A concise, accurate and detailed summary of how to approach a problem question on overriding interests with example answer sentences. Structure and approach helped me achieve a first class in the final exam.
PQ
A. Introduction
Identify the registered owner, estate & transaction.
Exp: Ruben (“R”) is the new registered proprietor having purchased the legal freehold title to 41 Oak
Lane
from Luke for valuable consideration.
Outline: [X] is the new registered proprietor of [estate name] having purchased the legal freehold title
from [Y] for valuable consideration : s 29(1) LRA.
Identify interests and persons affected in relation to the estate.
Consequently, [A] [B] and [C] and their subsequent interests of [a] [b] and [c] are affected for lack of
continuation through registration onto the register, as s 29 LRA provides “any unregistered interests
shall be postponed to the purchaser”.
Outline rule of priority under s.29 in relation to a purchaser for valuable consideration.
The mirror principle indicates that all interests relating to the
land will be reflected on the register.
The mirror principle indicates the reflection of all interests relating to the land on the register.
However, s.29 of the Law of Property Act 1925 (“LPA”) provides
there are interests that will bind purchasers which do not appear on the register, i.e. overriding
interests - the crack in the mirror principle. This exposes is the crack in the mirror principle in relation
to the register, as purchasers will be
bound by things that do not appear on the register.
However, s.29 of the LRA provides
there are interests that will bind purchasers which do not appear on the register, i.e. overriding
interests - the crack in the mirror principle.
However, s.29 of the LRA provides that there are interests binding on the purchaser despite abcense
on the register, known to be a “crack” in the mirror principle : overriding interests.
Further, the existence of overriding interests contradicts the purposes of the LRA of protecting
transactional security, as it undermines the security supposedly provided by the register by making
these imperceptable interests binding.
, Note the clear search indicates the respective interests are not registered but may still bind
the new owner as purchaser for valuable consideration if they meet the requirements of Sch
3 and have overriding status.
As R has received a clear search from land registry, this
means that the respective interests relating to the land for Mrs Marsh, Veronica, Penny and Tom
have not been protected on the register. If any of these interests do in fact have overriding status
though, as explained, they will bind R nonetheless.
As [X] has received an unhindered search from the land registry, [A] [B] and [C]’s respective interests
relating to the land could not have been protected on the register. Despite this, as explained, these
interests are capable of binding [X] nonetheless if proven to have overriding status.
Since the estate has been previously registered, the criterion the interests must meet (or rather the
exceptions they must fall outwith) are governed by Schedule 3 para 2 of the Land Registration Act
2002 (LRA).
B. Deal with each person’s interest separately
[A]
(1) Identify interest -> Is it capable of existing at law or only in equity?
(a) Existing in law : Have the formal requirements been satisfied? S.52 deed, s.1
LP(MP)A, registration s.27; or
(b) Existing in equity: Only exists in equity s.1 contract, s.2 lpa, out of an equitable estate
i.e. not registered
check : LPA https://www.legislation.gov.uk/ukpga/Geo5/15-16/20/section/1
Mrs Marsh (“M”) has acquired an equitable beneficial interest under an implied constructive trust for
the freehold of 41 Oak Lane.
[A] has acquired an equitable interest under an [...] for the freehold/leasehold of [estate name].
Could it have been protected on the register? S.32 or s.40 (check 42(1))
The interest could have been protected on the register via a unilateral notice (given it is unlikely for
[X] to agree to it under an agreed notice), as it is provided in Sch 1 yet not excluded by s 33 of the
LRA, provided there were no restrictions under s 40. This would allow for the protection of the
priority of the interest under s 29 if valid : s 32. This has not happened, as [X] had received a clear
search from the register. Thus, we must look to the interests’ qualification under Sch 3 of an
overriding interest.
[A] has an interest of …(from list of overriding interests)
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