There are no other registration requirements as details of the new owner simply replace those of the old. This is not the case in relation to an electronic document covered by this section as the document is not a deed, merely treated as if it were. Initially registration was voluntary. The section lists the persons who have a right to apply for the upgrading of the title but also provides that if there is a claim outstanding at the time that the power to upgrade would be exercised, which is protected by the fact that a lower grade of title has been awarded, then the registrar cannot exercise his power. Information: It is currently expected that the majority of the provisions of the Land Registration Act 2002 will come into force on Monday 13 October 2003, although the e-conveyancing sections will not become operational for some time. Subsection (2) is designed to prevent subsection (1) overriding the rule in relation to registrable dispositions that a disposition only operates at law when all the relevant registration requirements have been met (i.e. 29.Under subsection (3), transfers do not include transfers by operation of law (where, for example, an owners property vests in personal representatives on death). Special provision is made in relation to applications for registration of title based on ten years adverse possession (see paragraph 1 of Schedule 6). The current law relating to escheat also creates significant problems for the effective management of escheated land by the Crown, if it is to avoid the liabilities attaching to the property and which have led to the escheat. The fact that none of the matters is capable of falling within paragraph 2 of Schedule 1 or Schedule 3 means that their priority has to be protected by means of an entry in the register, under the Act either a notice or a restriction. The intention is to ensure that it is clear on the face of the register if someone has powers of disposal over registered land. If the law relating to rights of pre-emption is as discussed above, then this Act will change the law in its application to registered land so this section provides that it applies to rights of pre-emption created on or after the Act comes into force. Although one or two areas of souvenir land have been designated, the Land Registry has found a more effective way of dealing with the plots within the land registration system. After satisfying certain payments, any surplus is held on trust for the person entitled to the mortgaged property (section 105 of the Law of Property Act 1925). It therefore corresponds to section 26. If the term is seven years or less a notice in respect of the lease must be entered in the register. This residual power follows in the foot steps of section 144 (1) (xxxi) of the Land Registration Act 1925. It is the means by which an electronic document can be authenticated as that of the party making it. 316.Similarly, where a local land charge whose status as such was preserved by the Local Land Charges Act 1975 is presently protected under section 70(1)(i) it will, by virtue of paragraph 13, be protected under paragraph 6 of Schedule 1 or Schedule 3. It also modernises procedures for returning to economic use land which has reverted to Crown ownership (usually in the course of insolvency proceedings). Nor does the priority of a local land charge need to be protected by registration. An example of a settlement might be where A has a beneficial interest for life, and is registered as registeredproprietor of the land, and when A dies B is entitled to the land absolutely. The registers created under that system were not updated after 1875 but the Land Registry Act 1862 remained on the statute book. 5.Before the introduction of registration, there was only one way to establish the sellers right to sell a property. When an application for registration is successful, in the case of a squatter in respect of a registered freehold, he or she is registered as proprietor of a new freehold title and the existing freehold title is closed insofar as it relates to the land squatted upon. There is a similar power under the present law, although the new one is exercisable only after consultation. 45.Subsections (6) to (8) prescribe the effects of the registration of a lease with good leasehold title, qualified title and possessory title respectively. This category is considerably narrower in scope than the category existing under the current law, which treats the receipt of rents and profits as occupation of the land. The adjudicator will continue in office until the term of the appointment ends. Under section 128, such an order will be subject to annulment in pursuance of a resolution by either House of Parliament. This provision is new, and is designed to avoid a conveyancing trap that such reversionary leases may create. The effect of. Lodging a caution against first registration is not, however, a substitute for first registration of title, and substantive registration should occur wherever possible. No details will be on record for any land which has not had a relevant transaction recorded as will often occur if, for example, ownership was last transferred before the introduction of compulsory registration in a particular area. The substitutions of paragraphs 4 and 5(2) of Schedule 9A to the 1985 Act are intended to have the effect of replacing the existing provisions with similar but clearer provisions. At present the benefit of a right of way contained in a lease is not recorded in the landlords title. Most grants of a legal charge are registrable dispositions. Demesne land: land owned by the Crown absolutely and over which Her Majesty has dominion as lord paramount. The provisions of the Act involve a move from a position where there is (generally) a 12 year limitation period to where there is no limitation period as such, but where it is possible for a squatter to be registered as proprietor after 10 years adverse possession. Initially registration was voluntary. Previously no notice would have been given to those chargees as the entry of the details of the statutory charge into the register does not change the priority order that existed before the entry was made. A possessory title preserves the rights of any person with a superior estate that might come forward, and a qualified title the rights of any person which are covered by the qualification (see sections 9 and 10). Transitional arrangements will be needed to cover the case of certain squatters who mistakenly believed themselves to be the owner of the land under paragraph 5(4). This section includes a right to appeal to the county court. Under the transitional arrangements in