CILEx L6 Property Law and Conveyancing

Question 1

Under the Land Registration Act 2002, what is the effect of an interest that qualifies as an overriding interest under Schedule 3?

Accepted Answer

It binds a registered disponee even though it does not appear on the register, overriding the normal principle that the register is conclusive

Answer

Overriding interests under Schedule 3 LRA 2002 bind a purchaser of registered land despite not appearing on the register. Key examples include short legal leases (para 1), interests of persons in actual occupation (para 2 — derived from s.70(1)(g) LRA 1925), and certain legal easements. These represent a significant qualification to the mirror principle that the register reflects all interests affecting the land.

Question 2

What are the requirements for the creation of a valid legal easement over registered land?

Accepted Answer

The easement must be created by deed (s.52 LPA 1925), satisfy the requirements in Re Ellenborough Park [1956] (dominant and servient tenements, the right must accommodate the dominant tenement, and be capable of forming the subject matter of a grant), and be completed by registration

Answer

A legal easement requires: (1) compliance with s.1(2)(a) LPA 1925 (equivalent to a fee simple or term of years); (2) creation by deed (s.52 LPA 1925/s.1 LP(MP)A 1989); (3) satisfaction of the Re Ellenborough Park criteria — a dominant and servient tenement owned by different persons, the right must accommodate the dominant tenement, and it must be capable of forming the subject matter of a grant; (4) substantive registration under LRA 2002 to take effect as a legal interest.

Question 3

In conveyancing, what is the significance of the distinction between exchange of contracts and completion?

Accepted Answer

Exchange creates a binding contract and an equitable interest in the buyer; completion transfers the legal estate through execution and delivery of the transfer deed and payment of the purchase price

Answer

Upon exchange of contracts, a binding agreement arises and the buyer acquires an equitable interest in the property (Walsh v Lonsdale). The contract must satisfy s.2 LP(MP)A 1989 (in writing, containing all terms, signed by both parties). Completion occurs later (typically 2-4 weeks after exchange) when the transfer deed (TR1) is executed, the purchase price is paid, and legal title passes upon registration at HM Land Registry.

Question 4

What is the effect of a restrictive covenant on freehold land and how does the burden pass to successors in title?

Accepted Answer

At common law, the burden does not run with the land; in equity, the burden passes to successors in title provided the covenant is negative in substance, touches and concerns the dominant land, the original parties intended it to bind successors, and the successor had notice (or in registered land, the covenant is protected by a notice on the register)

Answer

Under the rule in Tulk v Moxhay (1848), the burden of a restrictive covenant runs in equity to successors of the servient land if: (1) the covenant is negative/restrictive in substance; (2) it was made for the benefit of the dominant land; (3) it touches and concerns the dominant land; (4) the parties intended it to bind successors (s.79 LPA 1925 creates a presumption). In registered land, the covenant must be protected by a notice on the charges register.

Question 5

Under the Law of Property Act 1925, what formalities are required for the valid creation of a legal mortgage over registered land?

Accepted Answer

The mortgage must be created by deed (a legal charge), comply with the requirements of s.52 LPA 1925 and s.1 LP(MP)A 1989, and be completed by registration at HM Land Registry, which enters a charge on the charges register and issues the lender with notification

Answer

A legal mortgage over registered land is created as a legal charge by deed (s.23(1) LRA 2002, s.52 LPA 1925). The deed must comply with s.1 LP(MP)A 1989 (clear on its face, signed, witnessed, delivered). The charge must then be registered at HM Land Registry (s.27(2)(f) LRA 2002) — failure to register means the charge takes effect in equity only, not as a legal interest. The charge appears on the charges register of the borrower's title.

CILEx Level 6 Practice Test

CILEx Level 6 Practice Test

CILEx L6 Property Law and Conveyancing