Learning Outcomes
After studying this article, you will be able to explain the purpose and structure of the land register, the mirror principle, and the concept of overriding interests under the Land Registration Act 2002. You will understand how title is proved in registered land, the limits of the register’s accuracy, and the practical implications for purchasers and third parties. You will also be able to identify and apply the key rules for protecting and investigating title, as required for SQE1.
SQE1 Syllabus
For SQE1, you are required to understand the registration of title and protection of interests in registered land. Focus your revision on:
- the function and structure of the land register in England and Wales
- the mirror principle and its limitations
- the concept and categories of overriding interests
- how proof of ownership is established in registered land
- the practical consequences for purchasers and third parties
- the distinction between registered and unregistered land in relation to title and interests
Test Your Knowledge
Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision.
- What is the mirror principle in the context of the land register, and why is it not absolute?
- Which of the following is an overriding interest under Schedule 3 of the Land Registration Act 2002? a) a lease for 15 years b) a restrictive covenant c) a legal easement not obvious on inspection d) a lease for 6 years
- How does a purchaser of registered land prove ownership?
- True or false? All interests affecting registered land must appear on the register to bind a purchaser.
Introduction
The system of land registration in England and Wales is designed to provide certainty and efficiency in property transactions. The Land Registration Act 2002 (LRA 2002) governs how title to land and interests in land are recorded, protected, and investigated. Understanding the register, the mirror principle, and the concept of overriding interests is essential for SQE1.
The Land Register: Structure and Function
The land register is a public, state-backed record of ownership and interests in registered land. Each registered title has a unique title number and is divided into three main parts:
- Property Register: Describes the land and any rights benefiting it.
- Proprietorship Register: Names the registered owner(s) and states the class of title.
- Charges Register: Lists burdens affecting the land, such as mortgages and certain third-party rights.
Key Term: land register
The official record maintained by HM Land Registry showing ownership and interests in registered land.
The Mirror Principle
The mirror principle states that the register should reflect all rights and interests affecting a registered title, so that anyone dealing with the land can rely on the register as a complete and accurate record.
Key Term: mirror principle
The idea that the register should show all relevant rights and interests affecting a registered title, allowing parties to rely on it as conclusive evidence of title.
However, the mirror is not perfect. Some interests bind a purchaser even though they are not entered on the register. These are known as overriding interests.
Overriding Interests
Overriding interests are rights that bind a purchaser of registered land even if they do not appear on the register. They are listed in Schedule 3 of the LRA 2002 and include:
- legal leases granted for a term not exceeding seven years
- the rights of persons in actual occupation
- certain legal easements and profits that are obvious on inspection, known to the purchaser, or exercised in the previous year
Key Term: overriding interest
A right or interest that binds a purchaser of registered land even if it is not entered on the register, as set out in Schedule 3 of the LRA 2002.
Proof of Ownership in Registered Land
In registered land, ownership is proved by obtaining an official copy of the register from HM Land Registry. The registered proprietor is deemed to have legal title to the estate shown on the register (LRA 2002, s.58). This is known as "title by registration".
Key Term: title by registration
The principle that legal title to registered land is conferred by entry on the register, rather than by possession of deeds or documents.
A purchaser does not need to investigate historic title deeds. Instead, reliance is placed on the register and any entries it contains.
Limitations of the Register
Despite the aim of completeness, the register does not always show every interest that may affect the land. The main exceptions are:
- overriding interests (as above)
- certain equitable interests under trusts, which may be protected by a restriction rather than a notice
- some statutory rights and short-term interests
This means that a purchaser must not only check the register but also make enquiries and inspect the property for signs of occupation or use by others.
Worked Example 1.1
A client is buying a registered freehold house. The register is silent about any third-party rights. On inspection, the client finds someone living in a separate annex. The seller says the annex is let on a 5-year lease. Is the client bound by this lease?
Answer:
Yes. A legal lease for 5 years is an overriding interest under Schedule 3 of the LRA 2002. The client will be bound even though the lease is not noted on the register.
The Curtain Principle
Some equitable interests, such as beneficial interests under a trust, are kept "behind the curtain" and do not appear on the register. Instead, a restriction may be entered to alert a purchaser that further steps (such as payment to two trustees) are needed to obtain good title.
Key Term: curtain principle
The concept that certain equitable interests (especially under trusts) are kept off the register, so that purchasers need not investigate them directly.
Overriding Interests in Detail
Legal Leases Not Exceeding Seven Years
A legal lease granted for a term of seven years or less is an overriding interest (LRA 2002, Sch. 3, para. 1). It binds a purchaser even if not registered.
Persons in Actual Occupation
A person with a proprietary interest who is in actual occupation may have an overriding interest (LRA 2002, Sch. 3, para. 2). This includes, for example, a spouse with a beneficial interest who is living at the property.
Key Term: actual occupation
Physical presence on the land, which may give rise to an overriding interest if coupled with a proprietary right.Key Term: proprietary interest
A right in land that is capable of binding third parties, such as a lease, easement, or beneficial interest under a trust.
Legal Easements and Profits
A legal easement or profit not expressly granted but implied or acquired by prescription may override if it is obvious on inspection, known to the purchaser, or exercised in the previous year (LRA 2002, Sch. 3, para. 3).
Worked Example 1.2
A client buys a registered property. After completion, a neighbour claims a right of way across the garden, which is not mentioned on the register. The path is clearly visible and has been used for many years. Is the client bound?
Answer:
Yes. A legal easement that is obvious on a reasonably careful inspection is an overriding interest under Schedule 3 of the LRA 2002.
Practical Consequences for Purchasers
A purchaser of registered land must:
- inspect the register for entries such as notices and restrictions
- make enquiries of the seller about occupiers and third-party rights
- physically inspect the property for signs of occupation or use by others
Failure to do so may result in being bound by an overriding interest.
Exam Warning
Purchasers cannot rely solely on the register. Overriding interests may still bind even if not disclosed, so thorough inspection and enquiry are essential.
Registered vs. Unregistered Land: Key Differences
In registered land, the register is the main evidence of title. In unregistered land, title is proved by a chain of title deeds, and the doctrine of notice applies to some interests. The register simplifies conveyancing and reduces the risk of hidden interests, but overriding interests remain a potential trap.
Human Rights and Land Registration
The Human Rights Act 1998 (HRA 1998) and the European Convention on Human Rights (ECHR) may affect land registration, especially in relation to possession proceedings and adverse possession. Article 8 (respect for private and family life) and Article 1 of the First Protocol (peaceful enjoyment of possessions) are particularly relevant.
Worked Example 1.3
A registered proprietor is dispossessed by a squatter who acquires title by adverse possession. The former owner claims this breaches their human rights. Is this argument likely to succeed?
Answer:
No. The European Court of Human Rights has held that the operation of adverse possession laws does not generally breach Article 1 of the First Protocol, provided the law is clear and proportionate.
Key Point Checklist
This article has covered the following key knowledge points:
- The land register is the official record of title and interests in registered land.
- The mirror principle means the register should reflect all relevant rights, but overriding interests may still bind a purchaser.
- Overriding interests include short legal leases, rights of persons in actual occupation, and certain legal easements and profits.
- Proof of ownership in registered land is by official copy of the register, not title deeds.
- Purchasers must inspect the property and make enquiries to avoid being bound by undisclosed overriding interests.
- The curtain principle keeps some equitable interests off the register, but restrictions may alert purchasers.
- Human rights law may affect land registration, but does not usually prevent the operation of the LRA 2002.
Key Terms and Concepts
- land register
- mirror principle
- overriding interest
- title by registration
- curtain principle
- actual occupation
- proprietary interest
