An Integrated Information Management Model for Ecologically Sustainable Development Justine Bell LLB(Hons); GradDipLegalPrac School of Law, Queensland University of Technology Academic qualification for which this thesis is submitted: Doctor of Philosophy Year Submitted: 2010 Keywords Property Law – Torrens – Land registration – Indefeasibility – Registers Environmental law – Sustainability – Environmental Registers Land information management – spatial data – databases Law reform Abstract Ecologically sustainable development has become a major feature of legal systems at the international, national and local levels throughout the world. In Australia, governments have responded to environmental crises by enacting legislation imposing obligations and restrictions over privately-owned land. Whilst these obligations and restrictions may well be necessary to achieve sustainability, the approach to management of information concerning these instruments is problematic. For example, management of information concerning obligations and restrictions in Queensland is fragmented, with some instruments registered or recorded on the land title register, some on external registers, and some information only available in the legislation itself. This approach is used in most Australian jurisdictions. This fragmented approach has led to two separate but interconnected problems. First, the Torrens system is no longer meeting its goal of providing a complete and accurate picture of title. Second, this uncoordinated approach to the management of land titles, and obligations and restrictions on land use, has created a barrier to sustainable management of natural resources. This is because compliance with environmental laws is impaired in the absence of easily accessible and accurate information. These problems demonstrate a clear need for reform in this area. To determine how information concerning these obligations and restrictions may be most effectively managed, this thesis will apply a comparative methodology and consider three case studies, which each utilise different models for management of this information. These jurisdictions will be assessed according to a set of guidelines for comparison to identify which features of their systems provide for effective management of information concerning obligations and restrictions on title and use. Based on this comparison, this thesis will devise a series of recommendations for an effective system for the management of information concerning obligations and restrictions on land title and use, taking into account any potential legal issues and barriers to implementation. This series of recommendations for reform will be supplemented by suggested draft legislative provisions. Brief Contents Chapter One - Introduction ........................................................................................ 1 Chapter Two - Problems for the Torrens system as a result of fragmented information management .......................................................................................... 13 Chapter Three - Methodology and overview of case studies ................................. 64 Chapter Four - Queensland Case Study .................................................................. 87 Chapter Five - Western Australia Case Study ...................................................... 143 Chapter Six - New Zealand Case Study ................................................................. 182 Chapter Seven - Analysis and comparison of case studies ................................... 229 Chapter Eight - Legal issues associated with integrated management of obligations and restrictions on land title and use.................................................. 255 Chapter Nine - Conclusion ...................................................................................... 314 Table of Contents Chapter One - Introduction ........................................................................................ 1 1. Background to this research ................................................................................ 1 2. Why this research is necessary ............................................................................ 4 3. Methodology........................................................................................................ 7 4. Terminology ........................................................................................................ 7 4.1. ‘Register’ and ‘record’ .................................................................................. 7 4.2. ‘Rights’, ‘Obligations’ and ‘Restrictions’ ..................................................... 7 4.3. Restrictions on ‘title’ and ‘use’ ..................................................................... 8 4.4. ‘Overriding statutes’ and ‘overriding interests’ ............................................ 9 5. Chapter Outlines .................................................................................................. 9 6. Conclusion ......................................................................................................... 12 Chapter Two - Problems for the Torrens system as a result of fragmented information management .......................................................................................... 13 1. Introduction ....................................................................................................... 13 2. Historical development of the Torrens system of land registration................... 14 3. Principles underpinning the Torrens system of land registration ...................... 16 4. 3.1. Indefeasibility .............................................................................................. 16 3.2. Completeness .............................................................................................. 17 3.3. Security........................................................................................................ 20 3.4. Conclusion ................................................................................................... 22 Interests capable of registration in Australian jurisdictions .............................. 22 4.1. Leases .......................................................................................................... 23 4.2. Mortgages .................................................................................................... 24 4.3. Easements .................................................................................................... 24 4.4. Covenants .................................................................................................... 26 4.4.1. Registration ........................................................................................... 26 4.4.2. Notification ........................................................................................... 27 4.4.3. No recognition on the land title register ............................................... 28 4.5. Profits á prendre .......................................................................................... 28 4.6. Other interests ............................................................................................. 30 4.7. Conclusion ................................................................................................... 31 5. The threat posed to the integrity of the Torrens system by overriding interests32 5.1. Introduction ................................................................................................. 32 5.2. Overriding statutes in the courts – a threat to security of landholding ....... 34 5.2.1. South-Eastern Drainage Board (SA) v Savings Bank of South Australia – in the event of inconsistency, the later statute prevails ................................... 34 5.2.2. Miller v Minister for Mines .................................................................. 35 5.2.3. Pratten v Warringah Shire Council ....................................................... 36 5.2.4. Quach v Marrickville Council .............................................................. 38 5.2.5. Hillpalm v Heaven’s Door .................................................................... 39 5.2.6. Post-Hillpalm decisions ........................................................................ 42 5.2.7. Conclusion ............................................................................................ 46 5.3. Overriding statutes as a barrier to sustainability ......................................... 47 5.4. The problem of overriding statutes and calls for reform ............................. 49 5.4.1. Early calls for reform – 1950s .............................................................. 49 5.4.2. 1960s ..................................................................................................... 51 5.4.3. 1970s ..................................................................................................... 53 5.4.4. 1980s ..................................................................................................... 55 5.4.5. 1990s onward ........................................................................................ 56 5.5. 6. Conclusion ................................................................................................... 62 Conclusion ......................................................................................................... 63 Chapter Three - Methodology and overview of case studies ................................. 64 1. Introduction ....................................................................................................... 64 2. Methodology...................................................................................................... 65 3. 2.1. The purpose and objectives of adopting a comparative methodology ........ 66 2.2. Jurisdictions to be compared ....................................................................... 67 2.2.1. Queensland............................................................................................ 67 2.2.2. Western Australia.................................................................................. 68 2.2.3. New Zealand ......................................................................................... 69 2.3. Prerequisites to using the comparative method ........................................... 70 2.4. Rules for applying the comparative process ............................................... 71 2.5. Carrying out the comparative process ......................................................... 73 2.6. Conclusion ................................................................................................... 75 Guidelines for comparison................................................................................. 75 3.1.1. Guidelines underpinning the Torrens framework of land registration.. 78 3.1.2. Guidelines for a modern land administration system ........................... 79 3.1.2.1. The concept of land ‘administration’ and the changing role of property ............................................................................................................ 79 3.1.2.2. 3.1.3. 4. Guidelines for assessing a land administration system ...................... 80 Guidelines for comparison in this thesis ............................................... 83 Conclusion ......................................................................................................... 85 Chapter Four .............................................................................................................. 87 Queensland Case Study ............................................................................................. 87 1. Introduction ....................................................................................................... 87 2. The Queensland approach – a case study .......................................................... 89 3. 2.1. Overview of the Queensland approach ....................................................... 89 2.2. Methodology ............................................................................................... 89 Review of legislation ......................................................................................... 92 3.1. The Land Title Register............................................................................... 92 3.1.1. Operation of the Land Title Register .................................................... 92 3.1.2. Expansion of the Land Title Register – restrictions on use .................. 95 3.2. Recording of Administrative Advices ......................................................... 98 3.2.1. Acquisition of Land Act 1967............................................................. 102 3.2.2. Coastal Protection and Management Act 1995 ................................... 103 3.2.3. Environmental Protection Act 1994.................................................... 104 3.2.4. Planning (Urban Encroachment – Milton Brewery) Act 2009 ........... 105 3.2.5. Queensland Heritage Act 1992 ........................................................... 106 3.2.6. Nature Conservation Act 1992............................................................ 106 3.2.7. Recreation Areas Management Act 2006 ........................................... 107 3.2.8. River Improvement Trust Act 1940 .................................................... 107 3.2.9. State Development and Public Works Organisation Act 1971 ........... 108 3.2.10. Sugar Industry Act 1999 ................................................................... 109 3.2.11. Vegetation Management Act 1999 ................................................... 111 3.2.12. Water Act 2000. ................................................................................ 112 3.2.13. Wet Tropics and World Heritage Protection and Management Act 1993 ........................................................................................................... 112 3.2.14. Sustainable Planning Act 2009 ......................................................... 113 3.2.15. 3.3. Conclusion ........................................................................................ 113 Other registers ........................................................................................... 115 3.3.1. Aboriginal Cultural Heritage Act 2003 and Torres Strait Island Cultural Heritage Act 2003 ............................................................................................ 116 3.3.2. Water Act 2000 ................................................................................... 116 3.3.3. Environmental Protection Act 1994.................................................... 117 3.3.4. Queensland Heritage Act .................................................................... 119 3.3.5. Petroleum Act and Petroleum and Gas (Production and Safety) Act 2004 ............................................................................................................. 120 3.3.6. Land Protection (Pest and Stock Route Management) Act 2002 ....... 120 3.3.7. Soil Conservation Act 1986 ................................................................ 121 3.3.8. Nature Conservation Act 1992............................................................ 123 3.3.9. Sustainable Planning Act 2009 ........................................................... 123 3.3.10. Building Act 1975 ............................................................................. 124 3.3.11. Vegetation Management Act 1999 ................................................... 124 3.3.12. Conclusion ........................................................................................ 126 3.4. 3.4.1. Soil Survey Act 1929 .......................................................................... 127 3.4.2. Wild Rivers Act 2005 ......................................................................... 127 3.4.3. Conclusion .......................................................................................... 129 3.5. 4. Restrictions which are not registered ........................................................ 127 Conclusion ................................................................................................. 129 How effective is the Queensland approach as a whole? .................................. 131 4.1. Does the jurisdiction provide for integrated management of information concerning obligations and restrictions on land title and use? ............................ 131 4.2. Is the land title register utilised for the purpose of recording obligations and restrictions on use? .............................................................................................. 134 4.3. How easily can landholders or prospective purchasers ascertain what obligations and restrictions on title and use apply in relation to a parcel of land? 137 4.4. Who has responsibility for the accuracy of information concerning obligations and restrictions on title and use? ...................................................... 139 4.5. Is the accuracy of information concerning title and use guaranteed, and is compensation available where information is incorrect? .................................... 140 5. Conclusion ....................................................................................................... 142 Chapter Five - Western Australia Case Study ...................................................... 143 1. 2. Introduction ..................................................................................................... 143 1.1. Structure of chapter ................................................................................... 143 1.2. Methodology ............................................................................................. 144 History of land title and use registration in Western Australia ....................... 144 2.1. Land titles registration ............................................................................... 145 2.2. Legislative reform ..................................................................................... 145 2.2.1. Restrictions on use and enjoyment ..................................................... 145 2.2.2. Expansion of certificates of title ......................................................... 147 2.3. 3. 2.3.1. Standing Committee Inquiry - 2004 ................................................... 150 2.3.2. Government response to the Standing Committee Inquiry ................. 152 2.3.3. Conclusion .......................................................................................... 152 Review of the present system .......................................................................... 153 3.1. The Land Title Register............................................................................. 153 3.1.1. Instruments capable of registration ..................................................... 153 3.1.2. Instruments capable of being recorded on title ................................... 154 3.1.3. Administration of the Land Title Register .......................................... 155 3.1.4. Future role of the Land Title Register................................................. 157 3.1.5. Conclusion .......................................................................................... 159 3.2. 4. Calls for further reform of the Western Australian system ....................... 150 The Shared Land Information Platform .................................................... 159 3.2.1. Impetus for the Shared Land Information Platform ............................ 159 3.2.2. The objectives and benefits of Shared Land Information Platform .... 160 3.2.3. Development of the Shared Land Information Platform .................... 161 3.2.4. Development of the Interest Enquiry function (Register of Interests) 162 3.2.5. Operation of the Interest Enquiry service ........................................... 165 How effective is the Western Australian approach as a whole?...................... 169 4.1. Does the jurisdiction provide for integrated management of information concerning obligations and restrictions on land title and use? ............................ 169 4.2. Is the land title register utilised for the purpose of recording obligations and restrictions on use? .............................................................................................. 172 4.3. How easily can landholders or prospective purchasers ascertain what obligations and restrictions on title and use apply in relation to a parcel of land? 173 4.4. Who has responsibility for the accuracy of information concerning obligations and restrictions on title and use? ...................................................... 174 4.5. Is the accuracy of information concerning title and use guaranteed, and is compensation available where information is incorrect? .................................... 180 6. Conclusion ....................................................................................................... 180 Chapter Six - New Zealand Case Study ................................................................. 182 1. Introduction ..................................................................................................... 182 2. Land registration in New Zealand ................................................................... 183 3. 2.1. Historical development ............................................................................. 183 2.2. Law reform ................................................................................................ 185 Natural resource management in New Zealand ............................................... 187 3.1. National regulation - the Resource Management Act 1991....................... 188 3.1.1. Introduction ......................................................................................... 188 3.1.2. Objectives of the RMA ....................................................................... 190 3.1.3. Operational provisions of the RMA .................................................... 193 3.1.3.1. Land ................................................................................................. 197 3.1.3.2. Coastal marine area .......................................................................... 198 3.1.3.3. River and lake beds .......................................................................... 199 3.1.3.4. Water ................................................................................................ 199 3.1.3.5. Discharge of contaminants ............................................................... 200 3.1.3.6. Noise ................................................................................................ 201 3.1.3.7. Duty to mitigate adverse effects ...................................................... 