A weekly column focusing on the legal labyrinth of company law, employment law and property law. This week, Peter Foskett of Withy King solicitors, considers the Land Registration Act 2002: Can you take advantage?

The Land Registration Act 2002 has introduced what are arguably the most significant changes to both property legislation and the conveyancing procedure since 1925.

The new legislation has introduced numerous changes and for commercial property owners there are both pros and cons. Registered properties will now enjoy greater protection, whilst those with unregistered property will remain exposed to risk.

If you want to protect your premises and business's interests you need to be aware of the changes introduced by the Land Registration Act. You may also want to ensure that you are taking full advantage of the benefits offered by the land registry.

One of the principal changes is the fact that the new legislation gives registered properties greater protection against squatters. Previously, the law of Adverse Possession enabled squatters to claim ownership where they had evidence to support continuous occupation of more than 12 years and this will continue for unregistered property.

Claims against registered properties however are no longer automatic. Whilst under the new laws a squatter can make an application to Her Majesty's Land Registry after 10 years of occupation, the Registry will then notify the registered proprietor (and any other interested parties) giving the proprietor time to oppose the application and to recover possession. It is, therefore, crucial to keep the Registry informed of your current address to ensure you receive notice.

In the majority cases a counter-notice by the landowner will defeat an application but it remains vital to recover possession. Failure to do so will enable the squatter to make a second application once a further two years have elapsed.

The Land Registration Act 2002 has also introduced changes to compulsory registration of leases. Previously only leases of 21 years or more had to be registered but now all leases of more than seven years must be registered. This will also include assignments, where the remainder of the term falls within this threshold.

This will, of course, have implications for both landlords and tenants especially when you combine the effect with the introduction of Stamp Duty Land Tax at the end of 2003.

Whilst these changes are among those most likely to impact on the commercial world the need to take professional advice before entering into property transactions is now greater than ever before.

For further advice call Withy King Commercial on 01793 536526.