## Introduction

The Land Registration Act 2002 (LRA 2002) sets out how land ownership and many interests in land are recorded and protected in England and Wales. It replaced the old deeds-based approach with a state-backed register, aiming to make ownership and burdens clear, reduce title disputes, and make property transactions simpler and safer.

Three core ideas sit behind the system: the mirror principle (the register should reflect the current legal position), the curtain principle (purchasers do not need to investigate the details of trusts behind the register if the purchase money is paid correctly), and the insurance principle (if the register is wrong and someone loses out, they can usually be compensated). The Act also defines which rights must be registered to take effect at law, which rights can bind despite not being on the register (overriding interests), and how mistakes can be corrected (rectification) with compensation where appropriate (indemnity).

## What You'll Learn

- The mirror, curtain, and insurance principles explained
- What must be registered and when (including leases and charges)
- Priority rules under ss.28–29 LRA 2002 and how they affect buyers and lenders
- Overriding interests under Schedules 1 and 3, including actual occupation
- Overreaching of beneficial interests and why two trustees matter
- Rectification (Schedule 4) and indemnity (Schedule 8)
- How to use notices and restrictions to protect third-party rights
- Key cases: Williams & Glyn’s Bank v Boland; Chaudhary v Yavuz; Swift 1st Ltd v Chief Land Registrar
- Practical steps for conveyancers, lenders, and buyers

## Core Concepts

### Mirror, curtain and insurance principles

- Mirror principle: The register aims to be a complete and accurate reflection of the legal estate and most interests affecting it. Limits exist, notably overriding interests and short leases.
- Curtain principle: Purchasers need not investigate the details of beneficial interests under trusts if purchase money is paid to two trustees or a trust corporation. The beneficial interests are “overreached” and attach to the proceeds instead.
- Insurance principle: If the register is wrong and someone suffers loss because of a mistake, state-backed indemnity is generally available under Schedule 8.

Tip: The mirror is not perfect. Always consider whether an interest might override or be protected by a restriction.

### Registration essentials: the register, classes of title, and priority rules

- The register has three parts:
  - Property Register: description and rights benefiting the land
  - Proprietorship Register: owner, class of title, and restrictions
  - Charges Register: burdens such as mortgages and covenants
- Classes of title (freehold): title absolute (strongest), possessory, qualified. For leasehold: good leasehold, absolute leasehold, possessory, qualified.
- Compulsory first registration is triggered by transfers, the grant of a legal lease over seven years, legal charges, and other prescribed events.
- Registrable dispositions (s.27 LRA 2002) must be completed by registration to take effect at law, including:
  - Transfer of a registered estate
  - Grant of a legal charge (mortgage)
  - Grant of a legal lease for a term exceeding seven years
  - Express grant or reservation of certain easements
- Priority rules:
  - s.28: priority follows the order of creation unless displaced by s.29
  - s.29: a registrable disposition for valuable consideration that is completed by registration takes subject only to:
    - Interests on the register at the time of registration, and
    - Overriding interests under Schedule 3
- Protecting third-party rights:
  - Notices (s.32) protect most registrable but non-possessory rights (e.g., equitable easements, options)
  - Restrictions (s.40) control how dispositions can be registered (e.g., requiring two trustees or consent)

Tip: Use an OS1/OS2 priority search to secure priority between exchange and registration.

### Overriding interests (Schedules 1 and 3)

Overriding interests bind even if not on the register.

- Schedule 1 (first registration): interests that override first registration, including:
  - Short legal leases (not exceeding seven years)
  - Interests of persons in actual occupation
  - Legal easements and profits à prendre
- Schedule 3 (registered dispositions): interests that override dispositions of already registered land, including:
  - Short legal leases (not exceeding seven years)
  - Interests of persons in actual occupation, subject to limits:
    - The occupation must be obvious on a reasonably careful inspection or the purchaser has actual knowledge, and
    - The interest must exist at the time of the disposition; and
    - Occupiers may be expected to disclose their interest when asked reasonable enquiries
  - Certain unregistered legal easements and profits if they are obvious, within the purchaser’s actual knowledge, or used within the last year

Actual occupation is fact-sensitive. Regular use may not be enough; physical presence and possession are often key. Occupation can sometimes be through belongings or ongoing works, depending on the facts.

### Overreaching, notices and restrictions

- Overreaching (LPA 1925 ss.2 and 27): Payment of capital money to two trustees or a trust corporation detaches beneficial interests under a trust from the land and transfers them to the sale proceeds. The buyer then takes free from those beneficial rights.
- A Form A restriction on the proprietorship register usually signals a trust of land and prompts overreaching on sale. If overreaching does not occur (e.g., payment to a single trustee), beneficiaries may bind a purchaser if their interest is overriding (for example, through actual occupation).

Tip: Where a co-owned property is being sold, ensure completion monies are paid to two trustees or a trust corporation to overreach.

