RealProperty–ExamNotes

1

REALPROPERTY–EXAMNOTES

TorrensTitlesystem....................................................................................10Introduction.........................................................................................................................................10Essentials..........................................................................................................................................10

CertificateofTitle........................................................................................................................................10TimelineforatransferoflandunderTorrensSystem.................................................................................11

TorrensTitle–IndefeasibleTitle...................................................................................................11IndefeasibilityofTitle.......................................................................................................................12Rulesofindefesability.......................................................................................................................12UnregisteredInterests......................................................................................................................12CasesIllustratingIndefeasibleTitle..................................................................................................13

MayervCoe(1968)88WN(NSW)(pt1)549......................................................................................13FrazervWalker[1967]1AC569..........................................................................................................13BursillEnterprisesLimitedvBergerBrosTradingCoLimited(1971)124CLR73................................14FelsvKnowles(1906)26NZLR604......................................................................................................14KoteffvBogdanovic(1988)12NSWLR472........................................................................................14StateBankvBerowraWaters(1986)4NSWLR398.................................Error!Bookmarknotdefined.

TorrensTitle–ExceptionstoIndefeasibility.........................................Error!Bookmarknotdefined.PriorFolios:Section41(1)(a)oftheRPA......................................................Error!Bookmarknotdefined.ProfitsaPrendre:Section42(1)(b)oftheRPA.............................................Error!Bookmarknotdefined.MisdescribedParcels:Section42(1)(c)oftheRPA......................................Error!Bookmarknotdefined.Omitted/MisdescribedEasments:Section42(1)(a1)oftheRPA.................Error!Bookmarknotdefined.

DobbievDavidson(1991)23NSWLR625................................................Error!Bookmarknotdefined.AustralianHi-FivGehl[1979]2NSWLR618............................................Error!Bookmarknotdefined.DeloheryvPermanentTrustee(1904)1CLR283...................................Error!Bookmarknotdefined.

ShortTermTenancies:Section42(1)(d)oftheRPA.....................................Error!Bookmarknotdefined.MarsdenvCampbell(1897)18LR(NSW)(Eq)33....................................Error!Bookmarknotdefined.ClynevLowe(1968)69SR(NSW)433.....................................................Error!Bookmarknotdefined.AlcovaHoldingsvPandarlo(1988)15NSWLR53....................................Error!Bookmarknotdefined.

Fraud:Section42andSection43oftheRPA...............................................Error!Bookmarknotdefined.WicksvBennett(1921)30CLR80............................................................Error!Bookmarknotdefined.StuartvKingston(1923)32CLR309........................................................Error!Bookmarknotdefined.LokeYewvPortSwettenhamRubberCo[1913]AC491........................Error!Bookmarknotdefined.BreskvarvWall(1971)126CLR376........................................................Error!Bookmarknotdefined.SchultzvCorwillProperties(1969)90WN529.......................................Error!Bookmarknotdefined.AssetsCovMereRoihi[1905]AC176.....................................................Error!Bookmarknotdefined.BahrvNicolay(No2)(1988)164CLR604...............................................Error!Bookmarknotdefined.NationalBankvHedley[1984]NSWConvR55-211................................Error!Bookmarknotdefined.

2

BankofSAvFerguson(1998)192CLR248..............................................Error!Bookmarknotdefined.PersonalEquityException............................................................................Error!Bookmarknotdefined.

FrazervWalker[1967]1AC569..............................................................Error!Bookmarknotdefined.BarryvHeider(1914)19CLR197............................................................Error!Bookmarknotdefined.BahrvNicolay(No2)(1988)164CLR604................................................Error!Bookmarknotdefined.MMIvGosper(1991)25NSWLR32.........................................................Error!Bookmarknotdefined.GrgicvANZBank(1994)33NSWLR202..................................................Error!Bookmarknotdefined.StoreyvAdvancedBank(1993)31NSWLR722.......................................Error!Bookmarknotdefined.SnowlongPtyLimitedvChoe(1991)23NSWLR198...............................Error!Bookmarknotdefined.

OverridingStatutesException.....................................................................Error!Bookmarknotdefined.PossessoryTitleException...........................................................................Error!Bookmarknotdefined.

MulcahyvCurramorePtyLtd[1974]2NSWLR464.................................Error!Bookmarknotdefined.TorrensTitle–PrioritiesBetweenUnregisteredInterests....................Error!Bookmarknotdefined.Introduction..........................................................................................Error!Bookmarknotdefined.Caveats(Part7AoftheRPA)(Todo:CaveatsbyRegistrarGeneral)...Error!Bookmarknotdefined.

UnregistrableInterests....................................................................................Error!Bookmarknotdefined.Part7AoftheRPA...........................................................................................Error!Bookmarknotdefined.RighttoCaveat.................................................................................................Error!Bookmarknotdefined.

SinclairvHopelnvestments[1982]2NSWLR870...................................Error!Bookmarknotdefined.SwanstonMortgagevTrepan[1994]1VR672........................................Error!Bookmarknotdefined.

