Land Registry Overview
Title Registration
Title means ownership. There are two distinct systems of proving the legal title to a property in Ireland. The first and most older system is sometimes referred to as unregistered or “Registry of Deeds” title. The description “unregistered” refers to the fact the title is not directly registered in the Land Registry. Instead, the deeds themselves are registered in the Registry of Deeds.
In the case of unregistered title, the ownership is proved by the production of a chain of deeds tracing ownership from a sale at least 15 years before. There must ultimately be a deed showing a transfer of the property concerned to the current owner. There is no state guarantee of title or ownership under this system. The integrity and priority of the chain of deeds is verified by the registration of the deed in the Registry of Deeds.
The Land Registry is a State institution which registers and guarantees title to the property. The Land Registry registers titles and properties in files called folios. The Land Registry folio shows the name of the owner. It set out the type of interest in the property concerned. It shows with details of other person’s rights over the land, such as mortgage/charges easements and other rights. There are certain types of rights which affect the registered title even though they are not registered.
Each folio relates to a distinct piece of property, or more correctly a distinct estate or interest in a piece of property. Freehold estates and leases for more than 21 years may be registered as independent titles. Other interests, such as easements and mortgages are registered on a particular folio. The first part of the folio describes the registered title with referenced on the Ordnance Survey map. The Land Registry file plan is an extract from the OS map.
The Land Registry itself examines the unregistered title before it registers the title. Alternatively, the Land registry may accept a title that has been certified by a solicitor. Once registered on the Land Registry, the older Registry of Deeds systems can no longer apply to the property. The deeds are deposited in the Land Registry and they are no longer relevant. The transfer of registration to the Land Registry is noted in the Registry of Deeds.
Extending Registered Title
It is intended that over time all property will come to be registered in the Land Registry. Land Registration commenced in the 1890s in conjunction with the purchase out of the agricultural land by the Land Commission, by which the former tenant farmers became freehold owners. The Land Commission registered the purchased titles in the Land Registry.
The Land Registry system is the more modern and comprehensive system. It has been State policy to encourage voluntary registration of title. In 1970, three counties were designated for compulsory registration, After this date, a property with an unregistered title in those counties had to be registered when it was next sold. Compulsory registration was extended to several more counties in 2006.
Between 2008 and 2010, compulsory registration was extended to all Counties except Dublin and Cork. Compulsory registration was extended to Dublin and Cork on June 2011. 70 to 80% of all land holdings in the country are already registered with the Land Registry. Over time all unregistered title will come to be registered in the Land Registry. Once title to a property is registered, it must be dealt with through the Land Registry after that date.
Relationship to Unregistered Title
Unregistered or Registry of Deeds title is now most now commonly found in older urban areas. Under this system the ownership of property is proved by the production of deeds showing a chain of transfers, dating back to a sale at least 15 years old, and usually older. The chain of ownership should end with the transfer to the current legal owner. Older deeds, such as a lease or those which create easements or covenants, must also be produced. Old mortgages in the chain must be shown to be released.
In unregistered conveyancing, the deeds themselves are registered in the Registry of Deeds. The deeds may be transfers, leases, mortgages, easements, covenants and any other document affecting rights in land. The registration of a deed has the effect of securing priority over a later deed by the same person. Therefore, once a deed is registered from a person with a good title, the transferee has the assurance that his title is secure. No later deed can gain priority.
The same principle applies to leases, mortgages, easements and other rights. Once, for example, a mortgage is granted and registered, the mortgagee is assured that it will rank ahead, of a later mortgage. The owner may, grant a second mortgage, but it will rank second. It will only be available if there are sufficient proceeds to satisfy the first mortgagee.
The quality of descriptions of property with (Registry of Deeds) unregistered title, may be poor. There may be a verbal description only. There may be a map with the deeds but its quality may not be guaranteed.
The chain of owners is verified by examining the original deeds and searching in the Registry of Deeds to show that each successive owner became registered so that no inconsistent deed could be made by the prior owner. The search must show and explain and release any inconsistent deeds in the chain. Any mortgages appearing must be released. The searches against a previous owner will end at the date when the successor’s transfer deed is registered.
