Registration of Property Rights - Part 1
The purpose of property registration systems
To protect property rights
To make creating and transferring property rights simpler
To provide ‘clear notice’ to the world (Pierson v Post)
To provide evidence of title – important because our system allows for possessory title
and for relativity of title based on ‘first in time’ claims, so possibly if A is selling to C:
o A does not in fact have the legal power to transfer a valid property right to C;
and/or
o Even if A does have that power, another party (B) may have a pre-existing right in
the same property that will be binding on C after the transfer.
Not a new idea - Merchant shipping – the oldest registration system, established by the
Navigation Act 1660
Different registration systems for different types of property
intellectual Property Rights (intangible personal property / choses in action):
There are different registration systems for patents and trademarks.
Not all IP rights are registrable – Copyright.
Beware - registration can have different purposes. It may not provide good proof of title
(ownership)
Specific systems for particular chattels (tangible personal property / choses in possession), e.g.
Cars – the DVLA issues V5 logbooks which state "THIS DOCUMENT IS NOT PROOF OF
OWNERSHIP - IT ONLY SHOWS WHO IS RESPONSIBLE FOR REGISTERING AND TAXING
THIS CAR”-eg this is a system to collect tax, and for parking tickets cause the states
needs to be able to trace you.
Pets – registration is not proof of ownership.
Reasons for registration of title to land?
Potentially extensive ‘bundle of rights’ in any particular piece of land, makes
investigations before purchase difficult and time-consuming.
A registration system means that prospective purchasers can consult the register
instead, to find out quickly and easily about the title and interests in the land they plan
to buy.
Transactions can proceed with more speed and less risk.
Land Registry Strategy 2022+ ‘Enable a world-leading property market’. -You can readily
buy and sell interest in land.
Land Registration Act 2002
“The fundamental objective of the Bill is that, under the system of electronic dealing with land
that it seeks to create, the register should be a complete and accurate reflection of the state of
the title of the land at any given time, so that it is possible to investigate title to land online,
with the absolute minimum of additional enquiries and inspections. “
, LAND REGISTRATION FOR THE TWENTY FIRST CENTURY A Conveyancing Revolution, (2001) Law
Com. No. 271, para-1.5
replaced the Land Registration Act 1925, following Law Commission report Land Registration for
the 21st Century: A Conveyancing Revolution (Law Com No 271, 2001)
Aims:
Further simplification of conveyancing
transparent land rights-so anybody can look at the register.
protection of vulnerable interests-if you get something onto the register it is protected
against future buyers. you’ve given notice to the world.
(eventually!) e-conveyancing (s93) to make registration simultaneous with the
disposition of an estate or interest in land – ending the problem of the ‘registration gap’.
Principles of land registration. -not the rules of the system.
The Mirror principle: The register should reflect the totality of the rights and interests
concerning a title of registered land. that everything that impacts on the land, you
should be able to see it from the land register.
The Insurance principle: The accuracy of the register is guaranteed by the state; any
inaccuracies will be altered / rectified, and any person adversely affected will be
compensated.
The Curtain principle: The purchaser of land need not be concerned with any interests
that do not appear on the register (that exist ‘behind the curtain’.)-You don’t need to
worry about anything that’s not on the register.
[from T.B.F. Ruoff (1957), An Englishman looks at the Torrens System: being some provocative
essays on the operation of the system after one hundred years, Sydney, Law Book Co.]
-Think about the reasons behind them, rather than just applying them in a very simplistic way.
And remember that they are not the law.
How it works: three registers
We do not register a piece of land. What we register is title to the piece of land.
1. Property register: describes the land and estate comprised in the title and refers to a
plan of the land. Will tell you what the property is, Whether its freehold or leasehold etc
2. Proprietorship register: specifies the class of title eg absolute title or possessory title.
and identifies the owner. It contains any entries that affect the right of disposal. It'll say
if there's any restrictions on the right of that owner to dispose of the property. Eg
mortgage lenders put a restriction under section 40 of the Land registration act to say
that the land cannot be sold without their permission while the mortgage is still in place
over the land. Once the mortgage is paid off, they can do whatever they like.
3. Charges Register: contains any charges and other interests that affect the land. That tells
you all the things that impact on that land, what we call encumbrances. you’ll find the
list of any leases that affect the property. You'll find details of any mortgage, any
easement, any estate contracts or a contract to sell the land (propriety rights).
