Registered land and overriding interests — SQE1 Land question
A worked single-best-answer question on registered land and overriding interests, with why each wrong option is wrong — the way SQE1 traps candidates.
Lucy owns a registered freehold house. Two years ago she granted Matt a legal lease of the house for five years by deed. Matt has been working abroad for the last six months; his furniture remains in the house but nobody is living there. The lease is not noted on Lucy's title. Lucy has now sold and transferred the freehold to Nina, who has been registered as proprietor. Nina says she is not bound by Matt's lease.
Is Nina bound by Matt's lease?
- ANo, because Matt's lease was not entered on the register by notice.
- BNo, because Matt is not in actual occupation, so his lease cannot be an overriding interest.
- CYes, but only because Matt's furniture amounts to actual occupation of the house.
- DNo, because a lease of more than three years must be completed by registration to take effect at law.
- EYes, because a legal lease granted for a term not exceeding seven years overrides a registered disposition whether or not the tenant is in actual occupation.
Show answer and reasoning
Rule: A legal lease of seven years or less overrides a registered disposition without any need for registration or actual occupation.
- A Leases of seven years or less need not be noted; they override under Sch 3, para 1. (wrong rule)
- B Short legal leases override under their own paragraph, which does not require actual occupation. (wrong rule)
- C Whether or not Matt is in actual occupation, the lease overrides as a short legal lease. (answers a different question)
- D Only leases of more than seven years are registrable dispositions; a five-year lease by deed is legal without registration. (wrong rule)
Source: Land Registration Act 2002, s 27(2)(b) and Sch 3, para 1