PROPERTY LAW ll LAWS20220/30330 2022-23

Seminar 2
Answers to Self-Testing Questions

You will find it useful to prepare answers to the following questions

prior to the seminar to test your understanding of the key LRA 2002
provisions.

1 Which of the following are registrable dispositions?

If a transaction is a registrable disposition, you should set out

the appropriate sub-section of s 27 Land Registration Act
2002.

a. Grant of a lease for a term of five years;

Not registrable – too short (leases of 7 years and longer are

registrable)

b. Grant of a lease for a term of nine years;

Registrable – s 27 (2)(b)(i) LRA 2002

c. Grant of a right of light for life;

Not registrable – it is equitable only so does not fall within

s1(2)(a) LPA 1925

d. Grant of a perpetual right to pick fruit

Registrable – it is a legal profit a prendre, so is registrable

under s 27(2)(d) LRA 2002

e. Grant of a lease on 11 September 2022 for a term of three

years, with the term to commence on 11 January 2023

Registrable – it is the grant of a lease which commences

more than 3 months after the date of grant, so is registrable
under s 27(2)(b)(ii) LRA 2002.

f. Transfer (assignment) of the residue of a lease for ten years,

which was granted in 2017

Registrable – the lease itself should have been registered, it

is a transfer of a registered estate, so registrable under s
27(2)(a) LRA 2002.

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g. Grant of a lease for the month of July each year for the
next four years.

This is a discontinuous lease, so registrable under

s27(2)(b)(iii) LRA 2002.

2 What is the effect of failure to register a registrable

disposition?

If a registrable disposition is not registered it does not take

effect in law (s 27(1) LRA 2002). Therefore the estate or
interest which was transferred / created will be equitable
only. Failure to register may also have further
consequences when the land is sold – see question 3.

3 What is the effect of Section 29?

S 29 LRA 2002 sets out the interests which bind a purchaser

of land. It makes it clear that a purchaser is only bound by
interests which are noted on the register (s 29(2)(a)(i) LRA
2002) and interests which override under Schedule 3 LRA
2002 (s 29(2)(a)(ii) LRA 2002).

4 Why would a third party register an interest even though

that interest was not a “registrable disposition”?

Voluntary registration will ensure that a purchaser of the

land is bound by that interest, due to the provisions of s 29
LRA 2002.

5 How would such an interest be registered?

Most interests are protected by way of a Notice on the

Title Register of the burdened land (s 32 LRA 2002).

6 Is it possible to protect an interest under a trust on the Title

Register? If so, how?
The only method of protection is placing a Restriction on
the Proprietorship Register under s40 LRA 2002.

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7 What does this form of protection ensure takes place?

Unlike a Notice under s32 LRA 2002, a Restriction does not mean
that a purchaser buys subject to an interest, but instead ensures
that the sale happens in a certain way, namely by overreaching.

8 What do you understand by the concept of overreaching?

Overreaching is a conveyancing device which allows a purchaser to
take free of equitable interests of beneficiaries under a trust of
land. Note that it only applies to interests under a trust, and when
overreaching takes place the beneficiaries’ interests are converted
into interests in the sale proceeds in the hands of the trustees. It
occurs when the purchaser pays the money to two or more trustees
(ss2 and 27 LPA 1925).

9 What is the collective name for the interests which are set out in
Schedule 3 of the Land Registration Act 2002? What is special about
them?

Interests that override – they are special because they bind a

purchaser even though they are not on the Title Register.

10 Paragraphs 1 and 3 are designed to “dovetail” with the list of

registrable dispositions set out in s 27 Land Registration Act 2002 so
it is important to be able to identify whether an interest is a
registrable disposition (under s 27 LRA 2002) or an interest that
overrides (under Sch 3 LRA 2002).

For each of the following interests, specify whether it is a

registrable disposition, or an interest that overrides.

a) Grant of a Lease for 4 years

Interest that overrides – it is for 7 years or less (Sch 3 Para 1)
b) Grant of a lease for 11 years
Registrable disposition (s 27(2)(b)(i) LRA 2002)

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c) Grant of a lease in November 2022 for a term of 4 years, the term
of which does not start until March 2023
Registrable disposition (s 27(2)(b)(ii) LRA 2002). Note that this is
registrable even though it is for less than 7 years. It is not an
overriding interest due to Sch 3 Para 1(a) LRA 2002.
d) Grant of a lease in November 2022 for a term of 8 years, the term
of which does not start until March 2023
Registrable disposition (s 27(2)(b)(ii) LRA 2002
e) Grant of a lease for the month of May each year for the next 5
years
Registrable disposition (s 27(2)(b)(iii) LRA 2002). Note that this is
registrable even though it is for less than 7 years. It is not an
overriding interest due to Sch 3 Para 1(b) LRA 2002.
f) Grant of a lease for the month of May each year for the next 9
years
Registrable disposition (s 27(2)(b)(iii) LRA 2002).
g) Grant of a perpetual easement by deed
Registrable disposition (s 27(2)(d) LRA 2002). As a registrable
disposition, it must be registered to be legal. If it is not registered
it becomes equitable only so cannot override under Sch 3 Para 3 LRA
2002.
h) Creation of a perpetual easement by long use (prescription) [We
will cover this in detail later in the course.]
This is an easement by implication, not express grant, and as such is
not registrable under s 27(2)(d) LRA 2002. It will override though
under Sch 3 Para 3

11 For those leases which are registrable dispositions, is there any way
in which they could bind a purchaser even though they have not
been registered?
YES – if the tenant is in occupation, and the occupation is obvious on
a reasonably careful inspection, then the interest will override
under Sch 3 Para 2 LRA 2002.