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FIVE RIGHTS THAT SHOULD BE REGISTERED

10th October, 2013

This is a reminder that some overriding interests will lose their overriding status at midnight on 12 October 2013.

Overriding interests are interests to which a registered title of a property is subject, even though they do not appear in the register. They are binding both in the registered proprietor and on a person who acquires an interest in the property.

Those interests affected are:

• a franchise granted by the Crown in the form of a Charter or Letters Patent. The most common franchise is the right to hold a market or fair.

• a manorial right

• a right to rent that was reserved to the Crown on the granting of any freehold estate (whether or not the right is still vested in the Crown)

• a non-statutory right in respect of an embankment or sea or river wall

• a right to payment in lieu of tithe

• a right in respect of the repair of a church chancel (commonly known as chancel repair liability).

Before 13 October 2013, these interests can be protected without fee:

• where the title is registered, by a notice in the register, or

• where the title is not yet registered, by caution against first registration.

After 12 October 2013, they can be similarly protected provided they bind the then registered proprietor but a fee will be payable.

The last business day on which an application can be received free of fee is 11 October 2013.

Where any of these interests have not been protected by notice or caution against first registration before 13 October 2013, they do not automatically cease to exist on that date.

The courts have still to consider if and when it may be possible after 12 October 2013 to have the register altered so that a notice is entered where the registered proprietor has taken free of the interest following first registration or following the registration of a disposition for valuable consideration.

The courts have also still to consider whether indemnity may ever be payable where the register cannot be altered in this way.

Before first registration of the land, the legal owner will be bound by these interests because each of them is a legal interest.

On first registration they will hold the property free of such interests unless the interest is protected by notice at the time of first registration.

When an application is made for first registration the registrar will enter the burden of such an interest which appears from their examination of the title to affect the registered estate.

unless the interest has not been protected by the entry of a notice, a person who acquires the property for valuable consideration by way of a registrable disposition after 12 October 2013 will take free from that interest.

Until such a disposition is registered the person having the benefit of the interest may apply to protect it by entry of notice.

For more information on this or any other property matter please contact Emma McGlinchey on 01244 405567 or email [email protected]

 

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