The underlying principal of a system of land registration is that a person seeking to acquire an interest in land need only check the register to determine if the land is subject to any adverse interests. A person possessing an interest in land needs to take action to protect that interest by entering it on the register. Generally a purchaser will take free of any interests not on the register, however this is not absolute. Determining priority of competing interests in registered land will vary depending on the type of interest involved.
S.28 Land Registration Act 2002 sets out the basic rule that priority between interests in registered land are determined by the order of creation. An earlier interest will prima facie be given priority over a later. However, this basic rule is subject to s.29 and s.30 Land Registration Act 2002 and thus only comes into play where these do not apply.
By virtue of s.29 Land Registration Act 2002 a registered disposition for valuable consideration will take priority over unprotected interests. Protected interests include a registered charge, or those subject to a notice on the register, overriding interests or those excepted from the effect of registration (s.29(2)(a) Land Registration Act 2002).