Priorities in Registered Land
The Priority Triangle
A owns an estate in land
B acquires a right to use A’s land
C later acquires a right to use A’s land
Question: If the rights come into conflict, whose right takes priority, B’s right or C’s right?
The Basic Rule
Under s.28 LRA 2002
‘(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.’
Essentially, s.28 states the Act does not alter how questions of priority are determined under the
general law, except where provided by ss.29 and 30.
General law governing property rights
Basic rule is that oldest right prevails
To establish which right has priority, ask
a) Does the type of right claimed by B count as a property right?
b) Did B acquire this right before C? If so, does C have any defence to this pre-existing property right?
There are two views in establishing which right was acquired first:
1) The Traditional View
A borrows the money from C in order to buy a lease or freehold
C acquires a charge over the land to secure A’s duty to repay the loan
C acquires its right from A A can only give C the charge after A has already acquired the lease or
freehold
Hence, there is a slice of time when A holds the property right before C
If B has contributed to the purchasing of the lease or freehold such that B has an equitable interest in
the property, B’s equitable interest is said to arise at the same time as A’s
B’s equitable interest arises earlier than C’s charge, and takes priority
Williams & Glyn’s Bank v Boland
The Priority Triangle
A owns an estate in land
B acquires a right to use A’s land
C later acquires a right to use A’s land
Question: If the rights come into conflict, whose right takes priority, B’s right or C’s right?
The Basic Rule
Under s.28 LRA 2002
‘(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.’
Essentially, s.28 states the Act does not alter how questions of priority are determined under the
general law, except where provided by ss.29 and 30.
General law governing property rights
Basic rule is that oldest right prevails
To establish which right has priority, ask
a) Does the type of right claimed by B count as a property right?
b) Did B acquire this right before C? If so, does C have any defence to this pre-existing property right?
There are two views in establishing which right was acquired first:
1) The Traditional View
A borrows the money from C in order to buy a lease or freehold
C acquires a charge over the land to secure A’s duty to repay the loan
C acquires its right from A A can only give C the charge after A has already acquired the lease or
freehold
Hence, there is a slice of time when A holds the property right before C
If B has contributed to the purchasing of the lease or freehold such that B has an equitable interest in
the property, B’s equitable interest is said to arise at the same time as A’s
B’s equitable interest arises earlier than C’s charge, and takes priority
Williams & Glyn’s Bank v Boland