A buyer who fails to investigate what is in the deeds is deemed to be affected, by what he would have discovered, if he had made the standard enquiries. Where rights are partly disclosed by the deeds, there is an obligation to investigate rights that may be partly disclosed. Likewise, it is necessary to physically examine the property. The buyer is deemed to have notice of the rights of persons in occupation.
Certain rights, such as leases for periods of less than 21 years, can affect title, without appearing on the chain of deeds or being registered in the Registry of Deeds. Similarly, the rights of squatters may supervene the rights of the legal title owner. the rights. Easements acquired by long use (rather than by deeds) may affect land in the same way as squatters’ rights.
Until 2009, there existed the possibility of a considerable number of legal rights that could affect land, even if they were not disclosed in a normal title investigation. The recent Land and Conveyancing Reform Act, 2009 remove a lot of these theoretical problems by converting most of such rights into rights into so-called equitable rights. This means they can be more easily overridden on a sale by freehold owner.
The assumption in unregistered conveyancing is that by reviewing the deeds back to a deed of sufficient vintage and making standard searches and investigations, that all rights affecting land will either be disclosed or overridden. There are flaws in the Registry of Deeds system, but it has worked reasonably well in practice. It is possible to purchase individual title insurance policies to deal with risks or issues that may arise.
Becoming Registered
Once title to property becomes registered in the Land Registry system, it can no longer be dealt with through the Registry of Deeds. A document is registered in the Registry of Deeds showing the transfer to the Land Registry title. The deeds are retained by the Land Registry.
The land Registry file (folio) for each title has a particular file folio number. It may relate to a large or small area. This will largely be an accident of history. The register of title for each county is separate. An example of a title in County Dublin is Folio 12345F County Dublin. It is also referenced as DN12345F.
Over the last 40 years, Land Registry titles numbers distinguish between leasehold titles (L) and freehold title (F). he “F” indicates a freehold title, while an “L” indicates a leasehold title. Older titles numbers do not have a letter at the end so that for example, Folio 12345 County Dublin.
The folio is divided into three parts. The first part describes the property with reference to the file plan. The reference is to the official Registry Map, which is the Ordnance Survey map. The scale is 1:1000 in urban areas and 1:2,500 in rural areas. The second part describes the class of ownership and names the registered the owner. The best title is “absolute” title. Other classes of title may be granted where the Land Registry does not fully investigate title.
The third part describes any rights in favour of third parties which may affect the property. There may, for example, be a mortgage or a lease. Any lease with more than 21 years to run must be registered in the Land Registered to affect registered title. Leases for less than this periods, affect registered title without being registered.
Easements created by deeds must be registered. Covenants affecting the property must be registered. Easements and rights acquired by long use need not be registered until they are formally declared by court order.
Deeds of Transfer
When land is transferred, the original transfer deed is produced to the land Registry. This is broadly similar to the deed of conveyance found in the Registry of Deeds. However, once registered the deed is retained in the Land Registry and the register is written up to give effect to the transfer. Fees are payable to the Land Registry on a scale depending on the sale price.
All deeds, both in respect of unregistered and registered title must be stamped to prove payment of the stamp duty. The registries won’t accept deeds for registration unless they have been stamped. Prior to 2009, stamp duty was physically stamped or marked on the deed.S ince 2009, a system of electronic stamping returns applies. A return is made to the Revenue and the Revenue issue a certificate which is stapled to the deed.
Formerly, a Particulars Delivered return was made in conjunction with stamping. A “PD” stamp was physically marked on the deed besides the stamp duty. Now the stamp duty return incorporates a more detailed return of information
In some cases, it is necessary to see the text of a transfer deed, which has been registered and it retained in the Land Registry. For example on the sale of part of the property, new easements may be created for the benefit of the transferred part. Covenants may be imposed. In these cases, the Register for the title will refer to the easements and covenants but may be necessary to take up a copy of the deed to see the detailed rights and obligations. It is possible for the registered owner to obtain a certified copy of any past deed referred to in the Register.
Unregistered Rights and Interests
The Land Registry deals only with the legal ownership. It is possible for persons to have equitable rights in land, such as trust beneficiaries and beneficial owners for whom the registered owner holds the property. See our chapter in trusts and equitable interests.
Generally, the legal owner may sell and the buyer may buy, without the need to concern himself with unregistered rights. The interests of beneficiaries under trusts can be protected by registrations of notes on the folio. Cautions and inhibitions restrict transactions in relation to land so as to protect unregistered and unregistrable rights.
