Any encumbrances to which the former title was subject and which still subsisted in relation to the new estate would be entered in the register of the new title. Lastly, if the proprietor of a registered estate or a charge acted in good faith but relied on a forged document, then he shall be treated as if he had suffered loss because the register was rectified so as to be entitled to indemnity. The Act confines protection of this class of interest to those in actual occupation. 133.Some 300 - 500 freehold estates escheat to the Crown every year. 256.Examples of the second condition (some other right to the land) might be: The squatter is entitled to the land under the will or intestacy of the deceased proprietor. To enable an effective system of electronic dealing with land, the register should be a complete and accurate reflection of the state of the title of the land at any given time, so that it is possible to investigate title to land on line, with the absolute minimum of additional inquiries and inspections. This means, for example, that rectification relates back to the time when the instrument was executed and after rectification the instrument is to be read as if it had been drawn up in its rectified form. These are dealt with in Part 2, Chapter 1 of the Act. 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. Land registration in Northern Ireland is operated by Land and Property Services, an executive agency within the Department of Finance and Personnel for Northern Ireland. 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. 25.Subsection (2) continues the existing law, stipulating who is entitled to apply to be registered as the first registered proprietor. The Lord Chancellor can, as now, make regulations to cover the situation when a vacancy arises in the office of Chief Land Registrar and can make an order specifying which office deals with particular applications. 123.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. 54.One way in which a title to land may be defective is that owners can have limited powers, and may purport to make a disposition beyond them. The right to object is subject to rules. This office is new and its function will be to determine any contested application to the registrar that cannot be disposed of by agreement between the parties. It will, therefore, best be introduced in stages, starting with the simplest transactions and progressing to the more complex. In the Act, the categories of interests which are not registrable appear in two distinct lists, one relevant to first registration of title, the other to dealings with registered land. Apart from an estate, land may have the benefit of or be subject to other interests, which are rights and obligations relating to the land, belonging to the owner or to a third party. 13 October 2003 These sections create three new offences, which replace those offences. As now, the registrar is supported by staff who may be authorised to carry out any of his functions. The Law Commission and the Land Registry recommend that this should not continue on the grounds that it is an anachronism. 177.A right of pre-emption is a right of first refusal. The registrar can pay those costs if he consented to the costs being incurred in advance or one of two other situations have arisen. This means She is unable to get the benefits of registration, current and under the Act. However, the Land Registration Act 1925 made registration compulsory and it was gradually phased in until by 1990 any transfer of land or property triggered the need to register it at the Land Registry. An explanation of the two categories of lease granted out of the registered estate that are not registrable (a lease of less than seven years or less, or a London Transport Public/Private Partnership Lease) is to found in paragraphs 26 and 145. 196.At present there is an offence concerned with the suppression of documents and facts relating to title in proceedings before the registrar or court and one concerning the fraudulent procurement of changes to the register or to any land or charge certificate. Where a person applies to be registered as proprietor of a freehold estate, he or she may (as now) be registered with an absolute, qualified or possessory title. Charge certificates will be abolished, and land certificates will have a less important role. 295.Paragraph 18 amends the Housing Act 1985. In relation to the execution of electronic documents by agents the provision has the effect that where a document covered by the section is authenticated by an individual as agent, it is to be regarded as having been authenticated by him or her under the. Grants of a lease out of an unregistered legal estate under the right to buy provisions of Part 5 of the Housing Act 1985 will also be subject to compulsory registration (replicating the present law). a contract for sale or a restrictive covenant). There are two exceptions. The Act makes this distinction so that the existing concept of overriding interests is not brought forward into the Act. This is a change from the current legislation but reflects how the lending industry currently works in practice. the person to whom the disposition was made had no notice of the bankruptcy petition or the adjudication. Under this section the Lord Chancellor may, after consulting such persons as he considers appropriate, by order reduce the length of registrable leases. If electronic conveyancing is to maximise the savings and benefits for the user, however, it must become the only system. 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. The current legislation does not clearly establish that a person can rely upon the register to say whether there are any limitations on the powers of a registered proprietor, and safely act in reliance upon it. 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. They are: disposing of an objection to an application (see section 73(7)); dealing with refusal to grant a network access agreement, and disputes over the level of access applied for, or the termination of such an agreement (see paragraph 4 of Schedule 5); and. The Act makes this distinction so that the existing concept of overriding interests is not brought forward into the Act. Rules will govern how those rights are exercised, including the requirement to pay fees. So, those who have the benefit of such rights are not at risk of losing them. Entry in the Unified State Register of real property rights is a necessary and sufficient condition for the emergence of property rights to real estate. It is envisaged that when land escheats, the Treasury Solicitor or the Crown Estate will apply for the entry of a restriction in the register. PPP leases are to be treated as if they had been included in Schedule 1. Subsection (2) provides that a unilateral notice must indicate that it is such a notice, and identify the beneficiary. The buyer discovers that he or she has no title to the land. This is part of the strategy of the Act to eliminate, where practicable, overriding interests and ensure that they are entered in the register. The provision is necessary because section 4(1) only applies to certain dispositions of, and grants out of, existing estates and demesne land is not an estate in land. If it appears that the debtor is, the registrar must register a creditors notice against the title of any land or charge that appears to be affected. The section therefore provides that any transfer of, or the grant or reservation of any legal estate out of, registered land, is a registrable disposition. Any encumbrances to which the former title was subject and which still subsisted in relation to the new estate would be entered in the register of the new title. 