Land Registration Act 2002 (c. 9)

(The document as of February, 2008)

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(ii) a leasehold estate in land granted for a term of which more than seven years are unexpired;

(b) in the case of paragraph (b), by virtue of entitlement to such a leasehold estate as is mentioned in paragraph (a)(ii) of this subsection.

(4) The right under subsection (1) is exercisable by application to the registrar.

16 Effect

(1) Where an application for registration under this Part relates to a legal estate which is the subject of a caution against first registration, the registrar must give the cautioner notice of the application and of his right to object to it.

(2) The registrar may not determine an application to which subsection (1) applies before the end of such period as rules may provide, unless the cautioner has exercised his right to object to the application or given the registrar notice that he does not intend to do so.

(3) Except as provided by this section, a caution against first registration has no effect and, in particular, has no effect on the validity or priority of any interest of the cautioner in the legal estate to which the caution relates.

(4) For the purposes of subsection (1), notice given by a person acting on behalf of an applicant for registration under this Part is to be treated as given by the registrar if--

(a) the person is of a description provided by rules, and

(b) notice is given in such circumstances as rules may provide.

17 Withdrawal

The cautioner may withdraw a caution against first registration by application to the registrar.

18 Cancellation

(1) A person may apply to the registrar for cancellation of a caution against first registration if he is--

(a) the owner of the legal estate to which the caution relates, or

(b) a person of such other description as rules may provide.

(2) Subject to rules, no application under subsection (1)(a) may be made by a person who--

(a) consented in such manner as rules may provide to the lodging of the caution, or

(b) derives title to the legal estate by operation of law from a person who did so.

(3) Where an application is made under subsection (1), the registrar must give the cautioner notice of the application and of the effect of subsection (4).

(4) If the cautioner does not exercise his right to object to the application before the end of such period as rules may provide, the registrar must cancel the caution.

19 Cautions register

(1) The registrar must keep a register of cautions against first registration.

(2) Rules may make provision about how the cautions register is to be kept and may, in particular, make provision about--

(a) the information to be included in the register,

(b) the form in which information included in the register is to be kept, and

(c) the arrangement of that information.

20 Alteration of register by court

(1) The court may make an order for alteration of the cautions register for the purpose of--

(a) correcting a mistake, or

(b) bringing the register up to date.

(2) An order under subsection (1) has effect when served on the registrar to impose a duty on him to give effect to it.

(3) Rules may make provision about--

(a) the circumstances in which there is a duty to exercise the power under subsection (1),

(b) the form of an order under that subsection, and

(c) service of such an order.

21 Alteration of register by registrar

(1) The registrar may alter the cautions register for the purpose of--

(a) correcting a mistake, or

(b) bringing the register up to date.

(2) Rules may make provision about--

(a) the circumstances in which there is a duty to exercise the power under subsection (1),

(b) how the cautions register is to be altered in exercise of that power,

(c) applications for the exercise of that power, and

(d) procedure in relation to the exercise of that power, whether on application or otherwise.

(3) Where an alteration is made under this section, the registrar may pay such amount as he thinks fit in respect of any costs reasonably incurred by a person in connection with the alteration.

22 Supplementary

In this Chapter, "the cautioner", in relation to a caution against first registration, means the person who lodged the caution, or such other person as rules may provide.

Part 3 Dispositions of registered land

Powers of disposition

23 Owner's powers

(1) Owner's powers in relation to a registered estate consist of--

(a) power to make a disposition of any kind permitted by the general law in relation to an interest of that description, other than a mortgage by demise or sub-demise, and

(b) power to charge the estate at law with the payment of money.

(2) Owner's powers in relation to a registered charge consist of--

(a) power to make a disposition of any kind permitted by the general law in relation to an interest of that description, other than a legal sub-mortgage, and

(b) power to charge at law with the payment of money indebtedness secured by the registered charge.

(3) In subsection (2)(a), "legal sub-mortgage" means--

(a) a transfer by way of mortgage,

(b) a sub-mortgage by sub-demise, and

(c) a charge by way of legal mortgage.

24 Right to exercise owner's powers

A person is entitled to exercise owner's powers in relation to a registered estate or charge if he is--

(a) the registered proprietor, or

(b) entitled to be registered as the proprietor.

25 Mode of exercise

(1) A registrable disposition of a registered estate or charge only has effect if it complies with such requirements as to form and content as rules may provide.

(2) Rules may apply subsection (1) to any other kind of disposition which depends for its effect on registration.

