Property lawyers are having a field day at the moment! Not only are they coping with the effects of the Land Registration Act 2002 which came into effect in October last year but they are also dealing with the consequences of the Stamp Duty Land Tax introduced in December.

 

The Land Registration Act has introduced a plethora of new rules, regulations and forms to which we are all becoming accustomed but the aspect which has received most publicity are the sections which deal with the so-called squatters' rights. In so far as they apply to land which is registered, the rules are really quite different and it is important for registered proprietors of registered land to understand the circumstances in which a squatter may claim possession.

 

The Act gives the squatter the right to apply to be registered as proprietor of the land if he or she can show at least 10 years "adverse" possession. The evidence needs to be in a particular form which will satisfy the Land Registry.

 

Assuming that this is in order, the Land Registry then sends a notice to the registered proprietor and if no objection is received within 65 business days, the squatter will be registered as proprietor in place of the existing registered proprietor!

 

It is vitally important (if for no other reason) that the registered proprietor's correct address is regularly updated at the Land Registry otherwise the Notice issued by the Land Registry may never be seen.

 

Assuming the Notice is duly received by the registered proprietor, he then has the right to object and, if appropriate, dispute the claims made by the applicant squatter and unless the squatter can meet certain conditions, the application will fail. So far, so good. However, it is essential that the registered proprietor then takes steps to obtain a Court Order for possession against the squatter because if this does not occur, two years later the squatter can make a further application which will succeed unless proceedings have been taken or an Order for possession obtained.

 

Thus the new procedure is, in many ways, good news for the registered proprietor of land as the system seems to be loaded in his favour, providing he is in the right place at the right time and actually receives the notice of the squatter's application and deals with it appropriately. What is important, though, is not only to deal with it at the Land Registry but to take action against the squatter within the following two years.

 

Because we now have the benefit of this well-defined procedure, landowners are well advised to apply for voluntary registration of their title instead of waiting for some occasion when property changes hands and therefore triggers first registration. If your title is presently unregistered, do give the possibility some consideration and take advantage of the reduced Land Registry fees which are available for volunteers for first registration.