There are two types of registerable Interests – Registerable Dispositions (Section 27 LRA 2002) and Interests Affecting a Registered Estate. They must both be registered before the date of the changing of names on the Register to be binding.
In order to be made legal, a Registered Disposition must be registered. By doing this, the interest will bind all future purchaser of the land. Set out in section 27 LRA 2002, there are 3 types of registerable disposition:
- Legal Leases of 7 Years or more
- Express Creation of Legal Easements
- Legal Mortgages.
These interests will all be protected by a notice on the Charges Register. A legal Mortgage will require two entries on the register, one explaining what the interest is, and the second explaining who the mortgagee is.
If a lease is not registered, there is a possibility or can be protected for a limited amount of time as an overriding interest- Schedule 3 Paragraph 1.
Interests Affecting a Registered Estate
Interests affecting a registered estate must also be registered to be made binding on all future purchaser of the property. These are:
- Estate contracts- Options to purchase, equitable leases.
- Restrictive Covenants
- Equitable Easements
- Family Rights- Covered by the Family Law act which require a unilateral registration of home rights to be binding.
Neither RD or IARE can be overreached.
These are a different to RD and IARE. Trust interests cannot be protected by a notice on the charges register. However, a restriction on the Proprietorship register can be made. This will aware any future buyers that there is a trust interest on the land. All trust interests can be overreached, and it does not protect the beneficiaries of a trust, but it does provide a layer of protection.
In order to overreach a trust interest, the purchase must:
- Pay All trustees
- At lease 2 in Number
Covered in sections 2 and 27 LPA.
If a purchaser does not overreach, when their application to get title changed on the register will be rejected due to this restriction.
A Notice on the charges register will protect an interest in the land. Alongside this, it will also protect the priority of the interests. Therefore 1st registration their interest will take priority over any conflicting interests created later. This applies heavily to the law surrounding mortgage and registration of secured creditors.
A restriction on the proprietorship register does not completely protect the Interest. They regulate any changes on the land. They may, as well as being made for trusts of land, be made by a mortgage company to stop any future dealings with the land without permission from them. Restrictions are a method of protection, but it means that the purchaser will always have to comply with the restriction to take title to the property, and not be bound by that interest in the future.