Registered and Unregistered Conveyancing

Where land is sold there is a contract between the vendor and purchaser which can only be made in writing. The contract becomes binding on the exchange of contracts; however, before any transfer of title can take place, the title of the vendor must be established. The procedure varies, depending on whether the land is unregistered or registered.

Unregistered conveyancing

The vendor’s title is provided through the ‘title deeds’ which must establish a chain of at least 15 years to a ‘good root of title’. The purchaser also searches for encumbrances against the land in the Land Charges Registry which classifies encumbrances under different classes. The final transfer of the land will be a conveyance by deed drawn up by the purchaser’s solicitor.

Registered conveyancing

Each area has a District Registry and each registered title is allocated a title number. Each registered interest comprises three separate registers: (i) the Property Register which describes the property, usually by reference to a map; (ii) the Proprietors Register which gives the name of the registered proprietor and a description of his title; and (iii) the Charges Register which details charges and other claims registered against the property. Once a search of the register has been made with the permission of the registered proprietor, a standard form from legal transfer is executed in the form of a deed, and the registers will be updated.

The Classification of Estates and Interest in Land: Unregistered and Registered Unregistered land

The classification is based on the old distinctions between legal and equitable estates and interests and comprises (i) legal estates; (ii) legal interests; (iii) equitable estates under a trust; (iv) equitable interests; and (vi) equitable interests subject to the equitable doctrine of notice.

Registered land

The following interests in land exist: (i) registrable interests; (ii) registered charges; (iii) overriding interests; and (iv) minor interests.

Registered charges.

These are registered legal mortgages. The Land Certificate is replaced by a Charge Certificate issued to the morgagee.

Overriding interests.

Registered land works on the ‘mirror principle’ and the register reflects the exact picture of the title to the property. Overriding interests contradict this principle and cannot be independently registered, but they are binding on a subsequent purchaser. The most important category relates to rights of occupation. In Williams and Glyn’s Bank Ltd v. Boland [1981], a husband and wife bought a house from their joint earnings but the house was registered in the name of the husband alone. The husband later mortgaged the house to the bank without telling the wife. The bank made no enquires about the wife. The husband defaulted on the mortgage and the bank claimed possession of the house prior to sale. The House of Lords upheld the decision of the Court of Appeal that the wife had an overriding interest and refused the bank’s claim. The basis of the claim was the wife’s contribution to the purchase of the property.

Minor interests.

These are those which are overreachable even though protected by a register entry and those which cannot be overreached as long as they are protected by a register entry. The overreachable interests are the old equitable and legal estates exiting under a trust which are protected by a restriction on the Proprietorship Register; they are overreached where a purchaser complies with the terms of restrictions, for example by paying the purchase price to the person(s) named as trustee.

Interests which cannot be overreached are protected by register entries of which the most important relate to equitable mortgages which are protected by (a) cautions against dealing which ensure that the mortgagee is notified of an attempt to register a dealing in the land. If the cautioner does not contest the registration within 14 days of notification, the registration will proceed and the caution will be removed; and (b) Protection by Notice of Deposit of Land Certificate/Charge Certificate which operates in the same way as a caution.