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Act of Parliament

Land Registration Act 2002

Citation
2002 c. 9
As at
Sections
320
Section 1Register of title

(1) There is to continue to be a register of title kept by the registrar.

(2) Rules may make provision about how the register is to be kept and may, in particular, make provision about—

(a) the information to be included in the register,

(b) the form in which information included in the register is to be kept, and

(c) the arrangement of that information.

Section 2Scope of title registration

This Act makes provision about the registration of title to—

(a) unregistered legal estates which are interests of any of the following kinds—

(i) an estate in land,

(ii) a rentcharge,

(iii) a franchise,

(iv) a profit a prendre in gross, and

(v) any other interest or charge which subsists for the benefit of, or is a charge on, an interest the title to which is registered; and

(b) interests capable of subsisting at law which are created by a disposition of an interest the title to which is registered.

Section 3When title may be registered

(1) This section applies to any unregistered legal estate which is an interest of any of the following kinds—

(a) an estate in land,

(b) a rentcharge,

(c) a franchise, and

(d) a profit a prendre in gross.

(2) Subject to the following provisions, a person may apply to the registrar to be registered as the proprietor of an unregistered legal estate to which this section applies if—

(a) the estate is vested in him, or

(b) he is entitled to require the estate to be vested in him.

(3) Subject to subsection (4), an application under subsection (2) in respect of a leasehold estate may only be made if the estate was granted for a term of which more than seven years are unexpired.

(4) In the case of an estate in land, subsection (3) does not apply if the right to possession under the lease is discontinuous.

(4A) A person may not make an application under subsection (2) in respect of a leasehold estate in land under a relevant social housing tenancy.

(5) A person may not make an application under subsection (2)(a) in respect of a leasehold estate vested in him as a mortgagee where there is a subsisting right of redemption.

(6) A person may not make an application under subsection (2)(b) if his entitlement is as a person who has contracted to buy under a contract.

(7) If a person holds in the same right both—

(a) a lease in possession, and

(b) a lease to take effect in possession on, or within a month of, the end of the lease in possession,

then, to the extent that they relate to the same land, they are to be treated for the purposes of this section as creating one continuous term.

Section 4When title must be registered

(1) The requirement of registration applies on the occurrence of any of the following events—

(a) the transfer of a qualifying estate—

(i) for valuable or other consideration, by way of gift or in pursuance of an order of any court, . . .

(ii) by means of an assent (including a vesting assent); or

(iii) giving effect to a partition of land subject to a trust of land;

(aa) the transfer of a qualifying estate—

(i) by a deed that appoints, or by virtue of section 334 of the Charities Act 2011 has effect as if it appointed, a new trustee or is made in consequence of the appointment of a new trustee, or

(ii) by a vesting order under section 44 of the Trustee Act 1925 that is consequential on the appointment of a new trustee;

(b) the transfer of an unregistered legal estate in land in circumstances where section 171A of the Housing Act 1985 (c. 68) applies (disposal by landlord which leads to a person no longer being a secure tenant);

(c) the grant out of a qualifying estate of an estate in land—

(i) for a term of years absolute of more than seven years from the date of the grant, and

(ii) for valuable or other consideration, by way of gift or in pursuance of an order of any court;

(d) the grant out of a qualifying estate of an estate in land for a term of years absolute to take effect in possession after the end of the period of three months beginning with the date of the grant;

(e) the grant of a lease in pursuance of Part 5 of the Housing Act 1985 (the right to buy) out of an unregistered legal estate in land;

(f) the grant of a lease out of an unregistered legal estate in land in such circumstances as are mentioned in paragraph (b);

(g) the creation of a protected first legal mortgage of a qualifying estate.

(2) For the purposes of subsection (1), a qualifying estate is an unregistered legal estate which is—

(a) a freehold estate in land, or

(b) a leasehold estate in land for a term which, at the time of the transfer, grant or creation, has more than seven years to run.

(3) In subsection (1)(a), the reference to transfer does not include transfer by operation of law.

(4) Subsection (1)(a) does not apply to—

(a) the assignment of a mortgage term, or

(b) the assignment or surrender of a lease to the owner of the immediate reversion where the term is to merge in that reversion.

(5) Subsection (1)(c) does not apply to the grant of an estate to a person as a mortgagee.

(5A) Subsection (1) does not apply to the transfer or grant of a leasehold estate in land under a relevant social housing tenancy.

