Which of these interests can exist as a legal interest in land without being registered?
Correct Answer
C) A lease of one year or less, even if made orally
A short-term lease under the Property Law Act 2007 (a lease of one year or less, a periodic tenancy with periods of one year or less, or a tenancy at will) can be made orally (s 208), and a lessee who occupies under one has a legal interest in the land (s 209). That interest is subject to the Land Transfer Act 2017, so it is not automatically effective against a registered purchaser. Longer leases, mortgages and easements depend on registration.
Why This Is the Correct Answer
Sections 207 to 209 of the Property Law Act 2007 let a short-term lease (one year or less, or a periodic tenancy) be made orally or in writing, and the occupying lessee has a legal interest in the land without registration. That interest is subject to the Land Transfer Act 2017, so it may not bind a later registered purchaser.
Why the Other Options Are Wrong
Option A: A mortgage securing a loan over the property
A mortgage over registered land takes effect under the Land Transfer Act only when its instrument is registered (ss 24, 100).
Option B: A lease for a fixed term of five years
A five-year lease is not a short-term lease; to be a legal interest under the Land Transfer Act it must be registered with a lease instrument.
Option D: A right-of-way easement granted permanently
A permanent easement over registered land is created by registering an easement instrument or depositing a plan (ss 108-110).
Deep Analysis of This Property Law Question
The question tests the one common interest that exists without registration: the short-term lease. Candidates often overstate its effect, so note that section 209 makes it subject to the Land Transfer Act.
Background Knowledge for Property Law
The Property Law Act 2007 defines a short-term lease as an unregistered lease starting within 20 working days that is for one year or less, a periodic tenancy with periods of one year or less, or a statutory tenancy (s 207). It may be oral (s 208), gives an occupying lessee a legal interest (s 209(1)), and ranks ahead of some unregistered interests (s 209(3)), but it is subject to the Land Transfer Act 2017 (s 209(2)).
Memory Technique
Remember 'one year, no register': a lease of a year or less can be a legal interest without registration, but it is still subject to the Land Transfer Act.
When asked which interest exists without registration, look for the short-term lease, and remember mortgages, long leases and easements need registration.
Exam Tip for Property Law
Don't say short-term tenancies are 'exempt from' the Land Transfer Act. They are legal interests without registration, but subject to the Act.
Real World Application in Property Law
A landlord lets a flat on a verbal weekly tenancy. The tenant has a legal interest under the Property Law Act 2007 even though nothing is registered. Meanwhile the landlord's bank mortgage takes effect only because it was registered.
Common Mistakes to Avoid on Property Law Questions
- •Thinking short-term tenancies bind every later registered owner
- •Applying an old three-year rule
- •Believing all leases must be registered to exist
Related Topics & Key Terms
Key Terms:
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