RemovalofCaveats..........................................................................................Error!Bookmarknotdefined.FormalRequirements......................................................................................Error!Bookmarknotdefined.

KerabeeParkvDaley[1978]2NSWLR222..............................................Error!Bookmarknotdefined.LapsingNotices................................................................................................Error!Bookmarknotdefined.EffectofLodgingCaveat..................................................................................Error!Bookmarknotdefined.

ReRushandtheRPAct[1963]NSWR78.................................................Error!Bookmarknotdefined.GodfreyConstructionsvKanangra(1972)128CLR529..........................Error!Bookmarknotdefined.

Caveatslodgedwithoutreasonablecare-Damages.......................................Error!Bookmarknotdefined.Injunctions.......................................................................................................Error!Bookmarknotdefined.

DifferencebetweenUnregisteredInterests:LegalandEquitableInterests........Error!Bookmarknotdefined.

UnregisteredLegalInterests............................................................................Error!Bookmarknotdefined.UnregisteredLegalInterest–Leasesunders23DoftheConveyancingAct...Error!Bookmarknotdefined.UnregisteredLegalInterest(Protectionofnextregistrarableinterest)–s43A............Error!Bookmarknotdefined.

IACvCourtenay........................................................................................Error!Bookmarknotdefined.JonrayvPatridge(ApprovedinHCbyMeritonvMcLaurin)....................Error!Bookmarknotdefined.

SuccessiveEffect..............................................................................................Error!Bookmarknotdefined.UnregisteredEquitableInterests..........................................................Error!Bookmarknotdefined.

UnregisteredLeases.........................................................................................Error!Bookmarknotdefined.FurtherUnregisteredInterests........................................................................Error!Bookmarknotdefined.Typesofequitableinterests:equitableinterests,personalequitiesand“mere”equities...Error!Bookmarknotdefined.

Notice...................................................................................................Error!Bookmarknotdefined.TorrensTitle–UnregisteredInterestsPostponingConduct...................Error!Bookmarknotdefined.

RealProperty–ExamNotes

3

FailuretotakepossessionofTitleDeeds..............................................Error!Bookmarknotdefined.WalkervLinom[1907]2Ch104..............................................................Error!Bookmarknotdefined.

FailuretoretainpossessionofTitleDeedsbyanactofgrossnegligence..........Error!Bookmarknotdefined.

NorthernCountiesvWhipp(1884)26ChD482......................................Error!Bookmarknotdefined.ThePrematurereleaseofTitleDeeds...................................................Error!Bookmarknotdefined.

RelianceFinancevHeid[1982]1NSWLR466;HeidRelianceFinance(1983)154CLR326...........Error!Bookmarknotdefined.LloydsBankvBullock[1896]2Ch192.....................................................Error!Bookmarknotdefined.

Inclusionofareceiptclausewhichwronglystatesthattheproceedsofsalehavebeenreceived..............................................................................................................Error!Bookmarknotdefined.

RelianceFinancevHeird;*HeidvRelianceFinance...............................Error!Bookmarknotdefined.HoldingOut...........................................................................................Error!Bookmarknotdefined.

BreskvarvWall(1971)126CLR376........................................................Error!Bookmarknotdefined.FailuretoCaveat...................................................................................Error!Bookmarknotdefined.

ButlervFairclough(1917)23CLR78.......................................................Error!Bookmarknotdefined.J&HJustvBankofNSW(1971)125CLR546...........................................Error!Bookmarknotdefined.Person-to-personvSharari[1984]NSWLR745.......................................Error!Bookmarknotdefined.BlackvGarnock(2007)230CLR438........................................................Error!Bookmarknotdefined.

TheRequirementforaPurchasertoCaveat.........................................Error!Bookmarknotdefined.TheRequirementforabeneficiaryunderatrusttoCaveat.................Error!Bookmarknotdefined.

LloydsBankvBullock[1896]2Ch192;WalkervLinom[1901]2Ch104Error!Bookmarknotdefined.ShropshireUnionRailwaysvR(1857)LR7HL496.................................Error!Bookmarknotdefined.CavevCave(1880)15ChD639..............................................................Error!Bookmarknotdefined.

UnregisteredLeasesGenerally.............................................................Error!Bookmarknotdefined.SnowlongvChoe(1991)23NSWLR198.................................................Error!Bookmarknotdefined.WalshvLonsdale(1882)21ChD9.........................................................Error!Bookmarknotdefined.

Volunteers.............................................................................................Error!Bookmarknotdefined.BogdanovicvKoteff(1988)12NSWLR472.............................................Error!Bookmarknotdefined.

AssuranceFund.....................................................................................Error!Bookmarknotdefined.RegistrarGeneralvBehn(1981)148CLR562.........................................Error!Bookmarknotdefined.

