Land Registration Act Reforms Essay Example | Topics and Well Written Essays - 1500 words

Land Registration Act Reforms - Essay Example Previous to this act, the unregistered lands were regulated by the 1925 property legislation and the common law and equity rules. The creation of the 2002 Land Registration Act brings about a revolutionary change in the way conveyancing in Wales and England is carried on, and also to create a modern land registration system1. The primary aim of the Land Registration Act 2002 is to significantly reduce the amount of overriding interests which can potentially bind a registered title purchaser and replace most of them with entries which are registrable. 2. Registered Land Registered land refers to the land where the title of the land has been registered into the Land Registry and the objective is to make an registered entry of ownership of land and also of the third party which is involved into the registration process. The theory states the purchaser may not need to look other than into the register to make enquiries regarding the price of land purchased. In actual condition, if overri ding interests are applicable on a piece of land, which may happen even in case when the buyer is bound to the land and the name of purchaser appears nowhere into the register, then the purchaser needs to look far beyond the register. Registered land ownership is often more striking than the ownership of unregistered land.2 Wherever the title has been registered, they are bound to be ascertainable and registered from the register; however it is often subject to overriding interests. 3. Aspects of Overriding Interests Overriding interests are mainly the interests that are given for registered land which has not been registered and it binds the purchaser to the land. Overriding interests can be divided into two categories - the overriding on the first registrations (mentioned under LRA 2002 of s. 1) and the overriding registered disposition (mentioned under LRA 2002, s. 3). In both the schedules, similar categories of interests' terms are mentioned, although there are many restriction s within the scope of these interests. Overriding interests is applicable on short leases and it provides the right to people who are actually occupying the land,3 while it does not include mortgages of registered land or estates, the third parties which are registered against the estate and the short term lease which overrides minor interests. If the third party is overriding interests against the registered estate, then it automatically gets the right to bind the buyers. This can be compared to the legal interests, which is provided against unregistered title. If the third party does not override, then it becomes the minor interest which will bind the purchasers only in a condition when it is protected through some type of register entry (This is comparable to the land charges required for registration). It is stated by the mirror principle that until it affects the title, the legal use of the enjoyment of the land can never be complete and this means the category should be abolis hed or it should be significantly reduced. There are sometimes a number of interests which includes the legal and equitable interests which are not on the register and it binds the purchaser of the land, irrespective of the inconsistency of notice with the concept of title registration.4 Other related aspects of the proposals of overriding intere