Land Register Act - Essay Example

Land Register Act Table of Content Serial Number and Topic Page Number 0 Introduction 02 2.0 Land Registration Act 2002 02 3.0Summary 04 4.0 Conclusion 05 5.0 References 06 1.0 Introduction "The land registration act 2002 ensures that a range of entitlements that are neither registered charges, can be made the subject of a notice, entitled in the register of title of the land which they affect" The Land Registration Act 2002 came into existence in 2003. There was a conspicuous change from the earlier law that was in existence for close to 75 years. The Act was directed to negate unscrupulous practices witnessed in UK for the many decades. The act was transparent and reformed adverse possession by squatters. The Act of 2002: 1. Simplified the earlier land registration law after a gap of 75 years 2. Clearly reflected on the rights and interests affecting the title to land In accordance with the changes, the following law and practices are included: Shorter leases hitherto not registered must be registered Voluntary registration for new types of interest in land Affects the protection of third party interests Law of adverse possession (squatter's rights) reformed. (Land Registry, Cymraeg, Crown, 2007)1 2.0 Land Registration Act 2002 An important change brought about by the new law is the introduction of a new system in relation to adverse possession for registered land. The effect; It will make registered land virtually squatter-proof and bring clients owning unregistered properties to voluntarily register to the Land Registry. Prominent among these is the increase in the number of dispositions and interests capable of registration. These include, naming a few: 1. All leases decreased from the existing 21 years to a minimum of 7 years and above 2. Leases of any length will be granted to take effect of possession, 3 months after the date of grant 3. Overriding interests, such as rights of occupation 4. Easements acquired by implied grant or prescription 5. Profit a prendre Most prominent among the above is the compulsory requirement to register leases of 7 years and considered to have the biggest impact in practice. This will have an overwhelming effect on leases of 3 years and more as well. As leases are the most common type of property transaction, the new law has attracted criticism, for its bureaucracy and increased costs. The Act's objective that the Register should show transparency in all registered titles and the overriding interests to which a property is subjected to, will be reduced and in some cases lose this overriding status after 10 years. For the first time, overriding interests will be treated differently on first registration and on subsequent dealings. The protection of third party interests over registered land and the abolishment of cautions and inhibitions are an addition to the new law. Notices and restrictions can be agreed upon with the registered proprietor's consent, or Unilateral, without consent. Unilateral notices will take the place of cautions and a registered proprietor will be informed of the registration of such a notice by the Land Registry. The registered proprietor has the discretion to contest the notice and can apply to have it removed. Restrictions, apart from its present usage, will be used in cases of insolvency, where inhibitions are currently used. Another major point of discussion is the right to access of documents related to a registered title in leases and charges by the Land Registry. This ruling is seen to be quite encouraging, and is a positive move to prevent misappropriation of property by unscrupulous methods. Along with this, is the appointment of an independent adjudicator for the Land Registry who has the power to determine contested applications. However, the Act also allows any decisions of the adjudicator to be appealed through Court (Naomi Druiff & Taylor Joynson Garrett, 2002)2. 3.0 Summary Land registration has never held the centre-stage as it does today. Today, land has to be registered under the Land Registration Act of 2002. Many properties across England & Wales have remained unregistered giving way to unethical possession of land by outsiders. What the introduction of the Act has done is to allow landowners to be in charge of their assets, to manage them more effectively, to consolidate complex legal information or historic data about their land, and finally, to protect their land against encroachment (Land Registry, 2006).3 Earlier, prior to the establishment of the Act 2002, a person who had no documentary title could in certain circumstances acquire title to land, registered or unregistered, by adverse possession for a minimum period of twelve years under the LA 1980. The doctrine of adverse possession did not fit the fundamental concept of indefeasibility of title which underlies the system of land registration. It is registration, and not possession of land, that vests the legal estate in the owner, and that person's ownership. The LRA 2002 has, therefore, reformed the law and relevant procedure and created a new regime which applies only to registered land (Land Registry, 2003).4 4.0 Conclusion The advantage of Land Registration Act 2002 is the Support for home and property ownership and a secured credit market. S.3, LRA 2002 applies to any unregistered legal estate which is an interest of a freehold or leasehold estate in land, a rent charge, a franchise, or a profit a prendre. With two exceptions, a leasehold estate can only be registered voluntarily if more than seven years of the term are unexpired (s.3 (3), LRA 2002). The exceptions relate to: A lease under which possession is discontinuous (such as a timeshare lease) can be registered, however short the term (s.3 (4), LRA 2002), wherein, a lessee holds a lease in possession and has been granted another lease of the same land to take effect in possession within one month of the expiry of the first lease (the two leases are treated as creating a single continuous term) for the purposes of s.3, LRA 2002. Both can be registered if the combined term exceeds seven years (see s.3 (7), LRA 2002) (Land Registry, 2006)5. 5.0 References 1.0 Land Registry, Land Registration Act 2002, www.landreg.gov.uk, Land Registry: Law & Practice 2.0 Naomi Druiff & Taylor Joynson Garrett, Land Registration Act 2002: An Overview, www.spr-consilio.com 3.0 Adverse possession of unregistered land and transitional provisions for registered land in the Land Registration Act 2002, www.landregistry.gov.uk/assets/library/documents/lrpg005.pdf Read More