Land Law- Overriding interests

Overriding interests

Overriding interests are held under SCH 3 LRA 2002

these include; legal leases for 7 years of less- para 1

Legal easements implied on sale of part/ created by prescription - para 3, 

Interests of persons in actual occupation - para 2.

PARA 1 AND PARA 3- Binds buyer if exists by date of completion of sale

Interests under PARA 2- Binds buyer if person in occupation by completion of sale. 

If PARA 2, protecting an interest under a trust, a buyer who has overreached will not be bound. 

OVERREACHING - 

1. Has to be a purchase of a legal estate 

2. Needs to pay purchase money to all trustees

3. Who must be at least 2 in number 

- Does not apply to all equitable interests and not only to registered titles.

SCH 3 PARA 2- Has four requirements that must be satisfied to claim protection:

1. Interest in the land 

2. Actual occupation 

3. Occupation obvious on reasonable careful inspection of land at time of sale OR purchaser actually know of interest. 

If inquiry made of person claiming the right, he must disclose it (unless reasonable to do so). 

Interests which will never bind as an overriding interest include: 

Home Right, such as spouse to occupy marigal home. S30 FLA 1996

S31 says a home right cannot be overriding must be places on register by a protection of a notice. 

Introduction 

a) First registration - schedule 1 Land Registration Act 2002 ( LRA 2002) 

b) Dispositions of registered land- Schedule 3 LRA 2002 

c) Interests that ceased to be overriding on 13 october 2013- manorial rights and rights in relation to embankments, sea walls and repair of church chancels.

Catagories of OI under Schedule 3 LRA 02

A) Paragraph 1- Legal leases for a term of years not exceeding 7 years. (Leases for a term not exceeding 21 years which were overriding under the LRA 1925 continue to be overriding under Schedule 12, paragraph 12). 

b) Paragraph 2- (Propreitary) interests belonging to a person in actual occupation of the land if: 

1. The occupation is obvious on a reasonably careful inspection of the land at the…