LAND REGISTRATION ACT 2002

Land Registration Act 2002

Land Registration Act 2002

Introduction

The Land Registration Act 2002 (LRA 2002) comes into force on 13 October 2003 and amongst other things, radically changes the procedures and methods by which third party rights in land are protected. The principle changes are:

The system of Notices is extended so that there are two types of Notice, being "Agreed Notices" and "Unilateral Notices".

Cautions against Dealings are abolished.

Restrictions are retained as the only method to reflect a limitation on the power of the registered owner of the property to make dispositions.

Inhibitions are abolished.

The LRA 2002 also introduces changes to interests that were previously known as "Overriding Interests" under the Land Registration Act 1925 (LRA 1925), an example would be the rights of an occupant (other than the Registered Owner) in the property. It draws a distinction between those unregistered interests that will override first registration, and those unregistered interests that will override subsequent registered dispositions. This means that some Overriding Interests will only continue until title is registered. Subsequently those interests must be entered on the title so they will not then override the interests of a bona fide purchaser of that property. Accordingly, third parties who have an interest in property will have to investigate these matters in a different way.

System of Notices extended under the LRA 2002, there will be two types of Notice, rather than just one as under the old Act. A person claiming to have the benefit of an interest may apply to the Registrar for the registration of either:

a) An Agreed Notice, or

b) A Unilateral Notice.

An Agreed Notice is broadly similar to a Notice under the LRA 1925, with which most people will be familiar. The registrar may only approve an application for an Agreed Notice if one or more of the following applies:

The applicant is the registered owner of the relevant estate or charge or is entitled to be registered as such.

The relevant registered owner, or a person entitled to be registered as such, consents to the entry of the Notice.

The registrar is satisfied as to the validity of the applicant's claim.

A Unilateral Notice, on the other hand, does not require the registered owner's consent, nor that the Land Registrar approve the validity of the claim. It is similar in many respects to a Caution Against Dealings under the old LRA 1925 but it has the added advantage of giving priority to the interest to the extent that it is valid. A Caution Against Dealings affords no such priority. As a result, there will be a definite benefit to those entitled to register such interests against property.

Certain interests must be protected by an Agreed Notice rather than a Unilateral Notice, these are:

A Matrimonial Home Rights Notice.

An Inheritance Tax Notice.

A Notice in respect of an order under the Access to Neighbouring Land Act 1992.

A Notice of a variation of a lease by an order under section ...