Receipt of rents and profits
Be that as it may, how will such a person stand when the corresponding provisions of the Land Registration Act 2002 are brought into force?
Receipt of rents and profits
Q Your summary of UCB Group Ltd v Hedworth [2002] 23 EG 122 (CS) came as something of a surprise. On my understanding of section 70(1)(g) of the Land Registration Act 1925, a person not in actual occupation can still claim an overriding interest if he is in receipt of the rents and profits of the land. According to the Court of Appeal, there now is a further requirement that the relevant tenancy (generating the rent) must have been carved of out of a legal estate owned by the claimant to the overriding interest.
Be that as it may, how will such a person stand when the corresponding provisions of the Land Registration Act 2002 are brought into force?
A In an even worse position. Under the new Act – and for reasons that have nothing to do with UCB – the receipt of rents and profits will no longer found a claim to an overriding interest. Under the provision corresponding to the section you mention (see para 2 of Schedule 3), it will be actual occupation or nothing. However, by a transitional provision contained in para 8 of Schedule 12, this will not affect a rents and profits claim that was capable of being asserted immediately before the operative date.