26 Protection of disponees

(1) Subject to subsection (2), a person's right to exercise owner's powers in relation to a registered estate or charge is to be taken to be free from any limitation affecting the validity of a disposition.

(2) Subsection (1) does not apply to a limitation--

(a) reflected by an entry in the register, or

(b) imposed by, or under, this Act.

(3) This section has effect only for the purpose of preventing the title of a disponee being questioned (and so does not affect the lawfulness of a disposition).

Registrable dispositions

27 Dispositions required to be registered

(1) If a disposition of a registered estate or registered charge is required to be completed by registration, it does not operate at law until the relevant registration requirements are met.

(2) In the case of a registered estate, the following are the dispositions which are required to be completed by registration--

(a) a transfer,

(b) where the registered estate is an estate in land, the grant of a term of years absolute--

(i) for a term of more than seven years from the date of the grant,

(ii) to take effect in possession after the end of the period of three months beginning with the date of the grant,

(iii) under which the right to possession is discontinuous,

(iv) in pursuance of Part 5 of the Housing Act 1985 (c. 68) (the right to buy), or

(v) in circumstances where section 171A of that Act applies (disposal by landlord which leads to a person no longer being a secure tenant),

(c) where the registered estate is a franchise or manor, the grant of a lease,

(d) the express grant or reservation of an interest of a kind falling within section 1(2)(a) of the Law of Property Act 1925 (c. 20), other than one which is capable of being registered under the Commons Registration Act 1965 (c. 64),

(e) the express grant or reservation of an interest of a kind falling within section 1(2)(b) or (e) of the Law of Property Act 1925, and

(f) the grant of a legal charge.

(3) In the case of a registered charge, the following are the dispositions which are required to be completed by registration--

(a) a transfer, and

(b) the grant of a sub-charge.

(4) Schedule 2 to this Act (which deals with the relevant registration requirements) has effect.

(5) This section applies to dispositions by operation of law as it applies to other dispositions, but with the exception of the following--

(a) a transfer on the death or bankruptcy of an individual proprietor,

(b) a transfer on the dissolution of a corporate proprietor, and

(c) the creation of a legal charge which is a local land charge.

(6) Rules may make provision about applications to the registrar for the purpose of meeting registration requirements under this section.

(7) In subsection (2)(d), the reference to express grant does not include grant as a result of the operation of section 62 of the Law of Property Act 1925 (c. 20).

Effect of dispositions on priority

28 Basic rule

(1) Except as provided by sections 29 and 30, the priority of an interest affecting a registered estate or charge is not affected by a disposition of the estate or charge.

(2) It makes no difference for the purposes of this section whether the interest or disposition is registered.

29 Effect of registered dispositions: estates

(1) If a registrable disposition of a registered estate is made for valuable consideration, completion of the disposition by registration has the effect of postponing to the interest under the disposition any interest affecting the estate immediately before the disposition whose priority is not protected at the time of registration.

(2) For the purposes of subsection (1), the priority of an interest is protected--

(a) in any case, if the interest--

(i) is a registered charge or the subject of a notice in the register,

(ii) falls within any of the paragraphs of Schedule 3, or

(iii) appears from the register to be excepted from the effect of registration, and

(b) in the case of a disposition of a leasehold estate, if the burden of the interest is incident to the estate.

(3) Subsection (2)(a)(ii) does not apply to an interest which has been the subject of a notice in the register at any time since the coming into force of this section.

(4) Where the grant of a leasehold estate in land out of a registered estate does not involve a registrable disposition, this section has effect as if--

(a) the grant involved such a disposition, and

(b) the disposition were registered at the time of the grant.

30 Effect of registered dispositions: charges

(1) If a registrable disposition of a registered charge is made for valuable consideration, completion of the disposition by registration has the effect of postponing to the interest under the disposition any interest affecting the charge immediately before the disposition whose priority is not protected at the time of registration.

(2) For the purposes of subsection (1), the priority of an interest is protected--

(a) in any case, if the interest--

(i) is a registered charge or the subject of a notice in the register,

(ii) falls within any of the paragraphs of Schedule 3, or

(iii) appears from the register to be excepted from the effect of registration, and

(b) in the case of a disposition of a charge which relates to a leasehold estate, if the burden of the interest is incident to the estate.

(3) Subsection (2)(a)(ii) does not apply to an interest which has been the subject of a notice in the register at any time since the coming into force of this section.

31 Inland Revenue charges

The effect of a disposition of a registered estate or charge on a charge under section 237 of the Inheritance Tax Act 1984 (c. 51) (charge for unpaid tax) is to be determined, not in accordance with sections 28 to 30 above, but in accordance with sections 237(6) and 238 of that Act (under which a purchaser in good faith for money or money's worth takes free from the charge in the absence of registration).

