registered with the Land Registry. Overriding interests are certain interests or rights on the land, which are not mentioned in the registers. These interests will override the already registered dispositions. The burden of this interest should be shouldered by the purchaser.
For example, if there is some kind of short term lease on the property, people may consider it too minor to have legal implications. In such cases, there will be no record of the lease on the property. But, the right of the leaser to stay on the property will override the rights of the purchaser to occupy the property.
Effect of LRA 2002 on overriding interests
The LRA 2002 attempts to minimise overriding interests by ensuring maximum interests are registered, thus reducing the scope of unregistered overriding interests. During the process of registration, if you come across any unregistered interests, you are obliged to inform the Land Registry about the same, so that they can make a note in the register. Once the Land Registry makes a note of it, it looses the overriding status forever.
As per the rules, some of the interests like a franchise, a manorial right, rent reserved to the Crown etc will loose its overriding status by 12tOctober 2013.
You should disclose the details of overriding interest at the time of making application for the first registration. The same should be done while dealing with the disposition of the registered property. On the other hand, you need not disclose details about registrable dispositions such as local land charge, public right, interest in coal mines etc, as they do not have the overriding status.
Steps to reveal an overriding interest to Land Registry
While registering a property, if you come across any overriding interest, you should inform the Land Registry. To do so you will have to complete Panel 11 of form AP1 (provided it is a registered disposition). You should include an additional D1 form, if the interests are to be disclosed. In such case, provide documents to prove the existence of such interests.
In case of first time registrations, you will have to complete Panel 11 of the FR1 form. Completion of the form D2 is not obligatory in certain cases. For instance, suppose there is a lease with overriding status; if a certified print of the lease is attached to the title deeds, you will not have to complete the D1 form. On the other hand, if there is no documentary proof, then you will have to complete form D1.
Types of overriding interests
Short Leases
Short leases often have the overriding status. Any lease which is not noted in the registry, is considered to be an overriding interest. Most leases that are approved for a period lesser than or equal to seven years are generally not registered. Hence, they will have the overriding status. However, there are certain short term leases which are registered; they will be exempted from the overriding status.
Interests related to actual occupation
The law protects the interests of a person who actually occupies the land. However, if the person is not occupying the land, but is only collecting rent or enjoying any other profit off the land, then, he/she will not be given an overriding status. If an individual occupies just a portion of the whole property, the overriding interest will be provided for that portion only. If an investigation was made prior to the disposition, and if the occupant failed to make his claim, then his interest for overriding status will not be considered.
Certain interests will never be considered for an overriding status. Some of them are enlisted below:
- Any pending action, order or writ affecting the property issued by the court for enforcing an agreement or judgment will not be considered as an overriding interest.
- Occupation of the land by civil partner or spouse (as per the Family Law Act 1996, amended by the Civil Partnership Act 2004)
- Any lease, that was to come into effect three months before and has not taken effect till the date of disposition, should be registered. Such leases will not be considered to have overriding interest.
- Exercise of rights under Acts such as Preserved Right to Buy, Leasehold Reform Act, Leasehold Reform, Housing and Urban Development Act 1992, Landlord & Tenant (Covenants) Act 1995 etc will not have overriding status.
Rules related to Easements
All profits a prendre and legal Easements are considered to have an overriding status, on the time of first registration. Until October 122006, the same applied to registrable dispositions, but, from 13 October 2006, a few changes were introduced.
The unregistered easement will get an overriding status only if it remains obvious even after close inspection. It should also be known to the buyer. Apart from this, if it generates a profit, it should be registered as per the Commons Registration Act 1965.
If an easement and profit was openly enjoyed, it was given the overriding status as per the LRA 1925. However, LRA 2002 exempted this right. The transitional provision protects the overriding status of such existing easements and profits.
Chancel repair
If there is a chancel of a parish church near your property, you will have to pay for the repairs; this is called ‘chancel repair liability’. If the land was close or attached to a rectory, you will be liable to pay the charges. In this case, the land need not necessarily be close to the church; hence it is difficult to find such liabilities. Still, it has the overriding status.
