Unregistered land - Land charges

Learning Outcomes

After reading this article, you will be able to explain the system of land charges in unregistered land, identify which interests must be registered to be enforceable, distinguish the consequences of non-registration, and apply the doctrine of notice to equitable interests that fall outside the land charges regime. You will also be able to answer SQE1-style questions on this topic.

SQE1 Syllabus

For SQE1, you are required to understand the enforceability of third-party rights in unregistered land, especially the system of land charges and the doctrine of notice. Focus your revision on:

• the statutory registration system for land charges under the Land Charges Act 1972
• which interests must be registered to be enforceable against a purchaser
• the effect of registration and non-registration of land charges
• the operation of the doctrine of notice for interests outside the land charges regime
• the meaning of key terms such as estate contract, restrictive covenant, and puisne mortgage

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.

1. Which of the following interests must be registered as a land charge to be enforceable against a purchaser of unregistered land?
   1. legal lease for 10 years
   2. equitable mortgage
   3. restrictive covenant created in 1980
   4. legal easement
2. What is the effect of failing to register an estate contract as a land charge?
   1. It is void against a purchaser for value of a legal estate
   2. It is still enforceable if the purchaser had actual notice
   3. It is void only if the purchaser is a volunteer
   4. It is always enforceable
3. Which of the following best describes the doctrine of notice?
   1. It applies to all legal interests in land
   2. It determines whether certain equitable interests bind a purchaser
   3. It is irrelevant to unregistered land
   4. It applies only to registered land

Introduction

When dealing with unregistered land, the enforceability of third-party rights depends on a statutory registration system and, in some cases, the doctrine of notice. The Land Charges Act 1972 introduced a register for certain interests—called land charges—which must be registered to bind a purchaser. This article explains which interests must be registered, the consequences of non-registration, and how the doctrine of notice still applies to some equitable rights.

Land charges and the Land Charges Act 1972

The Land Charges Act 1972 (LCA 1972) sets out a system for registering specific interests affecting unregistered land. Registration is not against the land itself, but against the name of the estate owner at the time the interest is created.

Key Term: land charge
A statutory entry on the Land Charges Register protecting certain interests in unregistered land, such as restrictive covenants, equitable easements, and estate contracts.

Key Term: Land Charges Act 1972
The statute that governs the registration and enforceability of land charges in unregistered land.

Classes of land charges

The LCA 1972 divides land charges into several classes. The most relevant for SQE1 are:

• Class C(i): Puisne mortgages (legal mortgages not protected by deposit of title deeds)
• Class C(iv): Estate contracts (including options and equitable leases)
• Class D(ii): Restrictive covenants (not between landlord and tenant)
• Class D(iii): Equitable easements

Key Term: puisne mortgage
A legal mortgage over unregistered land not protected by the deposit of title deeds, requiring registration as a land charge.

Key Term: estate contract
An agreement giving a right to acquire a legal estate in land in the future, such as an option or contract for sale.

Key Term: restrictive covenant
A promise restricting the use of land, usually enforceable in equity, and registrable as a land charge if created after 1925.

Key Term: equitable easement
A right over land that is not legal due to lack of formality or duration, registrable as a land charge if created after 1925.

The effect of registration

Registration of a land charge gives notice to the world. Once registered, the interest will bind any purchaser of the legal estate for money or money's worth, even if the purchaser has no actual knowledge of the interest.

Key Term: purchaser of a legal estate for money or money's worth
A person who acquires a legal estate in land in return for valuable consideration, such as money, goods, or services.

Key Term: purchaser for value
A person who acquires an interest in land for valuable consideration, not as a gift or inheritance.

Key Term: land charge
(See above definition.)

The effect of non-registration

If a registrable interest is not registered as a land charge, it is void against a purchaser of the legal estate for money or money's worth. This is true even if the purchaser had actual notice of the interest.