### Rectification and indemnity (Schedules 4 and 8)

- Alteration vs rectification:
  - Alteration is a change to the register
  - Rectification is an alteration that prejudicially affects the title of a registered proprietor and is needed to correct a mistake
- Schedule 4 sets out when the court or the registrar can rectify. There is strong protection for a registered proprietor in possession; rectification against them is limited (for example, if they caused or substantially contributed to the mistake by fraud or lack of proper care, or it would be unjust not to rectify).
- Forgery and mistakes: A registration founded on a forged deed can be a “mistake” that may be rectified, but rights and remedies will turn on the facts.
- Schedule 8 provides for indemnity where someone suffers loss by reason of rectification, a mistake that is not rectified, or certain missed entries. Indemnity may be reduced where the claimant’s lack of proper care contributed to the loss.

Tip: Keep robust identity checks and an audit trail. These help prevent fraud and protect indemnity claims.

## Key Examples or Case Studies

- Williams & Glyn’s Bank Ltd v Boland [1981] AC 487
  - Context: Wife made contributions to the home and was living there; husband mortgaged the property.
  - Key point: Her equitable interest, combined with actual occupation, overrode the bank’s registered charge.
  - Practical takeaway: Always enquire about occupiers and obtain occupier consents; do not rely solely on the register.

- Chaudhary v Yavuz [2012] 2 All ER 418
  - Context: Claimant relied on an unregistered right to use an external staircase.
  - Key point: Using a right of way was not actual occupation. The right did not override.
  - Practical takeaway: Not all regular use amounts to occupation. If a right needs to bind, protect it by notice where possible.

- Swift 1st Ltd v Chief Land Registrar [2015] Ch 602
  - Context: Mortgage registered following a forged disposition; later rectified.
  - Key point: There was a mistake; after rectification removing the forged charge, the lender could obtain indemnity (subject to the statutory conditions).
  - Practical takeaway: Even innocent parties can recover under Schedule 8 after a forgery leads to rectification, but the detail of possession, fault and care matters.

## Practical Applications

- Before exchange
  - Review the register (all three parts) and title plan. Note restrictions, notices, and any unusual entries.
  - Ask clear pre-contract enquiries about occupiers and unregistered rights. Follow up on any red flags.
  - Inspect the property or obtain a detailed report from someone who has. Look for signs of occupation beyond the registered owner.

- Completion and registration
  - For sales by trustees or co-owners, ensure purchase money is paid to two trustees/a trust corporation to trigger overreaching.
  - Register registrable dispositions promptly (s.27) and use an OS1/OS2 to preserve priority between completion and registration.
  - For leases, register terms exceeding seven years. Be aware that many short leases override even if not registered.

- Protecting third-party rights
  - Enter a notice for options, equitable easements, restrictive covenants, and other registrable burdens that need to bind successors.
  - Use restrictions to require consents or to ensure overreaching happens on any future sale.

- Managing easements
  - Register express easements and profits granted or reserved on a transfer to avoid loss of priority. Do not assume use alone will override.

- Dealing with actual occupation risks
  - Identify non-owner occupiers (family members, lodgers, partners). Obtain consent or appropriate deeds. Consider whether their presence could give rise to an overriding interest.

- Fraud prevention and rectification
  - Carry out robust identity checks (especially with absent owners or properties with no mortgage).
  - If the register is wrong, consider whether the case involves alteration or rectification and whether the proprietor is in possession.
  - Where rectification causes loss, assess a claim for indemnity under Schedule 8. Keep records to counter any argument of lack of proper care.

## Summary Checklist

- Know what must be registered to take effect at law (s.27 LRA 2002)
- Apply s.29 priority for purchases for value; remember overriding interests
- Check for short leases, easements, and people in actual occupation
- Use notices to protect equitable rights; use restrictions to control registration
- Ensure overreaching: pay purchase money to two trustees or a trust corporation (LPA 1925 ss.2, 27)
- Inspect the property and ask targeted questions about occupiers
- After forgery or error, consider rectification (Sch 4) and indemnity (Sch 8)
- Register promptly and use priority searches to protect the deal

## Quick Reference

| Concept                        | Authority                     | Key takeaway                                                      |
| ------------------------------ | ----------------------------- | ----------------------------------------------------------------- |
| Registrable dispositions       | LRA 2002 s.27                 | Must be registered to take effect at law                          |
| Priority on purchase for value | LRA 2002 s.29                 | Buyer takes subject to entries on register + overriding           |
| Basic priority (no s.29)       | LRA 2002 s.28                 | Earlier interests prevail unless displaced                        |
| Actual occupation overriding   | LRA 2002 Sch 3 para 2; Boland | Occupation can bind a buyer; inspection and knowledge matter      |
| Short leases overriding        | LRA 2002 Sch 3 para 1         | Legal leases ≤7 years usually override                            |
| Easements not on register      | LRA 2002 Sch 3 para 3         | May override if obvious, known, or recently used                  |
| Overreaching                   | LPA 1925 ss.2, 27             | Pay to two trustees/trust corp; beneficial rights attach to money |
| Rectification of the register  | LRA 2002 Sch 4                | Corrects mistakes; proprietor in possession protected             |
| Indemnity for loss             | LRA 2002 Sch 8; Swift 1st     | Compensation for loss due to rectification or mistake             |

Land Registration Act: A Comprehensive Guide