(6) For the purposes of subsection (1)(a) and (c), if the estate transferred or granted has a negative value, it is to be regarded as transferred or granted for valuable or other consideration.

(7) In subsection (1)(a) and (c), references to transfer or grant by way of gift include transfer or grant for the purpose of—

(a) constituting a trust under which the settlor does not retain the whole of the beneficial interest, or

(b) uniting the bare legal title and the beneficial interest in property held under a trust under which the settlor did not, on constitution, retain the whole of the beneficial interest.

(8) For the purposes of subsection (1)(g)—

(a) a legal mortgage is protected if it takes effect on its creation as a mortgage to be protected by the deposit of documents relating to the mortgaged estate, and

(b) a first legal mortgage is one which, on its creation, ranks in priority ahead of any other mortgages then affecting the mortgaged estate.

(9) In this section—

“ land ” does not include mines and minerals held apart from the surface;

“ vesting assent ” has the same meaning as in the Settled Land Act 1925 (c. 18).

Section 5Power to extend section 4

(1) The Secretary of State may by order—

(a) amend section 4 so as to add to the events on the occurrence of which the requirement of registration applies such relevant event as he may specify in the order, and

(b) make such consequential amendments of any provision of, or having effect under, any Act as he thinks appropriate.

(2) For the purposes of subsection (1)(a), a relevant event is an event relating to an unregistered legal estate which is an interest of any of the following kinds—

(a) an estate in land,

(b) a rentcharge,

(c) a franchise, and

(d) a profit a prendre in gross.

(3) The power conferred by subsection (1) may not be exercised so as to require the title to an estate granted to a person as a mortgagee to be registered.

(4) Before making an order under this section the Secretary of State must consult such persons as he considers appropriate.

Section 6Duty to apply for registration of title

(1) If the requirement of registration applies, the responsible estate owner, or his successor in title, must, before the end of the period for registration, apply to the registrar to be registered as the proprietor of the registrable estate.

(2) If the requirement of registration applies because of section 4(1)(g)—

(a) the registrable estate is the estate charged by the mortgage, and

(b) the responsible estate owner is the owner of that estate.

(3) If the requirement of registration applies otherwise than because of section 4(1)(g)—

(a) the registrable estate is the estate which is transferred or granted, and

(b) the responsible estate owner is the transferee or grantee of that estate.

(4) The period for registration is 2 months beginning with the date on which the relevant event occurs, or such longer period as the registrar may provide under subsection (5).

(5) If on the application of any interested person the registrar is satisfied that there is good reason for doing so, he may by order provide that the period for registration ends on such later date as he may specify in the order.

(6) Rules may make provision enabling the mortgagee under any mortgage falling within section 4(1)(g) to require the estate charged by the mortgage to be registered whether or not the mortgagor consents.

Section 7Effect of non-compliance with section 6

(1) If the requirement of registration is not complied with, the transfer, grant or creation becomes void as regards the transfer, grant or creation of a legal estate.

(2) On the application of subsection (1)—

(a) in a case falling within section 4(1)(a) or (b), the title to the legal estate reverts to the transferor who holds it on a bare trust for the transferee,

(aa) in a case fallling within section 4(1)(aa), the title to the legal estate reverts to the person in whom it was vested immediately before the transfer, and

(b) in a case falling within section 4(1)(c) to (g), the grant or creation has effect as a contract made for valuable consideration to grant or create the legal estate concerned.

(3) If an order under section 6(5) is made in a case where subsection (1) has already applied, that application of the subsection is to be treated as not having occurred.

(4) The possibility of reverter under subsection (1) is to be disregarded for the purposes of determining whether a fee simple is a fee simple absolute.

Section 8Liability for making good void transfers etc

If a legal estate is retransferred, regranted or recreated because of a failure to comply with the requirement of registration, the transferee, grantee or, as the case may be, the mortgagor—

(a) is liable to the other party for all the proper costs of and incidental to the retransfer, regrant or recreation of the legal estate, and

(b) is liable to indemnify the other party in respect of any other liability reasonably incurred by him because of the failure to comply with the requirement of registration.

Section 9Titles to freehold estates

(1) In the case of an application for registration under this Chapter of a freehold estate, the classes of title with which the applicant may be registered as proprietor are—

(a) absolute title,

(b) qualified title, and

(c) possessory title;

and the following provisions deal with when each of the classes of title is available.

(2) A person may be registered with absolute title if the registrar is of the opinion that the person’s title to the estate is such as a willing buyer could properly be advised by a competent professional adviser to accept.