Mortgages..........................................................Error!Bookmarknotdefined.Typesofmortgages.................................................................................Error!Bookmarknotdefined.Mortgagesunderoldsystemtitle...........................................................Error!Bookmarknotdefined.Equityofredemption............................................................................Error!Bookmarknotdefined.

Torrenstitlemortgages...........................................................................Error!Bookmarknotdefined.Equitable/Subsequentmortgages........................................................Error!Bookmarknotdefined.

GurfinkelvBentleyPtyLtd(1966)116CLR98.........................................Error!Bookmarknotdefined.Foreclosure...........................................................................................Error!Bookmarknotdefined.Earlydischargeofmortgage.................................................................Error!Bookmarknotdefined.

WannervCaruana[1974]2NSWLR301.................................................Error!Bookmarknotdefined.OdeavAllStatesLeasing(1983)152CLR359.........................................Error!Bookmarknotdefined.

Penaltyclauses.....................................................................................Error!Bookmarknotdefined.

4

Rightsavaliabletoamortgagee..............................................................Error!Bookmarknotdefined.Foreclosure...........................................................................................Error!Bookmarknotdefined.Therighttosueonapersonalcovenant..............................................Error!Bookmarknotdefined.Therighttopossession.........................................................................Error!Bookmarknotdefined.Therighttoappointareceivertocollectrents.....................................Error!Bookmarknotdefined.Therighttolease..................................................................................Error!Bookmarknotdefined.Therighttoimprovethemortgagedproperty.....................................Error!Bookmarknotdefined.Mortgageesale.....................................................................................Error!Bookmarknotdefined.

Requirements...................................................................................................Error!Bookmarknotdefined.Timingofsale...................................................................................................Error!Bookmarknotdefined.Paymentofproceeds.......................................................................................Error!Bookmarknotdefined.Themortgageecannotselltohimself..............................................................Error!Bookmarknotdefined.

ANZvBangadiliPastoralCo(1978)139CLR195.....................................Error!Bookmarknotdefined.TheObligationontheMortgageewhenSelling(Redo)...................................Error!Bookmarknotdefined.

Reasonablecare...........................................................................................Error!Bookmarknotdefined.CuckmereBrickvMutualFinanceLimited[1971]1Ch949.....................Error!Bookmarknotdefined.

Goodfaith....................................................................................................Error!Bookmarknotdefined.PendleburyvColonialLifeAssurance(1912)13CLR676........................Error!Bookmarknotdefined.ANZvBangadiliPastoralCo(mixed)(1978)139CLR195........................Error!Bookmarknotdefined.ForsythvBlundell(mixed)(1973)129CLR477.......................................Error!Bookmarknotdefined.StatebankvChia......................................................................................Error!Bookmarknotdefined.GomezvStateBank.................................................................................Error!Bookmarknotdefined.CAGAvNixon(1981)152CLR491...........................................................Error!Bookmarknotdefined.

Whenthemortgageeisacontroller................................................................Error!Bookmarknotdefined.Remedies.........................................................................................................Error!Bookmarknotdefined.Protectionforpurchaser..................................................................................Error!Bookmarknotdefined.

Tacking....................................................................................................Error!Bookmarknotdefined.tabulanaufragio–oldsystemonly......................................................Error!Bookmarknotdefined.

TaylorvRussel.........................................................................................Error!Bookmarknotdefined.Tackingfurtheradvances.....................................................................Error!Bookmarknotdefined.

MatznervClyde[1975]2NSWLR293......................................................Error!Bookmarknotdefined.WestpacvAdelaideBank[2005]NSWSC517..........................................Error!Bookmarknotdefined.

Co-ownership.....................................................Error!Bookmarknotdefined.Typesofco-ownership............................................................................Error!Bookmarknotdefined.Jointtenancy...........................................................................................Error!Bookmarknotdefined.Characteristicsofjointtenancy............................................................Error!Bookmarknotdefined.

Rightofsurvivorship:jusaccrescendi..............................................................Error!Bookmarknotdefined.HickmanvPeaey[1945]AC304..............................................................Error!Bookmarknotdefined.HalbertvMynar[1981]2NSWLR659.....................................................Error!Bookmarknotdefined.

Criteriaforjointtenancy:‘Thefourunities’..........................................Error!Bookmarknotdefined.Unityofpossession..........................................................................................Error!Bookmarknotdefined.Unityofinterest...............................................................................................Error!Bookmarknotdefined.Unityoftitle.....................................................................................................Error!Bookmarknotdefined.

RealProperty–ExamNotes

5

Unityoftime....................................................................................................Error!Bookmarknotdefined.Tenancyincommon................................................................................Error!Bookmarknotdefined.Characteristicsoftenancyincommon..................................................Error!Bookmarknotdefined.

Creationofco-ownerrelationship..........................................................Error!Bookmarknotdefined.Commonlawapproach.........................................................................Error!Bookmarknotdefined.Statutoryapproach(conveyancingacts26)........................................Error!Bookmarknotdefined.