202 3.1.4. Role of the Registrar of Titles............................................................. 202 3.1.5. Conclusion .......................................................................................... 204 3.2. Regional policy statements and plans ....................................................... 204 3.2.1. Overview of the Auckland Regional Council area ............................. 205 3.2.2. Auckland Regional Council Policy Statement .................................... 205 3.2.3. Auckland Regional Council Plans ...................................................... 207 3.3. District/city plans ...................................................................................... 208 3.4. Conclusion ................................................................................................. 215 4. How effective is the New Zealand approach as a whole? ............................... 215 4.1. Does the jurisdiction provide for integrated management of information concerning obligations and restrictions on land title and use? ............................ 215 4.2. Is the land title register utilised for the purpose of recording obligations and restrictions on use? .............................................................................................. 216 4.3. How easily can landholders or prospective purchasers ascertain what obligations and restrictions on title and use apply in relation to a parcel of land? 218 4.4. Who has responsibility for the accuracy of information concerning obligations and restrictions on title and use? ...................................................... 221 4.5. Is the accuracy of information concerning title and use guaranteed, and is compensation available where information is incorrect? .................................... 221 5. 4.5.1. Land Title Register ............................................................................. 221 4.5.2. Restrictions under the RMA ............................................................... 222 4.5.3. Compulsory acquisition ...................................................................... 223 4.5.4. Land Information Memorandums ....................................................... 224 Conclusion ....................................................................................................... 228 Chapter Seven - Analysis and comparison of case studies ................................... 229 1. Introduction ..................................................................................................... 229 2. Comparison of case studies ............................................................................. 230 2.1. Provision for integrated management of information concerning obligations and restrictions on land title and use ................................................................... 230 2.2. Use of the land title register for the purpose of recording obligations and restrictions on use ................................................................................................ 234 2.3. Ease with which landholders or prospective purchasers can ascertain what obligations and restrictions on title and use apply in relation to a parcel of land241 2.4. Responsibility for the accuracy of information concerning obligations and restrictions on title and use .................................................................................. 244 2.5. Guarantees as to the accuracy of information concerning title, and availability of compensation where information is incorrect .............................. 248 3. What features of the case study jurisdictions will contribute to effective management of obligations and restrictions on land title and use? ........................ 250 4. Conclusion ....................................................................................................... 254 Chapter Eight - Legal issues associated with integrated management of obligations and restrictions on land title and use.................................................. 255 1. Introduction ..................................................................................................... 255 2. Indefeasibility and issues with placing obligations and restrictions on title ... 256 2.1. Registration on title ................................................................................... 257 2.2. Recording on title ...................................................................................... 261 2.2.1. Information recorded on title for informational purposes................... 262 2.2.2. Recording for priority ......................................................................... 264 2.2.3. Recording as a precondition to effect ................................................. 266 2.2.4. Conclusion ............................................................................................. 269 3. 2.3. Separate register or spatial database.......................................................... 269 2.4. Conclusion ................................................................................................. 271 The state guarantee of title and compensation for loss .................................... 274 3.1. Queensland ................................................................................................ 276 3.2. Western Australia ...................................................................................... 280 3.3. Constitutional considerations .................................................................... 284 3.4. Conclusion ................................................................................................. 286 4. Statutory liability for incorrect or omitted information ................................... 287 5. Common law liability for incorrect and omitted information ......................... 289 5.1. Negligent misrepresentation – L Shaddock & Associates Pty Ltd v Council of the City of Parramatta .................................................................................... 289 6. 5.2. Negligent misrepresentation post-Shaddock ............................................. 293 5.3. The effect of disclaimers ........................................................................... 299 5.4. Summary of negligent misrepresentation principles ................................. 303 5.5. Conclusion ................................................................................................. 304 The effect of in rem versus in personam restrictions ...................................... 305 Chapter Nine - Conclusion ...................................................................................... 314 1. Research findings ............................................................................................ 314 2. Recommendations for reform .......................................................................... 315 3. Importance of this research.............................................................................. 318 4. Areas for further research ................................................................................ 318 Appendix A - Sample Queensland Title Search .................................................... 320 Appendix B - Sample Queensland Statutory Covenant ....................................... 323 Appendix C - Sample Queensland Property Search............................................. 327 Appendix D - Screen captures demonstrating Interest Enquiry ......................... 332 Appendix E - Sample Interest Enquiry Report ..................................................... 340 Appendix F - Sample Western Australian Title Search………………...………346 Appendix G - Sample Land Information Memorandum……………………….349 Appendix H - Administrative Advice Codes……………………………………..358 Bibliography……………………………………………………………………….361 1. Articles/books/reports/conference papers………………………………………..361 2. Cases………………………………………………………………………….…..369 3. Legislation………………………………………………………………….…….372 4. Other sources………………………………………………………………….….375 Abbreviations ARC Auckland Regional Council (NZ) DCDB Digital Cadastral Database DERM Department of Environment and Resource Management (Qld) DME Department of Mines and Energy (Qld) DNRW Department of Natural Resources and Water (Qld) DOLA Department of Land Administration (WA) DPIF Department of Primary Industries and Fisheries (Qld) EPA Environmental Protection Agency (Qld) ESD Ecologically Sustainable Development FIG International Federation of Surveyors LIM Land Information Memorandum LINZ Land Information New Zealand LTA Land Title Act 1994 (Qld) RMA Resource Management Act 1991 (NZ) SLIP Shared Land Information Platform TLA Transfer of Land Act 1893 (WA) Statement of original authorship The work contained in this thesis has not been previously submitted to meet requirements for an award at this or any other higher education institution. To the best of my knowledge and belief, the thesis contains no material previously published or written by another person except where due reference is made. Signature Date Acknowledgements I would like to thank the QUT School of Law for its support during my candidature, and the Institute for Sustainable Resources at QUT for providing me with a scholarship. I would like to thank the many people who provided me with feedback on my research. I am especially thankful to my supervisors, Professors Sharon Christensen and Douglas Fisher, for their insight, encouragement and guidance. Professor Rob Fowler (University of South Australia) and Associate Professor Pamela O’Connor (Monash University) also provided me with extremely useful suggestions at confirmation and final seminar respectively. Thank-you also to two anonymous examiners for their helpful feedback. I am very grateful to the many people who assisted me with my case studies, especially Max Locke (Queensland Registrar of Titles), Bruce Roberts (Western Australian Registrar of Titles), Natasha Harris, Peter Ormond, and Kim Vagg (Landgate, Western Australia), Paul Davies (Franklin District Council, New Zealand), Warren Moyes (Land Information New Zealand) and Simone Fraser (Auckland Regional Council). Your practical insights helped me enormously. Finally, I would like to thank my family and friends, particularly my mother, Donna, for their encouragement and understanding during my candidature. This thesis reflects the law as of 5 April 2010. Chapter One Introduction 1. Background to this research Ecologically sustainable development (“ESD”) has provided the impetus for significant international and national legal and policy developments in the past few decades. ESD is defined as ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’.1 This requires governments to ensure that resources are used in a sustainable way to ensure that they are not depleted. In Australia, the impacts of climate change, drought, loss of vegetation and fauna, erosion, salinity and other environmental problems have made this goal impossible to achieve in the absence of significant government intervention. To this end, ESD has prompted a plethora of statutes, regulations and plans at the national, state and local levels regulating the use of privately-owned land.2 These statutes, regulations and plans principally affect privately-owned land by placing restrictions on the manner in which land may be used, or by imposing obligations upon the landholder. These obligations and restrictions have been imposed on a largely fragmented basis, and all Australian jurisdictions have in place separate legislative regimes regulating the use of each natural resource.3 For example, Queensland has approximately 30 environmental statutes which place restrictions on or attach obligations to the use of land by occupiers.4 Furthermore, these fragmented legislative regimes have generally not been supported by any cohesive management 1 2 3 4 The World Commission on Environment and Development, Our Common Future (Oxford University Press, New York, 1987) 43. This thesis will only be considering obligations and restrictions which affect privately-owned land (as opposed to Crown land), as to conduct a broader examination is outside the scope of a project of this scale. One notable exception is South Australia. The Natural Resources Management Act 2004 (SA) attempted to cut down the number of statutes regulating natural resources, and repealed the Animal and Plant Control (Agricultural Protection and Other Purposes) Act 1986, the Soil Conservation and Land Care Act 1989 and the Water Resources Act 1997. However, there are still numerous other statutes that affect land in South Australia. Discussed in detail in Chapter Four. 1 system. The administration of these obligations and restrictions has occurred on an ad-hoc basis,5 and for the most part they are not managed in conjunction with one another. This thesis does not attempt to consider whether these restrictions and obligations are warranted, as this is outside the scope of a research project of this scale. Rather, this thesis accepts that these restrictions and obligations may well be necessary for environmental protection. The objective of this thesis is to determine how information concerning these restrictions and obligations, affecting title to and use of land, may be most effectively managed in Australia. The central research question in this thesis is as follows: ‘How can information concerning obligations and restrictions on land title and use designed to facilitate sustainable development most effectively be managed in the context of a Torrens system of land registration?’. The fragmented management of obligations and restrictions has led to two separate but interconnected problems: First, incomplete information concerning obligations and restrictions is causing uncertainty for landholders; and Second, the lack of complete information is a barrier to compliance with environmental laws.6 Security of landholding is one of the key drivers behind this research. Privatelyowned land in all Australian states is registered under a Torrens system of land registration, and one of the principal objects of the Torrens system is to provide landholders and prospective purchasers with a complete and accurate picture of obligations and restrictions affecting their title.7 However most obligations and 5 6 7 Rohan Bennett, Jude Wallace and Ian Williamson, ‘Achieving sustainable development objectives through better management of property rights, restrictions and responsibilities’ (paper presented at the Expert Group Meeting on Incorporating Sustainable Development Objectives into ICT enabled Land Administration Systems, Melbourne, 9-11 November 2005) 198. See for example Ballina Shire Council v Simon Freeden and Lorraine Freeden [2006] NSWLEC 192; Wall v Doyle & Anor [2008] QPEC 23, which both illustrate this problem. See for example Theodore B F Ruoff, An Englishman looks at the Torrens System (Lawbook Co, Sydney, 1957). 2 restrictions imposed by environmental legislation operate externally to the Torrens system, and are not visible on a title search. As a result, the Torrens system is no longer meeting its goal of providing a complete and accurate picture of title,8 which is affecting security of landholding. A more effective management system which provides a complete and accurate picture of obligations and restrictions will assist with security of landholding. Second, this uncoordinated approach to the management of land titles, and information concerning obligations and restrictions on land use, has created a barrier to compliance with environmental laws.9 It has been noted that ‘sustainable decisionmaking requires access to accurate information’.10 There are two different levels of decision-makers this may apply to; government agencies, and landholders. Accurate information will assist government decision-makers to determine the environmental impacts of a proposal. Additionally, more accurate information will also assist landholders with sustainable management of their property. For example, Bennett et al noted that historically, tree-clearing laws have not always been followed, and a key reason for this includes farmers lacking accurate information concerning the extent of the restrictions imposed by these laws.11 Therefore, the provision of more accurate information will assist both decision-makers and landholders. Specifically, more accurate information will assist landholders in complying with environmental laws. The focus of this thesis will be upon information made available to landholders. This thesis aims to address these two problems. The outcome of this thesis will be a series of recommendations for law reform in Australia. These recommendations may be used to devise a new system for the management of information concerning obligations and restrictions on land title and use, under which all such obligations and 8 9 10 11 See for example Brendan Edgeworth, ‘Planning law v property law: Overriding statutes and the Torrens system after Hillpalm v Heaven's Door and Kogarah v Golden Paradise’ (2008) 25 Environmental and Planning Law Journal 82; Pamela O’Connor, ‘Double Indemnity – Title Insurance and the Torrens System’(2003) 3(1) QUT Law and Justice Journal 141. See for example Justine Bell and Sharon Christensen, ‘Use of property rights registers for sustainability – a Queensland case study’ (2009) 17(1) Australian Property Law Journal 86. Abbas Rajabifard and Andrew Binns, ‘SDI requirements of land administration’ (paper presented at the Expert Group Meeting on Incorporating Sustainable Development Objectives into ICT enabled Land Administration Systems, Melbourne, 9-11 November 2005) 181. Bennett et al, above n 5, 209. 3 restrictions are managed in an integrated manner. It is anticipated that such a system can provide the following benefits: Integrated management of land titles and obligations on landholders and restrictions on land use will likely provide greater certainty for landholders and prospective purchasers, as they can more easily access information on interests affecting their title and use; and Integrated management is also likely to contribute to sustainable use of natural resources, by ensuring that any obligations and restrictions on land title and use designed to promote environmental protection are brought to the attention of affected persons. Compliance is more likely to occur where landholders are aware of any relevant obligations or restrictions. Furthermore, technological advancements mean that a more integrated approach to management of information is now feasible, and capable of implementation. Whilst restrictions and obligations are currently managed under a number of different legislative regimes, ‘new technology available for managing the spatial dimension can easily combine these disparate datasets and make them understandable to the intended audience’.12 Given the problems associated with fragmented management of information, and the fact that there is technology available to alleviate these problems, this research project is both timely and necessary. The next section of this chapter will further demonstrate why this research is necessary to supplement existing literature. 2. Why this research is necessary To date, there has been limited research conducted from a legal perspective considering how information pertaining to obligations and restrictions on land title and use can be managed in Australia. The majority of existing research has been conducted from a surveying perspective, and has not taken into account the legal issues associated with implementing a new information system. Furthermore, most of the research has not considered the issues associated with managing land titles 12 Rohan Bennett, Jude Wallace and Ian Williamson, ‘Organising land information for sustainable land administration’ (2008) 25 Land Use Policy 126. 4 registration and management of obligations and restrictions on land use in an integrated manner. This section will briefly review the existing literature, and demonstrate why this research is necessary to supplement it. In 2002, the Queensland Government commissioned a surveying firm to conduct research identifying the ‘subsystems of land administration and their properties’.13 The central issue of the report was summarised as follows: should land administration be restrained to its traditional context or should it be seen as much more embracing (with a name change if necessary) and include all rights, obligations, controls, restrictions (property rights) relating to land, and for land to be treated more holistically?14 This report acknowledged the problem of fragmented environmental management, noting that there are over 188 Queensland Acts, and 19 Federal Acts which impact on property rights.15 The authors noted that a fragmented approach is problematic for the following reason: the number of rights, obligations and restrictions (property rights) attached to land will continue to grow to meet ever-changing planning and environmental issues and will impact on development and the land supply chain. To meet the standards for future sustainability it will be essential that such property rights are clear, searchable, and definable in location.16 The report concluded that it is necessary to refocus land administration to take a more holistic view. Several reasons were listed to support this conclusion: integrated land management and improvements in sustainability are likely to be much more difficult to attain without integrated management and information; a lack of integrated management and administration is likely to adversely affect the security of rights, their value and tradability; and 13 14 15 16 17 any non-integrated approach will very likely be less effective and efficient.17 Ken Lyons, Ed Cottrell and Kevin Davies, ‘Report on the Efficiency of Property Rights Administration in Queensland (2002) 14. Ibid 44. Ibid 5. Ibid 21. Ibid 44. 5 The outcome of the report was that this particular area could benefit from reform.18 However, it did not make any suggestions as to how holistic land administration could occur. Furthermore it did not consider the role of the land title register, and the legal issues associated with its use. More recently, research concerning the management of obligations and restrictions on use has been undertaken in Melbourne. The Department of Geomatics at the University of Melbourne has established a research centre considering the link between spatial data infrastructures and land administration. This project focuses on spatial science, and considers whether such technology can be used to provide detailed information on rights, restrictions, and responsibilities concerning land.19 Specifically, the Centre has examined how to classify property rights, obligations and restrictions within an information framework.20 Their research has not considered in detail how obligations and restrictions can be managed in conjunction with land titles, and associated legal issues, such as liability for incorrect information. This PhD thesis will supplement existing research being carried out by providing a detailed review of these legal issues, and recommendations which take these issues into account. The only legal research to date has been undertaken by researchers from the Queensland University of Technology and Monash University. In a forthcoming article, the researchers set down some guidelines intended to be used by legislation drafters to ensure consistency in approaches to providing information.21 These guidelines will be used in Chapter Eight to assist with formulating recommendations for reform. This PhD research builds upon these guidelines by assessing in detail how restrictions and obligations can most effectively be managed. 