(3) In applying subsection (2), the registrar may disregard the fact that a person’s title appears to him to be open to objection if he is of the opinion that the defect will not cause the holding under the title to be disturbed.

(4) A person may be registered with qualified title if the registrar is of the opinion that the person’s title to the estate has been established only for a limited period or subject to certain reservations which cannot be disregarded under subsection (3).

(5) A person may be registered with possessory title if the registrar is of the opinion—

(a) that the person is in actual possession of the land, or in receipt of the rents and profits of the land, by virtue of the estate, and

(b) that there is no other class of title with which he may be registered.

Section 10Titles to leasehold estates

(1) In the case of an application for registration under this Chapter of a leasehold estate, the classes of title with which the applicant may be registered as proprietor are—

(a) absolute title,

(b) good leasehold title,

(c) qualified title, and

(d) possessory title;

and the following provisions deal with when each of the classes of title is available.

(2) A person may be registered with absolute title if—

(a) the registrar is of the opinion that the person’s title to the estate is such as a willing buyer could properly be advised by a competent professional adviser to accept, and

(b) the registrar approves the lessor’s title to grant the lease.

(3) A person may be registered with good leasehold title if the registrar is of the opinion that the person’s title to the estate is such as a willing buyer could properly be advised by a competent professional adviser to accept.

(4) In applying subsection (2) or (3), the registrar may disregard the fact that a person’s title appears to him to be open to objection if he is of the opinion that the defect will not cause the holding under the title to be disturbed.

(5) A person may be registered with qualified title if the registrar is of the opinion that the person’s title to the estate, or the lessor’s title to the reversion, has been established only for a limited period or subject to certain reservations which cannot be disregarded under subsection (4).

(6) A person may be registered with possessory title if the registrar is of the opinion—

(a) that the person is in actual possession of the land, or in receipt of the rents and profits of the land, by virtue of the estate, and

(b) that there is no other class of title with which he may be registered.

Section 11Freehold estates

(1) This section is concerned with the registration of a person under this Chapter as the proprietor of a freehold estate.

(2) Registration with absolute title has the effect described in subsections (3) to (5).

(3) The estate is vested in the proprietor together with all interests subsisting for the benefit of the estate.

(4) The estate is vested in the proprietor subject only to the following interests affecting the estate at the time of registration—

(a) interests which are the subject of an entry in the register in relation to the estate,

(b) unregistered interests which fall within any of the paragraphs of Schedule 1, and

(c) interests acquired under the Limitation Act 1980 (c. 58) of which the proprietor has notice.

(5) If the proprietor is not entitled to the estate for his own benefit, or not entitled solely for his own benefit, then, as between himself and the persons beneficially entitled to the estate, the estate is vested in him subject to such of their interests as he has notice of.

(6) Registration with qualified title has the same effect as registration with absolute title, except that it does not affect the enforcement of any estate, right or interest which appears from the register to be excepted from the effect of registration.

(7) Registration with possessory title has the same effect as registration with absolute title, except that it does not affect the enforcement of any estate, right or interest adverse to, or in derogation of, the proprietor’s title subsisting at the time of registration or then capable of arising.

Section 12Leasehold estates

(1) This section is concerned with the registration of a person under this Chapter as the proprietor of a leasehold estate.

(2) Registration with absolute title has the effect described in subsections (3) to (5).

(3) The estate is vested in the proprietor together with all interests subsisting for the benefit of the estate.

(4) The estate is vested subject only to the following interests affecting the estate at the time of registration—

(a) implied and express covenants, obligations and liabilities incident to the estate,

(b) interests which are the subject of an entry in the register in relation to the estate,

(c) unregistered interests which fall within any of the paragraphs of Schedule 1, and

(d) interests acquired under the Limitation Act 1980 (c. 58) of which the proprietor has notice.

(5) If the proprietor is not entitled to the estate for his own benefit, or not entitled solely for his own benefit, then, as between himself and the persons beneficially entitled to the estate, the estate is vested in him subject to such of their interests as he has notice of.

(6) Registration with good leasehold title has the same effect as registration with absolute title, except that it does not affect the enforcement of any estate, right or interest affecting, or in derogation of, the title of the lessor to grant the lease.

(7) Registration with qualified title has the same effect as registration with absolute title except that it does not affect the enforcement of any estate, right or interest which appears from the register to be excepted from the effect of registration.