Part 4 Notices and restrictions

Notices

32 Nature and effect

(1) A notice is an entry in the register in respect of the burden of an interest affecting a registered estate or charge.

(2) The entry of a notice is to be made in relation to the registered estate or charge affected by the interest concerned.

(3) The fact that an interest is the subject of a notice does not necessarily mean that the interest is valid, but does mean that the priority of the interest, if valid, is protected for the purposes of sections 29 and 30.

33 Excluded interests

No notice may be entered in the register in respect of any of the following--

(a) an interest under--

(i) a trust of land, or

(ii) a settlement under the Settled Land Act 1925 (c. 18),

(b) a leasehold estate in land which--

(i) is granted for a term of years of three years or less from the date of the grant, and

(ii) is not required to be registered,

(c) a restrictive covenant made between a lessor and lessee, so far as relating to the demised premises,

(d) an interest which is capable of being registered under the Commons Registration Act 1965 (c. 64), and

(e) an interest in any coal or coal mine, the rights attached to any such interest and the rights of any person under section 38, 49 or 51 of the Coal Industry Act 1994 (c. 21).

34 Entry on application

(1) A person who claims to be entitled to the benefit of an interest affecting a registered estate or charge may, if the interest is not excluded by section 33, apply to the registrar for the entry in the register of a notice in respect of the interest.

(2) Subject to rules, an application under this section may be for--

(a) an agreed notice, or

(b) a unilateral notice.

(3) The registrar may only approve an application for an agreed notice if--

(a) the applicant is the relevant registered proprietor, or a person entitled to be registered as such proprietor,

(b) the relevant registered proprietor, or a person entitled to be registered as such proprietor, consents to the entry of the notice, or

(c) the registrar is satisfied as to the validity of the applicant's claim.

(4) In subsection (3), references to the relevant registered proprietor are to the proprietor of the registered estate or charge affected by the interest to which the application relates.

35 Unilateral notices

(1) If the registrar enters a notice in the register in pursuance of an application under section 34(2)(b) ("a unilateral notice"), he must give notice of the entry to--

(a) the proprietor of the registered estate or charge to which it relates, and

(b) such other persons as rules may provide.

(2) A unilateral notice must--

(a) indicate that it is such a notice, and

(b) identify who is the beneficiary of the notice.

(3) The person shown in the register as the beneficiary of a unilateral notice, or such other person as rules may provide, may apply to the registrar for the removal of the notice from the register.

36 Cancellation of unilateral notices

(1) A person may apply to the registrar for the cancellation of a unilateral notice if he is--

(a) the registered proprietor of the estate or charge to which the notice relates, or

(b) a person entitled to be registered as the proprietor of that estate or charge.

(2) Where an application is made under subsection (1), the registrar must give the beneficiary of the notice notice of the application and of the effect of subsection (3).

(3) If the beneficiary of the notice does not exercise his right to object to the application before the end of such period as rules may provide, the registrar must cancel the notice.

(4) In this section--

• "beneficiary", in relation to a unilateral notice, means the person shown in the register as the beneficiary of the notice, or such other person as rules may provide;

• "unilateral notice" means a notice entered in the register in pursuance of an application under section 34(2)(b).

37 Unregistered interests

(1) If it appears to the registrar that a registered estate is subject to an unregistered interest which--

(a) falls within any of the paragraphs of Schedule 1, and

(b) is not excluded by section 33,

he may enter a notice in the register in respect of the interest.

(2) The registrar must give notice of an entry under this section to such persons as rules may provide.

38 Registrable dispositions

Where a person is entered in the register as the proprietor of an interest under a disposition falling within section 27(2)(b) to (e), the registrar must also enter a notice in the register in respect of that interest.

39 Supplementary

Rules may make provision about the form and content of notices in the register.

Restrictions

40 Nature

(1) A restriction is an entry in the register regulating the circumstances in which a disposition of a registered estate or charge may be the subject of an entry in the register.

(2) A restriction may, in particular--

(a) prohibit the making of an entry in respect of any disposition, or a disposition of a kind specified in the restriction;

(b) prohibit the making of an entry--

(i) indefinitely,

(ii) for a period specified in the restriction, or

(iii) until the occurrence of an event so specified.

(3) Without prejudice to the generality of subsection (2)(b)(iii), the events which may be specified include--

(a) the giving of notice,

(b) the obtaining of consent, and

(c) the making of an order by the court or registrar.

