Registration of Land

The system of u n r e g i s t e r e d conv eyanc i n g has been the method by which transfers are  effected for centuries. It w o r k e d  s at i s fact o r i l y when land ownership was limited to a privileged few but the growth of home ownership and the population in general it started to exhibit major pitfalls. Moves to reform the system led to the registration of land and saw the implementation of the Land Registration  Acts of 1997 and 2002.

The Acts and subsequent rules made major changes to the way registered land is conveyed. The 2002 Act contains an extended list of ‘events’ that will trigger a compulsory first registration. This greatly increases the scope of registration as it stood under the initial 1925 Land Registration Act. Under this legislation the only transactions which triggered registration were a conveyance on sale, the grant of lease of more than 21 years or the assignment of a current lease with 21years left to run.

The 1997 Act included within this scope Deeds of Gift, conveyances for any consideration, first mortgages and assents. The 2002 Act extended this further to any transfer of a ‘qualifying estate’ (being a legal freehold estate or a leasehold with 7 years left to run). Since 1 December 1990 all of England and Wales has been an area of compulsory first registration so if any of the above events occur the title must be submitted for registration within a statutory 2 month period. Failure to register the land within the statutory time limit will result in the transfer becoming void. 

If this occurs the transferor will hold the legal title on bare trust for the transferee. If it becomes necessary to repeat the transfer then the party at fault will be liable for the additional costs involved. If a practitioner fails to carry out a first registration on the occurrence of one of the trigger events this will lead to a claim of negligence.

It is possible to apply for a voluntary first registration (with the incentive of reduced Land Registry fees) at any time. This may be an attractive option to your clients as it will negate the need for registration either when one of the trigger events occurs or on their death. It will also simplify future transfers resulting in a cost saving.

On receipt of an application for registration the Land Registrar will investigate the title and will allocate a class which will be either absolute, possessory or qualified. Absolute title is the best class available and signifies that there are no defects in the title or only minor defects that do not affect the underlying title to be disturbed. Possessory title is granted where the applicants title is based on adverse possession or if the title deeds have been lost or destroyed. Qualified title is very rare and is given where the applicant can only be granted title for a limited period or subject to certain reservations.

An example of this is where a transfer is made in breach of trust.

(With gratefull acknowledgments to the society of Will Writers.)