(8) Registration with possessory title has the same effect as registration with absolute title, except that it does not affect the enforcement of any estate, right or interest adverse to, or in derogation of, the proprietor’s title subsisting at the time of registration or then capable of arising.

Section 13Appurtenant rights and charges

Rules may—

(a) make provision for the registration of the proprietor of a registered estate as the proprietor of an unregistered legal estate which subsists for the benefit of the registered estate;

(b) make provision for the registration of a person as the proprietor of an unregistered legal estate which is a charge on a registered estate.

Section 14Rules about first registration

Rules may—

(a) make provision about the making of applications for registration under this Chapter;

(b) make provision about the functions of the registrar following the making of such an application, including provision about—

(i) the examination of title, and

(ii) the entries to be made in the register where such an application is approved;

(c) make provision about the effect of any entry made in the register in pursuance of such an application.

Section 15Right to lodge

(1) Subject to subsection (3), a person may lodge a caution against the registration of title to an unregistered legal estate if he claims to be—

(a) the owner of a qualifying estate, or

(b) entitled to an interest affecting a qualifying estate.

(2) For the purposes of subsection (1), a qualifying estate is a legal estate which—

(a) relates to land to which the caution relates, and

(b) is an interest of any of the following kinds—

(i) an estate in land,

(ii) a rentcharge,

(iii) a franchise, and

(iv) a profit a prendre in gross.

(3) No caution may be lodged under subsection (1)—

(a) in the case of paragraph (a), by virtue of ownership of—

(i) a freehold estate in land, or

(ii) a leasehold estate in land granted for a term of which more than seven years are unexpired;

(b) in the case of paragraph (b), by virtue of entitlement to such a leasehold estate as is mentioned in paragraph (a)(ii) of this subsection.

(4) The right under subsection (1) is exercisable by application to the registrar.

Section 16Effect

(1) Where an application for registration under this Part relates to a legal estate which is the subject of a caution against first registration, the registrar must give the cautioner notice of the application and of his right to object to it.

(2) The registrar may not determine an application to which subsection (1) applies before the end of such period as rules may provide, unless the cautioner has exercised his right to object to the application or given the registrar notice that he does not intend to do so.

(3) Except as provided by this section, a caution against first registration has no effect and, in particular, has no effect on the validity or priority of any interest of the cautioner in the legal estate to which the caution relates.

(4) For the purposes of subsection (1), notice given by a person acting on behalf of an applicant for registration under this Part is to be treated as given by the registrar if—

(a) the person is of a description provided by rules, and

(b) notice is given in such circumstances as rules may provide.

Section 17Withdrawal

The cautioner may withdraw a caution against first registration by application to the registrar.

Section 18Cancellation

(1) A person may apply to the registrar for cancellation of a caution against first registration if he is—

(a) the owner of the legal estate to which the caution relates, or

(b) a person of such other description as rules may provide.

(2) Subject to rules, no application under subsection (1)(a) may be made by a person who—

(a) consented in such manner as rules may provide to the lodging of the caution, or

(b) derives title to the legal estate by operation of law from a person who did so.

(3) Where an application is made under subsection (1), the registrar must give the cautioner notice of the application and of the effect of subsection (4).

(4) If the cautioner does not exercise his right to object to the application before the end of such period as rules may provide, the registrar must cancel the caution.

Section 19Cautions register

(1) The registrar must keep a register of cautions against first registration.

(2) Rules may make provision about how the cautions register is to be kept and may, in particular, make provision about—

(a) the information to be included in the register,

(b) the form in which information included in the register is to be kept, and

(c) the arrangement of that information.

Section 20Alteration of register by court

(1) The court may make an order for alteration of the cautions register for the purpose of—

(a) correcting a mistake, or

(b) bringing the register up to date.

(2) An order under subsection (1) has effect when served on the registrar to impose a duty on him to give effect to it.

(3) Rules may make provision about—

(a) the circumstances in which there is a duty to exercise the power under subsection (1),

(b) the form of an order under that subsection, and

(c) service of such an order.

Section 21Alteration of register by registrar

(1) The registrar may alter the cautions register for the purpose of—

(a) correcting a mistake, or

(b) bringing the register up to date.

(2) Rules may make provision about—

(a) the circumstances in which there is a duty to exercise the power under subsection (1),

(b) how the cautions register is to be altered in exercise of that power,

(c) applications for the exercise of that power, and

(d) procedure in relation to the exercise of that power, whether on application or otherwise.