DelehuntvCarmody(1986)161CLR464................................................Error!Bookmarknotdefined.Equityapproach....................................................................................Error!Bookmarknotdefined.

Summaryofcreation...............................................................................Error!Bookmarknotdefined.Severance(jointtenancy-->tenancyincommon).................................Error!Bookmarknotdefined.Atransfer/alienation............................................................................Error!Bookmarknotdefined.

WrightvGibbons(1949)78CLR313.......................................................Error!Bookmarknotdefined.CorinvPatton(1990)169CLR540...........................................................Error!Bookmarknotdefined.

Severanceinequity...............................................................................Error!Bookmarknotdefined.Alienationbyasinglejointtenant........................................................Error!Bookmarknotdefined.Asale,priortothereceiptoftheproceedsofsale...............................Error!Bookmarknotdefined.Amortgage...........................................................................................Error!Bookmarknotdefined.Alease..................................................................................................Error!Bookmarknotdefined.Mutualagreement................................................................................Error!Bookmarknotdefined.Amerger...............................................................................................Error!Bookmarknotdefined.Acourtorder.........................................................................................Error!Bookmarknotdefined.Severancebyacourseofconduct.........................................................Error!Bookmarknotdefined.Severancebypartition..........................................................................Error!Bookmarknotdefined.Unlawfulkilling.....................................................................................Error!Bookmarknotdefined.

RasmanisvJurewitsch(1969)70SR(NSW)407......................................Error!Bookmarknotdefined.Leneghan-BrittonvTaylor........................................................................Error!Bookmarknotdefined.

Endingco-ownership...............................................................................Error!Bookmarknotdefined.PannizottivTrask(1987)10NSWLR531.................................................Error!Bookmarknotdefined.

Rightsofco-ownersinterse....................................................................Error!Bookmarknotdefined.Takingaccounts:afterco-ownershipends..............................................Error!Bookmarknotdefined.Compensationforimprovementswhenco-ownershipcomestoanend............Error!Bookmarknotdefined.

BrickwoodvYoung(1905)2CLR387.......................................................Error!Bookmarknotdefined.Compensationonlyavaliableforimprovementsasdistinctfrommaintenance...........Error!Bookmarknotdefined.

McMahonvPublicCuratorofQLD(1952)StRQ197.............................Error!Bookmarknotdefined.RyanvDries[2002]NSWCA3..................................................................Error!Bookmarknotdefined.

Apersonwhoseekstheaidofequitymustdoequity(Equitablemaxim).......Error!Bookmarknotdefined.RyanvDries[2002]NSWCA3..................................................................Error!Bookmarknotdefined.

Mortgagepayments.............................................................................Error!Bookmarknotdefined.RyanvDries..............................................................................................Error!Bookmarknotdefined.

Occupationrent....................................................................................Error!Bookmarknotdefined.Obligationtosetoffthevalueofoccupationisonlyaset-off.........................Error!Bookmarknotdefined.

ForegeardvShanhan(1995)35NSWLR206............................................Error!Bookmarknotdefined.Rightsanddutiesofco-owners(Occupation,rentandprofits)..............Error!Bookmarknotdefined.Entitlementtooccupy...........................................................................Error!Bookmarknotdefined.

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Entitlementtocollectrent....................................................................Error!Bookmarknotdefined.Occupationrent....................................................................................Error!Bookmarknotdefined.Repair,maintenanceandimprovements..............................................Error!Bookmarknotdefined.Dutytopayexcessrentsreceived.........................................................Error!Bookmarknotdefined.Obligationtopayprofits.......................................................................Error!Bookmarknotdefined.

SquirevRogers(1979)39FLR106...........................................................Error!Bookmarknotdefined.Therighttoencumbertheland............................................................Error!Bookmarknotdefined.

Easements..........................................................Error!Bookmarknotdefined.Characteristicsofaneasement...............................................................Error!Bookmarknotdefined.1.Theremustbeadominantandservienttenement...........................Error!Bookmarknotdefined.2.Theeasementmustaccommodatethedominanttenement............Error!Bookmarknotdefined.

ReEllenboroughPark[1956]1Ch131....................................................Error!Bookmarknotdefined.FratervFinlay(1968)91WN(NSW)730.................................................Error!Bookmarknotdefined.

3.Thedominantandservienttenementsmustnotbebothownedandoccupiedbythesameperson...................................................................................................Error!Bookmarknotdefined.4.Theeasementmustbecapableofformingthesubjectmatterofagrant.....Error!Bookmarknotdefined.

BursillEnterprisesvBergerBros(1971)124CLR73................................Error!Bookmarknotdefined.ClosFarmingEstatesPtyLtdvEaston(2002)11BPR20,605..................Error!Bookmarknotdefined.MoncrieffvJamieson[2007]1WLR2620...............................................Error!Bookmarknotdefined.

Examplesofeasements...........................................................................Error!Bookmarknotdefined.Easementscomparedto:......................................................................Error!Bookmarknotdefined.

