound

Section 2 LCA 1972 - Interests which have to be registered – all given letters and numbers:

• Puisne mortgage: C (i) – S2(4)(i) LCA 1972

• General equitable charge: C (iii) - S2(4)(iii) LCA 1972

  • Equitable mortgage (where not by deed or not registered)

• Estate contract: C(iv) (S2(4)(iv) LCA 1972

  • Right of pre-emption

    • Cannot be registered until owner decides to sell - Pritchard v Briggs

  • Option to purchase or contract of purchase

  • Equitable lease (contract for legal lease)

• Inland Revenue Charge: D(i) – S2(5)(i)LCA 1972

• Restrictive covenant: D(ii) – S2(5)(ii) LCA 1972

  • only applies to restrictive covenants btw freeholders and doesn’t apply to those created before 1926 (protected by doctrine of notice)

• Equitable easement: D(iii) – S2(5)(iii) LCA 1972

  • Equitable when it’s not by deed or its for an uncertain period of time – must be registered as a land charge to be binding

  • Equitable easement created before 1926 – protected by old doctrine of notice

• Spouse’s right to occupy home under Family Law Act 1996: F – S2(7) LCA 1972

Incorrect Registration

• Registration must be against the correct name(s) of the estate owner(s) at the time of the creation of the land charge: s3(1) LCA 1972 – if not then registration is a nullity: Diligent Finance Co Ltd v Alleyne:

• In Standard Property Investment v British Plastics Federation: version of the name(s) as appears in the title deeds and not as it appears in other contexts (birth certificate etc.)

Effect of failure to register land charge

• Unregistered C(i), C(iii) or F - void vs. a purchaser for value of any interest in the land – S.4(5),(8) LCA 1972

• Unregistered C(iv), D(ii), or D (iii): void vs. a purchaser of the legal estate for money or moneys’ worth – S.4(6) LCA 1972

  • And only through money or moneys’ worth – doesn’t include marriage consideration

  • Midland Bank Trust v Green: nominal consideration is still good consideration

3. Overreachable Interests

• Same as with registered land – a beneficial interest under a trust is overreached by payment of capital money to two trustees: Ss2 and 27 LPA 1925

4. Interests still subject to the Doctrine of Notice

1. Those explicitly excluded from the LCA 1972:

   • Pre-1926 restrictive covenants

   • Equitable easements

2. Beneficial interest under a trust where sale or mortgage is by only one legal owner

3. Mere equities

4. Interests arising by estoppel

• Interests still subject to the doctrine of notice are enforceable vs. anyone except “Equity’s darling” – ‘‘a bona fide purchaser for value of a legal estate without notice’

• Three types of notice

• Actual: purchaser actually knows of the equitable interest (codified through s198(1) LPA 1925)

• Constructive: requires purchaser to act as a prudent person – s199 (1)(ii)(a) LPA 1925

  • Obligations – to (1) make a proper investigation of the title deeds (2) make a proper investigation of the land - E.g. look for worn tracks etc.

  • Hunt v Luck: presence of a tenant on the land placed the purchaser on constructive notice of the tenant’s legal lease

• Imputed:

  • Where notice received by the buyer’s agent...