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MODERN LAND LAW

Sixth Edition

Modern Land Law provides a user-friendly yet comprehensive account of this foundation subject.

Explaining land law in an understandable and logical fashion, this new edition has been substantially rewritten and revised to take into account developments since the publication of the last edition in 2005. In addition, each chapter has been expanded and updated to include an analysis of the most recent case law including Doherty v. Birmingham City Council and

Yeoman’s Row Management v. Cobbe.

Written with students in mind, key features of this textbook include:

a clear introduction to each chapter

concise and understandable treatment of all the major topics covered on an undergraduate course

a concluding summary to each chapter

in-depth coverage of recent significant developments

increased use of tables and diagrams to aid understanding of complicated topics.

Modern Land Law provides a readable, clear and thorough exposition of the principles of land law. Comprehensive yet succinct it is the perfect text for an undergraduate course.

Dr Martin Dixon is Reader in the Law of Real Property at Cambridge University and a Fellow of Queens' College, Cambridge. He is visiting Professor of Law at City University, London. He examines and writes extensively on property law and is the editor of The Conveyancer and Property Lawyer, the leading property law journal. He is also an author of Ruoff and Roper: The Law of Registered Conveyancing, the authoritative text on the modern land registration.

MODERN LAND LAW

Sixth Edition

Dr Martin Dixon

Sixth edition first published 2009 by Routledge-Cavendish

2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN

Simultaneously published in the USA and Canada by Routledge-Cavendish

270 Madison Ave, New York, NY10016

This edition published in the Taylor & Francis e-Library, 2009.

To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.

Routledge-Cavendish is an imprint of the

Taylor & Francis Group, an informa business

© 2009 Martin Dixon

First published by Cavendish Publishing as Principles in Land Law in 1994

First edition

1994

Second edition

1996

Third edition

1999

Fourth edition

2002

Fifth edition

2005

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data

A catalog record for this title has been requested.

ISBN 0-203-86794-7 Master e-book ISBN

ISBN 13: 978-0-415-45844-3 (pbk)

ISBN 10: 0-415-45844-7 (pbk)

PREFACE

Approaching land law for the first time can seem a daunting prospect. A major aim of this text is to dispel fears and to explain land law in an understandable and logical way. No attempt has been made to minimise the complexities of the subject simply to make it attractive or readable, for that benefits no one. However, the text is designed to explode the myths and mysteries of land law and substitute instead a picture that is both detailed and comprehensible. There is no denying that land law is different from other subjects, not least because its language is at first unfamiliar. But different does not mean difficult. Similarly, there is a common belief that land law is boring, not as sexy or apparently relevant as other legal disciplines. This too is misplaced, for land law remains at the heart of the legal system and is the vehicle for so much that concerns our everyday lives, both at home and work. Seen in context, the issues raised in land law are as challenging and as topical as any that other law courses have to offer.

Land law is also a subject steeped in history. Many of the concepts and much of the language have their origin in centuries old legal tradition. However, the historical dimension of land law – which in its own right is a fascinating topic for those with a passion for social and legal history – should not blind us to the reality that we live in the twenty-first century and that the everyday principles of land law have moved on. The great reforms of 1922–25 that gave birth to the reforming property law legislation of 1925 no longer seem radical and unfamiliar, and the entry into force of the Land Registration Act 2002 on October 13 2003 heralded a new era. Of course, what we have now owes much to what we once had, but land law is a modern subject and our system is likely to be the first in the world that moves away from paper transactions in favour of electronic dealings. That said, I have resisted the temptation, which was never very great, to present land law as some kind of trendy, modernist social construct. The need for modern teaching of a modern subject does not mean the abandonment of a method of analysis that has stood the test of time. This is a book about law, based on our traditional understanding of the foundations of property law, albeit that concepts, principles and rules which are of purely historical interest have been omitted.

Land law is like a jigsaw and this book aims to explain the rules and principles and how they fit together to form a coherent whole. The arrangement of the chapters is intended to facilitate the growth of a steady understanding of each topic and its place within the jigsaw. Many pieces are needed before the jigsaw shows a picture, so the text aims at an accumulation of understanding rather than dropping the reader in at the deep end. There has been important case law since the previous edition and the Land Registration Act 2002 has been in force for five years. The House of Lords has been active –

Stack v. Dowden, Moncrieff v. Jamieson, London Diocesan Board of Finance v. Avonridge and Kay v. Lambeth LBC being just a sample of the cases that have developed the law and had wide social and economic impact. In consequence,

v

Preface

much has been rewritten and expanded. My aim has remained, however, to help the reader swim with the subject, rather than watch them drown in the detail.

I am pleased to be working with Routledge-Cavendish whose gentle encouragement ensures that the book remains topical and up to date. I am genuinely grateful to many current and former students who continue to raise questions about land law that require thought and reflection. They have done much to sharpen my thoughts and to save me (I hope) from serious error. My wife and children no longer even pretend to have an interest in land law and they remain steadfast in their opposition to my attempts to explain to them how elegant and sophisticated the law of real property actually is. I have noticed a tendency for my study door to be locked from the outside.

Martin Dixon

Queens’ College, Cambridge

July 2008

vi

CONTENTS

Preface

 

 

v

Table of Cases

 

xix

Table of Statutes

xxxvii

Tables of Statuatory Instruments and European Legislation

xliii

Table of Acronyms

xlv

CHAPTER 1: AN INTRODUCTION TO MODERN LAND LAW

1

1.1

The nature and scope of the law of real property

2

1.2

Types of proprietary rights

6

 

1.2.1

Estates in land

6

 

1.2.2

Interests in land

9

1.3

The legal or equitable quality of proprietary rights

10

1.3.1The origins of the distinction between legal

and equitable rights

10

1.3.2Making the distinction between legal

 

and equitable rights today

11

1.3.3

Section 1 of the Law of Property Act 1925:

 

 

is the right capable of being either legal or equitable?

