Priority & Overriding Interests
Registered Land Priority Rules
Priority Definition
Competition between different property interests in the same 'thing'.
N.B. NOT conflicting titles to the same interest in land. E.g., true owner v. squatter.
Interests - Proprietary (NOT personal) right over land of another.
I.e., no right of ownership.
E.g., easement, mortgage, interest under a trust.
Generally - Existing property rights take priority on new owners.
If someone is the sole legal owner, but another contributed to purchase price: Beneficial int
to exceptions.
Williams & Glyn's Bank v Boland [1981] AC 487 (HoL)
Mr Boland held matrimonial home in law - Name on register.
Mrs Boland - Made substantial contributions to purchase price and mortgage paym
interest in house.
Mr Boland mortgaged house and defaulted on payments.
Bank sought possession, Mrs Boland claimed overriding interest under s.70(1)(g
based on actual occupation of house.
HELD: There was an overriding interest.
Held a beneficial interest - Judgement was based on actual occupation.
The Law - Land Registration Act 2002
'Basic Rule' s28 LRA 2002.
Exceptions apply under s29 and s30; general rule of 'first in time' applies.
First interest created prevails over any later property rights.
Date of creation - Earlier interest take priority.
💡 N.B. In most instances, basic rule defeated by 'special priority rule'.
'Special Priority Rule' s29(1).
Registered & overriding interests will bind purchaser - protecting interest holder.
, Of a Registered Estate - Must appear in land registry.
Registrable Disposition - Set out in s27 Land Registration Act 2002.
Transfer of FH or LH, grant of a long LH (7+ years), express grant of legal easement or gra
Excludes equitable mortgages.
Registration
Priority only given once disposition has been registered.
Must be registered using required formality under s25 Land Registration Act 2002 prior to r
Overriding Interests
Interests which are not registered but are protected (and thus binding on the purchaser) - 'crack in t
Do not appear on register.
Purchaser needs to make additional enquiries and inspect land in addition to checking register.
Why do Overriding Interests Exist?
Short legal lease - Registration inconvenient and overly burdensome.
Trusts of land - Informal trusts (co-ownership granted whose name is not recorded as trustees o
required to protect interest.
Categories
LRA 2002, sch.3 - Interests override subsequent transactions of already registered land.
Paragraph 1 - Short legal lease (<7 years).
Legal leasehold for <7 years is overriding interest.
<3 years - Only as overriding interests.
3-7 years - May be registered as notice.
No entry - Protected as overriding interest.
N.B. >7 years - Lease requires registration as separate legal estate.
Paragraph 2 - Interests of persons in actual occupation.
Overriding interest if proprietary interest AND in actual occupation at time of sale.
Exceptions:
Registered Land Priority Rules
Priority Definition
Competition between different property interests in the same 'thing'.
N.B. NOT conflicting titles to the same interest in land. E.g., true owner v. squatter.
Interests - Proprietary (NOT personal) right over land of another.
I.e., no right of ownership.
E.g., easement, mortgage, interest under a trust.
Generally - Existing property rights take priority on new owners.
If someone is the sole legal owner, but another contributed to purchase price: Beneficial int
to exceptions.
Williams & Glyn's Bank v Boland [1981] AC 487 (HoL)
Mr Boland held matrimonial home in law - Name on register.
Mrs Boland - Made substantial contributions to purchase price and mortgage paym
interest in house.
Mr Boland mortgaged house and defaulted on payments.
Bank sought possession, Mrs Boland claimed overriding interest under s.70(1)(g
based on actual occupation of house.
HELD: There was an overriding interest.
Held a beneficial interest - Judgement was based on actual occupation.
The Law - Land Registration Act 2002
'Basic Rule' s28 LRA 2002.
Exceptions apply under s29 and s30; general rule of 'first in time' applies.
First interest created prevails over any later property rights.
Date of creation - Earlier interest take priority.
💡 N.B. In most instances, basic rule defeated by 'special priority rule'.
'Special Priority Rule' s29(1).
Registered & overriding interests will bind purchaser - protecting interest holder.
, Of a Registered Estate - Must appear in land registry.
Registrable Disposition - Set out in s27 Land Registration Act 2002.
Transfer of FH or LH, grant of a long LH (7+ years), express grant of legal easement or gra
Excludes equitable mortgages.
Registration
Priority only given once disposition has been registered.
Must be registered using required formality under s25 Land Registration Act 2002 prior to r
Overriding Interests
Interests which are not registered but are protected (and thus binding on the purchaser) - 'crack in t
Do not appear on register.
Purchaser needs to make additional enquiries and inspect land in addition to checking register.
Why do Overriding Interests Exist?
Short legal lease - Registration inconvenient and overly burdensome.
Trusts of land - Informal trusts (co-ownership granted whose name is not recorded as trustees o
required to protect interest.
Categories
LRA 2002, sch.3 - Interests override subsequent transactions of already registered land.
Paragraph 1 - Short legal lease (<7 years).
Legal leasehold for <7 years is overriding interest.
<3 years - Only as overriding interests.
3-7 years - May be registered as notice.
No entry - Protected as overriding interest.
N.B. >7 years - Lease requires registration as separate legal estate.
Paragraph 2 - Interests of persons in actual occupation.
Overriding interest if proprietary interest AND in actual occupation at time of sale.
Exceptions:
