Land Registration: Minor interests

All other interests should be protected by way of a notice or restriction on the relevant registered title. Without such an entry, the interest will fail against a latter registered disposition unless it constitutes an overriding interest.

• Any interest in land can be protected by notice, subject to three main exceptions (LRA s33): 
• Interests under trust cannot be protected (**trusts of land**)
• Leases not exceeding three years cannot usually be protected (short leases which are required to be registered can be protected: so, discontinuous and future leases.)
• Restrictive covenants in leases (note: no harm will be done because anyone dealing with the lease will read it and be aware of the covenant.)    

Proprietor may wish to challenge the existence of the interest. To meet this possibility, legislation distinguishes between agreed and unilateral notices (LRA Section 34). A notice is agreed if the proprietor applied for it or consented to it. Less obviously, also applies if the registrar is satisfied as to its validity. Any other notice is unilateral, in which case the proprietor has to be told about it by the registrar and may apply for it to be cancelled, whereupon it must be justified by the person who entered it.  The entry of a unilateral notice could still damage the proprietor, especially if it causes a sale to fall through. To cover this, compensation is payable if it is entered without reasonable cause; the same applies to restrictions and more generally when a person objects to applications to the registrar.

A restriction is an instruction to the land register not to register a disposition unless some procedure is followed. The best example of the use of restrictions is where there is a trust of land and there is a restriction requiring there to be two trustees before a transfer is registered.

 Restriction can be used even where there is no interest in land. A trust of land may require a person’s consent before the trustees sell the land. The parties can select any restriction, but the land registry has to approve any non-standard condition to make sure it is something they can be expected to adjudicate upon. An example of one which they may not accept is a restriction that a transfer should not be recognised unless a building is in good repair, because this is too uncertain.

 Another example is provided by positive covenants, which do not constitute interests in land binding purchasers. A purchaser entering into such a covenant (in favour of the seller) may agree to a restriction that any subsequent transfer will require the consent of the original seller, that consent is to be given if that transferee agrees with the original seller to comply with the covenant.

Can be entered by registrar or by application or ordered by court (ss42-6). ‘Notifiable’ restrictions are given where applications are made without consent of proprietor. Notifiable restriction not entered until the proprietor has been given a chance to object. LRA S72 provides solution for there being a gap between search certificate and entry on register. Protects purchaser if entry made within 30 working days from date of search.

If there are mistakes in searches, purchaser remains bound (although compensation will be paid). Schedule 8 para 1(1)(c).