Priority of interests
Priority determines which competing interest prevails when land changes hands. The rules differ fundamentally between registered and unregistered land.
What "Priority of interests" covers
- Registered land basic rule (LRA 2002 s.28): priority is determined by order of creation, subject to the special rule for registrable dispositions.
- LRA 2002 s.29: a registrable disposition made for valuable consideration and completed by registration postpones prior interests unless protected — by a notice on the register, as a registered charge, or as an overriding interest.
- Overriding interests bind a purchaser without appearing on the register: LRA 2002 Sch 3 includes short legal leases (7 years or less), interests of persons in actual occupation, and certain legal easements.
- A person in actual occupation is protected only as to the interest they hold and only where occupation is obvious on a reasonably careful inspection or actually known (Sch 3 para 2).
- Minor interests must be protected by entry of a notice (or a restriction to control dispositions); otherwise they are lost to a s.29 purchaser (Williams & Glyn's Bank v Boland).
- Unregistered land: legal rights bind the world; most equitable interests must be registered as land charges under the Land Charges Act 1972 (e.g. estate contracts Class C(iv), restrictive covenants Class D(ii)).
- An unregistered land charge that is registrable but not registered is void against a purchaser (Midland Bank v Green — even at an undervalue if for money/money's worth).
Key cases & statutes
The authorities and provisions most likely to matter for this subtopic:
How it's tested in SQE1
SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For priority of interests, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.
Where candidates lose marks
- Applying the doctrine of notice to registered land instead of the LRA priority and overriding-interest rules.
- Assuming actual occupation always protects — the timing (Cann) and obviousness requirements can defeat it.
- Forgetting overreaching: a beneficial interest under a trust of land is overreached where capital is paid to two trustees (Flegg).
Learn this subtopic in the course
A video lesson, notes and exam-style practice on priority of interests.
FAQ
Is priority of interests tested on SQE1?
Yes — priority of interests is part of the SQE1 Land Law syllabus (FLK2) and can appear in single best answer questions.
How is priority of interests examined in SQE1?
SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (LRA 2002 s.28, LRA 2002 s.29) helps.