(3) Where an alteration is made under this section, the registrar may pay such amount as he thinks fit in respect of any costs reasonably incurred by a person in connection with the alteration.

Section 22Supplementary

In this Chapter, “ the cautioner ”, in relation to a caution against first registration, means the person who lodged the caution, or such other person as rules may provide.

Section 23Owner’s powers

(1) Owner’s powers in relation to a registered estate consist of—

(a) power to make a disposition of any kind permitted by the general law in relation to an interest of that description, other than a mortgage by demise or sub-demise, and

(b) power to charge the estate at law with the payment of money.

(2) Owner’s powers in relation to a registered charge consist of—

(a) power to make a disposition of any kind permitted by the general law in relation to an interest of that description, other than a legal sub-mortgage, and

(b) power to charge at law with the payment of money indebtedness secured by the registered charge.

(3) In subsection (2)(a), “ legal sub-mortgage ” means—

(a) a transfer by way of mortgage,

(b) a sub-mortgage by sub-demise, and

(c) a charge by way of legal mortgage.

Section 24Right to exercise owner’s powers

A person is entitled to exercise owner’s powers in relation to a registered estate or charge if he is—

(a) the registered proprietor, or

(b) entitled to be registered as the proprietor.

Section 25Mode of exercise

(1) A registrable disposition of a registered estate or charge only has effect if it complies with such requirements as to form and content as rules may provide.

(2) Rules may apply subsection (1) to any other kind of disposition which depends for its effect on registration.

Section 26Protection of disponees

(1) Subject to subsection (2), a person’s right to exercise owner’s powers in relation to a registered estate or charge is to be taken to be free from any limitation affecting the validity of a disposition.

(2) Subsection (1) does not apply to a limitation—

(a) reflected by an entry in the register, or

(b) imposed by, or under, this Act.

(3) This section has effect only for the purpose of preventing the title of a disponee being questioned (and so does not affect the lawfulness of a disposition).

Section 27Dispositions required to be registered

(1) If a disposition of a registered estate or registered charge is required to be completed by registration, it does not operate at law until the relevant registration requirements are met.

(2) In the case of a registered estate, the following are the dispositions which are required to be completed by registration—

(a) a transfer,

(b) where the registered estate is an estate in land, the grant of a term of years absolute—

(i) for a term of more than seven years from the date of the grant,

(ii) to take effect in possession after the end of the period of three months beginning with the date of the grant,

(iii) under which the right to possession is discontinuous,

(iv) in pursuance of Part 5 of the Housing Act 1985 (c. 68) (the right to buy), or

(v) in circumstances where section 171A of that Act applies (disposal by landlord which leads to a person no longer being a secure tenant),

(c) where the registered estate is a franchise or manor, the grant of a lease,

(d) the express grant or reservation of an interest of a kind falling within section 1(2)(a) of the Law of Property Act 1925 (c. 20), other than one which is capable of being registered under Part 1 of the Commons Act 2006 ,

(e) the express grant or reservation of an interest of a kind falling within section 1(2)(b) or (e) of the Law of Property Act 1925, and

(f) the grant of a legal charge.

(3) In the case of a registered charge, the following are the dispositions which are required to be completed by registration—

(a) a transfer, and

(b) the grant of a sub-charge.

(4) Schedule 2 to this Act (which deals with the relevant registration requirements) has effect.

(5) This section applies to dispositions by operation of law as it applies to other dispositions, but with the exception of the following—

(a) a transfer on the death or bankruptcy of an individual proprietor,

(b) a transfer on the dissolution of a corporate proprietor, and

(c) the creation of a legal charge which is a local land charge.

(5A) This section does not apply to—

(a) the grant of a term of years absolute under a relevant social housing tenancy, or

(b) the express grant of an interest falling within section 1(2) of the Law of Property Act 1925, where the interest is created for the benefit of a leasehold estate in land under a relevant social housing tenancy.

(6) Rules may make provision about applications to the registrar for the purpose of meeting registration requirements under this section.

(7) In subsection (2)(d), the reference to express grant does not include grant as a result of the operation of section 62 of the Law of Property Act 1925 (c. 20).

Section 28Basic rule

(1) Except as provided by sections 29 and 30, the priority of an interest affecting a registered estate or charge is not affected by a disposition of the estate or charge.

(2) It makes no difference for the purposes of this section whether the interest or disposition is registered.