Creationofeasements............................................................................Error!Bookmarknotdefined.Expressgrant........................................................................................Error!Bookmarknotdefined.

Expressreservation..................................................................................Error!Bookmarknotdefined.Statutorycreationofeasements..........................................................Error!Bookmarknotdefined.

conveyancingacts88B....................................................................................Error!Bookmarknotdefined.conveyancingacts88k....................................................................................Error!Bookmarknotdefined.

reasonablynecessaryfortheeffectiveuseofthedominantland...............Error!Bookmarknotdefined.notinconsistentwiththepublicinterest.....................................................Error!Bookmarknotdefined.

OwnersStrataPlan13635........................................................................Error!Bookmarknotdefined.theowneroftheservientlandcanbeadequatelycompensatedforanyloss..........Error!Bookmarknotdefined.allreasonableefforts...................................................................................Error!Bookmarknotdefined.thediscretionofthecourts..........................................................................Error!Bookmarknotdefined.ancillaryrights..............................................................................................Error!Bookmarknotdefined.costs–probablynot.....................................................................................Error!Bookmarknotdefined.

Animpliedgrantorreservationunderoldsystemtitle........................Error!Bookmarknotdefined.WheeldonvBurrows(1879)12ChD31(CA)...........................................Error!Bookmarknotdefined.

Creationofaneasementwherethevendorretainsthe“quasi-dominant”tenement.Error!Bookmarknotdefined.

NorthSydneyPrintingvSabemoInvestments[1971]2NSWLR150.......Error!Bookmarknotdefined.easementsofnecessity....................................................................................Error!Bookmarknotdefined.

RealProperty–ExamNotes

7

easementsofcommonintention.....................................................................Error!Bookmarknotdefined.Continuousandapparenteasements..............................................................Error!Bookmarknotdefined.creationofaneasementbyimplicationwherethevendorretains“quasi-servient”tenement............Error!Bookmarknotdefined.wherethedominantandservienttenementsaresoldatthesametime.......Error!Bookmarknotdefined.impliedeasementsundertorrenstitle............................................................Error!Bookmarknotdefined.

AustralianHi-FivGehl[1979]2NSWLR286............................................Error!Bookmarknotdefined.Easementsbyprescription....................................................................Error!Bookmarknotdefined.

Easementbyprecriptionundertorrenstitle...................................................Error!Bookmarknotdefined.Easementsingross...............................................................................Error!Bookmarknotdefined.

Ancillaryrightstoaneasement...............................................................Error!Bookmarknotdefined.Obligationontheownersofthedominantandservienttenement;deviationsofarightofwayComingfromobstruction........................................................................Error!Bookmarknotdefined.Changinganeasement............................................................................Error!Bookmarknotdefined.

TodrickvWesternNational[1934]1CH561...........................................Error!Bookmarknotdefined.WhitevGrandHotel,EastbourneLimited[1913]1Ch113.....................Error!Bookmarknotdefined.JelbertvDavis[1968]1WLR589.............................................................Error!Bookmarknotdefined.BulstrodevLambert[1953]1WLR1064.................................................Error!Bookmarknotdefined.VTEngineeringvRichardBarland&Co(1968)19P&CR890..................Error!Bookmarknotdefined.

InfringementofanEasement..................................................................Error!Bookmarknotdefined.Remediesforinfirngement...................................................................Error!Bookmarknotdefined.

Extinguishinganeasement.....................................................................Error!Bookmarknotdefined.Expressrelease.....................................................................................Error!Bookmarknotdefined.Abandomentundertorrenstitle...........................................................Error!Bookmarknotdefined.impliedreleasewithin20years(i.e.beforeabandonment).................Error!Bookmarknotdefined.

Treweekev36WolseleyRdPtyLimited(1973)128CLR274..................Error!Bookmarknotdefined.ProprietorsStrataPlan9968vProprietorsStrataPlan11173[1979]2NSWLR605....Error!Bookmarknotdefined.

Alterationofthedominanttenement...................................................Error!Bookmarknotdefined.Unityofseisin.......................................................................................Error!Bookmarknotdefined.Operationoflaw...................................................................................Error!Bookmarknotdefined.Theorderofthecourt(CAs89(1)).......................................................Error!Bookmarknotdefined.

PiepervEdwards[1982]1NSWLR336....................................................Error!Bookmarknotdefined.ManlyPropertiesPtyLimitedvCastrisos.................................................Error!Bookmarknotdefined.

Remedies.................................................................................................Error!Bookmarknotdefined.Abatement(self-help)...........................................................................Error!Bookmarknotdefined.Injunction..............................................................................................Error!Bookmarknotdefined.Damages...............................................................................................Error!Bookmarknotdefined.Remediesspecifictorightsofsupport..................................................Error!Bookmarknotdefined.Nuisance...............................................................................................Error!Bookmarknotdefined.

