In this article, we discuss the types of land that may be registered, the events that trigger such a registration and the implications of such a registration
What Title May be Registered:
The following land may be registered (a registration of the ownership of the land and various other rights in a Register):
- Freehold land, or land that is simple absolute in possession.
- Land on lease where the lease has expired for more than seven years.
- A land on lease (of any length) where the right of possession is not continuous.
- A land on lease of any length that is granted to be given in possession three months after the date of grant.
- A land given on perpetual rent or for a specific period of time & with more than seven years after the expiry of term.
- A land where the owner assigns or transfers a right in gross (profit-a-prende in gross) perpetually or for a term & with more than seven years after the expiry of term.
- A franchise either given perpetually or for a term and with more than seven years after the expiry of term.
A title to all of these rights is registrable and hence there will be a separate entry in the register for each of these rights although they relate to the same piece of land.
First Registration
Events That Trigger a First Registration
While it would be expected that people would voluntarily come to register their ownership in land, the truth is far removed from this. In order to encourage the owners of above mentioned types of unregistered land and their respective conveyancing solicitors, a system of compulsory registration was introduced. On happening of one of the following events, an unregistered land is converted to the registered system:
- On transfer of freehold property; whether as gift, in return for some consideration, or on court orders,
- On grant of lease for more than seven years,
- On grant of lease where the right to possession is not continuous and that the sum of the period of possession does not exceed more than seven years,
- On grant of a lease of any length where possession is effected more than three months after the date of grant,
- A lease which at the time of the assignment has more than seven years unexpired,
- A freehold property that is mortgaged for the first time, or of a land on lease on which at the time of the mortgage more than seven years have expired,
- On appointment of a new trustee of land where the new trustee has been vested with the land through a deed,
- On partition of an unregistered land held under a trust, to the beneficiaries of the trust.
Once a land has been registered, all future action on the land must be registered to be legally effective.
Conveyancing Implications:
When one of the above events occur, it is important that your conveyancing solicitors registers your title within two months or the disposition with respect to the legal estate would become void. However, on application to the Registrar, it is possible to extend this period.
Compulsory registration of freehold property was introduced to the whole of Englandand Walessince December 1990. However, different areas in the country were subject to this rule at different types. Similarly, registration of land given as gift, or grant of the first legal mortgage was made in compulsory only since 13th October 2003. The law relating to compulsory registration of leased land with more than seven years unexpired was implemented only since 13th October 2003. Before this, only leases with more than 21 years could be registered.
When purchasing unregistered land, a buyer’s conveyancing solicitor should first ascertain if the title ought to have been registered by checking the date on which the concerned property ought to have been registered. If it is found that the land ought to have been registered under some previous disposition and has not been, the buyer should insist on the registration to be completed before buying the property.
It would be wrong for a conveyancing solicitor to assume that the property can be purchased from the seller of the unregistered property and then apply as first registration, because there is no guarantee that the Land Registry shall agree to register his name. And if the purchase is financed through a mortgage, the buyer’s lender is sure to insist that your conveyancing solicitor removes this anomaly before completion of the buying process.
Title Information Documents and Land and Charge Certificates
Once the land is registered by your conveyancing solicitor, the law guarantees title to its owner, who is no longer required to show proof through deeds. But much depends on what is entered on the register. Before October 2003, it was standard practice to issue a land certificate as a copy of the entry on the register, and if the property had a mortgage, a charge certificate along with the original copy of the deed was issued to the lender (instead of the owner) and the land certificate was retained with the Registry.
But since October 2003, such land and charge certificates are no longer issued and existing certificates are no longer required for future registrations; thus your conveyancing solicitor should not require title deeds. It is the entry in the Register that is now the proof of ownership and copies of this can be obtained on demand. The Land Registry also issues a TID or Title Information Document that contains a copy of the entries made on the register. However, this cannot be admitted as proof of ownership; it is only the copy of the Register that is admitted as proof.
Devolution of Registered Land
Once the land is registered, any transfer from that title should be done through the registry system. There shall be a separate title given to every estate so that every separate estate in the same piece of land shall have its own title number. The title number of the estate shall be its distinguishing feature and should be used for all future reference when dealing with that estate. And to record the fact that the title is registered, your conveyancing solicitor will also make an entry in the Index Map.
For instance, if a conveyancer registers a landowner’s interest in freehold land, a title that clearly indicates his interest in the said piece of land is also registered. The title would also identify his estate as freehold, and he would be given a title number by which he can identify the land.
Now, if the whole land is given on a 999-year lease, the tenant has the right to register his interest and indeed his conveyancer will ensure his title is registered with a separate title number but that this lease is also registered on the freehold title. The registration shall identify the piece of land that is given on lease (the same area that was indicated in the freehold title), and state that the land is given on leasehold.
The tenant shall be given a title number (one that is separate from the title number given to owner of the freehold estate) that identifies his interest in the title. Even if only a part of the land was leased, the process would still remain the same; only the land that identifies the extent of the title would change.
Once the lease is registered, the freehold title shall be referenced on the leasehold title and vice versa. Such a cross referencing is done so that conveyancing solicitors can easily trace other parties that may have an interest in the land. Also, because of the existence of the leasehold title on the freehold title, any subsequent buyer shall have knowledge of the existence of the lease.
Photo courtesy: Christiano Betta