The purpose of property registration systems
To protect property rights
To make creating and transferring property rights simpler
To provide ‘clear notice’ to the world (Pierson v Post)
To provide evidence of title – important because our system allows for possessory title
and for relativity of title based on ‘first in time’ claims, so possibly if A is selling to C:
o A does not in fact have the legal power to transfer a valid property right to C;
and/or
o Even if A does have that power, another party (B) may have a pre-existing right in
the same property that will be binding on C after the transfer.
Not a new idea - Merchant shipping – the oldest registration system, established by the
Navigation Act 1660
Different registration systems for different types of property
intellectual Property Rights (intangible personal property / choses in action):
There are different registration systems for patents and trademarks.
Not all IP rights are registrable – Copyright.
Beware - registration can have different purposes. It may not provide good proof of title
(ownership)
Specific systems for particular chattels (tangible personal property / choses in possession), e.g.
Cars – the DVLA issues V5 logbooks which state "THIS DOCUMENT IS NOT PROOF OF
OWNERSHIP - IT ONLY SHOWS WHO IS RESPONSIBLE FOR REGISTERING AND TAXING
THIS CAR”-eg this is a system to collect tax, and for parking tickets cause the states
needs to be able to trace you.
Pets – registration is not proof of ownership.
Reasons for registration of title to land?
Potentially extensive ‘bundle of rights’ in any particular piece of land, makes
investigations before purchase difficult and time-consuming.
A registration system means that prospective purchasers can consult the register
instead, to find out quickly and easily about the title and interests in the land they plan
to buy.
Transactions can proceed with more speed and less risk.
Land Registry Strategy 2022+ ‘Enable a world-leading property market’. -You can readily
buy and sell interest in land.
Land Registration Act 2002
“The fundamental objective of the Bill is that, under the system of electronic dealing with land
that it seeks to create, the register should be a complete and accurate reflection of the state of
the title of the land at any given time, so that it is possible to investigate title to land online,
with the absolute minimum of additional enquiries and inspections. “
, LAND REGISTRATION FOR THE TWENTY FIRST CENTURY A Conveyancing Revolution, (2001) Law
Com. No. 271, para-1.5
replaced the Land Registration Act 1925, following Law Commission report Land Registration for
the 21st Century: A Conveyancing Revolution (Law Com No 271, 2001)
Aims:
Further simplification of conveyancing
transparent land rights-so anybody can look at the register.
protection of vulnerable interests-if you get something onto the register it is protected
against future buyers. you’ve given notice to the world.
(eventually!) e-conveyancing (s93) to make registration simultaneous with the
disposition of an estate or interest in land – ending the problem of the ‘registration gap’.
Principles of land registration. -not the rules of the system.
The Mirror principle: The register should reflect the totality of the rights and interests
concerning a title of registered land. that everything that impacts on the land, you
should be able to see it from the land register.
The Insurance principle: The accuracy of the register is guaranteed by the state; any
inaccuracies will be altered / rectified, and any person adversely affected will be
compensated.
The Curtain principle: The purchaser of land need not be concerned with any interests
that do not appear on the register (that exist ‘behind the curtain’.)-You don’t need to
worry about anything that’s not on the register.
[from T.B.F. Ruoff (1957), An Englishman looks at the Torrens System: being some provocative
essays on the operation of the system after one hundred years, Sydney, Law Book Co.]
-Think about the reasons behind them, rather than just applying them in a very simplistic way.
And remember that they are not the law.
How it works: three registers
We do not register a piece of land. What we register is title to the piece of land.
1. Property register: describes the land and estate comprised in the title and refers to a
plan of the land. Will tell you what the property is, Whether its freehold or leasehold etc
2. Proprietorship register: specifies the class of title eg absolute title or possessory title.
and identifies the owner. It contains any entries that affect the right of disposal. It'll say
if there's any restrictions on the right of that owner to dispose of the property. Eg
mortgage lenders put a restriction under section 40 of the Land registration act to say
that the land cannot be sold without their permission while the mortgage is still in place
over the land. Once the mortgage is paid off, they can do whatever they like.
3. Charges Register: contains any charges and other interests that affect the land. That tells
you all the things that impact on that land, what we call encumbrances. you’ll find the
list of any leases that affect the property. You'll find details of any mortgage, any
easement, any estate contracts or a contract to sell the land (propriety rights).