18 19 20 21 Ibid 12. The Centre for Spatial Data Infrastructures and Land Administration, Land Administration and Cadastre (2006) Department of Geomatics, University of Melbourne < http://www.geom.unimelb.edu.au/research/SDI_research/research/topiclandadmin.htm > at 4 February 2008. See for example Rohan Bennett, Jude Wallace and Ian Williamson, ‘Organising land information for sustainable land administration’ (2008) 25(1) Journal of Land Use Policy 126. Pamela O’Connor, Sharon Christensen and Bill Duncan, ‘Legislating for sustainability: a framework for managing statutory rights, obligations and restrictions affecting private land’ (2009) 34(2) Monash Law Review (forthcoming). 6 There has been no other Australian research to date considering how information on obligations and restrictions on land title and use can be most effectively managed. Therefore, there is a significant gap in the literature which this research aims to fill. It will consider how obligations and restrictions on title and use can be most effectively managed in the context of a Torrens framework of land registration, and will make recommendations for reform. It will also consider any potential legal issues associated with the use of the land title register in detail. 3. Methodology The methodology to be used in this thesis is a comparative methodology. This thesis will consider three case studies, Queensland, Western Australia, and New Zealand. These three jurisdictions have been chosen because they have each adopted different approaches to the management of restrictions on land title and use. The applicability of the comparative methodology to this thesis will be discussed in detail in Chapter Three. 4. Terminology To ensure clarity, it is necessary to briefly discuss terminology used in this thesis. 4.1. ‘Register’ and ‘record’ The terms ‘register’ or ‘registered’ are used to describe instruments which, once registered on title, receive the benefits of registration. In contrast, the terms ‘notified’ or ‘recorded’ refer to instruments which are placed on land title, but do not attract the benefits of registration.22 The importance of this distinction will become apparent in later chapters. 4.2. ‘Rights’, ‘Obligations’ and ‘Restrictions’ The surveying literature discussed above refers to ‘rights, obligations and restrictions’.23 This term has been defined as ‘a generic term used to describe all 22 23 Recordings may be made purely for informational purposes, or they may confer priority. This will be discussed in Chapter Eight. See for example Lyons et al, above n 13; Bennett et al, above n 5 (although Bennett et al use the term ‘responsibilities’ instead of ‘obligations’). 7 formal and informal interests that exist between people and land and are supported by the jurisdiction’s people’.24 The traditional role of land management systems was to administer ‘rights’.25 For example, the Torrens register was developed as a repository of ownership rights over land. The term ‘right’ will be used in this thesis to refer to ownership of land. It will also be used in the context of third party rights granted over land; for example, where a third party is granted a carbon right over land. Such a right does result in a corresponding restriction upon the owner of the land though, therefore, these rights will be adequately covered by use of the term ‘restriction’. In contrast to rights, ‘obligations’ and ‘restrictions’ refer to things which either require a landholder to undertake certain action (obligations which are positive in nature), or prevent a landholder from undertaking certain actions (restrictions which are negative in nature). For clarity, this thesis will use the term ‘obligation’ to refer to requirements to take positive action relating to land, as distinguished from ‘restrictions’, which refer to negative prohibitions on actions relating to land. It has been observed in this thesis that obligations generally take the form of orders or private agreements which affect individual parcels of land. Conversely, the majority of restrictions are statutory creations which affect multiple parcels of land.26 The importance of this distinction will be discussed in detail later in this thesis. 4.3. Restrictions on ‘title’ and ‘use’ This thesis will also refer to restrictions affecting either ‘title’ or ‘use’. It is important to note that this distinction does not depend upon whether obligations or restrictions are registered on title or not. This is because many jurisdictions have recently expanded the scope of the land title register, and created new obligations and 24 25 26 Rohan Bennett, Property rights, restrictions and responsibilities: their nature, design and management (PhD thesis, University of Melbourne, 2007) 7. Ibid 6. These restrictions have been referred to as ‘blanket restrictions’: Bennett et al, above n 5, 207. 8 restrictions capable of registration.27 Many of these registrable obligations and restrictions regulate the use of land, without detracting from the right to possess land. Conversely, there are many obligations and restrictions which are not capable of registration which place limits upon what a landholder may do with their land. Thus this distinction is not useful. For the purposes of this thesis, restrictions on ‘title’ are those things that significantly affect the owner’s right to their land. This includes traditional restrictions such as leases and mortgages. It also includes compulsory acquisition of land statutes. It would also extend to include modern statutes that take away part of an owner’s right over their land (eg. Carbon capture and storage legislation which removes a right to vegetation on the land). The essence of a restriction on title is something which removes the owner’s right to possess all or part of the land. In contrast, obligations and restrictions on ‘use’ do not affect the owner’s right to possess the land, but merely affect the manner in which they may use it. This includes, for example, planning controls and legislation regulating land clearing.28 4.4. ‘Overriding statutes’ and ‘overriding interests’ These terms will be discussed in detail in Chapter Two. They refer to legislation, or instruments created by legislation, which affect land without any requirement for registration. Thus they ‘override’ title. 5. Chapter Outlines The Chapters in this thesis can be divided into three stages: Stage One – Introductory Chapters (Chapters One, Two and Three); Stage Two – Case Studies (Chapters Four, Five and Six); and Stage Three – Analysis and Recommendations (Chapters Seven, Eight and Nine). This section will briefly outline the content of each of these Chapters. 27 28 For example, statutory covenants in Queensland. These instruments will be discussed in detail in Chapter Two. For example Sustainable Planning Act 2009 (Qld); Native Vegetation Act 2003 (NSW). 9 Stage One Chapter One - Introduction This Chapter has outlined the aims, objectives and relevance of this thesis. Chapter Two – Literature review The purpose of this Chapter is to demonstrate in greater detail why this study is warranted. It will provide a detailed review of the literature relating to the Torrens system, overriding statutes, and calls for reform of the system. Chapter Three – Methodology and Overview of Case Studies Chapter Three will describe the comparative methodology in more detail. It will also briefly introduce the jurisdictions to be surveyed in this study, and describe why they have been chosen. Chapter Three also establishes a set of guidelines for comparison which are used in this thesis to compare the methods used by each jurisdiction to manage obligations and restrictions on land title and use. Stage Two Chapter Four – Queensland case study Queensland has been chosen as the first case study as it exemplifies the fragmented approach to management of obligations and restrictions on land title and use found in most Australian jurisdictions. Chapter Four provides a detailed analysis of the management regime in Queensland, and assesses it according to the guidelines for comparison set out in Chapter Three. Chapter Five – Western Australian case study Western Australia has been chosen as a case study as has made significant progress towards integrating management of obligations and restrictions on land title and use. Chapter Five provides a detailed analysis of the management regime in Western Australia, and assesses it according to the guidelines for comparison set out in Chapter Three. 10 Chapter Six – New Zealand case study New Zealand has been chosen as a case study as it is well regarded internationally for its integrated approach to management of natural resources. Chapter Six provides a detailed analysis of the management regime in New Zealand, and assesses it according to the guidelines for comparison set out in Chapter Three. Stage Three Chapter Seven – Comparison of case study jurisdictions and recommendations for reform Chapter Seven will analyse and compare the results of the case studies according to the guidelines for comparison developed in Chapter Three. The purpose of this analysis is to identify the features used in these jurisdictions which can contribute to effective management of obligations and restrictions on land title and use. The outcomes of this analysis will be translated into preliminary suggestions for reform. Chapter Eight – Potential problems with the suggestions for reform This Chapter builds upon Chapter Seven, by anticipating and addressing the potential problems with, and barriers to, the recommendations posed in Chapter Seven. This Chapter will include analysis of the following issues: Whether obligations and restrictions should be registered on title, recorded on title, or recorded elsewhere; Whether the recommendations could lead to increased liability for compensation; Whether the recommendations could lead to increased liability under statute, or under the common law of negligent misrepresentation, as well as the role of disclaimers; and How obligations and restrictions designed to operate in rem29 should be treated differently to those designed to operate in personam.30 29 30 Against the thing: Butterworths Concise Australian Legal Dictionary (2nd ed, 1998). Obligations and restrictions in rem consequently attach to the land and are transferred with the land Attaching to the person: Butterworths Concise Australian Legal Dictionary (2nd ed, 1998). Obligations and restrictions in personam attach solely to the current owner, and are not transferred with the land. 11 This Chapter will then make detailed final suggestions for reform, taking these issues into account. This Chapter will also propose some suggested legislative amendments to give effect to these recommendations. Chapter Nine - Conclusion Chapter Nine provides a conclusion to this thesis, addressing the following matters: 6. Research findings; Recommendations for reform; Importance of this research; and Areas for further research. Conclusion This chapter has provided an introduction to this thesis. Chapter Two will discuss in detail how the Torrens system has been affected by fragmented information management to further demonstrate why this research is warranted. 12 Chapter Two Problems for the Torrens system as a result of fragmented information management 1. Introduction As outlined in Chapter One, the objective of this thesis is to examine how information concerning obligations and restrictions on land title and use designed to promote environmental sustainability can be most effectively managed within a Torrens framework of land registration. The purpose of this Chapter is to further review the relevant literature to demonstrate why this examination is warranted. The Torrens system was developed as a means of protecting private interests in land. To give effect to this, early Torrens legislation only contemplated the registration of a limited range of restrictions and obligations on title. When ESD became a pressing concern for governments, environmental protection statutes were enacted with little regard to how they could operate in conjunction with the Torrens system. Consequently, the majority of obligations and restrictions created under legislation to promote sustainability operate outside of the Torrens system. This Chapter will illustrate how this approach to management has proven problematic. This chapter can be divided into two parts. The first part will discuss the theoretical basis of the Torrens system. It will begin by outlining the historical development of the Torrens system, and discussing how it was implemented to combat uncertainty which resulted from the deeds registration system. It will then discuss the key principles underpinning the Torrens system, namely indefeasibility and completeness. Finally, it will outline the range of interests capable of registration on title. The second part of this chapter will focus upon how the integrity of the Torrens system is under threat due to overriding statutes, which place obligations and restrictions upon land use. It will also address how these overriding statutes have created a barrier to compliance with environmental laws. This discussion will initially centre upon the relevant case law, and show how the courts have dealt with the issue 13 of overriding statutes. Following a discussion of the case law, literature relating to overriding statutes and calls for reform will be examined. 2. Historical development of the Torrens system of land registration All Australian states have a Torrens system of land registration. The Torrens system was first introduced in South Australia in 1858,1 following the passing of a private member’s bill introduced by Sir Robert Torrens.2 The Torrens system was adopted in Queensland in 1861,3 and spread to all other Australian states by 1874.4 It has also been adopted in New Zealand.5 The Torrens system of land registration was developed to provide a simple, easily accessible, and accurate source of land information. Prior to the development of the Torrens system, land in Australia was registered pursuant to a deeds conveyancing system. This system failed to provide a single, comprehensive source of land information, and it was necessary for a person to undertake a number of onerous searches and queries in order to ascertain what interests affected a parcel of land. A purchaser was required to search back through the ‘chain of title’ and examine all previous deeds relating to the land.6 The accuracy of this ‘chain of title’ was dependent upon the care and skill of the practitioner/s who had drafted the documents.7 Ultimately, the use of the deeds conveyancing system proved to be timeconsuming, expensive, and had the potential to generate uncertainty. Uncertainty could result through the dependence upon past dealings. Security of title was affected by ‘the need to deduce title through a chain of documents “no stronger than its weakest link…each transaction adding a fresh link increasing the perplexity 1 2 3 4 5 6 7 Introduced by the Real Property Act 1858 (SA), and amended by the Real Property Act 1861 (SA). Douglas Whalan, 'The origins of the Torrens system and its introduction into New Zealand' in G W Hinde (ed), The New Zealand Torrens System Centennial Essays (Butterworths, Wellington, 1971) 1, 3-5. Real Property Act 1861 (Qld). Real Property Act 1862 (NSW); Real Property Act 1862 (Tas); Real Property Act 1862 (Vic); Transfer of Land Act 1874 (WA). Land Transfer Act 1952 (NZ). Douglas Whalan, The Torrens System in Australia (Lawbook Co, Sydney, 1982) 13. E A Francis, The Law and Practice Relating to Torrens Title in Australasia: Vol 1 (Butterworths, Sydney,1972) 3. 14 and the risk of loss”. A purchaser depended upon the skill and vigilance of his solicitor in ensuring that there were no missing or weak links in his title’.8 The deeds conveyancing system evolved over time to a point where many jurisdictions provided for a system of registration. However, ‘the efficacy of the transfer depended upon the validity of the conveyance itself and registration did not affect this efficacy’.9 Accordingly, the system of registration merely provided a record, and it ‘added nothing to the security of the title and did nothing to cure inherent defects in the deeds in the chain of title’.10 Sir Robert Torrens was dissatisfied with the complexities of the deeds conveyancing system, expressing his discontent as follows: unfortunately the first settlers brought out with them the English law and practice of conveyancing, with all its fictions, complications and circuities, devised of old for evading the tyrannical exactions imposed under feudal tenancies. This law and practice, applied to the clear titles and free tenures by Crown grant which obtained in the colony, induced upon them in the short space of 20 years the same involvements, uncertainties and expense which burden titles in the mother country.11 According to Whalan, ‘Torrens believed that the defects all had a common source – the “dependent nature of titles” – and he aimed to set up a system under which each registration would have the effect of making the new holder a fresh grantee holding directly from the Crown; that is, he wished to set up titles which were independent of the previous dealings with the land’.12 Furthermore, Torrens sought ‘to give the landholder a simple and easily understandable registered title, and to secure indefeasibility of title to those to whom the new statutory title should be so given’.13 8 9 10 11 12 13 Whalan, above n 2, 15, citing R R Torrens, The South Australian System of Conveyancing by Registration of Title (1859) 26. Whalan, above n 6, 13. Ibid 13. R R Torrens, A handy book on the Real Property Act of S.A. cited in Francis, above n 7, 4. Whalan, above n 6, 14-5. Donald Kerr, The Principles of the Australian Land Titles (Torrens) System: being a treatise on the Real Property Acts of New South Wales, Queensland, South Australia and Tasmania; the Transfer of Land Acts of Victoria and Western Australia ; and the Land Transfer Act of New Zealand (Lawbook Co, Sydney, 1927) 7. 15 Under the Torrens system a separate folio is created in the land register for every parcel of land. This folio contains details of the registered proprietor, as well as any registered encumbrances on land.14 Under this system a prospective purchaser can theoretically obtain all relevant information about a parcel of land by undertaking one title search. This concept of having a single source of authoritative information has been recognised as the key feature of the Torrens system. The objective of the Torrens system was stated succinctly by Lord Watson of the Privy Council in Gibbs v Messer: to save persons dealing with registered proprietors from the trouble and expense of going behind the register, in order to investigate the history of their author's title, and to satisfy themselves of its validity.15 In short, the Torrens system was intended to replace a complex system, through which uncertainty could result, with a single register containing all information necessary to facilitate transfer of property. 3. Principles underpinning the Torrens system of land registration To achieve Sir Robert Torrens’ goals of simplicity and certainty, the Torrens system is underpinned by several key principles: indefeasibility, completeness and security. These principles will be discussed in turn below. 3.1. Indefeasibility The principle of indefeasibility has been recognised as the key feature of the Torrens system. In Bahr v Nicolay (No 2), Mason CJ and Dawson J described indefeasibility as ‘the foundation of the Torrens system of title’.16 In Frazer v Walker, Lord Wilberforce made the following observation about the concept of indefeasibility: indefeasibility of title…is a convenient description of the immunity from attack by adverse claim to the land or interest in respect of which he is registered, which a registered proprietor enjoys. The conception is central to the system of registration.17 14 15 16 17 Carmel McDonald et al, Real Property Law in Queensland (Lawbook Co, Pyrmont, 2nd ed, 2005) 277-8. Gibbs v Messer [1891] AC 248, 254 per Lord Watson. Bahr v Nicolay (No 2) (1988) 164 CLR 604, 613. Frazer v Walker [1967] AC 569, 580. 16 Indefeasibility is recognised in all Australian jurisdictions. Although there are some variations amongst states in terms of terminology, all states have a provision referred to as the ‘paramountcy’ section.18 In Queensland, the paramountcy section is s 184(1) of the Land Title Act 1994 (Qld), which states that ‘a registered proprietor of an interest in a lot holds the interest subject to registered interests affecting the lot but free from all other interests’.19 The purpose of indefeasibility is to protect title from defeat by any competing interest, unless the competing interest is one registered over that title. Whalan describes indefeasibility as ‘a shield which will ward off most attacks on a title, but which will be pierced, with fatal results to the title it guards, by the sword of a later “indefeasible title”’.20 As such, it is intended that the Torrens register will provide a complete and accurate picture of title. This is because, theoretically, the holder of an indefeasible title is only affected by subsequent registered interests. 3.2. Completeness The concept of completeness or conclusiveness has been discussed by a number of commentators. In the 1950s, Theodore Ruoff, the Assistant Land Registrar in London at the time, conducted a review of the Torrens system. He concluded that the Torrens system is based upon three principles, known as: the mirror principle; the curtain principle; and the insurance principle.21 18 19 20 21 Pamela O'Connor, 'Public rights and overriding statutes as exceptions to indefeasibility of title' (1994) 19 Melbourne University Law Review 649, 650. The equivalent provisions in other Australian jurisdictions and in New Zealand are: Real Property Act 1900 (NSW) s 42; Transfer of Land Act 1958 (Vic) s 42; Real Property Act 1886 (SA) s 69; Transfer of Land Act 1893 (WA) s 68; Land Titles Act 1980 (Tas) s 40; Land Title Act 2000 (NT) s 188; Land Transfer Act 1952 (NZ) s 62. Whalan, above n 6, 297. Theodore B F Ruoff, An Englishman looks at the Torrens System (Lawbook Co, Sydney, 1957) 8. 