Land Registration Act 2002
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The Land Registration Act 2002 is an Act (i.e. a statute) passed by the Parliament of the United Kingdom, which describes its purpose (in the Long title) as: an Act to make provision about land registration; and for connected purposes. It received the Royal Assent on the 26 February 2002.
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[edit] History and purpose
On 13 October 2003 the Land Registration Act 2002 and the Land Registration Rules 2003 came into force, repealing and replacing previous legislation governing land registration (the Land Registration Act 1925, which initialed a different system of land registration). This Act, together with the Rules, regulate the role and practice of HM Land Registry.
The Land Registration Act 2002:
- simplified and modernised the law of land registration
- makes the register reflect a more accurate picture of a title to land (shows more fully the rights and subsidiary interests which affect it)
- is intended to facilitate the introduction of e-conveyancing
This Act makes some major changes to the law regulating registered land. Specifically, it:
- enables shorter leases to be registered
- introduces voluntary land registration
- changes the system of protection of third party rights
- it reforms and modernises the law of adverse possession (squatters' rights)
[edit] Land Registration
Under s. 4 of the Act, registration of an estate in land is compulsory when one of the following events occurs:
- the freehold is transferred (this applies in all circumstances – e.g. it is sold, or is a gift)
- a legal lease for more than seven years is granted
- a legal lease with more than seven years to run is transferred
- grant of a first legal charge (a mortgage)
[edit] Grades of title
On first registration, the registrar awards a grade of title to each registered estate.
In the case of freehold estates, one of the following grades of title may be awarded according to s. 11 of the Act:
- Absolute freehold title - This shows there is nothing dubious about the title. The estate is vested in the proprietor and is subject only to entries on the register and overriding interests. Title does not have to be perfect - if the registrar believes that any defect will "not cause the holding under the title to be disturbed", absolute title will be given - s.9(3) LRA.
- Possessory freehold title – there is no documentary evidence of title (e.g. lost title deeds). Title depends on adverse possession. It conveys no guarantee of title at the time of registration, but subsequent problems (e.g. forgery of proprietor's signature) will be covered by the guarantee. It can be upgraded into absolute title after being in possession as proprietor for 12 years (s.62(1), (4)).
- Qualified freehold title - the title is subject to a fundamental defect. There is no guarantee in respect of the specified defect. It may be upgraded to absolute title if registrar is satisfied as to the title - s.62 LRA.
In the case of leasehold estates, one of the following grades of title may be awarded according to s. 12 of the Act:
- Absolute leasehold title - same to absolute freehold except the proprietor is also subject to covenants in the lease
- Good leasehold title - same as absolute leasehold except the right of the landlord to grant the lease in not guaranteed
- Possessory leasehold title - same as possessory freehold
- Qualified leasehold title - same as qualified freehold
[edit] Registerable dispositions
Dispositions subject to registration according to s. 27 are:
- any transfer of any legal estate
- the grant of a legal lease for more than seven years
- the grant of a legal lease taking effect in possession in three or more months from grant
- the grant of a legal charge (a mortgage)
- the grant of legal easement
According to s. 27(1): If a disposition is required to be completed by registration it does not operate at law until the relevant requirements are met.
[edit] Priority
According to s. 29 of the Act, a person acquiring a legal estate for valuable consideration, takes it subject to:
- a notice on the charges register
- unregistered overriding interests
All other interests are postponed to the interest under the disposition - ie the successful purchaser's interest gets top priority.
[edit] Restrictions
A restriction on the proprietorship register prevents the registration of a disposition unless complied with. This is the appropriate way of registering equitable family interests which arise under a trust (of land). A restriction does not protect the priority of the interest, nor any right of occupation - it notifies the purchaser of the interest and allows the purchaser to overeach. (Law of Property Act 1925; Trusts of Land and Appointment of Trustees Act 1996)
[edit] Notices
According to s. 32 of the Act: A notice is an entry on the [charges] register in respect of a burden of an interest affecting a registered estate or charge.
According to s. 33, the following interests cannot be protected by a notice:
- the interest of a beneficiary under a trust
- a lease granted for less than three years
- restrictive covenants in a lease
According to s. 34, all other interests may be protected by a notice. Examples incude:
[edit] Adverse possession
The Act is known for the changes it has made to the rules regulating adverse possession in relation to registered land (the rules applicable to unregistered land remain the same, and 12 years occupation nec vi, nec clam, nec precatio is still required to obtain title).
The Act provides that anyone who occupies registered land without permission from the owner and treats it as his own for 10 years is entitled to claim ownership. Specifically, according to paragraph 1(1) of Schedule 6 to the Act:
- A person may apply to the registrar to be registered as the proprietor of a registered estate in land if he has been in adverse possession of the estate for the period of ten years ending on the date of the application.
The Land Registry is then obliged to notify the registered proprietor of the land that an application for possessory title has been made, so the owner of the land can seek to regularise the position (for example, by starting court proceedings, or evicting the occupier, or granting the occupier permission to remain). If the registered owner of the land does nothing, the ocupier may reapply to the Land Registry two years later and will be registered as the owner of the land.
The new rules regulating adverse possession can be found in Part 9 of the Act, and the rules regulating the procedures for registration of an adverse possessor can be found at Schedule 6 to the Act.
These rules are much more difficult to satisfy than the common law with regard to adverse possession.
[edit] See also
[edit] External links
[edit] Original legislation
- Full text – Land Registration Act 2002 (please note that amendments may have taken place and the current form of the Act may differ substantially from this version)
