Land registration

Land Registration Act 2002

Land registration in England and Wales is governed by the Land Registration Act 2002 (LRA 2002) which aims to build on the earlier Land Registration Act 1925 in order to establish a complete system of registration of title to land and buildings in England and Wales which is reliable, simple and economical to use. The intention is for the register to be a complete and accurate reflection of the state of the title to property at any given time. It also provides a framework to facilitate the introduction of a system of electronic conveyancing.

The practical application of LRA 2002 is principally governed by the Land Registration Rules 2003 (LRR 2003), SI 2003/1417.

The title register

LRA 2002 provides that HM Land Registry is to continue to maintain a register of title to land in England and Wales. The register for each individual title consists of a property and proprietorship register and, if necessary, a charges register.

Each property is awarded a class of title (absolute, qualified, possessory or good leasehold) based on the quality of title submitted to HM Land

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Insolvency, declarations of trust, loan agreements, artificial asset protection, sham transactions, transactions defrauding creditors, interspousal asset transfers, change of position defence and wife’s entitlement to share of husband’s assets (Sayers v Dixon)

Restructuring & Insolvency analysis: The court held that six declarations of trust (DoTs) executed by the transferor (Mr Dixon) in favour of his wife (Mrs Dixon) constituted transactions defrauding his creditors within the meaning of section 423 of the Insolvency Act 1986 (IA 1986) and that two of them, purporting to transfer all his future assets and income to Mrs Dixon, along with an accompanying loan agreement, were shams which were void and ineffective. It set aside the DoTs and ordered Mrs Dixon to restore the value of three transferred properties (which had been converted into £551,589 cash) to Mr Dixon’s trustees in bankruptcy (trustees) together with interest of £101,726. It also ordered an account to be taken of the funds that had been transferred to Mrs Dixon or on her behalf by Mr Dixon over the seven years between the date of the DoTs and his bankruptcy. The court dismissed Mrs Dixon’s defence of change of position to the trustees’ claim for restoration, finding that even if such a defence were generally available (which is unclear), she had not acted in good faith and could not rely on it. It also dismissed her defence that, having been married to Mr Dixon for many years, she was entitled to half his assets and/or an entitlement to a share of them by virtue of a right to be maintained. Written by Jonathan Lopian, barrister at New Square Chambers, who acted for the successful claimants.

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