17 The mirror and curtain principles ensure that the land title register will provide a conclusive picture of title. The mirror principle ‘involves the proposition that the register of title is a mirror which reflects accurately and completely and beyond all argument the current facts that are material to a man’s title’.22 As such, ‘a title is free from all adverse burdens, rights and qualifications unless they are mentioned on the register’.23 Ruoff commented that ‘by virtue of the mirror principle it is intended that the owner’s paper title should be absolute and indefeasible’.24 This is complemented by the curtain principle, which ‘provides that the register is the sole source of information for proposing purchasers, who need not and, indeed, must not concern themselves with trusts and equities which lie behind the curtain’.25 The insurance principle provides that compensation will be provided where the register is not conclusive, and causes loss. It gives effect to the reality that, whilst the register is supposed to give an accurate reflection of title, flaws may arise through human error, and ‘anyone who thereby suffers loss must be put in the same position, so far as money can do it, as if the reflection were a true one’.26 All three of these principles can be related back to the central feature of conclusiveness. By conceiving the land title register as a ‘mirror’, Ruoff is essentially stating that the register will portray an accurate and complete picture of the interest in land. The curtain principle also supports this proposition, by proposing that the register is the key source of information concerning land. This suggests that purchasers need not make further queries regarding interests affecting the land, as the register provides a complete picture. Furthermore, whilst the insurance principle recognises that the register is not infallible, it provides that compensation must be paid where loss is suffered due to the failure of the register to accurately reflect title.27 22 23 24 25 26 27 Ibid 8. Ibid 8. Theodore B F Ruoff, 'An Englishman looks at the Torrens System, Part One: The Mirror Principle' (1952) 26(2) Australian Law Journal 118, 118. Ruoff, above n 21, 11. Ibid 13. This applies generally only where it is the registry staff at fault. It will not apply where there has been failure to lodge documents for registration. 18 Hinde also examined the principles underpinning the Torrens system, and reached similar conclusions to Ruoff. Hinde stated that there are three fundamental principles underpinning the Torrens system, which are that: it should not be necessary to investigate the history of a registered proprietor’s title; everything which can be registered should give an indefeasible title, except where registered by fraud; and an interest in land which is registered under the system should either be secure, or otherwise compensation for that interest should be available.28 Hinde stressed the importance of the register providing a conclusive picture of the landholder’s title, and summarised the purpose of the Torrens system as follows: the Torrens system was designed to confer three great benefits on landholders and conveyancers – first, a complete and reliable register which would show on its face all the facts relevant to the registered proprietor’s title; secondly protection against the loss which, under the general law, could result from defects in a vendor’s or mortgagor’s title; and thirdly a State guarantee of the truth of the facts shown on the register.29 With regard to the completeness aspect, Hinde remarked that it is desirable that persons dealing with land should be able to discover all the facts regarding title, including the name of the registered proprietor, the nature of the estate and the encumbrances which affect the land.30 Furthermore, he stated that it is necessary ‘to ensure that a person dealing with land which is subject to the system is not adversely affected by any infirmities in his vendor’s title which do not appear on the register, thus saving the difficulty and expense of going behind the register to investigate the title’.31 To achieve these goals, Hinde added that the Torrens system is supported by a State guarantee that the register is true and complete. If it is not complete, compensation is 28 29 30 31 G W Hinde, 'Indefeasibility of title since Frazer v Walker' in G W Hinde (ed), The New Zealand Torrens System: Centennial Essays (Butterworths, Wellington, 1971) 33, 35-6. G W Hinde, 'The future of the Torrens system in New Zealand' in J Northey (ed), The A.G. Davis essays in law : a tribute to Professor A.G. Davis (Butterworths, London, 1965) 77, 128. Ibid 78. Ibid. 19 payable to any person who suffers loss because of the register not disclosing all the facts relevant to the title’.32 The feature common to both Ruoff’s and Hinde’s analysis of the Torrens system is that of completeness. Both authors stress that the purpose of the Torrens register should be to provide a complete and accurate picture of all interests affecting land. It is relevant to note several things about both Ruoff’s and Hinde’s analysis. First, the register has never provided a complete picture of interests affecting land, as there have always been equitable interests which were not required to be registered on title. That said, when the Torrens system was designed, there were certainly far less unregistered interests than there are today. Additionally, both commentators wrote about the Torrens system at a point in time where environmental issues had not become prominent, and there were few obligations and restrictions on the use of or title to freehold land.33 Thus while it may have been true in 1858 that the Torrens system provided an essentially complete picture of title, this is not true today. This thesis will highlight how this objective of completeness is no longer being met. 3.3. Security Another principle underpinning the Torrens system is security of title. In 1913, Sir Charles Fortescue-Brickdale identified six features of an ideal system of land transfer. These features were discussed in a series of lectures given at the London School of Economics, relating to methods of land transfer. The features identified are: 1. Security; 2. Simplicity; 3. Accuracy; 4. Cheapness; 32 33 Ibid. The majority of restrictions on freehold title were imposed in the initial grant through reservations. The use of land was usually controlled by the government through the grant of leasehold subject to conditions. For more detail refer to Sharon Christensen, Pam O’Connor, Bill Duncan, Ross Ashcroft, ‘Early Land Grants and Reservations: Any Lessons from the Queensland Experience for the Sustainability Challenge to Land Ownership’ (2008) 15 James Cook University Law Review 42, and Enid Campbell, ‘Conditional land grants by the Crown’ (2006) 21(5) University of Tasmania Law Review 44. 20 5. Expedition; and 6. Suitability to its circumstances.34 Sir Fortescue-Brickdale discussed the first feature in detail, and stated that security refers to several things: Security of the purchaser, who needs to have no fear of competing claims over land; Security of mortgagors; Security of people who have interests in land of which they are not in possession, such as part-owners; and Security of persons who have rights interfering with ownership, including rights of way, rights to draw water, rights to prevent the owner from building on the land, etc.35 Security in this sense is an abstract concept, referring to security of intangible rights. Sir Fortescue-Brickdale asserted that this feature of security is the ‘foremost necessity in a good method of land transfer’, but remarked that it is difficult to provide for all competing claims over land.36 He remarked that security can be achieved in one of two ways; either by tracing back through all documents affecting the land, or through government provision of a register containing details of ownership and burdens affecting it.37 Sir Fortescue also used security in a different sense, referring to physical security of title. He noted that ‘an important feature in a perfect land transfer system will be the preservation of those proofs (of title) from accidental loss or injury in a safe place ready of access to all interested, and also some effective method of preventing their being purposely tampered with either by forgery, alteration, mutilation, or suppression’.38 34 35 36 37 38 Charles Fortescue-Brickdale, Methods of Land Transfer: Being eight lectures delivered at the London School of Economics in the months of May and June 1913 (1914) 2. Ibid 2-4. Ibid 4. Ibid 6. Ibid 6. 21 It is clear that security in this sense is a key part of the Torrens system, as the Torrens system aims to provide security to persons dealing with the register, both in an abstract and physical sense. 3.4. Conclusion From this review of literature, it is evident that there are a number of key principles underpinning the Torrens system. Indefeasibility is the central feature of the Torrens system, providing that title can only be affected by registered interests. Ruoff and Sir Fortescue-Brickdale also place emphasis upon completeness and security of the register. This thesis will show that these features are not present in the modern system for management of obligations and restrictions on land title and use. Whilst all Australian jurisdictions still use a Torrens register to record ownership, as well as a limited range of registered obligations and restrictions on use, there are many other statutory obligations and restrictions on use that operate externally to the land title register. The following section will discuss the range of interests which are capable of registration on the land title register, with particular attention given to more recent statutory creations, such as covenants and carbon rights. 4. Interests capable of registration in Australian jurisdictions Because the Torrens system is underpinned by the abovementioned principles of indefeasibility, completeness and security, theoretically title can only be affected by registered interests. However there are numerous obligations and restrictions which can affect land title and use, and only a small proportion of these are capable of registration on title, although a number of restrictions may be able to be recorded on title without the benefits of registration.39 Every jurisdiction using the Torrens system has a range of interests capable of registration on the land title register, all of which are granted the benefits of indefeasibility. Leases and mortgages are capable of registration in all Australian 39 For example, nature refuges under the Nature Conservation Act 1992 (Qld). This will be discussed in greater detail in Chapter Four. 22 jurisdictions. Some jurisdictions have also more recently provided for registrable covenants, easements, profits á prendre and carbon rights, although entitlements to registration differ across the states. To register an obligation or restriction on the land title register, it must take the form of one of these registrable instruments. Whilst many obligations and restrictions on land title and use are imposed by statute without any requirement for registration, there have been some recent moves to extend the scope of registrable instruments to accommodate environmental obligations and restrictions. As one commentator noted: an examination of modern environmental planning and resource management legislation shows the extent to which the exercise of individual private property rights have become increasingly abridged in the public interest. However, private property principles are also being increasingly applied in imaginative ways to protect elements of the environment and to help achieve environmental goals. The use of mechanisms such as easements, restrictive covenants, leases and licences can assist in the protection of environmental values without interfering with property ownership.40 Each of these registrable interests will be discussed in turn. 4.1. Leases In Queensland, a lot or a part of a lot may be leased by registering an instrument of lease.41 Similar provisions exist in all Australian jurisdictions and New Zealand,42 although there are some differences in terms of the length of leases which are required to be registered. A lease is clearly a significant restriction on land title, as it removes the landholder’s right to occupy the land completely. 40 41 42 David Grinlinton, ‘Property Rights and the Environment’ (1996) 4 Australian Property Law Journal 41, 62. Land Title Act 1994 (Qld) s 64. Real Property Act 1900 (NSW) s 53(1); Transfer of Land Act 1958 (Vic) s 66(1); Real Property Act 1886 (SA) s 116; Land Titles Act 1980 (Tas) s 64(1); Transfer of Land Act 1893 (WA) s 91; Land Titles Act 1925 (ACT) s 82(1); Land Title Act 2000 (NT) s 65; Land Transfer Act 1952 (NZ) Part 7. 23 4.2. Mortgages A mortgage may be registered over freehold land in all Australian jurisdictions and in New Zealand.43 For example, the Queensland legislation states that ‘a lot or an interest in a lot may be mortgaged by registering an instrument of mortgage for the lot or interest’.44 To be registered, a mortgage must be validly executed, and contain details of the lot, the debt, and the interest which is mortgaged.45 A mortgage operates as a charge over land. Under the Torrens system, the mortgagor remains the registered proprietor of the land, but holds the land subject to the rights of the mortgagee.46 A mortgage is a significant restriction on title to land, as default will entitle the mortgagor to sell the property. This therefore interferes with rights of occupation and use. 4.3. Easements An easement is a common law creation, which has been described as ‘a right enjoyed by the owner of one parcel of land to carry out some limited activity (short of taking possession) on a parcel of land owned by another person’.47 Thus an easement does not restrict title to the same degree as leases and mortgages, as there is no absolute right given to the grantee to possess the land. Although easements were developed through the common law, in Australia easements are given effect by statute. Easements are capable of registration or recording in all jurisdictions and in New Zealand,48 except in Western Australia where an easement may only be notified on a subdivision plan.49 The Queensland Torrens legislation 43 44 45 46 47 48 49 Land Title Act 1994 (Qld) 72; Land Titles Act 1925 (ACT) s 92(1); Real Property Act 1900 (NSW) s 56(1); Land Title Act 2000 (NT) s 74; Real Property Act 1886 (SA) s 128; Land Titles Act 1980 (Tas) s 72(a); Transfer of Land Act 1958 (Vic) s 74(1); Transfer of Land Act 1893 (WA) s 105(1); Land Transfer Act 1952 (NZ) s 101. Land Title Act 1994 (Qld) s 72(1). Land Title Act 1994 (Qld) s 73(1). Land Title Act 1994 (Qld) s 74. Peter Butt, Land Law (Lawbook Co, Sydney, 5th ed, 2006) 419. Land Title Act 1994 (Qld) Part 6 Division 4; Land Titles Act 1925 (ACT) Part 10, Division 10.3B; Conveyancing Act 1919 (NSW) Part 6, Division 4; Land Title Act 2000 (NT) Part 6, Division 4; Real Property Act 1886 (SA) Part 8; Land Titles Act 1980 (Tas) Part 6, Division 9; Transfer of Land Act 1958 (Vic) Part 4, Division 8; Land Transfer Act 1952 (NZ) s 90. Transfer of Land Act 1893 (WA) Part 4A. 24 states that ‘an easement over a lot may only be created by registering an instrument of easement’.50 The other Acts contain broadly similar provisions.51 There are several requirements for a valid easement. An easement requires a dominant and servient tenement.52 This means that the easement over one lot must provide a benefit to another lot – it is not sufficient that the easement benefits a person. This rule was described by McDonald et al as ‘if B is given the right to pass over A’s land, but B does not have any land for the benefit of which the right is exercisable, then B simply has a licence and not an interest in A’s land’. Such a right is not capable of registration. This rule effectively limits the circumstances in which easements may be used. An exception has been developed in Queensland. Under the Land Title Act, it is not necessary to have land which is benefited in the case of a public utility easement.53 McDonald et al give the example of this rule allowing a power company to run power lines over land, despite not owning any land with receives the benefit of these power lines.54 More recently, an exception has been developed in Queensland to allow cane railway easements to be registered under the Sugar Industry Act 1999 (Qld). This regime will be discussed in detail in Chapter Four, but in essence, it allows for an easement to be registered over land to allow for a cane railway to pass over land. This is turn allows cane growers to transport cane to the mill.55 Similarly to the public utility exception, the Land Title Act was amended to allow for easements to be registered regardless of whether there are dominant and servient tenements.56 This is an example of how the scope of registrable interests may be extended to allow for new obligations and restrictions to be registered over title. 50 51 52 53 54 55 56 Land Title Act 1994 (Qld) s 82(1). Land Titles Act 1925 (ACT) s 103B; Conveyancing Act 1919 (NSW) s 88; Land Title Act 2000 (NT) s 91; Real Property Act 1886 (SA) s 81; Land Titles Act 1980 (Tas) s 105; Transfer of Land Act 1958 (Vic) s 72; Land Transfer Act 1952 (NZ) s 90. Re Ellenborough Park [1956] Ch 131 at 163, cited in McDonald, Carmel et al, Real Property Law in Queensland (Lawbook Co, Pyrmont, 2nd ed, 2005) 646. Land Title Act 1994 (Qld) s 89(1). McDonald, above n 14, 647. Sugar Industry Act 1999 (Qld) s 63(5). Land Title Act 1994 (Qld) s 89(2)(a)(vii). 25 Additionally, as with other interests, valid execution is necessary. An easement may be registered only if it is signed by the registered owner of the lot to be burdened.57 As a result, an easement may only be created over land if the landholder consents to it. 4.4. Covenants Covenants are treated differently across the states, and may be either registered on title, notified on title, or not recognised on the land title register at all. This discussion will address each of these mechanisms in turn. 4.4.1. Registration Queensland and the Northern Territory are the only jurisdictions that allow for covenants to be registered upon title. In Queensland, a lot may be made the subject of a covenant through registration of an instrument of covenant.58 There are several restrictions on the use of registered covenants: 1. The covenant may only be registered if the covenantee is the State or local government.59 This means that a covenant between private parties may not be registered on title; 2. The legislation restricts the subject matter to which a registered covenant may apply. To be eligible for registration, the covenant must relate to the use of the lot, or be aimed at preserving a native animal or plant, or natural or cultural heritage, or for tying lots for the purposes of transfer;60 3. ‘Use of the lot’ is further defined to mean a purpose for which the lot may or may not be used.61 It cannot impose an architectural standard, or relate to another lot, or include a condition precedent to using the lot, or regulate the owner’s conduct;62 and 57 58 59 60 61 62 Land Title Act 1994 (Qld) s 83(1)(b)(i). Land Title Act 1994 (Qld) s 97A(1). Land Title Act 1994 (Qld) s 97A(2). Land Title Act 1994 (Qld) s 97A(3). Land Title Act 1994 (Qld) s 97A(7). Land Title Act 1994 (Qld) s 97A(8). 26 4. A covenant must not secure the payment of money as a condition of development approval, and it must not provide for anything that could be the subject of an easement.63 As a result, the circumstances in which covenants can be registered in Queensland are quite limited. In contrast, the Northern Territory Parliament have provided for registration of covenants in a broader range of circumstances. In the Northern Territory, a covenant may be created by registration of an instrument of covenant.64 The only requirements for validity are that the covenant be executed, and identify both the land and the person having the benefit of the covenant.65 This provision could allow for covenants between private parties to be registered. Furthermore, these covenants may relate to matters which are excluded by legislation in Queensland. Despite the restrictions in Queensland on the use of covenants, both jurisdictions have essentially broadened the scope of the land title register by allowing for restrictions on use rather than merely title to be registered on land. 4.4.2. Notification Under the New South Wales legislation, covenants may be recorded on Torrens title land, provided that formal requirements are satisfied.66 Despite this provision for recording, the legislation makes it clear that recorded covenants are not granted the status of registered instruments. Recording does not give the restriction any greater operation than it has under the dealing creating it.67 According to Professor Butt, this means that ‘the covenant stands or falls by its own inherent efficacy, tested by the general principles concerning the validity and enforceability of covenants…recording a covenant in the Register does not warrant its efficacy in the way that the indefeasibility of title provisions of the Real Property Act warrant the efficacy of registered dealings’.68 Thus there is a significant benefit to registration over recording, as these general principles of law are complex, and recording will not provide a 63 64 65 66 67 68 Land Title Act 1994 (Qld) s 97A(6). Land Title Act 2000 (NT) s 106. Land Title Act 2000 (NT) s 107(1),(2). Conveyancing Act 1919 (NSW) s 88(1),(3)(a). Conveyancing Act 1919 (NSW) s 88(1),(3)(b). Butt, above n 47, 534. 27 covenant with validity or accuracy.69 It does however confer priority on the covenant, and also acts as a flag to alert a searcher of the existence of the covenant. A similar situation exists in Victoria. The Victorian Registrar is empowered to record a covenant on the land title register.70 The Victorian legislation specifically states that such a recording does not give the covenant any greater operation than it has under the instrument creating it.71 As a result, recording will not guarantee validity of the covenant, and this will need to be determined by application of the general law. Regardless, recording does ensure that the covenant runs with the land, and is binding on successors in title.72 In Western Australia, restrictive covenant may be created and made binding in respect of registered land, so far as the law permits.73 The Registrar shall enter a memorandum of the covenant on the land title.74 It has been acknowledged by the High Court that covenants made under this provision are not granted validity through registration, and must be assessed according to the common law rules relating to restrictive covenants.75 4.4.3. No recognition on the land title register The remaining states do not make any provision for covenants to be registered or recorded on the land title register. Therefore any covenants entered into are merely private agreements between the parties. 