Worked Example 1.1

A enters into a contract to buy unregistered land from B. B later sells the land to C, who pays full market value and has no knowledge of A's contract. The contract was not registered as a land charge. Is C bound by A's contract?

Answer: No. The estate contract is void against C because it was not registered as a land charge. C takes free of A's interest, even if C had actual notice.

Worked Example 1.2

D grants E an equitable easement over unregistered land in 1990. E fails to register the easement as a land charge. D sells the land to F, who pays money for the legal estate. Is F bound?

Answer: No. The equitable easement is void against F because it was not registered as a land charge.

The doctrine of notice

Some equitable interests in unregistered land are not registrable as land charges. These include beneficial interests under a trust and pre-1926 restrictive covenants and easements. Whether these bind a purchaser depends on the doctrine of notice.

Key Term: doctrine of notice
The rule that certain equitable interests bind a purchaser only if the purchaser has actual, constructive, or imputed notice of the interest.

Key Term: bona fide purchaser for value without notice
A person who acquires a legal estate in land for value and without actual, constructive, or imputed notice of an equitable interest.

Worked Example 1.3

G contributes to the purchase price of unregistered land, but is not named on the title deeds. The legal owner sells the land to H, who pays full value and has no knowledge of G's interest. Is H bound?

Answer: No. If H is a bona fide purchaser for value without notice, H takes free of G's equitable interest.

Actual, constructive, and imputed notice

• Actual notice: The purchaser actually knows of the interest.
• Constructive notice: The purchaser would have discovered the interest by making reasonable enquiries or inspecting the land.
• Imputed notice: The purchaser's agent (e.g., solicitor) has actual or constructive notice, which is attributed to the purchaser.

Key Term: actual notice
The purchaser's actual knowledge of an equitable interest.

Key Term: constructive notice
Knowledge a purchaser is deemed to have if reasonable enquiries or inspection would have revealed the interest.

Key Term: imputed notice
Knowledge of an interest held by the purchaser's agent, attributed to the purchaser.

Registration process

To register a land charge, the interest must be entered against the name of the estate owner at the time the interest is created. Searches must be made against all relevant names in the title deeds.

Worked Example 1.4

J registers a restrictive covenant as a land charge against the wrong name (e.g., "John Smith" instead of "Jonathan Smith"). K buys the land and searches against "Jonathan Smith." Is K bound?

Answer: No. If the search is made against the correct name and the land charge is registered against a different name, the purchaser is not bound.

Consequences for practice

• Legal interests (except puisne mortgages) bind the world and do not require registration.
• Equitable interests that must be registered as land charges are void against a purchaser for value if not registered.
• Some equitable interests are not registrable and depend on the doctrine of notice.

Exam Warning

If a question asks whether a purchaser is bound by an unregistered land charge, check whether the interest is registrable. If it is, non-registration means it is void against a purchaser for value, even if the purchaser had actual notice.

Revision Tip

For SQE1, memorise which interests must be registered as land charges and which depend on the doctrine of notice. Practice applying these rules to fact patterns.

Key Point Checklist

This article has covered the following key knowledge points:

• The Land Charges Act 1972 requires registration of certain interests in unregistered land to be enforceable against a purchaser.
• Registration is against the name of the estate owner at the time the interest is created.
• If a registrable interest is not registered, it is void against a purchaser of the legal estate for money or money's worth.
• Legal interests (except puisne mortgages) bind the world and do not require registration.
• Some equitable interests are not registrable and depend on the doctrine of notice.
• The doctrine of notice means a purchaser is bound only if they have actual, constructive, or imputed notice.
• A bona fide purchaser for value without notice takes free of equitable interests not protected by registration.

Key Terms and Concepts

• land charge
• Land Charges Act 1972
• puisne mortgage
• estate contract
• restrictive covenant
• equitable easement
• purchaser of a legal estate for money or money's worth
• purchaser for value
• doctrine of notice
• bona fide purchaser for value without notice
• actual notice
• constructive notice
• imputed notice