ASSIGNMENT

Assignment



Assignment

a) Discuss with regard to the overriding interests protected under schedule 3 of the land Registration Act 2002, indicating how these differ from the overriding interests formerly contained in section 70 (1) of the LRA 1925 .

Ans- There has been mounting public pressure in more recent years that this ancient law on chancel repairs is now totally inappropriate and should be abolished. As a result, the government took some steps towards its withdrawal under the land registration legislation of 2002. Schedule 1 of LRA 2002 provides that the current status of chancel repair liability is as an overriding interest. In practice, this means that a buyer might buy land with no notice of its existence and subsequently be held liable to pay towards costly repairs. The legislation does not however affect landowners that retain personal land; they will still be liable irrespective of registration, until an onward sale. It is believed that around 5,000 churches in England and Wales may still benefit from chancel repair liability and the Church of England is actively encouraging these rights to be registered which howeverver possible. Interests in land which cannot be registered as separate titles are either overriding interests or interests which require protection on the register. Overriding interests are enforceable without being protected on the register and bind a registered proprietor and his transferee despite the fact he does not know of personal existence. This means overriding interests effectively detract from the principle which the register should be a mirror of the title. Under the old regime of the Land Registration Act 1925, overriding interests were listed in section 70 (1) which states these to be “all incumbrances, interests, rights, and power not entered on the register however subject to which dispositions are to take effect.” If however, an overriding interest appears on the register (as in Re Dance Way, West Town, Hayling Island) then its protection with regard to this category is superfluous. It will cease to bind as an overriding interest and its maintenance is however the maintenance of a minor interest on the register. The grounds for reform of overriding interests contained in the Land Registration Act 2002 (“LRA 2002”), arose as a result of criticism of the category of overriding interests with regard to the Land Registration Act 1925. Overriding interests caused uncertainty and which have been the subject of several reports attempting to deal with the problems, culminating in the LRA 2002. As illustrated in Overseas Investment Services Ltd v Sim Cobuild Construction Ltd judicial opinion was also one for change. In this case Peter Gibson LJ stated, “as overriding interests constitute an exception [to the mirror of title principle] the court should in my opinion, bet be astute to give a wide meaning to any item constituting an overriding interest.

The LRA 2002 aims to create an electronically based conveyancing system which however it will be possible to investigate title online with minimum additional enquiries. A significant obstacle to achieving this is the existence of ...