4.5. Profits á prendre Profits á prendre bear some similarities to easements, although profits á prendre have much wider scope. The main distinction between profits á prendre and easements is that while easements grant a right to enter land, they never grant a right to take away 69 70 71 72 73 74 75 Michael Weir, ‘Land Title Act 1994 (Qld) – Statute for a New Millennium?’ (2000) 4 Flinders Journal of Law Reform 185, 200. Transfer of Land Act 1958 (Vic) s 88(1). Transfer of Land Act 1958 (Vic) s 88(3). Transfer of Land Act 1958 (Vic) s 88. Transfer of Land Act 1893 (WA) s 129A(1). Transfer of Land Act 1893 (WA) s 129A(5). Forestview Nominees Pty Ltd & Anor v Perpetual Trustees WA Ltd (1998) 193 CLR 154, 15960. 28 part of the land. In contrast, a profit á prendre grants a right of entry, as well as a right to remove some part of the soil or its produce.76 Furthermore, a profit need not attach to land that is appurtenant to land owned by the grantee.77 This removes one of the major barriers posed by easements, as it is not necessary that the profits á prendre benefit a separate parcel of land. Profits á prendre are recognised in some form in Queensland,78 Tasmania,79 the Northern Territory,80 and New South Wales.81 Profits á prendre are a reasonably new statutory creation in Queensland, having only been capable of registration since 1997.82 In terms of the possible uses of profits á prendre, the explanatory notes provide an example that ‘a person may sell his farm but keep the interest to harvest the crops for a number of years. The agreement may be registered as a profit á prendre against the titles to the lots comprising the farm’.83 Profits á prendre have also been used in Queensland for carbon sequestration, which will be discussed in detail in Chapter Four. Under the Queensland legislation, a lot may be made the subject of a profit á prendre by registration of an instrument of profit á prendre.84 The requirements for registration are valid execution, and a description of the lot, and the particulars of the profit á prendre.85 The Northern Territory Parliament has adopted very similar provisions to those used in the Queensland legislation.86 76 77 78 79 80 81 82 83 84 85 86 Butt, above n 47, 420-1. McDonald, above n 14, 689. Land Title Act 1994 (Qld) ss 97E-L. Land Titles Act 1980 (Tas) s 107. Land Title Act 2000 (NT) ss 118-124. Real Property Act 1900 (NSW) s 47(1). Inserted by Act no. 28 of 1997. Explanatory notes, Body Corporate and Community Management Bill 1997 (Qld), 61. Land Title Act 1994 (Qld) s 97E. Land Title Act 1994 (Qld) s 97F(1). Land Title Act 2000 (NT) s 118-9. 29 In Tasmania and New South Wales, profits á prendre may only be recorded on title. The Tasmanian legislation states that a profit á prendre may be granted, and recorded on the folio of the register.87 Similarly, the New South Wales legislation requires the Registrar to record the details in the folio of the land benefitted and burdened.88 The effect of recording is that same as with recorded covenants discussed above. Recording does not confer validity; it is merely a mechanism for recording information on title, although it may confer priority, or create an interest binding on successors in title. 4.6. Other interests Some Australian jurisdictions have extended the scope of the land title register, and expressly allowed for emerging environmental interests to be registered on title. For example, in Western Australia the Torrens legislation has been amended to allow for the registration of carbon rights, carbon covenants and tree plantation agreements. These instruments essentially allow a person to obtain an interest in the carbon stored in trees on another person’s property. Allowing third parties to benefit from the carbon sequestered in the trees has been recognised as a ‘response to the evolving social and environmental need to separate sequestration benefits from the underlying ownership of the land’.89 These interests are created by the Carbon Rights Act 2003 (WA), which provides for the registration on title to land of a ‘carbon right’, and an accompanying ‘carbon covenant’.90 The legislation was designed to encourage trading in carbon rights by reducing the legal risks associated with such transactions, by enabling a carbon right to be registered over title to land as a separate interest.91 To register a carbon covenant, it is first necessary to lodge a form for the creation of a carbon right with the Registrar of Titles.92 This form must be signed by the registered 87 88 89 90 91 92 Land Titles Act 1980 (Tas) s 107. Real Property Act 1900 (NSW) s 47(1). Samantha Hepburn, ‘Carbon Rights as New Property’ (2009) 31 Sydney Law Review 239, 261. Western Australia, Parliamentary Debates, Legislative Assembly, 22 May 2002, 10960, (Francis Logan). Western Australia, Parliamentary Debates, Legislative Assembly, 22 May 2002, 10960-61, (Francis Logan). Carbon Rights Act 2003 (WA) s 5(1). 30 proprietor of the land affected by the carbon right.93 The carbon right may be accompanied by a carbon covenant,94 which contains the terms of the carbon right.95 The carbon covenant will contain details of the agreement, and examples include information about ‘how much carbon is to be sequestered, over what time frame, in what form, how it is to be measured, and so on’.96 Once the form has been registered, the carbon right becomes a separate interest in land.97 It is important that agreements of this type are registered on title, as it is a significant restriction on title. By granting a carbon right, a landholder is in effect giving control of part of their interest in the land to a third party. Whilst a number of restrictions operating externally to the land title register can be found in legislation or on external registers, a carbon right is an agreement between two private parties. Thus it is important that it is visible on a title search, as it is unlikely a prospective purchaser could obtain knowledge of the restriction by other means. 4.7. Conclusion The above discussion demonstrates that the range of interests capable of registration has grown since the introduction of the Torrens system. Mortgages and leases represent a significant restriction on title, as they take away the entire right of the landholder to occupy or possess the land.98 The more recently created registrable instruments, such as covenants, profits á prendre and carbon rights are directed towards use of the land rather than occupation. Despite these new statutory creations, at present there remain many obligations and restrictions on use which are not capable of registration, and thereby pose a threat to the integrity of the Torrens system. There is no easy distinction to draw between those interests which are capable of registration and those which are not. There does not appear to be any discernable distinction applied by governments in terms of determining whether obligations and restrictions should be registered on title or not. All of the registrable obligations and 93 94 95 96 97 98 Transfer of Land Act 1893 (WA) s 104B(1)(a). Carbon Rights Act 2003 (WA) s 10(1). Carbon Rights Act 2003 (WA) s 11. Western Australia, Parliamentary Debates, Legislative Assembly, 22 May 2002, 10961, (Francis Logan). Carbon Rights Act 2003 (WA) s 6(1). Although in the case of mortgages this right is deferred until the mortgagee defaults on the loan. 31 restrictions operate in rem, and are binding on prospective purchasers, but there are numerous other obligations and restrictions which also do so. One feature common to the registrable obligations and restrictions is that they are all products of agreements between private parties, rather than being imposed by statute. In contrast, many (but certainly not all) obligations and restrictions which operate externally to the register are imposed by statute. This is a distinction which may be relevant in making suggestions for law reform, and will be discussed throughout this thesis. The following part of this chapter will focus upon ‘overriding interests’, which are obligations or restrictions which override title without being registered. 5. The threat posed to the integrity of the Torrens system by overriding interests 5.1. Introduction Although the Torrens system is theoretically underpinned by the principle of indefeasibility, in practice there are obligations and restrictions outside of the register which may affect title. It has been noted that ‘indefeasibility does not mean, and has never meant, absolute indefeasibility’.99 Although the land title register has been used in some limited circumstances to register or record obligations and restrictions on use,100 for the most part land title registers are used merely to provide details of ownership, and to register restrictions on title, such as mortgages and leases. As a result, most obligations and restrictions on land use operate outside the scope of the land title register. However this distinction is becoming blurred, as many registrable obligations and restrictions essentially relate to land use (eg. Statutory covenants which restrict owners from clearing land, or require them to actively conserve vegetation). The terms ‘overriding interests’ or ‘overriding statutes/legislation’ have been used in much of the relevant case law and literature. These terms are used synonymously, and 99 100 Anthony Mason, ‘Indefeasibility – logic or legend?’ in David Grinlinton (ed), Torrens in the Twenty-First Century (LexisNexis NZ, Wellington, 2003) 3, 4. This was discussed briefly above, and will be discussed in detail in each of the case study chapters. 32 refer to a legislative obligation or restriction which impacts on landholding, despite not being registered. Overriding interests have been categorised by O’Connor as falling into three different categories: 1. Interests which depend upon registration to be enforceable; 2. Interests which do not need to be registered, but are granted overriding status by the statute which creates them; and 3. Interests which are capable of registration, but do not need to be registered to override title.101 The first category is not problematic, as they are registrable on title. Within the latter two categories, O’Connor identifies three types of statutes which override title without the need for registration: 1. Compulsory acquisition of land statutes; 2. Vesting incidental to other decisions – these are statutes where land is vested in an authority as a consequence of another decision (for example, where a road is vested in a council following a decision that it is no longer required for public use); and 3. Lesser interests in land – these are statutes which authorise the creation of interests in land in favour of governmental authorities without the need for registration.102 Whilst most compulsory acquisition statutes generally make some provision for compensation where property rights are affected, the latter two categories can affect property rights without granting a right to compensation. These categories of overriding statutes have long been recognised as posing a serious threat to the efficiency of the Torrens register. This section will consider the case law and literature concerning overriding statutes and examine how judicial and academic approaches to the problem posed by overriding statutes have evolved over time. 101 102 O'Connor, above n 18, 651. Ibid 652-4. 33 This section will show, through a chronological account of the relevant case law, that overriding statutes impact significantly upon security of title. This is relevant to this thesis as it further demonstrates why current practices for managing information concerning obligations and restrictions affecting land are in need of reform. 5.2. Overriding statutes in the courts – a threat to security of landholding This section will describe and analyse case law relating to overriding interests. This analysis will show that there has been no consistent approach to overriding statutes adopted by the courts. 5.2.1. South-Eastern Drainage Board (SA) v Savings Bank of South Australia – in the event of inconsistency, the later statute prevails The legal status of overriding statutes has been the subject of judicial consideration in the High Court of Australia since at least 1939, and the case of South-Eastern Drainage Board (SA) v Savings Bank of South Australia (“South-Eastern Drainage”).103 This case concerned two provisions of legislation. First, South Australia’s Torrens legislation, enacted in 1886, stated that ‘no law, so far as inconsistent with this Act, shall apply to land subject to the provisions of this Act, nor shall any future law, so far as inconsistent with this Act, so apply unless it shall be expressly enacted that it shall so apply “notwithstanding the provisions of the Real Property Act 1886”’.104 The second relevant piece of legislation was the South-Eastern Drainage Amendment Act 1900 (SA) (“the Drainage Act”), which enabled drains to be constructed and the cost apportioned among the landholders benefited by the drains. To this effect, the Act stated that ‘the proportion of the cost apportioned to each landholder shall be a debt due from each such landholder to the Crown and shall be a first charge upon the land of such landholder benefited by the drain and shall be repaid by such landholder with the interest thereon in equal instalments according to a scale set out the in schedule’.105 103 104 105 South-Eastern Drainage Board (SA) v Savings Bank of South Australia (1939) 62 CLR 603. Real Property Act 1886 (SA) s 6. South-Eastern Drainage Amendment Act 1900 (SA) s 14. 34 Under the Drainage Act, the Mt Hope drain was constructed, with the cost apportioned amongst landholders. In 1908, a charge for construction costs attached to the land under the Drainage Act, and in 1912 a mortgage was given to the plaintiff bank. The plaintiff argued that the Torrens legislation was not affected by the SouthEastern Drainage Amendment Act, as it did not use the wording specified in the Real Property Act. The majority of the High Court held that the Drainage Act overrode the provisions of the Real Property Act. In reaching this conclusion, Latham CJ relied on the principle that a later statute will prevail over an earlier statute where there is any inconsistency.106 Furthermore, Latham CJ dismissed the argument that the charges would only take effect upon registration, as the legislation did not make any provision for registration.107 Starke J took a similar approach, stating that if legislation either repeals or ignores earlier legislation, it must prevail.108 Dixon J also held that the Real Property Act did not limit the ability of the Parliament to pass laws,109 and commented that: the South-Eastern Drainage Amendment Act 1900 created a first and paramount charge quite independently of the nature of the landholder’s title, that is, whether the land was under the Real Property Act or under the general law, and conferred upon it such an indefeasible priority and fortified it with such remedies that it cannot be overridden or affected by the provisions of the Real Property Act.110 Evatt J also held that the Drainage Act prevailed on the basis of inconsistency.111 5.2.2. Miller v Minister for Mines Miller v Minister for Mines112 (“Miller”) is a decision of the Privy Council, on appeal from the New Zealand Supreme Court. It is relevant to consider for two reasons. First, decisions of the Privy Council were binding on Australian courts at this point in time. 106 107 108 109 110 111 112 South-Eastern Drainage Board (SA) v Savings Bank of South Australia (1939) 62 CLR 603, 616. Ibid 617. Ibid 623. Ibid 625. Ibid 630. Ibid 634-5. [1963] AC 484. 35 Secondly, the New Zealand Torrens system is modelled on the Australian system, therefore cases interpreting the New Zealand provisions can be applied to the Australian provisions. In Miller, a land grant was made in 1890 without any reservation of minerals to the Crown. The landholder transferred mineral rights to a third party. Miller was a successor in title to the land, and his certificate of title showed no reference to mineral rights granted over the land. Miller argued that, pursuant to the Land Transfer Act, his estate was paramount and could not be affected by unregistered interests. The Privy Council first considered whether the mineral rights were capable of registration, and concluded that they were not.113 They then went on to consider the intention of the Mining Act 1926 which authorised the granting of mineral rights, and remarked that: If the licence is not registrable under the Land Transfer Act 1952 and the indefeasibility provisions of that Act are to override the grant, the licence would be of no value to the licensee except as against the original owner of the lands…their Lordships do not consider that this can have been the intention of the legislature in enacting the compendious code for mining privileges.114 Therefore, the Privy Council concluded that the intention of the Mining Act 1926 was for these mineral rights to override title. This approach is similar to the High Court’s approach in South-Eastern Drainage as it looks at the intention of the later in time statute, and concluded that the later statute was intended to override the earlier one. 5.2.3. Pratten v Warringah Shire Council Pratten v Warringah Shire Council115 (“Pratten”) saw a shift away from the judicial approaches in South-Eastern Drainage and Miller. This case concerned a provision of the New South Wales Local Government Act, which stated that ‘where, in the subdivision of any land, there has been a provision made for a drainage reserve…the land so provided for a drainage reserve is hereby vested in the council in fee-simple 113 114 115 Ibid 487. Ibid 488. (1969) 90 WN (Pt 1) (NSW) 134. 36 for drainage purposes’.116 A plan of sub-division was lodged which included a strip of land labelled ‘drainage reserve’. A dispute arose between the parties as to ownership of this strip of land. Street J concluded that the council’s statutory title prevailed, because ‘it has long been accepted that in the case of Real Property Act land there can exist proprietary rights which do not depend upon registration for their efficacy’.117 He examined Hogg’s work on the Torrens system,118 particularly in relation to the overriding status of resumption of land statutes, as well as the case law, and concluded that the public nature of overriding statutes is important.119 This demonstrates a different approach to the South-Eastern Drainage and Miller cases. Street J relied on the fact that the later statute was public in nature as the basis for its overriding status. In contrast, earlier decisions were based upon the presumption that a later statute will prevail. O’Connor argues that this reasoning is flawed, making the following comment: in my opinion Street J’s view of s 398 is questionable because he did not approach it as a provision in conflict with the Torrens legislation and determine its effect by examining its text and purpose. He proceeded as if prior decisions on statutory interests laid down general principles apply to discrete classes of exceptions to indefeasibility. What seems to underlie his approach is the notion that statutory interests such as that of the defendant council belong to a class of inherent rights, concerning which there is an existing body of law.120 From this analysis, it appears that the approach taken by the Court in the SouthEastern Drainage case is preferable to the approach taken in Pratten. Certainly Street J’s interpretation of overriding statutes has the potential to lead to confusion, and one commentator has noted that it may well broaden the class of overriding statutes by 116 117 118 119 120 Local Government Act 1919 (NSW) s 398. Pratten v Warringah Shire Council (1969) 90 WN (Pt 1) (NSW) 134, 139. James Hogg, The Australian Torrens system (W Clowes & Sons Ltd, London, 1905) 804. Pratten v Warringah Shire Council (1969) 90 WN (Pt 1) (NSW) 134, 142. O'Connor, above n 18, 668. This is reiterated in Brendan Edgeworth, ‘Planning law v property law: Overriding statutes and the Torrens system after Hillpalm v Heaven's Door and Kogarah v Golden Paradise’ (2008) 25 Environmental and Planning Law Journal 82, 85-6. 37 automatically characterising statutes as overriding without importing any requirement for examination of the intention of the statute.121 In contrast, the approach of the courts in South-Eastern Drainage and Miller requires courts to examine each potential overriding statute individually to determine whether there is a discernable intent to override indefeasibility. 5.2.4. Quach v Marrickville Council Quach v Marrickville Council122 (“Quach”) involved the same provision of the Local Government Act that was discussed in Pratten. The subject land in issue had been sub-divided, and the plan showed a drainage reserve 4 feet wide. The land was then re-subdivided, and the plaintiffs became registered owners. Their certificate of title made no reference to the drainage reserve. The Court had to decide whether the plaintiff’s title took priority over the defendant’s interest. Young J held that the Local Government Act overrode the relevant indefeasibility provisions, adopting the ‘public right’ characterisation used by Street J in Pratten. Young J noted that the council had a public right granted by statute, which overrode the government guaranteed title. 123 However, he also held that the plaintiffs took adverse possession of the land, thereby extinguishing the defendant’s interest.124 Young J made some general comments regarding the problem of overriding statutes, and noted that it has been recognised that, although it is the weakest point in the Torrens system, statutory and public rights will override an indefeasible title.125 He also noted that although he was obliged to follow precedent, ‘provisions such as s 398 pose the greatest single threat to the operation of the Torrens system and make such substantial inroads into indefeasibility that it is impossible to rely on the register’.126 According to Young J, the incompleteness of the register increases conveyancing costs, as demonstrated in the following passage of his judgment: 121 122 123 124 125 126 Edgeworth, above n 120, 85. Quach v Marrickville Council (1990) 22 NSWLR 55. Ibid 63. Ibid 69. It is relevant to note however that this is not possible in all jurisdictions. Ibid 61. Ibid 61. 