Certain categories of rights affect registered title and even though they are not registered. These include the rights of persons in actual occupation, easements acquired or in the course of acquisition by long use and leases under 21 years. This is for the pragmatic reason that it is usually not practically possible to register such rights. As with unregistered title, a comprehensive inspection of the property should, therefore, be undertaken.
It is possible for a person who is acquired title by squatting, to apply to Land Registry to be registered as the owner of an existing Land Registry title. Similarly, in respect of Registry of Deeds title, it is possible to make an application for first registration in the Land Registry based on long possession. It is also possible for a person to apply to the court for an order confirming that he has acquired an easement. The court order may be registered.
A new lease of more than 21 years should be registered as a burden on the Land Registry title of the landlord. In addition, a new title must also be opened in respect of the tenants right or title under the lease.
The rights of a beneficial owner under a trust cannot be directly registered. The Land Registry is only concerned with the legal ownership of land. The rights of persons under a trust or similar rights must be protected indirectly by an inhibition or a caution. The effect is that the legal owner is either restricted in dealing with the property or notice must be given to the protected person, so as to allow him to assert his rights.
Many equitable rights are personal rights which can be enforced personally against the trustees. Such rights are capable of being destroyed, if the trustee transfers to somebody who does not have any notice of the trust, The trust can be protected by registration of a caution or an inhibition on the title.
Atypical Transfers
Property may be transferred by a number of other means, other than by transfer deed. If an owner dies, his personal representative is entitled to deal with the property. His right to do so is vouched by a grant of probate or letters of administration, which is an official court document recognising the person’s entitlement. They authorize the personal representative to vest the property in accordance with the entitlements of the deceased owner’s successors. Alternatively, the property may be vested in trustees or sold so as to provide monies for the division.
There are cases where a property is transferred automatically by law. For example when a person becomes bankrupt his assets are transferred to the Official Assignee, a court officer. A vesting certificate issues from the court offices transferring all Land Registry property to the Official Assignee. When a liquidator is appointed there is a change in control of the company itself so that no transfer is necessary. A receiver may register the when a floating charge attached on enforcement.
In litigation or disputes, the court may authorise a court officer to transfer property to reflect the entitlements of the parties as declared in court proceedings. Generally, the officer will only be appointed if the registered owner refuses to comply with the court order.
Adverse Possession
Persons can acquire ownership rights to property, by “so-called” squatting. This may happen, where a person takes possession of the property for a period, generally 12 continuous years, and the holder to the legal title takes no legal action to recover possession. In the case, the squatter can apply to the Land Registry to be registered as owner. The Land Registry will generally serve notices and allow the registered owner and others to contest the matter if they can.
In the case of the unregistered title, is possible to apply to the Land Registry for first registration of the title in the name of the squatter. It is necessary to prove to the Land Registry the facts and circumstances by which title is acquired. The Land Registry serve notices on third parties who are affected to give them the opportunity to contest the matter if is possible to do so.
The Statute of Limitations applies to most kind of legal action. It requires that the action be taken within a certain period. In the case of land, legal action to recover possession of a property must generally be taken within twelve years. After the period, the right to recover the land is barred. The period can be longer than 12 years in some cases. In order to qualify to acquire title by possession, the possession must be “adverse” to that of the true owner
Possession cannot be adverse if it is with the consent of the owner. Possession under a lease or licence would be with consent. Where a lease or tenancy ends and the former tenant remains in possession the period begins to run a year after its termination. If the person acknowledges the ownership of the true owner in writing during the period, the 12 years period.
The mere fact of being in exclusive possession of the property may not necessarily be enough to be adverse to that of the true owner. The possession must be open, clear and in defiance of the true owner’s rights. If the true owner has some long-term purpose for the property and the occupation is not inconsistent with this purpose, the possession may not be adverse.
Where are the property is leased, or where the owner is under age or of unsound mind (a so-called legal disability), the period of 12 years does not commence until the lease or the legal disability, as the case may be ends.
The above circumstances show that mere possession by itself may not be sufficient to acquire title. There are several reasons why twelve years’ possession may not be enough. It may be possible to obtain title insurance against these risks where land has been possessed for more than twelve years.