Land Registration Act 2002 - An Overview

The Land Registration Act 2002 received Royal Assent on 26 February and over the coming months new rules will be drafted to bring its provisions into effect. The Act, which is the outcome of several years' joint work by the Law Commission and the Land Registry, has been described as potentially more far-reaching than the great property reforms effected by the 1925 legislation.

The Act paves the way for the introduction of electronic conveyancing to replace the traditional paper-based procedure as we discussed in a previous edition (although this will not happen for a few years) and replaces all existing legislation relating to land registration with the aim of exploiting the potential of an electronic system and eliminating defects in the present law. There are also several significant changes to property law in general.

An important change is introduction of a new system in relation to adverse possession for registered land, which we detailed in our last edition. The effect of this new regime will make registered land virtually squatter-proof and clients owning unregistered properties are advised to consider applying to the Land Registry for voluntary registration to take advantage of this.

The number of dispositions and interests capable of registration is increased with the aim of providing as complete a picture on the register as possible. Matters capable of registration will now include:

all leases of 7 years or more (currently 21 years)

leases of any length granted to take effect in possession more than 3 months after the date of grant

local land charges

some overriding interests e.g. rights of occupation

easements acquired by implied grant or prescription

profits a prendre e.g. fishing and shooting rights

land owned directly by the Crown (demesne land) which includes most of the foreshore

franchises e.g. the right to hold a fair or market

Of the above, the compulsory requirement to register leases of 7 years or more is likely to have the biggest impact in practice and in time it is probable that there will be compulsory registration of leases of 3 years and over. Dealings with leases are the most common type of property transaction and this new requirement has attracted criticism, as it will inevitably involve more bureaucracy and increased costs. However, the Government's view is that the advantage of a more transparent system will outweigh the extra work and expense.

In line with the Act's objective that the Register should show a...