(4) The entry of a restriction is to be made in relation to the registered estate or charge to which it relates.

41 Effect

(1) Where a restriction is entered in the register, no entry in respect of a disposition to which the restriction applies may be made in the register otherwise than in accordance with the terms of the restriction, subject to any order under subsection (2).

(2) The registrar may by order--

(a) disapply a restriction in relation to a disposition specified in the order or dispositions of a kind so specified, or

(b) provide that a restriction has effect, in relation to a disposition specified in the order or dispositions of a kind so specified, with modifications so specified.

(3) The power under subsection (2) is exercisable only on the application of a person who appears to the registrar to have a sufficient interest in the restriction.

42 Power of registrar to enter

(1) The registrar may enter a restriction in the register if it appears to him that it is necessary or desirable to do so for the purpose of--

(a) preventing invalidity or unlawfulness in relation to dispositions of a registered estate or charge,

(b) securing that interests which are capable of being overreached on a disposition of a registered estate or charge are overreached, or

(c) protecting a right or claim in relation to a registered estate or charge.

(2) No restriction may be entered under subsection (1)(c) for the purpose of protecting the priority of an interest which is, or could be, the subject of a notice.

(3) The registrar must give notice of any entry made under this section to the proprietor of the registered estate or charge concerned, except where the entry is made in pursuance of an application under section 43.

(4) For the purposes of subsection (1)(c), a person entitled to the benefit of a charging order relating to an interest under a trust shall be treated as having a right or claim in relation to the trust property.

43 Applications

(1) A person may apply to the registrar for the entry of a restriction under section 42(1) if--

(a) he is the relevant registered proprietor, or a person entitled to be registered as such proprietor,

(b) the relevant registered proprietor, or a person entitled to be registered as such proprietor, consents to the application, or

(c) he otherwise has a sufficient interest in the making of the entry.

(2) Rules may--

(a) require the making of an application under subsection (1) in such circumstances, and by such person, as the rules may provide;

(b) make provision about the form of consent for the purposes of subsection (1)(b);

(c) provide for classes of person to be regarded as included in subsection (1)(c);

(d) specify standard forms of restriction.

(3) If an application under subsection (1) is made for the entry of a restriction which is not in a form specified under subsection (2)(d), the registrar may only approve the application if it appears to him--

(a) that the terms of the proposed restriction are reasonable, and

(b) that applying the proposed restriction would--

(i) be straightforward, and

(ii) not place an unreasonable burden on him.

(4) In subsection (1), references to the relevant registered proprietor are to the proprietor of the registered estate or charge to which the application relates.

44 Obligatory restrictions

(1) If the registrar enters two or more persons in the register as the proprietor of a registered estate in land, he must also enter in the register such restrictions as rules may provide for the purpose of securing that interests which are capable of being overreached on a disposition of the estate are overreached.

(2) Where under any enactment the registrar is required to enter a restriction without application, the form of the restriction shall be such as rules may provide.

45 Notifiable applications

(1) Where an application under section 43(1) is notifiable, the registrar must give notice of the application, and of the right to object to it, to--

(a) the proprietor of the registered estate or charge to which it relates, and

(b) such other persons as rules may provide.

(2) The registrar may not determine an application to which subsection (1) applies before the end of such period as rules may provide, unless the person, or each of the persons, notified under that subsection has exercised his right to object to the application or given the registrar notice that he does not intend to do so.

(3) For the purposes of this section, an application under section 43(1) is notifiable unless it is--

(a) made by or with the consent of the proprietor of the registered estate or charge to which the application relates, or a person entitled to be registered as such proprietor,

(b) made in pursuance of rules under section 43(2)(a), or

(c) an application for the entry of a restriction reflecting a limitation under an order of the court or registrar, or an undertaking given in place of such an order.

46 Power of court to order entry

(1) If it appears to the court that it is necessary or desirable to do so for the purpose of protecting a right or claim in relation to a registered estate or charge, it may make an order requiring the registrar to enter a restriction in the register.

(2) No order under this section may be made for the purpose of protecting the priority of an interest which is, or could be, the subject of a notice.

(3) The court may include in an order under this section a direction that an entry made in pursuance of the order is to have overriding priority.

(4) If an order under this section includes a direction under subsection (3), the registrar must make such entry in the register as rules may provide.

(5) The court may make the exercise of its power under subsection (3) subject to such terms and conditions as it thinks fit.

47 Withdrawal

A person may apply to the registrar for the withdrawal of a restriction if--

(a) the restriction was entered in such circumstances as rules may provide, and

(b) he is of such a description as rules may provide.

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