Covenants..........................................................Error!Bookmarknotdefined.Positivecovenant....................................................................................Error!Bookmarknotdefined.Natureofapositivecovenant...............................................................Error!Bookmarknotdefined.

8

Positivecovenantaspartofaneasement............................................Error!Bookmarknotdefined.Enforceabilityofpositivecovenantsbysuccessorsintitletooriginalcovenantee....Error!Bookmarknotdefined.

Annexationofcovenants........................................................................Error!Bookmarknotdefined.Touchandconcern................................................................................Error!Bookmarknotdefined.

RogersvHosegood[1900]2Ch388........................................................Error!Bookmarknotdefined.ReBallard’sConveyance[1973]Ch473...................................................Error!Bookmarknotdefined.

Intentiontobindsuccessorsintitle......................................................Error!Bookmarknotdefined.Estateofsuccessormustbelegal....................................................................Error!Bookmarknotdefined.

Assigningthebenefitofacovenant........................................................Error!Bookmarknotdefined.Legalassignment..................................................................................Error!Bookmarknotdefined.Equitableassigmnent...........................................................................Error!Bookmarknotdefined.

Passingthebenefitofacovenantinequity............................................Error!Bookmarknotdefined.Restrictivecovenant................................................................................Error!Bookmarknotdefined.Passingtheburdenofarestrictivecovenantinequity...........................Error!Bookmarknotdefined.Theconsciencetest...............................................................................Error!Bookmarknotdefined.Burdenmustrelatetothebenefitedland.............................................Error!Bookmarknotdefined.Intentionrequirements.........................................................................Error!Bookmarknotdefined.

Requirementsforabindingcovenantunderoldsystemtitle.................Error!Bookmarknotdefined.Enforcement.........................................................................................Error!Bookmarknotdefined.Buildingschemes/Schemeofdevelopment..........................................Error!Bookmarknotdefined.Touchandconcern................................................................................Error!Bookmarknotdefined.

Restrictivecovenantsontorrenstitleland.............................................Error!Bookmarknotdefined.As88BINstrunment.............................................................................Error!Bookmarknotdefined.Buildingschemes..................................................................................Error!Bookmarknotdefined.

Remedies/Defences................................................................................Error!Bookmarknotdefined.Extinguishing/modifyingacovenant.......................................................Error!Bookmarknotdefined.Expressrelease.....................................................................................Error!Bookmarknotdefined.Impliedrelease.....................................................................................Error!Bookmarknotdefined.Operationoflaw...................................................................................Error!Bookmarknotdefined.Conveyancingacts89(1)......................................................................Error!Bookmarknotdefined.Environmentplanninganassesmentacts28(2)..................................Error!Bookmarknotdefined.Mutualownership.................................................................................Error!Bookmarknotdefined.

RealProperty–ExamNotes

9

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RealProperty–ExamNotes

11

TORRENSTITLESYSTEM

Twotypesoflandtitles:

- Torrenstitleland- Oldtitleorgenerallawland

InNSWapproximately1%offreeholdlandisoldtitle.

Torrenstitleisasystemoflandregistration,inwhicharegisteroflandholdingsmaintainedbythestateguaranteesanindefeasibletitletothoseincludedintheregister.Landownershipistransferredthroughregistrationoftitleinsteadofusingdeeds.

TorrensTitle:Asystemoflandtitleunderwhichastate-maintainedregisteroflandholdingsguaranteesindefeasibleownershipofinterestsinland.Thesystemiscontrastedwitholdsystemtitle,whichdependsonproofofunbrokenchainoftitlebacktoagoodrootoftitleorevenbacktotheCrowngrantoftheland.TheTorrenssystemtakesitsnamefromitsallegedinventor–SirRobertTorrens.–LexisNexisLegaldictionary

Torrenssystemregulatedby:RealPropertyAct1900(NSW)

àProvidesamechanismforthecreationandprotectionofinterestsinlandthatismorestructuredanddefinitivethantheoldsystem.

Torrenssystementitlesallregistrableinstrumentstoberegisteredinacentralregistry,givingeachparceloflandaspecifictitleandreferencenumberthatisevidencedbytheoriginalfolioandtheduplicatecertificateoftitle,whichisheldbytheowner.

- Storedelectronically:RealPropertyAct1900(NSW),s31B(3)

INTRODUCTION

PrioritiesundertheTorrensTitleSystem:

• RegisteredvRegistered(EarlierregisteredtakespriorityRPA36(9))• RegisteredvUnregistered(RPAss41,42)• UnregisteredvRegistered(RPAss41,42)• UnregisteredvRegistered

o LegalvLegalo LegalvEquitableo EquitablevLegalo EquitablevEquitable

Thepartyinbold/underlinedhaspriority,unless:

• (ForRvR,RvUandUvR)oneoftheexceptionstoindefeasibilityisrelevant;or• (ForUvU)unlesstheearlierpartyisguiltyofpostponingconduct,orthelaterpartyhadnotice

