Adverse possession and informal purchasers

In England and Wales the enactment of the Land Registration Act 2002 dramatically reduced the scope of the doctrine of adverse possession in relation to registered land. The new adverse possession regime was justified in the report prececling the 2002 Act on the basis that it was more compatible with principles of title registration and struck a more appropriate balance between the landowner and squatter. 1 Although the 2002 Act confers the registered owner of land with a power to veto most adverse possession applications, an application by a squatter who satisfies one of the three conditions set out in Schedule 6, paragraph 5, will succeed in spite of an objection by the registered owner. The Law Commission felt that in these situations, the balance of fairness lay with the squatter.2 Two of the conditions were designed to preserve the traditional effect of the doctrine for applicants who went into possession pursuant to an informal transfer.3 The Law Commission noted [hat when a dealing takes place "off the register", the applicant does not represent a "land thief" and it would be unjust to allow the registered owner to veto the applicant'S registration.4