Cambridge BA: Estates, Interests & Registration Exam Paper

Greenacre is registered land with title absolute. In 2020, Oscar was the registered proprietor. In January 2021, Oscar granted a 99-year lease to Tenant Ltd, which was duly registered. In March 2021, Oscar mortgaged the freehold to Megabank plc, which registered its charge. In June 2021, without Megabank's knowledge or consent, Oscar purported to sell the freehold to Purchaser for £500,000. Purchaser's solicitor failed to conduct proper searches and did not discover Megabank's charge. The transfer was registered, making Purchaser the new registered proprietor. Tenant Ltd has been paying rent to Purchaser since July 2021. In September 2021, Oscar disappeared, having spent the purchase money. Megabank, discovering Oscar's default on mortgage payments, now seeks possession of Greenacre. Purchaser claims to have acquired title free from Megabank's charge, relying on sections 26 and 29 of the Land Registration Act 2002. Megabank argues that its charge should have priority and that Purchaser should have discovered it through proper investigation. Advise Megabank on the likelihood of success in its claim for possession against both Purchaser and Tenant Ltd, considering the relevant provisions of the Land Registration Act 2002 and the principles of indefeasibility of title.

"The Land Registration Act 2002 has successfully eliminated the doctrine of notice from registered land, replacing it with a comprehensive scheme of statutory priorities that provides certainty and simplicity." Critically evaluate this statement, considering both the achievements and limitations of the current registration system.

Blackacre, a large country estate, was registered in 2019 with Oscar as proprietor with title absolute. The registration was based on Oscar's adverse possession of the land for over 15 years, as the previous paper owner had disappeared. In 2020, Oscar granted a right of way over a track crossing Blackacre to his neighbour, Ned, to access Ned's property. This easement was not registered or protected by notice on the register. In early 2021, Oscar mortgaged Blackacre to County Bank, which registered its charge but did not inspect the property. In June 2021, Oscar sold Blackacre to Paula for £800,000. Paula's solicitor conducted searches but did not physically inspect the property due to COVID-19 restrictions. The transfer was completed and registered in July 2021. In August 2021, the true paper owner, Trevor, returned from abroad and discovered the sale. Trevor claims that Oscar's adverse possession was invalid because Trevor had been abroad on business and was not statute-barred. Trevor also argues that he never lost mental capacity to manage his affairs. Meanwhile, Paula has discovered Ned's regular use of the track and seeks to prevent this, claiming she purchased free from any easement. Ned argues his easement overrides registration under Schedule 3. County Bank, having not been repaid by Oscar, seeks possession of Blackacre from Paula. Advise Paula on her position regarding: (i) Trevor's claim to the true title; (ii) Ned's claimed right of way; and (iii) County Bank's possession claim. Consider the relevant provisions of the Land Registration Act 2002 and the Limitation Act 1980.

"The concept of overriding interests under Schedule 3 of the Land Registration Act 2002 represents a necessary compromise between the certainty of registration and the protection of persons whose interests may not appear on the register. However, this compromise seriously undermines the fundamental objectives of the registration system." Discuss.