ESSENTIALS

CERTIFICATEOFTITLE

Eachproperty,undertheTorrensTitleSystem,hasacertificateoftitlewhichlists:

12

• IntheFirstSchedule:o TheRegisteredOwner–atatimeofregistrationofsale,thevendor’snameiserasedfrom

theFirstScheduleandreplacedbythepurchaser’sname

• IntheSecondSchedule:o Mortgagors–borrowing,withthepropertyasasecurityo Lesseeso Easements–swappedrightsonlando RestrictiveCovenants

TIMELINEFORATRANSFEROFLANDUNDERTORRENSSYSTEM

• ExchangeofContractso TheStatuteofFraud1677requiresthattransferoflandbeinwritingo TheConveyancingAct1919requirescertainattachmentstoacontractforthesaleofland

(e.g.floor-plan,etc.)o Twoidenticalcontractsareexchanged(theoneexecutedbythevendorisgiventothe

purchaser,viceversa)§ Here,adepositisusuallypaid§ Herethepurchasergetsanunregisterableequitableinterestintheland(Tanwar

EnterprisesPtyLtdvCauchi)• Theymaybeabletoaskforspecificperformanceofthecontractfromthe

CourtofEquity

• Settlement/Completiono Thisusuallyoccurs6weeksafterexchangeo Thevendorhandsovera‘transfer’,transferringpropertyfromthevendortopurchaser

§ Sensiblevendorsdonottransfertillpaymentisreceived§ Iftransferoccurs,butpaymentisn’tcompeted,thevendorhasa“lien”(An

equitableinterestinthelandwithrespecttotheunpaidpurchaseprice)• Lodgment

o Thisusuallyoccursonthesamedayassettlemento ThesettlementformsandtheCTmustmatchperfectly

• Registration

o Takesapproximately1workingday,usetotake3-12months

TORRENSTITLE–INDEFEASIBLETITLE

Indefeasibility:referstotheprotectionconferreduponaregistrableinterestholderundertheTorrenssystem.

Indefeasibilityhastheeffectofcreatingthetitleanewand,insodoing,curingthattitleofanyinherentdefects.Itwillalsoallowtheregisteredproprietortotakefreeofanypriorinterests–eventhoseofwhichheorshemayhavenonotice.

ConceptdefinedbyBarwickCJinBreskvarvWall(1971)126CLR376:

RealProperty–ExamNotes

13

“TheTorrenssystemofregisteredtitleofwhichtheActisaformisnotasystemofregistrationoftitlebutasystemoftitlebyregistration.Thatwhichthecertificateoftitledescribesisnotthetitle,whichtheregisteredproprietorformerlyhad,orwhichbutforregistrationwouldhavehad.Thetitleitcarriesisnothistoricalorderivative.Itisthetitlewhichregistrationitselfhasvestedintheproprietor.”

Objectives:

1. Toprovidearegisterfromwhichpersonswhoproposetodealwithlandcandiscoverallthefactsrelativetothetitle.

2. Toensurethatapersondealingwithlandwhichisregisteredisnotadverselyaffectedbyanydefectsinthevendor’stitlewhichdonotappearontheregister.

3. Toguaranteetheconclusivenessoftheregisterandprovideadequatecompensationtoanypersonwhosufferslossasaresultofthisguarantee.

INDEFEASIBILITYOFTITLE

Indefeasibilityof/tleissetoutintheRealPropertyAct,ss41-43.

• Titlebyregistra,on(s41)(BreskvarvWall(1971)126CLR376)• Titleisindefeasible,exceptfortheexcep,onsàEstateofregisteredproprietorparamount)(s42)• Youdon’tneedtotrackthehistoryoftheproperty(asinOldTitle):youmaydealwiththeregister

directly(s43)

RULESOFINDEFESABILITY

1. RegisteredinterestsintheSecondScheduleprevailovertheregisteredpersonintheFirstSchedule.(s41,42).

2. AsbetweentwointerestsregisteredintheSecondSchedule,theinterestfirstregisteredhaspriority:s.36(9)oftheRPA.

3. Registeredinterestsprevailoverunregisteredinterests.(s43).

UNREGISTEREDINTERESTS

Unregisteredinterestmaycomeoutofthefollowing(whereinterestsareunregisterable):

• Theinterestofapurchaserarisingfromacontractforsaleoflando Onexchangeofcontracts,anunregisterableequitableinterestinthepropertyiscreated

• Mortgagescreatedbythedepositof2tledeedso Wherethereisnomortgageinwri/ng,theremays/llbeanequitablemortgagewherea

financierlendsmoneyinconsidera/onforthe/tledeedbeingdeposited(CooenyvBurns)• Anagreementtograntamortgage

o Thisisenforceableinasimilarwaytotherightofapersonwhohasexchangedcontractsbutnotyettransferred.(ANZvBurns)

• Oralleasesforthreeyearsorless

14

o Normallythereisarequirementforwri3ng.(ConveyancingActs23D)o Thisisforgivenif:

