Registered Land (II): Operation of registered land
- Classes of title: The proprietary register of the land registry tell you the nature of the property+ describe the quality/grade of the title.
Quality of the title: Introduction of the registered land, since most of the land is unregistered, is difficult to find who owns it better.
a) S9, s10 LRA 1925 provided 7 grades of title:
• Absolute freehold:
-Does not mean that the title is absolutely free of defects or encumbrances.
-Relatively safe, even there’s a minor defect, it will not affect the quality
a) S11 (4)-(5) LRA 2002: An absolute freehold is free from all encumbrances except:
1. Interests noted on register=Registering the interest
2. Overriding interest
3. Squatter’s rights where proprietor has notice
4. Right of beneficiaries in a trust
• Qualified Freehold: S9(4) LEA 2002: If the registrar is of the opinion that the person’s title to the estate has been established only for a limited period/subject to certain reservations which cannot be disregard
-A qualified freehold essentially informs potential buyer that the land might be encumbered which has yet to be uncovered.
-Upgrading of qualified freehold: Is possible if the registrar is satisfied that the defect/potential defect is no longer of concern
Buying a freehold unregistered land
Trace root of title
Less than 25 years=Qualified Freehold Upgrading More than 25 years=Absolute freehold
• Possessory Freehold: Adversely possess other people’s land
-Rare, occurs generally when land is registered without a title deed & based on evidence of occupation only
-Can arise when title to land is acquired through adverse possession
-Danger of possessory freehold: The risk of someone with a better title might appear
-Upgrading of possessory freehold: Possible, Limitation Act 1980: As long as the possessor is in possession of land, title may be upgraded after 12 years, without force, secrecy, permission
-Take the land with what encumbrances you must take it to the good interest. You would not know what interest is attached in an adverse possession. Hence, the land register would not allow an adverse possession to turn in to an absolute freehold but only a qualified freehold unless nothing happens after.
-A lease must satisfy this section S2LPMPA Equitable Lease Deed Register • Absolute Leasehold: A title free form encumbrances as in the absolute freehold
-Even it is free form encumbrances, does not mean it’s free form covenant.
-When registering a leasehold title, a person must not only concern with whether his lease title is correctly passed down, he need to also concern with whether his lease title is correctly passed down+ check whether the person granting the lease is entitled to do so
-An absolute leasehold is a title free from encumbrances as in the absolute freehold
• Good Leasehold: If registration of leasehold title cannot satisfy the registrar that the title is absolute, then the registrar can grant a good leasehold: S10 (3) LRA 2002 (Where the superior title of the lessor cannot be guaranteed)
a) Bruton v London and Quadrant Housing Trust: A local council gave the developer a license to use land to accommodate the homeless. Mr Bruton agreed with the Trust to pay weekly rent for a flat. He claimed he was a tenant, and the Trust had an obligation to repair the flat. Bruton does not have proprietary interest. The court held that the agreement did create a tenancy and the trust was therefore under an obligation to repair. Lord Hoffmann held that it did not matter that the landlord did not have a property right in its title. Exclusive possession is the essence of a lease, and irrelevant that the agreement purported to be a license. A lease may, and usually does, create a proprietary interest called a leasehold estate or, technically, a “term of years...
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