Section 29Effect of registered dispositions: estates

(1) If a registrable disposition of a registered estate is made for valuable consideration, completion of the disposition by registration has the effect of postponing to the interest under the disposition any interest affecting the estate immediately before the disposition whose priority is not protected at the time of registration.

(2) For the purposes of subsection (1), the priority of an interest is protected—

(a) in any case, if the interest—

(i) is a registered charge or the subject of a notice in the register,

(ii) falls within any of the paragraphs of Schedule 3, or

(iii) appears from the register to be excepted from the effect of registration, and

(b) in the case of a disposition of a leasehold estate, if the burden of the interest is incident to the estate.

(3) Subsection (2)(a)(ii) does not apply to an interest which has been the subject of a notice in the register at any time since the coming into force of this section.

(4) Where the grant of a leasehold estate in land out of a registered estate does not involve a registrable disposition, this section has effect as if—

(a) the grant involved such a disposition, and

(b) the disposition were registered at the time of the grant.

Section 30Effect of registered dispositions: charges

(1) If a registrable disposition of a registered charge is made for valuable consideration, completion of the disposition by registration has the effect of postponing to the interest under the disposition any interest affecting the charge immediately before the disposition whose priority is not protected at the time of registration.

(2) For the purposes of subsection (1), the priority of an interest is protected—

(a) in any case, if the interest—

(i) is a registered charge or the subject of a notice in the register,

(ii) falls within any of the paragraphs of Schedule 3, or

(iii) appears from the register to be excepted from the effect of registration, and

(b) in the case of a disposition of a charge which relates to a leasehold estate, if the burden of the interest is incident to the estate.

(3) Subsection (2)(a)(ii) does not apply to an interest which has been the subject of a notice in the register at any time since the coming into force of this section.

Section 31Inland Revenue charges

The effect of a disposition of a registered estate or charge on a charge under section 237 of the Inheritance Tax Act 1984 (c. 51) (charge for unpaid tax) is to be determined, not in accordance with sections 28 to 30 above, but in accordance with sections 237(6) and 238 of that Act (under which a purchaser in good faith for money or money’s worth takes free from the charge in the absence of registration).

Section 32Nature and effect

(1) A notice is an entry in the register in respect of the burden of an interest affecting a registered estate or charge.

(2) The entry of a notice is to be made in relation to the registered estate or charge affected by the interest concerned.

(3) The fact that an interest is the subject of a notice does not necessarily mean that the interest is valid, but does mean that the priority of the interest, if valid, is protected for the purposes of sections 29 and 30.

Section 33Excluded interests

No notice may be entered in the register in respect of any of the following—

(a) an interest under—

(i) a trust of land, or

(ii) a settlement under the Settled Land Act 1925 (c. 18),

(b) a leasehold estate in land which—

(i) is granted for a term of years of three years or less from the date of the grant, and

(ii) is not required to be registered,

(ba) an interest under a relevant social housing tenancy,

(c) a restrictive covenant made between a lessor and lessee, so far as relating to the demised premises,

(d) an interest which is capable of being registered under Part 1 of the Commons Act 2006 , and

(e) an interest in any coal or coal mine, the rights attached to any such interest and the rights of any person under section 38, 49 or 51 of the Coal Industry Act 1994 (c. 21).

Section 34Entry on application

(1) A person who claims to be entitled to the benefit of an interest affecting a registered estate or charge may, if the interest is not excluded by section 33, apply to the registrar for the entry in the register of a notice in respect of the interest.

(2) Subject to rules, an application under this section may be for—

(a) an agreed notice, or

(b) a unilateral notice.

(3) The registrar may only approve an application for an agreed notice if—

(a) the applicant is the relevant registered proprietor, or a person entitled to be registered as such proprietor,

(b) the relevant registered proprietor, or a person entitled to be registered as such proprietor, consents to the entry of the notice, or

(c) the registrar is satisfied as to the validity of the applicant’s claim.

(4) In subsection (3), references to the relevant registered proprietor are to the proprietor of the registered estate or charge affected by the interest to which the application relates.

Section 35Unilateral notices

(1) If the registrar enters a notice in the register in pursuance of an application under section 34(2)(b) (“ a unilateral notice ”), he must give notice of the entry to—

(a) the proprietor of the registered estate or charge to which it relates, and

(b) such other persons as rules may provide.

(2) A unilateral notice must—

(a) indicate that it is such a notice, and

(b) identify who is the beneficiary of the notice.

