Land Law: Issues and Legal Principles

Running Head: LAND LAW
Land Law
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Author Note

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MEMORANDUM 1
The issue and legal principles
The property law issue which have been identified in the given situation is related to that
of whether Patsy Bull (PB) has any form of rights in the ‘Bryn Glas’ property. The issue is also
to determine the right of Karen Stone to remain in 14 Frieston Road property. In the given
situation the issue has to be addressed thorough the application of law related to priorities and
overriding interest in Land law. The principles of priority comes into the equation when a
transferee of legal estate may be bound by the rights of any third party. According to the Land
Registration Act 2002 section 28 unless it has been stated by s29 the interest which is created
with respect to the first overrides or prevails over any interest which has been created latter1. As
provided by section 29 of the Act when a registered estate has been subjected to deposition for a
valuable consideration the buyer is bound to any overriding interest or registered interest2.
The schedule 3 of the Act provides for interest which overrides latter transactions of a
land which is already registered. These include a legal lease of 7 years or less and the interest of
any person who is in actual occupation3.
A lease hold estate in land is provided for a period which is not more than seven years
form the day on which it has been granted. If the lease is for a period of 0-3 years there is no
requirement of deed or registration and when the deed is three years of more it requires a deed4.
In order to determine whether the lease is legal or not it has to have duration of less than
seven years. Where the lease is for a period of less than seven years it is provided protection in
1 Land Registration Act 2002 section 28
2 Ibdi section 28
3 Ibdi Sch 3
4 PHILLIPS AND Mackenzie TEXT BOOK ON LAND LAW. OXFORD PRESS 2004

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form of a overriding interest. There is no other requirement in the given situation. In this
situation the new land lord does not have the right to evict the tenant5.
Interest of a person in actual occupation also has to be discussed in the situation. This is
an interest which is available to a person in actual occupation at the time of disposition except in
case it is the interest of a person with whom before the disposition an inquiry is made and he or
she failed to disclose such rights. The interest of a person the occupation of whom would not be
obvious on carefully and reasonably inspecting the property when the deposition is made and the
person to when the disposition is made is not provided with actual knowledge during the period.
To make it simple according to the provisions of the LRA2002 Schedule 3 par 2 an overriding
interest is created in case there is a proprietary interest (lease) and or there is an actual
occupation when the sale is made6. Overriding interest provides protection to an existing interest
and does not create any new interest.
The curtain principle states that it is not mandatory for the purchaser to have a look
beyond the legal curtain for the purpose of verifying who has a beneficial interest and pay a part
of the purchase money to them. This can be simply overreached by them.
The current situation of property ‘Bryn Glas’
It has been provided through the situation that property had been purchased by NL form
JG with the intention of residing in the property. The property had been inspected by NL were he
had reasonably assumed that the personal possessions and furniture belonged to the seller. The
property had actually been leased to a tenant called PB who had been living in the property. This
fact had come to the attention of NL only when he had visited the property to take
5 Ibdi pp 122
6 Land Registration Act 2002 Sch 3 Para 2

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measurements. He was surprised to find the tenant in the kitchen who had provided him with a
copy of a document provided to her by JG. The tenant is not willing to move out. According to
the above discussion of law where the lease is for a period of less than seven years it is provided
protection in form of an overriding interest. There is no other requirement in the given situation.
In this situation the new land lord does not have the right to evict the tenant. Here although the
lease is not registered and no mention of PB is seen in the title records it would still be having an
overriding interest and would be provided protection. Thus till the lease is over PB has the right
to stay in the property as she will have a priority and an overriding interest. The deed is valid as
it has all the required contents of a valid lease such as name of parties, date, terms of lease and
details of property7.
The current situation of property at 14 Frieston Road property.
In relation to this property the issue can be addressed through the discussion of actual
occupancy and beneficial interest. It has been discussed above that when a person is in actual
occupation and In the given situation it has been provided that before the disposition an inquiry
is made and he or she failed to disclose such rights and person the occupation of whom would
not be obvious on carefully and reasonably inspecting the property when the deposition is made
and the person to when the disposition is made is not provided with actual knowledge during the
period. Here reasonable care is taken by NL to verify any actual occupancy and thus the
exception would be applicable. Further as per the curtain principle it is not mandatory for the
purchaser to have a look beyond the legal curtain for the purpose of verifying who has a
beneficial interest and pay a part of the purchase money to them. This can be simply overreached
7 DUDDINGTON J 2013 LAND LAW EXPRESS LAW EXPRESS