11

1.3.4

The manner of creation of the right

12

1.3.5The proposed system of electronic conveyancing and the

distinction between legal and equitable property rights

16

1.3.6 The division of ownership and the 'trust'

16

1.4The consequences of the distinction between legal and equitable

 

property rights

18

 

1.4.1 Legal property rights before the 1925 legislation

18

 

1.4.2 Equitable property rights before the 1925 legislation

19

1.5

The 1925 property legislation and the Land Registration Act 2002

20

 

1.5.1 The Law of Property Act 1925

20

 

1.5.2 The Settled Land Act 1925

20

 

1.5.3 The Land Registration Act 1925 and the Land

 

 

 

Registration Act 2002

20

 

1.5.4 The Land Charges Act 1972

21

1.6

The distinction between registered and unregistered land

21

 

1.6.1

Registered land

22

 

1.6.2

Unregistered land

23

Summary

 

27

CHAPTER 2: REGISTERED LAND

31

2.1

Introduction

31

2.2

The basic concept of title registration

33

2.3

The nature and purpose of the system of registered land

35

2.4

The three fundamental operating principles of registered land

38

 

2.4.1

The mirror principle

38

 

2.4.2

The curtain principle

40

 

2.4.3

The insurance principle

41

vii

Contents

2.5An overview of the registered land system under the

 

Land Registration Act 2002

42

 

2.5.1 Rejection of the doctrine of notice

45

 

2.5.2 Registrable estates under the LRA 2002

46

 

2.5.3

Registered charges

47

 

2.5.4 Unregistered interests which override ('overriding interests')

48

 

2.5.5 Interests protected by registration

49

2.6

The operation of registered land: titles

51

 

2.6.1

Absolute title

52

 

2.6.2

Good leasehold title

53

 

2.6.3

Possessory title

53

 

2.6.4

Qualified title

54

 

2.6.5 The new owner, purchaser or mortgagee under

 

 

 

a registered disposition

55

 

2.6.6 The third party with interests in the transferred land

56

2.7The operation of registered land: unregistered interests

which override

56

2.7.1

Strategies of the LRA 2002

57

2.7.2

Unregistered interests which override a first

 

 

registration under Schedule 1 of the LRA 2002

58

2.7.3Unregistered interests which override a registered

disposition under Schedule 3 of the LRA 2002

68

2.7.4The duty to disclose: entering overriding interests

on the register

79

2.7.5The bindingness of overriding interests

under the LRA 2002

80

2.8The operation of registered land: protected registered

interests under the Land Registration Act 2002

83

2.8.1 The mechanics of registration of interests: notices

83

2.8.2

Agreed notices

85

2.8.3

Unilateral notices

86

2.8.4

Registrar's notices

86

2.8.5 Which type of notice? Agreed or unilateral?

87

2.8.6Removing and cancelling an agreed notice or

 

 

a 'registrar's notice'

88

 

2.8.7

Cancelling and challenging unilateral notices

88

 

2.8.8

Enforcing registered protected interests

89

2.9

Restrictions

92

2.10

The operation of registered land: overreaching

93

 

2.10.1

The right must be capable of being overreached

94

 

2.10.2

The statutory conditions for overreaching must be fulfilled

94

 

2.10.3

The consequences of failing to overreach

96

2.11

Alteration of the register

97

 

2.11.1

General conditions for altering the register

98

 

2.11.2

Rectification

99

viii

Contents

2.12

Indemnity under the Land Registration Act 2002

101

 

2.12.1 Indemnity as the consequence of a mistake

102

 

2.12.2 Indemnity for other reasons

103

2.13

An overview of the Land Registration Act 2002

103

Summary

107

CHAPTER 3: UNREGISTERED LAND

109

3.1Unregistered land: an introduction to the system of

 

unregistered conveyancing

109

 

3.1.1 What is unregistered land?

111

3.2

An overview of unregistered land

111

 

3.2.1 Estates in unregistered land

111

 

3.2.2 Interests in unregistered land: rights over another

 

 

person's estate

112

 

3.2.3 Legal interests

113

 

3.2.4 Equitable interests that are registrable under the

 

 

Land Charges Act 1972

114

 

3.2.5 Equitable interests that are not registrable under the

 

 

Land Charges Act 1972 because they are subject

 

 

to overreaching

114

 

3.2.6 Equitable interests that are neither registrable

 

 

under the Land Charges Act 1972 nor overreachable

115

3.3

Titles in unregistered land

115

3.4

Third-party rights in unregistered land

117

3.5The purchaser of unregistered land and the protection of

legal rights

118

3.6The purchaser of unregistered land and the protection

of equitable interests: the Land Charges Act 1972

119

3.6.1The classes of registrable land charge under the

Land Charges Act 1972

121

3.6.2 The effect of registering a land charge

126

3.6.3The consequences of failing to register a registrable

 

 

land charge in general

129

 

3.6.4

The voidness rule

130

 

3.6.5

Other registers

133

3.7

Overreachable rights

134

3.8

A residual class of equitable interests

136

3.9

Inherent problems in the system of unregistered land

139

3.10

A comparison with registered land

140

Summary

 

143

CHAPTER 4: CO-OWNERSHIP

147

4.1

The nature and types of concurrent co-ownership

148

4.2

Joint tenancy

148

ix