paragraph 14 of Schedule 12, the new provision will have effect two years after the rest of the section is brought into force. If C is registered as proprietor even though he has notice of As rights, A will be able to seek alteration of the register. The person who suffers loss will be entitled to indemnity in accordance with paragraph 1 of Schedule 8. This means that it can be protected by entry of notice in the register, or, where the claimant is in actual occupation of the affected land, as an interest whose priority is automatically protected without the need for registration. The general law applicable to orders of the High Court also applies to orders made by the adjudicator under this section. They are not, and are not meant to be, a comprehensive description of the Act. Under the existing law, there is a presumption that a registered charge takes effect as a charge by way of legal mortgage, unless there is clear provision to the contrary, or it is made or takes effect as a mortgage by demise or sub-demise. Registrable dispositions, when registered, confer a legal estate, and are therefore given special priority provided for in sections 28 to 30. The section specifically provides that a document varying the priority order of registered charges is included within the dispositions of registered charges covered by the section. Adverse possession: occupation by a squatter, without the permission of the owner, with the intention of owning the land. Although unresolved contested applications must be referred to the adjudicator, there will be many instances of proceedings before the registrar, such as the examination of the title deeds supporting a first registration application. First, as now, the parties may request it. Lastly, subsection (9) deals with electronic documents executed without a seal on behalf of a company. 56.Owners powers can be exercised both by the registered proprietor, or someone entitled so to be registered, such as the personal representatives of an owner who has died. The words substituted for paragraph 6(1) will have the equivalent effect under the Act in that if the rights of qualifying persons are not protected by notice in the register they will be liable to lose their priority to a registered disposition under section 29. He or she is also liable to indemnify the disponor or mortgagee in respect of any other liability reasonably incurred because of the failure to register. The general law applicable to orders of the High Court also applies to orders made by the adjudicator under this section. Access essential accompanying documents and information for this legislation item from this tab. The effect of this doctrine is that a chargee who has granted more than one mortgage to a borrower may sometimes gain the same priority for a later charge as he has for the earlier one. [22] The Govt. Estates, which derive from feudal terms of tenure, originally took many forms but were reduced by the Law of Property Act 1925 to two, an estate in fee simple absolute in possession, generally known as freehold; and an estate for a term of years absolute generally known as leasehold. Examples of demesne lands of the Crown are: most foreshore, land which has escheated to it and its ancient lands which have never been granted as a freehold estate. This section therefore provides that an affected proprietor or person entitled to be registered as proprietor of the affected estate or charge may apply for cancellation of a unilateral notice. The requirements reflect the way in which transfers of charges and the creation of sub-charges are currently recorded. Demesne land is land in which no fee simple subsists and so belongs to the Crown absolutely. 163.Subsection (7) enables rules to made about the recovery of rentcharges. Qualified title is extremely rare but it might be appropriate, where, for example, the transfer to the applicant had been in breach of trust. It does so by enabling the formal documents to be executed electronically; and providing for a secure electronic communications network. Except for the cases explicitly provided for by law, the respective agreement becomes binding only upon its registration. The registered proprietor will, however, be notified of that application and will, in most cases, be able to object to it. Disponors who have acted beyond their powers can, therefore, be called to account, and a disponee may not escape liability if privy to the disponors conduct. It deals with the following issue. The section therefore amends the current law by leaving out this exception. Subsections (2), (3), (4) and (5) prescribe the effect of registration of a lease with absolute title. It was created in 1862 to officially record the ownership of property and land in England and Wales. If the disposition is not registered within the required time, it becomes void as regards the transfer or creation of a legal estate or mortgage. There is no binding contract because the agreement does not comply with the formal requirements for such a contract. A lease granted for three years or less at present, subject to certain statutory exceptions, a lease granted for 21 years or less cannot be a registered estate and a notice cannot be entered in respect of such a lease but it is protected as an overriding interest, even though not mentioned in the register. Such first tenant liability has been abolished for leases granted after 1995 by the Landlord and Tenant (Covenants) Act 1995. If he or she has been in possession of it for ten years he or she can apply to be registered as proprietor. In principle, all dispositions that create or transfer a legal estate by express grant should be subject to some form of registration, whether with their own titles or by the entry of some form of notice on the title which is subject to them. In a paper-based system, documents have to be executed by the parties and then exchanged and delivered. Jo Henssen, BASIC PRINCIPLES OF THE MAIN CADASTRAL SYSTEMS IN THE WORLD, CS1 maint: multiple names: authors list (. Rules will, however, be able to specify circumstances in which owners should be entitled to apply (where, for example, the interest protected by the caution had terminated). A similar procedure applies when a debtor is adjudicated bankrupt and a bankruptcy order is made against him or her. 195.The current land registration system began in 1875 under the Land Transfer Act 1875. The general principle set out in subsection (1) of this section is likely, in time, to be superseded. It will, therefore, best be introduced in stages, starting with the simplest transactions and progressing to the more complex. Purchasers had to satisfy themselves from the title deeds, searches and inspection of the land that the seller had power to sell the land, and that it was subject to no undisclosed obligations. Those Acts provided only for voluntary registration of title, and few titles were registered until the Land Transfer Act 1897 made registration of title compulsory in dealings with land in the County of London. it has been exercised within the period of one year before the disposition. 