38 it is rather difficult to reduce the cost of conveyancing in New South Wales if ordinary members of the community are going to be ambushed by interests such as the present. There would be absolutely nothing to show anybody who was purchasing this property that there was a hidden trap left over from a 1908 deposited plan…Yet, despite this, sixty-eight years later, an innocent person’s registered title may be completely defeated without any right of compensation and probably without any claim against any other person.127 Ultimately, despite expressing some discontent about the effect on landholders, Young J was bound by the precedent in Pratten. 5.2.5. Hillpalm v Heaven’s Door The next major case which considered overriding statutes was Hillpalm v Heaven’s Door128 (“Hillpalm”), which presented the High Court with an opportunity to formulate an approach to interpretation. Hillpalm concerned council consent conditions for a sub-division of land. In 1977 the registered owner of the subject land applied to council for consent to sub-divide land, with access to proposed Lot 1 over Lot 2. Certificates for both lots were issued, and both contained diagrams showing the proposed right of way. Subsequently, after a series of dealings from 1990 onwards, the certificate of title no longer showed the right of way. The appellant, as owner of Lot 2, was later ordered to grant an easement to the respondent. The issue for consideration was whether the appellant was required to grant an easement, which involved an examination of whether development consent conditions under the relevant legislation overrode the indefeasibility provisions of the Torrens legislation. The case was considered by the Court of Appeal, which held that the planning legislation overrode the Torrens legislation, thus requiring the appellant to grant an easement to the respondent. In reaching this conclusion, the Court of Appeal took a different approach to SouthEast Drainage. Instead, the Court relied on the public nature of planning legislation to reach their decision, similarly to the approach in Pratten and Quach. This is evident in 127 128 Ibid 61. [2002] NSWCA 301 (NSW CA); (2004) 220 CLR 472 (HC). 39 the following passage of Meagher J’s judgment, where he discussed why the condition overrode title: this is not only because it is the later enactment, but also because it partakes more of a public law enactment compared to the Real Property Acts' private law complexion; and also because the almost aggressive wording of ss122 and 123 display an intention that they are to be of universal force.129 Hillpalm appealed to the High Court, and the appeal was allowed. However, the High Court’s decision to overturn the Court of Appeal’s finding related to a different interpretation of the evidence, and unfortunately, the Court did not take the opportunity to discuss which approach applied to overriding statutes. The majority of the Court, consisting of McHugh ACJ, Hayne and Heydon JJ considered a number of letters exchanged between the parties which set out the approval conditions. In December 1977, the council wrote to the surveyor stating that the sub-division had been approved subject to a condition that there be a constructed right of carriageway. This condition was then altered in May 1978, when council wrote a letter stating that the registered owner should be required to declare a right of way if new roads are not dedicated within 2 years of the date of the letter. Finally, in November 1978 the council again wrote to the surveyor, stating that ‘council is prepared to grant final approval to the above subdivision even though the conditions of council’s letters…have not been complied with’. The majority of the High Court held that the letter of November 1978 demonstrated an intention to abandon the conditions set out in the earlier letters.130 The majority stated that: we do not accept that either the correspondence to which we have referred, or the depiction on the plan of the “proposed right of way 10 wide” constituted or evidenced a condition on which the council approved subdivision, or at least any condition that went beyond Winchecombe Carson being required to state that it intended to create at an unspecified future time such a right of carriageway.131 Although the majority of the High Court reached their decision based on the above 129 130 131 Hillpalm v Heaven's Door [2002] NSWCA 301 [14]. Hillpalm v Heaven’s Door (2004) 220 CLR 472, 485. Ibid 487. 40 interpretation of the evidence, they went on to consider whether the condition would be enforceable had it been included. They held that it would not be enforceable, as it did not relate to a continuing use of land. This is best demonstrated in the following passage: ‘‘development’’, as used in the EPAA [Environmental Planning and Assessment Act 1979], could refer to the subdivision of land, the use of land or to both subdivision and use. It by no means follows, however, that a person occupying a lot in a plan of subdivision carries a development out on the land by simply occupying the land. Where, as here, the subdivision of the land was the relevant development, the subsequent purchaser of a subdivided lot does not ‘‘carry that development out’’ by occupying, and thus using, one of the lots in the subdivision.132 Unfortunately, this conclusion did not permit the Court to consider the appropriate test to apply to overriding statutes. The majority noted that if there was a condition relating to the continuing use of land, then there ‘would be a real and lively question about how the two statutory schemes were to be reconciled’.133 The Court therefore recognised that this is an uncertain area of law which requires clarification, but concluded that this issue was outside of their jurisdiction in this particular case. Writing about the Hillpalm decision, Professor Butt concluded that a purchaser need only be wary of ‘an unfulfilled council consent condition that relates to the use of land – in the sense of continuing use – as distinct from the once-only event of sub-division, which could involve a continuing breach, which (under the provisions of the planning laws) any person could enforce against the current owner’.134Whilst this is correct, and a purchaser should be wary of conditions relating to continuing use, there was no guidance offered as to how these cases would be resolved. Because the High Court reached these conclusions, there was no opportunity for the Court to consider whether the Court of Appeal applied the correct method to determining which statute prevails. 132 133 134 Ibid 487. Ibid 491. Peter Butt, ‘Indefeasibility and Council Consent Conditions’ (2005) 79 Australian Law Journal 143, 144. 41 5.2.6. Post-Hillpalm decisions Since the High Court’s decision in Hillpalm, New South Wales Courts have had several further opportunities to consider the effect of overriding statutes. These cases added another layer of complexity, as they concerned transfers of land occurring despite overriding statutes being in place. In Kogarah Council v Golden Paradise Developments135 (“Kogarah”), the New South Wales Court of Appeal considered whether a transfer of land was valid.136 In 1985, the respondent was the registered proprietor of a block of land, and sought council permission to erect a building on land. The council granted permission on the condition that the respondent dedicated a 6m wide strip of that land to council for the purpose of a highway. The respondent sub-divided the land accordingly, and council became registered owner of that land. In 2002, the council transferred that land to Blakehurst Properties. The respondent sought an order that council had no power to transfer the property due to Local Government Act 1993 (NSW) s 45(1), which stated that a council has no power to sell, exchange, or otherwise dispose of community land. At first instance in the Land and Environment Court, this order was granted. The council then appealed to the Court of Appeal. The Court of Appeal unanimously allowed the appeal. It was acknowledged by Tobias J that Blakehurst, as current owner, did not breach the Act, and the Land and Environment Court therefore had no power to make an order against Blakehurst.137 As a result, once the transfer from the council to Blakehurst had been registered, the land no longer met the classification of community land.138 The Court could not consider the subject of overriding statutes as it was not argued by the parties,139 however Basten J made the following comment in obiter: 135 136 137 138 139 (2007) 12 BPR 23,651. Kogarah Council v Golden Paradise Developments (2007) 12 BPR 23,651. Ibid 23,662. Ibid 23,663. Edgeworth, above n 120, 92. 42 in the present case, s 45 of the [Local Government Act] speaks in unequivocal terms. In renders a Council powerless to sell, exchange or otherwise dispose of “community land”…It is, at the very least arguable, that in such circumstances the [Local Government Act] has, by necessary implication, amended s 42 (or possibly other provisions) of the [Real Property Act], to the extent that that provision would not give effect to a transfer of such land upon registration.140 Another recent case is that of F & D Bonaccorso v City of Canada Bay City Council141 (“Bonaccorso”). The facts of Bonaccorso are similar to Kogarah, and the Court had further opportunity to discuss the effect of overriding statutes. Bonaccorso concerned a transfer of property by the council, which the applicant claimed was community land. The applicant sought a declaration that the land was community land, and that the transfer was void and had no effect. A first instance, Biscoe J of the Land and Environment Court held that on the evidence, the land was used as a public park, and was community land. Therefore, it was sold contrary to the Local Government Act.142 Furthermore, he concluded that the Local Government Act impliedly repealed the Real Property Act.143 In reaching his decision, Biscoe J made the following summary of the principles of earlier High Court decisions concerning overriding statutes: A provision of a later statute impliedly repeals or amends pro tanto a provision of an earlier statute if, upon their true construction, the later provision explicitly or implicitly and clearly contradicts the earlier; There is a general presumption that there is no contradiction between two Acts of the same legislature; There must be very strong grounds to support the implication of a repeal or amendment; and There is no contradiction if the later and earlier statutory provisions can stand or live together.144 140 141 142 143 144 Kogarah Council v Golden Paradise Developments (2007) 12 BPR 23,651, 23,670. [2007] NSWLEC 159. F & D Bonaccorso v City of Canada Bay City Council [2007] NSWLEC 159 [34]. Ibid [93]. Ibid [51]. 43 This marks a return to the South-Eastern Drainage approach, which requires the court to examine the intent of the overriding statute. This decision is therefore in line with early High Court authority. Although the consequence of the decision was that the indefeasibility of title was overridden, Biscoe J noted that external registers had alleviated some of the uncertainty, making the following comment: although the Torrens system of registered title was designed to avoid the need to make historical searches of title, the burden of searching council records flowing from Hillpalm is alleviated by the statutory obligation on councils to maintain a register of development consents that is open for public inspection.145 Biscoe J concluded by ordering that the Registrar-General exercise the power to rectify the register, to reinstate the council as registered owner. However, Biscoe J’s decision was overturned by the NSW Court of Appeal in late 2007, which concluded that there was no implied repeal of the Real Property Act as the Acts could operate in conjunction with one another. The Court of Appeal noted the principle that a court should read statutes together where possible, and noted that the LGA provision could operate alongside indefeasibility provisions.146 In reaching this conclusion, the Court of Appeal drew a distinction between the transfer prior to registration, and the transfer after registration. The Court noted that: up until registration the transaction or transfer is null and void but on registration, as Breskvar v Wall holds, there is virtually a new Crown grant of the fee simple in the land, so that from that moment the transferee obtains a new clean title. The result is that the transferee’s title is wholly derived from the act of registration by the RegistrarGeneral and not upon the transfer of the antecedent transaction which gave rise to the transfer.147 As a result, the provisions can operate together. Prior to registration, the provisions of the Local Government Act can operate to invalidate the transfer, but after registration, 145 146 147 Ibid [70]. City of Canada Bay Council v Bonaccorso Pty Ltd [2007] NSWCA 351 at [83]. Ibid [83]. 44 the transfer is protected by the provisions of the Real Property Act.148 This conclusion is supported by the terms of the Local Government Act, which ‘merely deny to a council the power to sell or otherwise dispose of community land’. It does not declare that a registered transfer of such land is void.149 The Court of Appeal concluded with the comment that ‘in these circumstances, in our opinion it is impossible to discern a legislative intent that s 45(1) was to operate to deny to a transferee of community land the benefit upon registration of indefeasibility of title’.150 The Court of Appeal overturned the order of Biscoe J with regard to rectification of the register, and remarked that ‘the bona fide acts of the Registrar-General, even though they affect former proprietors’ rights, will stand’.151 This does not seem to deviate from the central finding in earlier authorities, which is that statutes can override indefeasibility. However it adds another layer of complexity, and essentially provides that a further registration can override an overriding statute.The effect of this decision is that in some circumstances overriding legislation may be defeated by registration. Once a transfer has been registered, it is irrelevant whether there were any statutory provisions preventing this from occurring. This decision does lend support to the assertion that obligations and restrictions on use should be recorded on title. If the designation as community land was recorded on title, this transfer potentially would not have proceeded. Since the transfer did proceed, and the land was transferred to private ownership, the environmental values have been lost. This also demonstrates how the land title register can be used to facilitate compliance with environmental laws. It is not entirely clear from the Court of Appeal decision in Bonaccorso which test applies to overriding statutes. Certainly the more public enactment was not given priority in this case, which could demonstrate a shift from that characterisation of overriding statutes. Additionally, the first instance decision moved away from the 148 149 150 151 Ibid [86]. Ibid [88]. Ibid [88]. Ibid [91]. 45 public rights characterisation in favour of the more general approach propounded in South-Eastern Drainage. 5.2.7. Conclusion This analysis of case law demonstrates a lack of uniformity in approach with regard to overriding statutes. The decision in the South-Eastern Drainage case was based purely upon rules of statutory interpretation, which dictate that a statute made later in time will prevail, and require the courts to look at the overall intentions of the statutes. However, in Pratten and Quach the Courts moved away from this approach, and instead placed more emphasis upon the public nature of the overriding statute. This approach was also adopted in the first instance decision in Hillpalm, which was overturned on appeal, but on different grounds. Unfortunately, the reasoning of the High Court in Hillpalm prevented them from providing some much-needed clarity in this area. More recently though, cases such as Kogarah and the first instance decision in Bonaccorso have seen renewed emphasis on the rules of statutory interpretation. The Court of Appeal decision in Bonoccorso focused upon principles underpinning the Torrens system, but this arguably also demonstrates a shift away from the public rights characterisation. At this point in time, it is difficult to predict with any certainty which approach courts will ultimately adopt in relation to these issues. However, the important point that can be distilled from all of these cases is that statutes can, and do, override indefeasibility. Regardless of the approach adopted by the judiciary, the above analysis demonstrates that overriding statutes pose a serious threat to the integrity of land titles. This is due to the fact that they may have serious impacts upon land holding without any requirement for registration or recording. Whether statutes override title on the basis of being later in time, or public in nature, the significant effect upon land title remains the same. Additionally, the analysis of case law demonstrates that the current approach may lead to negative ramifications for sustainable management of land. It is conceivable that an integrated approach to management of land titles and restrictions on use could have possibly prevented many of these scenarios from arising. 46 5.3. Overriding statutes as a barrier to sustainability The above analysis of case law demonstrated how overriding statutes pose a threat to the Torrens system. Importantly, recent cases such as Bonaccorso also starkly demonstrate how the present approach can be a barrier to compliance with environmental laws. As both the parties involved in the transaction and the Registrar were unaware of the zoning restriction, the designation as community land was lost. This shows how fragmented information concerning restrictions and obligations on land use can result in impaired decision-making on the part of governments. Fragmented information can also impact upon compliance with environmental laws by landholders. A recent Queensland example which has received media attention is the case of Wall v Doyle,152 as profiled on the television program A Current Affair in 2009.153 The Doyles purchased and cleared land at Ipswich, west of Brisbane. They had made enquires with the local council and the Department of Natural Resources as to whether there were any relevant land clearing restrictions, and were told that there were not. Upon clearing the land however, they found out that there were restrictions, administered by an entirely different authority, the Environmental Protection Agency.154 The Environmental Protection Agency subsequently charged the Doyles. The matter went before the Queensland Planning and Environment Court, which issued an order against the Doyles, requiring them to undertake a very detailed and onerous program of replanting.155 This demonstrates both limbs of the problem caused by these overriding statutes. First, the state of information concerning obligations and restrictions on title and use prevented the Doyles from finding this restriction, which in turn led to decreased security of their interest in land. Had they been aware of this, it is unlikely that they would have cleared the land, or perhaps even purchased it. Second, this lack of information had negative consequences for the natural environment, as the environmental values provided by the trees were lost. This shows 152 153 154 155 [2008] QPEC 23 Channel Nine, ‘Treelopping Couple’, A Current Affair, 7 July 2009 < http://video.ninemsn.com.au/video.aspx?mkt=en-AU&brand=ninemsn&vid=77628dd6-b98d4a44-9d60-209055f91de1#::77628dd6-b98d-4a44-9d60-209055f91de1> at 13 August 2009. These restrictions were created under the Nature Conservation Act 1992 (Qld) and the associated Nature Conservation (Wildlife) Regulation 2006 (Qld).154 Under this regime, the trees they cleared were a protected species. Wall v Doyle [2008] QPEC 23. 47 that a lack of information about environmental laws can reduce compliance with them. Therefore providing for more effective management of obligations and restrictions on use has the potential to increase compliance. Another example is the New South Wales case of Ballina Shire Council v Simon Freeden and Lorraine Freeden.156 This case considered two separate legislative regimes, the Native Vegetation Conservation Act 1997 (NSW) (since replaced by the Native Vegetation Act 2003 (NSW)), and the Environmental Planning and Assessment Act 1979 (NSW), as well as the associated Ballina Local Environment Plan. Similarly to the Doyle case, clearing carried out by the respondents was authorised under the first legislative scheme, but required a permit under the second. The respondents argued that Native Vegetation Conservation Act repealed the other laws, whilst the appellant contended they could operate together.157 The New South Wales Land and Environment Court considered the matter, and found for the appellants. The Court stated that: the scheme described above did provide a single system for clearing throughout the State – the system was the system established by the NVC Act integrated with the EPA Act (and environmental planning instruments). The concept of a “single system” or “one stop shop” did not mean that a person was entitled to consider only the NVC Act when proposing to clear land. The NVC Act expressly integrated itself with the EPA Act and environmental planning instruments.158 This demonstrates that overriding statutes may even seemingly contradict one another, making the situation even more confusing for landholders. These few examples demonstrate how overriding statutes may, in addition to threatening security of landholding, act as a barrier to compliance with environmental laws. This is because a lack of integrated information concerning these obligations and restrictions is making compliance difficult.. 156 157 158 [2006] NSWLEC 192 Ballina Shire Council v Simon Freeden and Lorraine Freeden [2006] NSWLEC 192 at [7]. Ibid at [85]. 48 5.4. The problem of overriding statutes and calls for reform As noted above, Australian courts have been dealing with overriding statutes since the 1930s. This problem has also been addressed by a number of commentators, and this section will consider literature relating to overriding statutes. It will make particular reference to calls for reform. 