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Manchester Conveyancing Solicitors Property Lawyers | Ford Banks Irwin Solicitors in Manchester on Fees for Selling / Buying a House / Flat / Apartment. 

 
Please note: Not to be used or relied upon without legal advice. These notes are for illustration purposes ONLY
   
   
Solicitors Fees for Buying / Selling a House / Apartment / Flat
 
Buying a House / Flat off Plan from Property Developers / Estate Agents - New Builds

Easements as Registrable Dispositions

The express grant or reservation of an easement over registered Property is required to be completed by registration (section 27(2)(d) Land Registration Act 2002). In other words, it is a registrable disposition. It is no less a registrable disposition if it happens to be contained in a Lease, even if the Lease itself cannot be registered or noted.

[section 27(2) (d) Land Registration Act 2002 provides:
Dispositions required to be registered
(2) In the case of a registered estate, the following are the dispositions which are required to be completed by registration - . . .
(d) the express grant or reservation of an interest of a kind falling within section 1(2)(a) of the Law of Property Act 1925 (c.20) other than one which is capable of being registered under the Commons Registration Act 1965 (c.64), . . . ]

Because it is a registrable disposition, the grant or reservation will not operate at law until the registration requirements have been met (section 27(1) Land Registration Act 2002).

[section 27(1) provides:
If a disposition of a registered estate or registered Mortgage is required to be completed by registration, it does not operate at law until the relevant registration requirements are met.]

Where the registration requirements have been met and the easement is for valuable consideration, the effect of section 29(1) Land Registration Act 2002 is that the easement has priority over any interest created before its grant that at the time of registration of the easement are not protected. An interest will only be protected if it is a registered Mortgage, the subject of a notice or an overriding interest or, in the case of a disposition of a leasehold Property, if the burden of the interest is incidental to the Property.

[Section 29 : Effect of registered dispositions: estates provides:
(1) If a registrable disposition of a registered estate is made for valuable consideration, completion of the disposition by registration has the effect of postponing to the interest under the disposition any interest affecting the estate immediately before the disposition whose priority is not protected at the time of registration.]

The registration requirements are set out in paragraph 7 of schedule 2 Land Registration Act 2002. A notice should be entered in the Property Deeds for the servient Property and, if the dominant Property is also registered, the benefit should be entered in the Deeds for the dominant Property.

NB: Property Solicitors and Conveyancing Lawyers can apply to register an easement in form AP1 to meet the registration requirements, and tis is the case even if only the servient Property is registered (rule 90 Land Registration Rules 2003). So if they make an application for entry of an agreed or unilateral notice using form AN1 or UN1, and Land Registry complete the application, this will not meet the registration requirements. In the case of an agreed notice, the following note is likely to be added to the entry:

'NOTE: The grant of reservations of the rights ... has not been completed by registration in accordance with section 27 of the Land Registration Act 2002 and so does not operate at law'

If Property Solicitors and Conveyancing Lawyers subsequently apply to register the easement using form AP1, Land Registry will probably enter an additional notice with the priority of the later application. As the unilateral or agreed notice confers a degree of protection and questions of priority may arise, the existing entry will not be cancelled without a specific application to do so in form UN2, UN4 or CN1 as appropriate.

The following illustrates how section 29 Land Registration Act 2002 might operate.

If a registered proprietor granted a Mortgage that was a registrable disposition and a few days later granted an easement that was also a registrable disposition, but at the time of registration of the easement the Mortgage was not protected (and it did not have the benefit of a priority period under a search) then the easement would have priority over the Mortgage.

In contrast, if the registration requirements for the easement were not met (for example, there was only an agreed notice entered in the Deeds for the servient Property), then the easement would not have priority over the Mortgage (section 28 Land Registration Act 2002, would apply, meaning that the first in time has priority).

 

(All italics in this page are Crown Copyright and reproduced here for your information with permission from HM Land Registry)

. . . continued on page 2 (Manchester Conveyancing Solicitors Property Lawyers on Fees for Buying / Selling a House / Apartment / Flat 2)

Please telephone Paul on 0161 866 8999 if you require any further information.

                       
    

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Ford Banks Irwin Solicitors
50 Stothard Road
Stretford
Manchester
M32 9HB


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