The Land Registration Act 2002 and Adverse Possession
Property law specialist, Leon Swerling from Rowe Cohen, looks at the implications of the Land Registration Act 2002 (LRA).
This new statute should strengthen the position of landowners against squatters. This article explains how that should happen.
The LRA will come into force in stages but the main provisions will come into force on 13th October 2003.
The adverse possession provisions in the LRA will affect land, which is already registered when the LRA comes into force, as well as land, which is subsequently registered. However there are some important transitional provisions.
LRA will radically change the way adverse possession affects registered land.
In particular:
- Adverse possession of registered land for 12 years by itself will no longer affect the registered owner's title.
- After 10 years adverse possession, the squatter will be entitled to be registered as owner at the Land Registry instead of the registered owner.
- On such an application being made the registered owner (and certain other persons interested in the land e.g. mortgages) will be notified and given the opportunity to oppose the application by the squatter.
- If the application is unopposed, the squatter will be registered as owner instead of the registered owner.
- If the application is opposed, it will be rejected unless either:
- It would be unconscionable i.e. unfair because of an equity by estoppel for the registered owner to seek to dispossess the squatter and the squatter ought in the circumstances to be registered as owner e.g. where the squatter acts to his own detriment encouraged by the assurances of the owner; or
- The squatter is for some other reason entitled to be registered as owner e.g. a beneficiary under a will or a buyer who has exchanged contracts and occupied the land for 10 year but not had a transfer of the land; or
- The squatter has been in adverse possession of land adjacent to his or her own under the mistaken but reasonable belief that he or she is the owner of it, the exact line of the boundary with the adjacent land has not been determined, and the estate to which the application relates was registered at the Land Registry more than a year prior to the date of the application. This relates to boundary disputes.
If the application is rejected but the squatter remains in adverse possession for a further 2 years after that, he or she will then be able, subject to certain exceptions, to re-apply to be registered as owner, and this time will be so registered whether or not anyone opposes the application.
Thus, landowners in these circumstances should be better placed to resist adverse possession claims, where their titles are registered at the Land Registry.
Current tips for landowners
- If your land is currently unregistered at the Land Registry, apply now for registration voluntarily, to get the benefit of the new regime relating to adverse possession of registered land in due course. Alternatively, look to make a tax effective Deed of Gift, which makes registration at the Land Registry compulsory.
- If your land is already registered, ensure that your address on the register is up to date.
Conclusion
As can be seen it will be much harder for a squatter to succeed in his claim for adverse possession under the LRA than if the land is unregistered. So, register your unregistered land now if you can.
For further assistance, please contact Leon Swerling at the Manchester office of Rowe Cohen Solicitors on 0161 830 4600.