310.Paragraph 7 is discussed below under Adverse possession. It is envisaged that the registrar will carry out the electronic transactions on their directions, and that this service will be available from district registries. Only the owner of the relevant estate, or such people as are prescribed by rules, can apply for cancellation. The notes need to be read in conjunction with the Act. 64.Lease out of franchises and manors are made registrable under subsection (2)(c). 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. Section 93 contains the power to require transactions which involve registration to be done electronically at the contract and completion stages. Any contested application for rectification will therefore be resolved by the adjudicator. It has no equivalent in the current legislation because of differences of drafting in specifying the dispositions which are subject to the requirement of compulsory registration in the 1925 Act, and in the Act. The Act will replace cautions against dealings, inhibitions, existing notices and restrictions with notices and restrictions. The last order was made in 1990, so now virtually all transactions in land result in compulsory registration. As such, as long as the squatter is in actual occupation the priority of his right will be protected in relation to registered dispositions. 304.So, under paragraph 2, existing notices under the Land Registration Act 1925 are to have the same effect as notices under the Act. 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). By contrast, where the court has granted a freezing injunction the court might also order a restriction on the making in the register of an entry in respect of any dealing. 194.If rules were made under this section and other provisions of the Act it might, for example, be possible to make a combined application in electronic form to the Land Registry to register the charge in the register and for that application then to be forwarded to Companies House for registration in the Companies Register. 124.Section 76 enables the registrar, subject to rules, to make an order for costs in respect of proceedings before him. 145.London Transport Public/Private Partnership leases will arise out of the arrangements for the future running of the London underground railway. Franchises originate in a royal grant, such as a right to hold a fair. 218.Paragraph 2 provides that on a transfer of the whole of the registered estate, the transferee (or any person who has acquired the estate from him) must be entered in the register as proprietor. 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. A person may be registered with absolute title if the registrar considers that the title is such as a willing buyer could properly be advised to accept. This requires registration of a conveyance of a freehold estate, a grant of a lease of more than 21 years, and an assignment of leasehold land with more than 21 years to run. one which on creation ranks in priority ahead of other mortgages affecting the mortgaged estate) out of a legal freehold estate, or a lease with more than seven years to run. [24] Land registration is governed by the Land Transfer Act 1952.[25]. It is an invisible line dividing one person's land from another's. a lease granted by a private sector landlord to a person who was formerly a secured tenant and has a preserved right to buy. Compulsory registration will also apply where a lease is granted to take effect more than three months after it is granted. 251.At present, where a squatter has been in adverse possession for the required period the registered proprietor holds the registered estate on trust for the squatter. Special provision is made in relation to applications for registration of title based on ten years adverse possession (see paragraph 1 of Schedule 6). It is likely that solicitors and licensed conveyancers will wish to review their procedures for taking instructions from their clients to ensure that electronic signatures are properly authorised, as a matter of proper professional practice. 30.Registration will be compulsory where section 171A of the Housing Act 1985 applies (i.e. Again this section replicates this procedure but because the Act prospectively abolishes inhibitions, the registrar is required to protect a bankruptcy order by the entry of a restriction. The cautioner will only be required to defend his or her caution when an application for first registration is made. The appointment is subject to the provisions of JUPRA which provide for a compulsory retirement age of 70 years, subject to the possibility of annual extensions until the appointee is 75 years of age. 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. About Compulsory First Registration. When did you need to register your property with the land registry? 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. It is similar to but not the same as an option, because the grantee can purchase the property only if the grantor decides that he or she wants to sell. This piece of legislation brought into place 'compulsory registration' - an obligation to register property dealings at the Land Registry. Land registration was first introduced to England and Wales by legislation of 1862 and 1875. Franchise: a grant from the Crown, such as the right to hold a market or fair, or to take tolls; under the Act a franchise may be protected by registration under a separate title. The Act removes the difficulties created by the current law. 121.Section 73 provides that, subject to two qualifications, anyone may object to an application made to the registrar. Additional rules may deal with the functions of the adjudicator following a court decision on all or part of the issues in the case. This means She is unable to get the benefits of registration, current and under the Act. A registered deed took precedence over an unregistered deed. It is