5.4.1. Early calls for reform – 1950s Overriding statutes have been discussed in legal literature since the early 1950s. In 1952, following his review of the Torrens system in Australia, Ruoff remarked that ‘no one thing has undermined the attempt to achieve indefeasibility more than inconsistent legislation’.159 Subsequent to this, the New South Wales government commissioned a report ‘to inquire into, consider and report upon the making of effective provision for the registration or notification for public information of statutory charges which under the present law, take effect without registration’.160 The report was published in 1955, making the following key findings: (a) All proclamations, notifications, orders, determinations and resolutions by public authorities affecting land should be registered; (b) They should be registered in the register book; and (c) There is an exception in that charges on land for rates, and statutory obligations creating restrictions on user (emphasis added) need not be registered.161 The report was accompanied by a draft bill which proposed a framework for the registration of overriding interests. The Committee stated that the main object of the draft bill was to assist purchasers to gain knowledge of the statutory obligations affecting their land, by ‘reducing the sources of inquiry to a rational minimum, preferably the title registers’.162 However, the Committee thought it was imprudent to extend the scope of the land title register to include restrictions on use as well as title, stating that: 159 160 161 162 Ruoff, above n 24, 119. Property Law Revision Committee, Parliament of New South Wales, Report on Statutory Obligations Affecting Land (1955) 5. Ibid 7. Ibid 32. 49 it is not practicable to apply this principle to town planning schemes in view of their wide ramifications in imposing restrictions and prohibitions on the user of land. Therefore the bill provides for a source of inquiry additional to the title registers, namely, an inquiry of the local council.163 The stated rationale for this decision was that planning schemes affect large areas of land, making it difficult and impracticable to notify the individual owners of the details of the schemes.164 This was of course prior to the advent of computerised systems and advances in mapping technology, and today this process would not be nearly as onerous. To achieve its objects, the committee included a provision in the draft bill stating that a statutory obligation affecting land may be notified on the register.165 The term ‘statutory obligation’ was defined to mean ‘any charge on land, or any order, award, determination, notification, resolution or proclamation affecting the title to or restricting or otherwise affecting the user of land, or prescribing or authorising any act or thing to be done on land, under the provisions of any act or of any regulation made thereunder’.166 The draft bill ensured statutory obligations are only notified on title rather than registered by stating that ‘notification or registration of a statutory obligation shall give it no greater effect than it would have had without such notification or registration, nor any greater effect than is claimed for it in the memorandum’.167 The committee explained that ‘the intention of the Bill is to distinguish between a ‘registration’ (which confers the quality of indefeasibility on the interest registered) and a ‘notification’ (which merely burdens the title with the interest notified, for what it is worth)’.168 Whilst the report is important as it represents one of the earliest calls for overriding interests to be registered, it does propose a restrictive approach to extension of the 163 164 165 166 167 168 Ibid 30. Ibid 34. Ibid 43. Ibid 43. Ibid 43. Ibid 43. 50 register. Additionally, some of the committee’s observations regarding planning controls and other restrictions affecting regions are possibly no longer valid today in light of technological advances. Regardless, if the ‘statutory obligations’ recommended for recording by the committee were put on title, this would have resulted in expansion of the land title register. The report also makes it clear that interests will only be notified upon title, and will not receive the benefits of registration. As noted above, this is an approach that has been used in several jurisdictions for including additional information on title. 5.4.2. 1960s The problem of overriding interests was again addressed in 1965 by Professor Hinde, who stated that ‘by far the greatest threat to the reliability and efficiency of the Land Transfer system lies in the numerous statutes which enable the title to land to be affected without any entry being made on the register’.169 He further stated that overriding interests which exist without any requirement of registration could erode the objectives of the Torrens system, as ‘there will be a grave danger that the picture of the title presented by the register will be so incomplete and unreliable that the benefits of cheapness and certainty conferred by the Land Transfer Act 1952 (NZ) will be altogether lost.’170 Hinde remarked that ‘having made the policy decision that titles are to be registered and that the Torrens system is appropriate to this country’s needs, the legislature should endeavour to see that the fundamental principles of that system are conscientiously worked out in the statutes which it passes’.171 To this end, he made suggestions for reform of the Torrens system. Hinde considered several options, including the option of inserting a provision in New Zealand’s Land Transfer Act 1952 to prohibit Parliament from enacting overriding 169 170 171 Hinde, above n 29, 79. Ibid 87. Ibid 92. 51 legislation. However, he reached the conclusion that a Parliament cannot bind its successors, and the insertion of such a provision would not be effective.172 Instead, Hinde concluded that a change of attitude on the part of law-makers was necessary before change could occur. He noted that ‘the only way to safeguard our system of registration of title in New Zealand would seem to be to convince both politicians and law draftsmen alike that, as a matter of policy, a certificate of title under the Land Transfer Act should disclose the existence of every statutory right or charge which affects any part of the land comprised in the certificate of title’.173 He suggested that such a policy could be achieved through the following steps: ‘First, by submitting to the Registrar-General of Land every Bill containing every provision likely to affect the title to land so that he could make a report to the Minister of Justice stating whether or not the Bill was in conformity with the principles of the Land Transfer system; and Second, by ensuring also that all Bills creating rights affecting land are committed to the Statutes Revision Committee so that a Committee could make sure that such Bills provide that the rights (a) would have to be noted on the register and (b) would not be binding on a bona fide purchaser for value unless registered’.174 He concluded with the comment that the ‘necessary change of political climate will only take place if Law Societies, senior officers of the Land Transfer Office and university teachers do everything in their power to bring about an increased awareness of the value of the benefits conferred by the Land Transfer system and of the importance of ensuring that those benefits are not leached away by statutes which override the register’.175 172 173 174 175 Ibid 96. Ibid 96. Ibid 96. Ibid 96-7. 52 5.4.3. 1970s In 1970 Professor Whalan also identified the problematic nature of overriding statutes, and stated that ‘since the nineteenth century reformers devised the Torrens system, development have occurred quite independently of the system which have helped to render it much less effective than it was’.176 Whalan continued his commentary on overriding statutes in 1971, observing that a ‘major problem area is concerned with matters that arise extraneously to registration but which can nevertheless affect registered interests; the principal sources of difficulty are overriding provisions which derogate from the avowed ideal of the Torrens system that the “register” is everything’.177 Whalan was concerned that overriding statutes had taken emphasis away from private rights in favour of public rights. He noted that since the disappearance of feudal obligations, fee simple ownership had reflected the sanctity of property, and this had been encroached upon by the existence of overriding interests, as ‘policy has decreed that public purpose and public use should gain immeasurably and that private responsibilities should also increase’.178 Whalan took a different approach to the NSW Property Law Revision Committee, and suggested that obligations and restrictions on use should also be notified upon title. He argued that: although the individual landholder may be expected to benefit to some extent from the advance of co-ordinated development aimed at utilitarian and aesthetic integration, fundamentally planning imposes social and legal controls which may conflict and override the present, projected or potential use of his land by a landholder. Hence, it is submitted that it would be a small price to pay if, in exchange, precise notification to individual members of the community of the extent to which the community claims this advantage over each parcel of land were to be recorded on the certificate of title to the land affected.179 176 177 178 179 Douglas Whalan, ‘Partial restoration of the integrity of the Torrens system register” notation of trusts and land use planning and control’ (1970) 4 New Zealand Universities Law Review 1, 1. Douglas Whalan, 'The Torrens system in New Zealand - present problems and future possibilities' in G W Hinde (ed), The New Zealand Torrens System: Centennial Essays (Butterworths, Wellington, 1971) 258, 282-3. Ibid 287. Ibid 290. 53 He concluded by stating that ‘the ultimate aim should be to organise land records so that it will be possible to discover in the one register every detail of proprietorship and every benefit or liability accruing or adhering to every parcel of land; the register will become a complete juridical, fiscal and administrative land record’.180 He stated that legislative change is necessary to remedy the problems caused by overriding statutes. He made the following suggestions for reform: ‘First, legislation would be amended to have a subsection added to it enacting that the provisions of the section are to apply to land under the Act notwithstanding that any statutory provision provides for the vesting of land; and Second, there would be a new section which would provide positive machinery for the registration of all statutory charges, proclamations, restrictions, acquisitions or dealings which are to bind bona fide purchasers of the land; and Finally, the section could provide a provision that the section is not to apply to any statutory obligations that are from time to time specifically excepted from its operation’.181 In 1973, Professor Sackville commented on the problem of overriding statutes, making the observation that ‘if the history of the Torrens system in Australia is any guide there would seem to be a danger that, in the course of time, the goals sought by the framers of novel legal institutions sometimes will be forgotten, or at least neglected’.182 He noted that overriding statutes pose a significant threat to the Torrens system, and stated that ‘it is destructive of the aims of the Torrens system when a purchaser finds himself bound by pre-existing statutory interests the existence of which is not readily ascertainable even from sources other than the register’.183 As an alternative to the problems caused by overriding statutes, Professor Sackville suggested that legislation which imposes a charge on land should state that the charge is ineffective until registered. He stated that this should also apply to statutes vesting 180 181 182 183 Ibid 293. Ibid 285. Ronald Sackville, ‘The Torrens System – Some Thoughts on Indefeasibility and Priorities’ (1973) 47 Australian Law Journal 526, 526. Ibid 536. 54 land in public authorities.184 This is an approach that has been adopted in some jurisdictions, and will be discussed in detail in Chapter Eight. It is a good solution, as it prevents obligations and restrictions from operating in rem unless placed on title. To operate effectively though, it would need to be used on a uniform basis. 5.4.4. 1980s Professor Whalan’s 1982 book ‘The Torrens System in Australia’185 built upon his earlier work relating to overriding statutes. In this work, he noted that ‘the integrity of the Torrens system is being undermined by the ever-increasing number and variety of statutes which derogate from the completeness of the protection given by registration under the system’, and further commented that the incidence of these statutes was reaching ‘epidemic proportions’.186 Furthermore, he wrote that: undoubtedly the most serious derogation from the conclusiveness of the Register is the overriding statutory obligation. Especially troublesome are those created by statute, or under the authority of a statute, but exist quite independently of registration or notification upon any Register and derogate very seriously from the conclusiveness of the Torrens register.187 The Law Reform Commission of Victoria produced a report in 1987 which considered the effect of overriding statutes, amongst other issues.188 The Commission made the following observation: the basic principle of the Torrens system is that intending purchasers of an interest in land should be able to rely on the title to show any prior interest which will be binding on them. A small number of exceptions to this principle were recognised from the beginning. Since then, conveyancing practice has become progressively more complicated. Interests in land and controls over its use have been made in an uncoordinated way. This increasing complication has resulted in a substantial increase in the amount of information which must be collected before a purchase can be made.189 184 185 186 187 188 189 Ibid 537. Whalan, above n 6. Ibid 338. Ibid 344. Law Reform Commission of Victoria, The Torrens Register Book, Report No. 12 (1987). Ibid [5]. 55 However, rather than promoting the registration or recording of all interests in land, the Commission instead suggested that the land title register be linked to a land information network, termed ‘Landata’.190 This was deemed necessary by the Commission because ‘efficiency in conveyancing and in government administration is impeded by the lack of an integrated network of land-related information’.191 The Commission considered the range of interests affecting land, and used the term ‘administrative interests in land’ to refer to ‘administrative decisions which impose controls on the use of land, or which licence certain activities on the land’.192 The Commission suggested that the Landata system could be used to provide information concerning such interests, and stated that ‘the creation of a centralised system of land information will enable all the relevant administrative decisions to be recorded in the agency concerned and to be made available to intending purchasers’.193 The Commission concluded with the recommendation that ‘existing and future administrative controls affecting the use of land, including all obligations and licences which run with the land, should be accessible through Landata’.194 The use of such a system apart from the land title register requires a departure from the principles underpinning the Torrens system, namely the principles of indefeasibility of title, and completeness of the land title register. This is because the land title register would not be the sole depository of information concerning title. Arguably restrictions on use, such as those contemplated by the Victorian report, do not go so far as to affect title to land, thus there is no need to register or record them on title. However, failure to place this information on title will prevent the land title register from meeting its goal of comprehensively providing all information. 5.4.5. 1990s onward Between the 1970s and 1990s, with the exception of the Victorian Law Reform Commission report, there was very little literature written on the concept of overriding interests. In recent years, sustainability has become a governmental priority 190 191 192 193 194 Ibid vii. Ibid vii. Ibid [19]. Ibid [19]. Ibid [19]. 56 at the international, national and state levels,195 which has led to an increase in the number of statutes creating interests or obligations which override ownership. Since then, there has been renewed interest in the topic, partially fuelled by litigation including the Hillpalm case. This section will first discuss the legal literature, which focuses mainly upon the land title register, and then consider the surveying literature, which takes a broader view of land administration. Legal literature Professor Butt has written several articles about overriding interests, in the context of the Hillpalm litigation. Following the Court of Appeal decision, Professor Butt made the comment that whilst indefeasibility of title is the key feature of the Torrens system, it is under constant attack from other statutes.196 From Professor Butt’s commentary, it appears that his main concerns centres around the completeness of the land title register. This is best demonstrated by the following quotation: if correct, the Hillpalm decision reflects a growing legislative tendency to undermine the conclusiveness of the Torrens register. In essence, it requires two steps from prudent conveyancers: (1) a search of council records for unfulfilled consent conditions; and (2) a search of superseded registered plans, looking for endorsements which, though absent from the current plan, might reflect (and so lead to uncovering) unfulfilled council consent conditions. The first step compels a search of a “second register”, outside the Torrens register. The second step compels a search of superseded elements of the Torrens register. Both are inimical to the philosophy behind the Torrens system. Sir Robert Torrens would not have been pleased.197 Professor Butt wrote another article on Hillpalm following the High Court decision. As mentioned above, he made the comment that purchasers did not need to concern themselves with consent conditions relating to subdivision, but, should search for unfulfilled consent conditions relating to the continuing use of land. 198 Although this 195 196 197 198 D E Fisher, 'Sustainability, the built environment and the legal system' in J Yang, P S Brandon and A C Sidwell (eds), Smart & Sustainable Built Environments (Blackwell Publishing Inc, Massachusetts, 2005) 245, 246. Peter Butt, ‘Indefeasibility Overridden -Significantly’ (2003) 77 Australian Law Journal 88, 88. Ibid 89. Butt, above n 134, 145. 57 did appear to narrow the scope of overriding interests, Professor Butt still expressed concern about the need to perform additional searches, commenting that: how do they find out about such conditions? Only by searching council records. So the obligation to search remains – it is just that the object of the search is narrower (but no less expensive or time-consuming).199 Professor Butt has also discussed overriding statutes in the most recent edition of his Land Law text. He noted that indefeasibility provisions may be repealed by later legislation, and generally this repeal occurs by implication.200 He remarked that the consequence is ‘to leave the Register in a misleading state, for although the Real Property Act purports to make the Register conclusive, the registered title may in fact be subject to statutorily-endorsed interests that the Register does not disclose’.201 In his book, Professor Butt further emphasised the need to undertake further searches to properly assess whether there are any interests affecting title. He noted that: so substantial are the inroads of overriding statutes into indefeasibility of title that it is imprudent, when acquiring interests in Torrens title land, to rely solely on the Register as an accurate mirror of the registered proprietor’s title. To do so invites ambush from unrecorded interests. In the result, overriding statutes pose perhaps the greatest single threat to public confidence in the Torrens system.202 As Professor Butt has highlighted in his work, the present state of the Torrens register requires a prospective purchaser of land to undertake multiple searches to ascertain all interests affecting land. This supports a conclusion that reform is necessary to condense the number of enquiries which must be undertaken by a prospective purchaser. These notions are reiterated by Edgeworth, who recently wrote an article discussing the problem of overriding statutes, with particular attention to the differences in judicial approaches.203 This article was written prior to the Court of Appeal decision in Bonaccorso, and noted that the first instance decision was ‘a good result for 199 200 201 202 203 Ibid 145. Butt, above n 47, 796. Ibid 796. Ibid 798. Edgeworth, above n 120. 58 planning and environmental laws’.204 However, the Court of Appeal decision is likely to provoke a contrary conclusion, which is that the current state of the law is a good result for the Torrens system. Regardless of which system is given primacy, Edgeworth’s comments are still valid, particularly his observation that ‘perhaps it is time for policy makers to consider if, and how, these two divergent regulatory regimes might be better reconciled’.205 This supports reform of the present approach. Edgeworth also noted that ‘advances in information technology make this objective more feasible than at any time in the past’.206 This is a point that has been addressed in the literature written from a surveying perspective, which will be discussed below. Surveying literature This problem of incompleteness has been recognised by the Queensland government, which commissioned a report on property rights undertaken by a team of surveyors. This report, written by Lyons et al, predicted that ‘the number of rights, obligations and restrictions (property rights) attached to land will continue to grow to meet everchanging planning and environmental issues and will impact on development and the land supply chain. To meet the standards for future sustainability it will be essential that such property rights are clear, searchable, and definable in location’.207 Lyons et al, similarly to Edgeworth, also placed emphasis upon new technologies as a mechanism to support reform. This report emphasised that the number of rights, obligations and restrictions will continually expand, further affecting the reliability of the Torrens register. However, Lyon et al also wrote that a searchable register of these overriding rights, obligations and restrictions would assist the promotion of ecologically sustainable development. This suggests that an integrated register could possibly alleviate both problems. Lyons et al also commented upon the public nature of most overriding statutes. The authors noted that whilst ‘traditionally land management was viewed as an owner’s business alone, this is no longer the case due to environmental and sustainability 204 205 206 207 Ibid 97. Ibid 97. Ibid 97. Ken Lyons, Ed Cottrell and Kevin Davies, 'Report on the Efficiency of Property Rights Administration in Queensland' (2002), 21. 