(3) The person shown in the register as the beneficiary of a unilateral notice, or such other person as rules may provide, may apply to the registrar for the removal of the notice from the register.

Section 36Cancellation of unilateral notices

(1) A person may apply to the registrar for the cancellation of a unilateral notice if he is—

(a) the registered proprietor of the estate or charge to which the notice relates, or

(b) a person entitled to be registered as the proprietor of that estate or charge.

(2) Where an application is made under subsection (1), the registrar must give the beneficiary of the notice notice of the application and of the effect of subsection (3).

(3) If the beneficiary of the notice does not exercise his right to object to the application before the end of such period as rules may provide, the registrar must cancel the notice.

(4) In this section—

“ beneficiary ”, in relation to a unilateral notice, means the person shown in the register as the beneficiary of the notice, or such other person as rules may provide;

“ unilateral notice ” means a notice entered in the register in pursuance of an application under section 34(2)(b).

Section 37Unregistered interests

(1) If it appears to the registrar that a registered estate is subject to an unregistered interest which—

(a) falls within any of the paragraphs of Schedule 1, and

(b) is not excluded by section 33,

he may enter a notice in the register in respect of the interest.

(2) The registrar must give notice of an entry under this section to such persons as rules may provide.

Section 38Registrable dispositions

Where a person is entered in the register as the proprietor of an interest under a disposition falling within section 27(2)(b) to (e), the registrar must also enter a notice in the register in respect of that interest.

Section 39Supplementary

Rules may make provision about the form and content of notices in the register.

Section 40Nature

(1) A restriction is an entry in the register regulating the circumstances in which a disposition of a registered estate or charge may be the subject of an entry in the register.

(2) A restriction may, in particular—

(a) prohibit the making of an entry in respect of any disposition, or a disposition of a kind specified in the restriction;

(b) prohibit the making of an entry—

(i) indefinitely,

(ii) for a period specified in the restriction, or

(iii) until the occurrence of an event so specified.

(3) Without prejudice to the generality of subsection (2)(b)(iii), the events which may be specified include—

(a) the giving of notice,

(b) the obtaining of consent, and

(c) the making of an order by the court or registrar.

(4) The entry of a restriction is to be made in relation to the registered estate or charge to which it relates.

Section 41Effect

(1) Where a restriction is entered in the register, no entry in respect of a disposition to which the restriction applies may be made in the register otherwise than in accordance with the terms of the restriction, subject to any order under subsection (2).

(2) The registrar may by order—

(a) disapply a restriction in relation to a disposition specified in the order or dispositions of a kind so specified, or

(b) provide that a restriction has effect, in relation to a disposition specified in the order or dispositions of a kind so specified, with modifications so specified.

(3) The power under subsection (2) is exercisable only on the application of a person who appears to the registrar to have a sufficient interest in the restriction.

Section 42Power of registrar to enter

(1) The registrar may enter a restriction in the register if it appears to him that it is necessary or desirable to do so for the purpose of—

(a) preventing invalidity or unlawfulness in relation to dispositions of a registered estate or charge,

(b) securing that interests which are capable of being overreached on a disposition of a registered estate or charge are overreached, or

(c) protecting a right or claim in relation to a registered estate or charge.

(2) No restriction may be entered under subsection (1)(c) for the purpose of protecting the priority of an interest which is, or could be, the subject of a notice.

(3) The registrar must give notice of any entry made under this section to the proprietor of the registered estate or charge concerned, except where the entry is made in pursuance of an application under section 43.

(4) For the purposes of subsection (1)(c), a person entitled to the benefit of a charging order relating to an interest under a trust shall be treated as having a right or claim in relation to the trust property.

Section 43Applications

(1) A person may apply to the registrar for the entry of a restriction under section 42(1) if—

(a) he is the relevant registered proprietor, or a person entitled to be registered as such proprietor,

(b) the relevant registered proprietor, or a person entitled to be registered as such proprietor, consents to the application, or

(c) he otherwise has a sufficient interest in the making of the entry.

(2) Rules may—

(a) require the making of an application under subsection (1) in such circumstances, and by such person, as the rules may provide;

(b) make provision about the form of consent for the purposes of subsection (1)(b);

(c) provide for classes of person to be regarded as included in subsection (1)(c);

(d) specify standard forms of restriction.

(3) If an application under subsection (1) is made for the entry of a restriction which is not in a form specified under subsection (2)(d), the registrar may only approve the application if it appears to him—

(a) that the terms of the proposed restriction are reasonable, and

(b) that applying the proposed restriction would—

(i) be straightforward, and

(ii) not place an unreasonable burden on him.