81.In order to register certain registrable dispositions, it is necessary to enter a notice in respect of that interest on the title of the registered estate burdened by it. 91.The purpose of this section is to protect a registered proprietor against the unjustified entry of a restriction against his or her title. Unless one of these three methods is used, the first chargee must get the consent of any subsequent chargee to obtain priority for his further charge over any subsequent charge. Qualified title may be registered if either the applicants title or the lessors title to the reversion can only be established for a limited period, or is subject to reservations. Thus each state will define the officials, authorities, and their functions and duties with respect to the ownership of land within that state, as is more fully described in the specified main article. TIL 15% (5.2 million acres) of land in England is . In practice, land is registered with a possessory title where the basis of the application is adverse possession, or where the applicants title cannot be proved (usually because the title deeds have been lost or destroyed). This provision replicates the current position, which sets out two different bases for assessing the maximum sum allowed. Such a restriction would have an effect similar to that of an inhibition at present. Firstly, until a decision has been made about the correction of a register by rectification, no entitlement to indemnity arises in respect of a mistake in a register. 112.Section 65 incorporates the provisions contained in Schedule 4. 274.Under paragraph 14 rules must be made to apply the provisions of this Schedule to registered rentcharges. It preserves the rights of those who are entitled to be registered prior to its coming into force, but it also abolishes the trust in their favour. Where the mortgage relates to unregistered land, the mortgagee should search the Land Charges Register to discover the existence of any subsequent mortgages because registration constitutes actual notice. As under the current law, that will not include a nominal consideration in money, where the general rule of priority applies. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts. As now, there is a power by rules to make provision to enable the mortgagee to require the estate charged by the mortgage to be registered, whether or not the mortgagor consents. It also contains power to prescribe which dispositions of interests the subject of notices in the register are caught by the requirement (at present the transfer of noted interests are not recorded in the register, see also paragraph 149 noting section 91(7)). 48.Section 14 confers a power to make rules in relation to various matters concerning first registration. The rules about the information to be kept in the register, and its form and arrangement, will enable it to be translated into electronic form, in due course. It should be noted that one of the effects of the introduction of electronic conveyancing as provided for in Part 8 will be that dispositions will be simultaneously executed, communicated electronically to the registrar, and registered and section 93 contains powers for that to be made compulsory. Land Land Registry, Census data etc. Section 99 incorporates the provisions in Schedule 7. First, compulsory registration is triggered by specified types of transfer of a qualifying estate, which is defined as either a legal freehold estate, or a legal lease with more than seven years to run. Profit prendre in gross: these are rights with an independent existence such as the right to hunt or shoot game or to harvest crops; under the Act a profit may be protected by registration under a separate title. Paragraph 1 therefore provides for a person who is not a member of the land registry to have access to the land registry network but only by means of a network access agreement made with the registrar. There could therefore be a perception that he is not sufficiently independent. 306.The entries referred to in paragraph 3 are notices of deposit or notices of intended deposit of the land or charge certificate entered in the register prior to 3 April 1995 which operate as a caution under section 54 of the 1925 Act. Section 54 changes the law. If, however, an applicant meets the criteria laid down in rules, the registrar must enter into an agreement with him (and paragraph 4 provides for appeals against refusal of access). Rules will cover the way in which this is recorded. Rules may provide, for example, that notice be served on the liquidator of a company which was the registered proprietor. Secondly, rules may make provision for the registration of a person as the proprietor of an unregistered legal estate which is a charge on a registered estate. An example of where it might be appropriate for the registrar to exercise his power is if the restriction requires a consent by a named individual and he or she has disappeared. 63.An explanation of the categories of lease which are registrable under subsection (2)(b) is to be found in paragraphs 30 to 32. Rectification is limited to the situation where a mistake is to be corrected, and where the correction also prejudicially affects the title of the registered proprietor. Freehold estate in land: the Crown is the only absolute owner of land in England and Wales: all others hold an estate (i.e. Furthermore, only registration makes the transfer opposable to third parties.[7][8][9]. 225.The Act separates out those interests which are binding on the first registered proprietor from those interests which bind the person to whom a disposition is made on a subsequent disposal of registered land. When an applicant seeks first registration of title, whether or not he is bound by an existing interest has already been determined under the principles of unregistered conveyancing. Secondly, an easement, right or privilege granted under the operation of section 62 of the 1925 Act (a so called word-saving provision that is taken to import certain words into a conveyance unless its effect is excluded) is not regarded as an express grant for these purposes, so as to require registration. 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