Legal Interests That Override
Land leases (as opposed to leases of leases, profits, franchises, manors or easements) that do not need to be registered are overriding interests (this is the effect of paragraph 1 of Schedule 1 and paragraph 1 of Schedule 3 of the Land Register Act 2002). See also section 90 (5) of the Land Register Act 2002). This means most, but not all, leases granted for seven years or less. Registration requirements differ slightly for leases of registered titles (section 27 (2) (b) of the Land Register Act 2002) and unregistered (section 4 (1) (d), (e) and (f) of the Land Register Act 2002), see Practical Guide 25: Leases – When is registration for more details. It therefore contains two separate lists of interests with a higher status. You must disclose the interests (unless they are an interest of a nature mentioned under Undisclosed Interests) that are actually known to the person applying for registration. There is no need to conduct a special investigation, although you may need to explain to your client what interests should be disclosed. This publication is available to www.gov.uk/government/publications/overriding-interests-and-their-disclosure/practice-guide-15-overriding-interests-and-their-disclosure disclosure of interests of the type referred to in sections 33 and 90 (4) of the Land Register Act 2002 and Rules 28 (2) and 57 (2) of the Land Register Regulations 2003. These are: Please note that Her Majesty`s Land Registry Practice Guidelines are primarily intended for lawyers and other funders. They often deal with complex issues and use legal terms. You must complete box 11 of Form FR1 if overriding interests must be disclosed. However, they are only required to declare their interests on the DI form if they are not the result of an examination of the title deeds and documents (Rule 28(2)(b) of the 2003 Cadastral Code). If there is an interest in disclosing, you must submit an additional form, Form DI (Rules 28 and 57 of the Land Registration Code 2003).
This guide explains Her Majesty`s Land Registry`s approach to the best interests that applicants must disclose when disposing of the registered estate and when first registering. It provides details on the impact of the Land Registry Act 2002 and the Land Registry Code 2003 on overriding interests and sets out the procedures you must follow when disclosing these interests. In the case of registrable provisions, the situation for legal easements and profits was the same as for first registrations up to 12 October 2006 (this is the combined effect of paragraph 3 of Schedule 3 and paragraph 10 of Schedule 12 of the Land Register Act 2002). Since October 13, 2006, there have been some exceptions. A statutory easement or unregistered profit will only prevail over registered dispositions if they: The existence of overriding interests is a common issue in a transaction – it must be confirmed, rejected or `unknown` under the standard property information form used in England and Wales.  Nevertheless, a right to light on the adjacent property or land and clear and well-trodden paths through a garden or small business, for example, would be considered constructive knowledge in the context of the alleged inspection of the property in accordance with standard condition 3.1.2 (b) of the General Conditions of Sale, which exists according to the principle of caveat emptor (lat. buyer beware).  The Land Registry Act 2002 contains a number of mechanisms by which overriding interests are included in the register.
These include: In the case of a registered disposition, an interest that belongs to a person in actual employment at the time of the sale has the effect of a registered disposition, other than that disposition. The exceptions are: ⇒ Note: This paragraph deals with implied legal easements that have not been registered (the rule in Wheeldon v Burrows) as section 27 of the Land Registry Act 2002 states that the express grant of an easement must be registered in order to obtain legal status. ⇒ In summary, this paragraph protects property rights (i.e. rights in rem) belonging to those who, despite non-registration, have “actually” “effectively occupied” land. Thus, if you “effectively occupy” land and have an unregistered real right, your rights can be protected by exercising higher interests. ⇒ In other words, Schedule 3 to the Land Register Act 2002 lists 9 unregistered rights in rem which prevail over a newly granted/transferred right in rem, even if those listed rights are registered in the tax register. They therefore annul the orders registered under section 29(2)(a)(ii) of the Land Register Act 2002. You must disclose overriding interests when you apply for initial registration or registration of a registrable disposition of the registered estate. In a high-profile case, Williams & Glyn Bank v.
Boland, a woman managed to assert a primary interest in a property her husband had promised to support a bankrupt business. Although she had no legal (holder) interest in the property, she had made a significant contribution to the purchase and actually occupied the property, her overriding interest was maintained when the bank attempted to take possession of it.  Under the Land Registry Act, 1925, it was possible for an equitable servitude or profit to be a paramount interest if it was openly exercised and appreciated (Celsteel Limited v Alton House Holdings Limited  1 WLR 204; Thatcher v. Douglas (1996) 146 NLJ 282). This is no longer the case under the Land Registry Act 2002. One of the consequences of this transitional provision is therefore to preserve the preferential status of existing equitable easements and such benefits. But it can only affect land that has already been registered; Only legal easements or benefits can now prevail over the initial registration. In all cases, the principles of misrepresentation apply in personam (against the person and not to tie up property), which may instead be bound by prescribed easements. Section 8.4 of the Standard Seller Law Society Standard Property Information Form requires the seller to confirm or deny known examples of such interests, except for leases signed under the purchase agreement.  The treatment of leases is the standard 3.3 purchase condition on the part of the seller and the standard special condition on the back that the property is sold with a vacant property.  Overriding interest is interest to which a registered security is subject, even if it is not entered in the register.