Legal Estates Capable of Registration - Compulsory First Registration - Examples of transactions under section 4 LRA 2002 (refer to statutory extracts) which trigger compulsory first registration

8 important questions on Legal Estates Capable of Registration - Compulsory First Registration - Examples of transactions under section 4 LRA 2002 (refer to statutory extracts) which trigger compulsory first registration

Explain how a compulsory first registration is triggered under s4(1)(a) of the LRA 2002?

Any transfer of a freehold or leasehold estate for valuable consideration will trigger compulsory first registration. A freehold estate is a 'qualifying estate' under s 4(2)(a).

Explain how a transfer of the freehold by way of gift under s 4(1)(a) triggers a compulsory registration?

Any transfer of the freehold by way of a gift also triggers compulsory first registration. Under s 4(6), even if the estate transferred has a negative value, it will still be regarded as a transfer for valuable consideration.

Does the granting of an easement trigger first registration?

Does not trigger first registration.
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Explain how the granting of a lease for a term of more than seven years triggers compulsory registration under s 4(1)(c) LRA 2002?

Granting a lease for a term of more than seven years triggers first registration (s4(1)(c) of the LRA 2002. For example, if the owner of a freehold title to a property grants a legal lease for a term over seven years to a tenant, the obligation to register affects the leasehold estate, not the owners' freehold estate. The T must register the lease, but the owner of the FE can remain unregistered.

What happens to the freehold estate that was written in a will once the owner dies under s 4(1)(a)(ii)?

The owner's personal representatives will transfer the freehold estate in the house to the beneficiary by an assent, which will trigger compulsory registration of the freehold title under s 4(1)(a)(ii).

If an unregistered lease is sold by the tenant and there is more than seven years left to run of the term, does the new owner of the lease need to register after the purchase s 4(1)

The new owner of the lease must apply to register it after the purchase s 4(1).

When must the application for first registration be made?

Within two months of completion of the transaction that triggered the first registration.

What happens if the owner fails to apply for the first registration within the two-month period?

The transaction will be void in passing the legal estate to the buyer.

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