(4) In subsection (1), references to the relevant registered proprietor are to the proprietor of the registered estate or charge to which the application relates.

Section 44Obligatory restrictions

(1) If the registrar enters two or more persons in the register as the proprietor of a registered estate in land, he must also enter in the register such restrictions as rules may provide for the purpose of securing that interests which are capable of being overreached on a disposition of the estate are overreached.

(2) Where under any enactment the registrar is required to enter a restriction without application, the form of the restriction shall be such as rules may provide.

Section 45Notifiable applications

(1) Where an application under section 43(1) is notifiable, the registrar must give notice of the application, and of the right to object to it, to—

(a) the proprietor of the registered estate or charge to which it relates, and

(b) such other persons as rules may provide.

(2) The registrar may not determine an application to which subsection (1) applies before the end of such period as rules may provide, unless the person, or each of the persons, notified under that subsection has exercised his right to object to the application or given the registrar notice that he does not intend to do so.

(3) For the purposes of this section, an application under section 43(1) is notifiable unless it is—

(a) made by or with the consent of the proprietor of the registered estate or charge to which the application relates, or a person entitled to be registered as such proprietor,

(b) made in pursuance of rules under section 43(2)(a), or

(c) an application for the entry of a restriction reflecting a limitation under an order of the court or registrar, or an undertaking given in place of such an order.

Section 46Power of court to order entry

(1) If it appears to the court that it is necessary or desirable to do so for the purpose of protecting a right or claim in relation to a registered estate or charge, it may make an order requiring the registrar to enter a restriction in the register.

(2) No order under this section may be made for the purpose of protecting the priority of an interest which is, or could be, the subject of a notice.

(3) The court may include in an order under this section a direction that an entry made in pursuance of the order is to have overriding priority.

(4) If an order under this section includes a direction under subsection (3), the registrar must make such entry in the register as rules may provide.

(5) The court may make the exercise of its power under subsection (3) subject to such terms and conditions as it thinks fit.

Section 47Withdrawal

A person may apply to the registrar for the withdrawal of a restriction if—

(a) the restriction was entered in such circumstances as rules may provide, and

(b) he is of such a description as rules may provide.

Section 48Registered charges

(1) Registered charges on the same registered estate, or on the same registered charge, are to be taken to rank as between themselves in the order shown in the register.

(2) Rules may make provision about—

(a) how the priority of registered charges as between themselves is to be shown in the register, and

(b) applications for registration of the priority of registered charges as between themselves.

Section 49Tacking and further advances

(1) The proprietor of a registered charge may make a further advance on the security of the charge ranking in priority to a subsequent charge if he has not received from the subsequent chargee notice of the creation of the subsequent charge.

(2) Notice given for the purposes of subsection (1) shall be treated as received at the time when, in accordance with rules, it ought to have been received.

(3) The proprietor of a registered charge may also make a further advance on the security of the charge ranking in priority to a subsequent charge if—

(a) the advance is made in pursuance of an obligation, and

(b) at the time of the creation of the subsequent charge the obligation was entered in the register in accordance with rules.

(4) The proprietor of a registered charge may also make a further advance on the security of the charge ranking in priority to a subsequent charge if—

(a) the parties to the prior charge have agreed a maximum amount for which the charge is security, and

(b) at the time of the creation of the subsequent charge the agreement was entered in the register in accordance with rules.

(5) Rules may—

(a) disapply subsection (4) in relation to charges of a description specified in the rules, or

(b) provide for the application of that subsection to be subject, in the case of charges of a description so specified, to compliance with such conditions as may be so specified.

(6) Except as provided by this section, tacking in relation to a charge over registered land is only possible with the agreement of the subsequent chargee.

Section 50Overriding statutory charges: duty of notification

If the registrar enters a person in the register as the proprietor of a charge which—

(a) is created by or under an enactment, and

(b) has effect to postpone a charge which at the time of registration of the statutory charge is—

(i) entered in the register, or

(ii) the basis for an entry in the register,

he must in accordance with rules give notice of the creation of the statutory charge to such person as rules may provide.

320 sections

Cite this legislation

Land Registration Act 2002 (legislation.gov.uk, OGL v3.0). Retrieved via LawPlayer, https://lawplayer.com/uk/act/ukpga-2002-9

Contains public sector information licensed under the Open Government Licence v3.0.

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