therefore proposed to bring paragraph 5(4) into force one year after the rest of Schedule 6. It has largely been repealed, and updated in the Land Registration Act 2002. The section also includes a further deeming provision. The grant of a lease exceeding seven years in length will under the Act trigger first registration. Local land charges usually relate to the costs of repairing a property or amenities in the immediate vicinity of the property and are governed by the Local Land Charges Act 1975. Because all sales of freehold land are required to be registered, the Registrys figures are the most accurate available. The right in respect of an embankment or sea or river wall is a liability falling on a person whose property fronts the sea or a river. Registration at Land Registry constitutes notice of the lease to all parties and for all purposes. Where there is a disposition, they must therefore travel from disponor to disponee, and then to the Land Registry for registration. When freehold or leasehold title is upgraded to absolute, the registered proprietor ceases to hold the estate subject to those rights. Uniquely, the Crown has dominion over all land as lord paramount. A fundamental principle of registered conveyancing has always been that registration vests the legal estate in the registered proprietor. C could therefore, in exercise of his paramount powers as mortgagee, sell the land free from Bs right of pre-emption. It does not affect the priority of competing charges over a companys property. Indemnity: payment to a person who has suffered loss in relation to the matters set out in paragraph 1 of Schedule 8, for example, where there is a mistake in a register. [23], New Zealand uses the Torrens title system, which it adopted in 1870, replacing the deeds registration system. Scotland is one of the first countries in the world to have a system of land registration. Kidderminster- 01562 820575. The Act adopts a double strategy. Registered proprietor: the registered owner of a freehold or leasehold estate, or a registered charge, rentcharge, manor and, following the Act, franchise or profit prendre in gross. The registered proprietor can stop the squatter from acquiring title by objecting to his or her application for registration. Subsection (1) specifies the legal estates that may be registered. Because it is an entry to regulate the circumstances in which a disposition of a registered estate or charge may be the subject of an entry in the register, no restriction can be entered in respect of dealings with interests the title to which cannot be entered in the register. The transitional provisions ensure that such existing entries have a continuing effect. The legal estate will therefore vest in the first registered proprietor together with such interests as (for example) the benefit of any easement and profit prendre that is appurtenant to the estate. (3) As from 1st March. Under the Limitation Act 1980, section 28 a person under a disability must be suffering it when adverse possession commences. 244.Paragraph 8 Under the present law, a conveyancer does not have implied authority to sign a contract for the sale or purchase of an interest in land on behalf of his or her client. If several landowners have made an agreement that the natural boundary changes will not have that legal effect, for example in relation to the location of a stream, then that agreement will only take effect if it is registered. Under the Act, again subject to statutory exceptions, a lease granted for seven years (rather than for 21 years as at present) or less cannot be a registered estate, but will override first registration and registered dispositions, even though not mentioned in the register. 274.Under paragraph 14 rules must be made to apply the provisions of this Schedule to registered rentcharges. The claim will therefore be barred six years after the cause of action arose. In 2015, the State Duma has been registered a bill that covers public access to information about the owners of the property. Secondly, the electronic document must bear the electronic signature of each person who must authenticate it. It is concerned primarily with the protection of third party rights over or in relation to a registered estate or charge. 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. The Law Commission and the Land Registry recommend a fundamental objective. [19] It is operated by HM Land Registry. Although the point is not finally settled, the weight of authority favours firmly the view that Bs right or inchoate equity which arises after he has acted to his detriment but before the court can make an order giving effect to it is a proprietary, and not merely a personal right. However, section 55 provides that a local land charge that secures the payment of money must be registered at the Land Registry before that money can be realised. 1862 159.Even though no period of limitation runs in relation to a registered estate in land or a registered rentcharge, it will still be possible for a person in adverse possession to be registered in place of the proprietor of a registered estate or rentcharge. In addition, where the transaction is part of a chain, the conveyancer might have to disclose information about the transaction itself that the client regards as confidential. 156.At present, in broad terms, where a squatter has been in adverse possession of land for the required period (the basic period is twelve years, the period within which actions for the recovery of land must be commenced), the proprietor of the land holds the land on trust for the squatter who may apply to be registered as proprietor of a new estate, where the registered land is freehold, or as proprietor of the registered estate where that estate is leasehold. Subsequent to first registration, a charge is created that does not have to be registered to have effect at law, as in relation to certain local land charges (cf section 55 below). If a person entitled to apply applies for a form of restriction not prescribed by rules then the registrar may only approve the application if it appears to him that the terms of the restriction are reasonable and that the application of the proposed restriction would be straightforward and not place an unreasonable burden on him. The sole purpose of section 52 is to protect the rights of someone in whose favour a disposition is made by a chargee. In normal circumstances the adjoining landowners title would be extended or diminished as a result of the changes. There is uncertainty as to the legal position of rights of pre-emption. Restrictions are retained under the Act, but in altered form. Lastly, subsection (9) deals with electronic documents executed without a seal on behalf of a company. 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