§ Thetermoftheleaseisnotgreaterthan3years§ Itisformarketvaluerent§ Thelesseehasanimmediaterighttopossession

• Wri$enleaseswheretheapprovedformisnotusedo Leasescreatedbyotherforms(i.e.unregisterableundertheRealPropertyAct,butvalidas

pertheResiden'alTenanciesAct)mays'llbeavalidunregisteredinterest.• Beneficiariesofinterestsheldontrustbyatrustee

o Theseinterestsneednotbeinwri,ng(ConveyancingAct,s23C)o Trustsmaynotregisteredowners/interest-holders(RealPropertyAct,s82)

CASESILLUSTRATINGINDEFEASIBLETITLE

MAYERVCOE(1968)88WN(NSW)(PT1)549

FACTS:

• MrsMayerownedTTlandinNSWandleftaCoTw/adishonestsolicitor.SolicitortookCoTtoMrCoeandclaimedthatMrsMayerwishedtoborrowmoneyandwoulddosounderamortgageagreement.MrCoedidnotknowthatthesolicitorwouldforgeMrsMayer’ssignatureandusethemoneyforhimself.ForgeryoccursforthemortgageinfavourofMrCoe.MrCoeisthenregisteredon2ndscheduleasthemortgageeoverMrsMayer’sproperty;MrsMayerissubjecttothemortgageassheisonthe1stschedule.ThemomentCoeregisteredthemortgage,eventhoughitwasaforgery,ss41&42steppedin;Coehasindefeasibletitlebyregistration.

ISSUE:

• MayerandCoebothinnocentvictimsofthedishonestsolicitor;sowhohaspriority?

HELD:

• Undertheprincipleofimmediateindefeasibility,bothvoidandvalidinstrumentswillbeeffectiveuponregistrationand,subjecttotheexceptionstoindefeasibility,thepersonregisteringthereunderwillobtaingoodtitle

• Priorityisgivenbywhattheregistersays.TheStategaveCoetitlethemomentregistrationoccurred;therefore,Coehasindefeasibletitle.

• SirLawrenceStreetmadethepointthatthemomentbeforeregistration,allCoehasisaforgery;nothing.Butatthemomentofregistration,Coegoesfromnointeresttoindefeasibleinterest;ss41&42stepin.Thispointgoestoimmediateindefeasibilityoverdeferredindefeasibility.

FRAZERVWALKER[1967]1AC569

FACTS:

• Disputeb/wWalker,abonafidepurchaseroflandpursuanttoamortgagee'ssale,andFrazer,theformerjointregisteredproprietorofthatland.

• ThemortgageunderwhichthepowerofsalewasexercisedhadbeenprocuredfraudulentlybyMrsFrazer(MrsFrazerforgedMrFrazer'ssignature)>mortgagewasavoidinstrument.

RealProperty–ExamNotes

15

• ThesaletoWalkertookplacepursuanttothemortgage,thereforeWalkerbecameregisteredasproprietorofthepropertypursuanttoavoidinstrument.

• Walkerwasabonafidepurchaserandhadtakenthetransferonthebasisoftheinterestsshownonthefaceoftheregister.

HELD:

• Goodtitle,whichcouldnotbetaintedbytheinvalidityofthemortgageinstrument• ImmediateindefeasibilityfavouredbyPC

BURSILLENTERPRISESLIMITEDVBERGERBROSTRADINGCOLIMITED(1971)124CLR73

FACTS:

• 2adjoiningpropertiesonGeorgeSt.Thereisaneasementonland-arightofwaytousebytheneighbour-createdin1960s.

• Fineprintprovidesthattheneighbourhasrighttooccupy,atgroundlevelandtherighttooccupybuildings,abovetherightofwayofupto3.6m.

• Theeasementwasregisteredbutshouldnothavebeenallowedtohappen.

ISSUE:

• Wastheeasementindefeasible?

HELD:

• Registermustbegivenfullmeaningandeffect,evenifimpossibletocreationbecauseofs41>easementandexclusiverightofpossessionofbuildingabove2.6mwasindefeasible.UnderCL,notallowed.

FELSVKNOWLES(1906)26NZLR604

FACTS:

• Registeredowner/landlordisatrusteewhoheldthepropertyonatrustforbeneficiaries.Trustdeedsaidtrusteecouldleasetheproperty,butexcludedpowerofsale.Owner/trusteeleasedtheproperty,w/anoptiontopurchasewhentheleaseexpires.Theleasewasregistered.

ISSUE:

• wastheleaseindefeasible?

HELD:

• Leasewasregistered,statuteoverridesCLandequity>indefeasible,thetenantwouldhaveanoptiontopurchase.Underequity,wouldnotbeallowed.

• BeneficiariesmighthaveaCOAagainstthetrusteeforbreachofcontract

KOTEFFVBOGDANOVIC(1988)12NSWLR472

FACTS: