Q&As

Are any of the overriding interests recognised at law capable of being overreached? If so, which ones?

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Published on LexisPSL on 05/07/2019

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Are any of the overriding interests recognised at law capable of being overreached? If so, which ones?
  • Overriding interests
  • Overreaching
  • Overriding and overreaching

Overriding interests

Overriding interests are interests in property which amount to an exception to the general rule that in respect of registered land, any interest or right must be registered in order to bind a purchaser. They are interests to which a registered title is subject, even though they do not appear on the register. The interest must be proprietary in nature. They are binding both on the registered proprietor and on a person who acquires an interest in the property.

The interests which are currently capable of overriding first registration or a disposition of registered land are set out in Schedules 1 and 3 to the Land Registration Act 2002. They are a modification of the interests formerly set out in section 70(1) of the Land Registration Act 1925.

For present purposes, the only overriding interest of relevance is the interest of a person in actual occupation of land. This is because such an interest is likely to be an equitable interest. Equitable rights which can qualify as an overriding interest include:

  1. the interest of a contracting buyer—see Baker v Craggs

  2. the right to have a transaction set aside as an unconscionable bargain—see Mortgage Express v Lambert

For general guidance, see Practice Note: Occupiers and overriding interests.

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