59 concerns’.208 Instead, the authors concluded that it is necessary to take a holistic view of property rights, which includes all rights, obligations and restrictions,209 and stated that a holistic view would confer the following benefits: holistic land management and improvements in sustainability are likely to be much more difficult to attain without holistic property rights and markets, management and information; a lack of holistic property rights management and administration is likely to adversely affect the security of rights, their value and tradability; and any non-holistic approach will very likely be less effective and efficient.210 In the context of reform of the current system, Lyons et al stated that: some probably hold the view that a holistic view is not appropriate and the above definitions are not appropriate. Some view land administration as dealing solely with the recording of possession rights, interests and obligations as recorded on a title and that it has little to do with the creation and allocation of ROR’s, and that each type of right should be treated independently. Improvements would be obtained by regulatory reform. Others would argue, and this report does, that the above has been the traditional way and that it is in need of change (emphasis added).211 This change would appear to include extending the land title register to cover restrictions on use as well as restrictions on title. Although this is a significant change, the report suggested that such a drastic change away from the traditional model of land administration is necessitated by the need to achieve sustainability. The authors of that report built upon their analysis in a book chapter published in 2007, and discussed the effect of obligations and restrictions on title and use on the Torrens register. They noted that ‘several original intents of the Torrens system have been eroded, such as the principle of holding in one place all information necessary to take into account in a transaction. It also appears that some of the original defects the 208 209 210 211 Ibid 43. Ibid 44. Ibid 44. Ibid 45. 60 Torrens system was established to overcome, such as complexity, uncertainty and cost, have crept back in’.212 Lyons et al further reiterated the need to reform the current system, and summarised the reasons for this as follows: it is difficult and costly to determine what restrictions affect a parcel of land; the costs of complying with legislation is becoming very high, and this is also causing uncertainty; and this uncertainty is beginning to have an adverse impact on security, which can impact on property value.213 There has also been a lot of research conducted by the Centre for Spatial Data Infrastructures and Land Administration at the University of Melbourne concerning this issue. A key driver for this research was the Bathurst Declaration, devised in 1999.214 The Bathurst Declaration was developed by a group of surveyors, and recommended that nations commit to: providing for security of tenure for landholders; promoting reform of land administration to achieve sustainable development; and encouraging government departments to share land information amongst themselves, and with the public.215 This Declaration was the precursor to a number of publications by the Centre. Bennett et al specifically addressed the problem of overriding statutes, making the following comment: legislation is created in an ad-hoc manner and the institutions which administer the regulations are not integrated. The laws have undermined the vision of a single registry 212 213 214 215 Ken Lyons, Kevin Davies and Ed Cottrell, ‘The Need to Consider the Administration of Property Rights and Restrictions before Creating them’ in Alex Smajgl and Silva Larsonv (eds), Sustainable Resource Use: Institutional Dynamics and Economics (Earthscan, London, 2007) 208, 216. Ibid 218. International Federation of Surveyors, The Bathurst Declaration on Land Administration for Sustainable Development (1999) <http://www.fig.net/pub/figpub/pub21/figpub21.htm#WORKSHOP%20FINDINGS> at 26 November 2009. Ibid. 61 as the depository of all interests in land. Unlike the centralized management and law making related to the ownership layer, the creation of restrictions has been reactionary, ad hoc and noncentralized. The legislative restrictions are valuable; however, they work outside existing land administration systems. A title no longer reflects all interests in land and many interests are not secured or easily accessible.216 This research essentially supports reforming land administration systems so that they are more integrated in their approach. The Centre’s research to date has focussed upon how to classify property rights, obligations and restrictions within an information framework.217 A recent publication noted that whilst there has been a lot of literature dealing with holistic management of interests, there is very little that deals with implementing the concept.218 This supports the need for research considering how information can be managed in an integrated manner. Conclusion This recent literature demonstrates that the growing trend towards sustainable management of land and natural resources has led to an increased number of statutes which create obligations and restrictions on land use. 5.5. Conclusion This review of case law and commentary demonstrates a timely need to consider how the present system can be reformed. This review shows that overriding statutes have been recognised as problematic since as early as the 1950s, and that this problem is becoming more prevalent as more overriding statutes are enacted. Importantly however, it also shows that solutions to this problem are becoming more feasible, due to computerised technology. The existence of this problem, and the feasibility of technological solutions, shows that it is relevant to consider in detail how obligations and restrictions on land title and use can be most effectively managed. 216 217 218 Bennett et al, above n 5, 200. See for example Rohan Bennett, Jude Wallace and Ian Williamson, ‘Organising land information for sustainable land administration’ (2008) 25(1) Journal of Land Use Policy 126; Ibid 127. 62 6. Conclusion This chapter has demonstrated that the goals of the Torrens system are no longer being met due to the ever-increasing number of statutes which override title, or place obligations or restrictions upon use. Whilst the Torrens system was developed to protect private property rights, today governments are more concerned with implementing legislation to serve public purposes, without regard to the effect on private rights. Additionally, cases such as Bonaccorso demonstrate that the sustainability objectives of obligations and restrictions on land use may be lost when these instruments are not notified on title, or made available through another easily accessible source. This supports the assertion that integrated management of land titles and obligations and restrictions on use can lead to better environmental outcomes. Furthermore, whilst there have been a number of calls for reform of the current situation, to date there has been no entirely satisfactory resolution of this problem in any Australian jurisdiction. As a result, a detailed review of the current approach with a view to formulating suggestions for reform is warranted, and will be undertaken in this thesis. Part Two of this thesis will consist of three case studies, which will be analysed to determine how they are currently managing obligations and restrictions on land title and use, and whether their current approach is effective. Part Three of this thesis will then analyse the results of these case studies, and formulate recommendations for reform of the current system. 63 Chapter Three Methodology and overview of case studies 1. Introduction The purposes of Chapters One and Two were to introduce the problem, and demonstrate why further research in this area is needed. Chapter Two provided a review of the literature relating to the Torrens system, and the effect of overriding interests, and concluded that the ability of the Torrens system to meet its objectives is currently under threat. This is because the majority of statutes enacted to promote environmental sustainability create obligations and restrictions which operate externally to the Torrens system of land registration. This has also decreased the effectiveness of such statutes in achieving the goal of ESD. Although there have been numerous calls for reform of the present system, management of obligations and restrictions on land title and use is still not occurring on a uniform basis. Furthermore, there is no discernable distinction underpinning when restrictions and obligations are placed on title, and when they are not. Whilst the Torrens register was traditionally a repository of restrictions on title only, today there are obligations and restrictions on use of land which may also be registered. Despite this expansion, the Torrens system only allows for registration of a narrow range of interests, and many obligations and restrictions on land use do not fit within these categories of registrable interests. Instead, obligations and restrictions are found in a myriad of separate statutes which operate externally to the land title register. Because these are not easily discoverable, it is difficult for landholders and prospective purchasers to ascertain the range of interests which affect their land. This is undermining the goals of the Torrens system, as well as making it difficult for landholders to adhere to any obligations or restrictions affecting their land. This has led to a clear need for reform of this area. The objective of this thesis is to suggest how obligations and restrictions on land title and use can be most effectively managed within, or alongside, a Torrens framework 64 of land registration. To assist with this analysis, a comparative methodology will be adopted and applied to three case study jurisdictions. This chapter will discuss the comparative methodology, and its application to this thesis. It will also introduce the three case studies which have been chosen. The purpose of undertaking these case studies is to survey several different approaches to management of obligations and restrictions in Torrens jurisdictions, and to identify which features of these approaches are most successful, and also to address any potential problems with these features. The first case study will be Queensland, which is indicative of the current approach to natural resource management used in most Australian jurisdictions. This approach is one of fragmented management – resources are managed under separate legislative regimes and by a number of government departments. Queensland will then be compared with Western Australia, and New Zealand, both of which have a Torrens system of land registration, and have developed novel approaches to the management of obligations and restrictions on land use. Finally, this chapter will set out some guidelines for comparison as a basis on which these jurisdictions will be assessed and compared to ensure uniformity. 2. Methodology This section will discuss the theoretical basis for the comparative methodology. It will first outline the purpose and objectives of adopting a comparative methodology. It will then briefly introduce the jurisdictions to be compared. This section will then outline and apply the pre-requisites and rules which must be fulfilled prior to applying the comparative methodology. Finally, it will demonstrate why the comparative methodology is relevant to this thesis. 65 2.1. The purpose and objectives of adopting a comparative methodology The methodology that will be used in this thesis is a comparative methodology. This section will discuss the academic literature outlining the objectives and utility of adopting a comparative methodology. Hutchinson suggests that the comparative methodology is useful if approached with a goal of achieving more than a mere comparison of sameness and differences between systems. The comparative methodology can instead be used to learn more about a legal system by comparing it to others, and to identify solutions to novel legal problems already addressed in other jurisdictions.1 Comparative law can be used for a number of purposes. Gutteridge stated that comparative law is particularly useful to law reform.2 He remarked that a legislator cannot always rely on existing sources of law, and highlighted the usefulness of examining other systems to glean experience. He stated that ‘there is often much to be learned from the process of trial and error which is a feature of much of our modern legislation’.3 The objects of comparative law, as identified by Gutteridge, are: To discover how far any differences which may exist are fundamental in character or merely accidental; To determine the causes underlying any such differences; and To form an estimate of their respective merits or demerits, having regard to the particular conditions in which they are called upon to function.4 de Cruz also stated that comparative law can be used for a number of purposes, including: As an academic discipline; As an aid to legislation and law reform; 1 2 3 4 Terry Hutchinson, Researching and Writing in Law (Lawbook Co, Pyrmont, 2nd ed, 2006), 106. H.C. Gutteridge, Comparative Law: An Introduction to the Comparative Method of Legal Study & Research (University Press, Cambridge, 2nd ed, 1949), 35. Ibid 36. H.C. Gutteridge, 'The value of comparative law' (1931) The Journal of Public Teachers of Law 26, 27. 66 As a tool of construction; As a means of understanding legal rules; and As a contribution to the systematic unification and harmonisation of laws.5 For present purposes, comparative law as an aid to law reform is the most relevant. Fang described the comparative method as involving ‘not only the identification of legal problems in one country, but also, and mainly, comparative analysis of what are claimed to be comparable laws from other historical periods and other legal or normative systems’. The usefulness of this is that we can ‘learn, from one law’s strong points and another’s weaknesses, how to improve our own countries’ legal system and science of law’.6 The comparative law methodology will be used in this thesis to assist with an examination of methods used in other jurisdictions, with a goal of selecting those features which may improve the Australian system of the management of obligations and restrictions on land title and use. The jurisdictions were selected as there are some major differences in their approaches to land and natural resources management, which will be discussed in this thesis. An examination of these differences will assist in identifying those features which should be adopted in an effective system for management of obligations and restrictions on title and use. The following section will briefly introduce the subject jurisdictions. 2.2. Jurisdictions to be compared 2.2.1. Queensland Queensland has been chosen to represent the status quo in terms of management of obligations and restrictions on land title and use in most Australian jurisdictions. All Australian states, including Queensland, have large volumes of environmental legislation. One commentator discussed the large volume of provisions which 5 6 Peter de Cruz, Comparative Law in a Changing World (Routledge-Cavendish, New York, 3rd ed, 2007) 18. Li Fang, ‘The Methodology of Comparative Law’ (1994) Special volume Asia-Pacific Law Review 31, 31-2. 67 override title in Victoria, and noted that ‘there is little reason to suppose that the position…is significantly different in other states’.7 Thus it is acceptable to review one State as representative of an approach used across Australia. Environmental management in Queensland is undertaken on a fragmented basis, with one study identifying over 188 statutes impacting upon the environment and property rights.8 In Queensland there is separate legislation regulating water, vegetation, fauna, soil, minerals, planning, coastal management and environmental protection, along with many other statutes impacting on title or use.9 In some cases, obligations and restrictions imposed by legislation are capable of registration on the land title register. The main examples are statutory covenants for environmental preservation, easements under the Sugar Industry Act and profits á prendre under the Forestry Act. However, in most cases, obligations and restrictions may be found either recorded on title as administrative advices,10 on a separate, resource-specific register (eg. the contaminated land register), or in the text of the legislation itself. Chapter Four will discuss and analyse all Queensland legislation which creates, or allows for the creation of, obligations and restrictions on land title and use in order to promote environmental sustainability. The purpose of this analysis will be to examine how obligations and restrictions on land title and use are presently managed in Queensland. Chapter Four will then assess this management regime according to the guidelines for comparison which will be developed below. 2.2.2. Western Australia Western Australia has been chosen as a case study as it has made significant progress towards integrated management of obligations and restrictions on land title and use. 7 8 9 10 Brendan Edgeworth, ‘Planning law v property law: Overriding statutes and the Torrens system after Hillpalm v Heaven's Door and Kogarah v Golden Paradise’ (2008) 25 Environmental and Planning Law Journal 82, 83. Ken Lyons, Ed Cottrell and Kevin Davies, 'Report on the Efficiency of Property Rights Administration in Queensland' (2002) 5. However Chapter Four will show that there are only approximately 30 environmental statutes which impact upon land use in any significant way. Discussed in detail in Chapter Four. This means the obligation or restriction is visible on title, but does not attract the benefits of registration. This will be discussed at length in Chapter Four. 68 Western Australia is similar to Queensland in that there are numerous statutes creating obligations and restrictions on title and use, with several government departments having responsibility for administration of these statutes. The Western Australian government has recognised the problems with this approach, and recently undertook a process of reform, which resulted in the development of a search platform called the Shared Land Information Platform (“SLIP”). SLIP allows a user to perform a single search which will simultaneously search all government data to give an accurate picture of all obligations and restrictions on title and use. Chapter Five will discuss the Western Australian approach to management of obligations and restrictions on title and use, and use the guidelines for comparison to assess its effectiveness. 2.2.3. New Zealand New Zealand is an appropriate comparator as its legal system has sufficient similarities to the Australian legal system. New Zealand is a common law jurisdiction, and it has in place a Torrens system for land registration. Therefore features of the New Zealand system could realistically be adopted in Australia. New Zealand is a useful case study because most environmental obligations and restrictions on title and use are managed through a single legislative regime. In the late 1980s the New Zealand government embarked on a process of reform, which culminated in the Resource Management Act 1991 (NZ) (“RMA”). The RMA provides for the administration of a number of obligations and restrictions on title and use, and also defines the roles and responsibilities of local government authorities in managing natural resources. Chapter Six will discuss the New Zealand approach and assess its effectiveness according to the guidelines for comparison developed in this chapter. 69 2.3. Prerequisites to using the comparative method The above section outlined the jurisdictions to be compared in this thesis. The purpose of this section is to justify why these jurisdictions are appropriate subjects for comparison. Schmitthoff suggested that there are several prerequisites to undertaking the comparative process: The topic or topics under examination must be comparable; Regard must be had to their legal and social background; and An analytical classification of an impartial and scientific character must be applied to the jurisdictions being investigated.11 With regards to the first point, Hutchinson stated that jurisdictions must be chosen carefully, to ensure that there are good overlaps between the legal systems to facilitate discussion.12 It is necessary to consider factors such as historical development, sources of law, hierarchy, legal institutions, and economic and political structures.13 Gutteridge also noted that particular attention must be given to the subject-matter of the comparison. He stated that ‘like must be compared with like, and the concepts, rules or institutions under comparison must relate to the same stage of legal, political or economic development’.14 As part of this thesis, three case studies will be undertaken. The case study jurisdictions will be Queensland, Western Australia, and New Zealand. Applying the prerequisites for comparison: The topics under comparison are comparable, as this thesis is assessing each jurisdiction on the basis of their approach to natural resource management, and any interactions with the land title register; 11 12 13 14 M. Schmitthoff, 'The Science of Comparative Law' (1939-1941) 7 Cambridge Law Journal 94, 96. Hutchinson, above n 1, 107. Ibid 109. Gutteridge, above n 2, 73. 70 The legal and social backgrounds of these jurisdictions are sufficiently comparable, as they all have common law systems, and all utilise a Torrens system of land registration; and An impartial analysis will be carried out, as each jurisdiction will be assessed according to uniform guidelines for comparison which will be discussed below. Therefore the prerequisites for comparison are satisfied. 2.4. Rules for applying the comparative process Fang asserts that there are several rules underpinning comparative analysis which must be followed prior to undertaking the analysis. There rules are: 1. Defining the subject to be compared – Fang states that the researcher must collect all relevant material and determine whether they are analysing the law merely on paper, or as it exists in reality. If it is the latter, the comparison can ‘assist us in identifying the shortcomings of our own country’s legislation and allow us to absorb beneficial experiences into domestic legislation’;15 2. Defining the comparison – it is necessary to identify what aspect of the systems is being compared. There must be some similarity for the researcher to be able to identify advantages and disadvantages. For example, a comparison between the law of marriage and the law of natural resources will not provide any useful information;16 and 3. Concreteness – it is necessary to give the analysis a concrete form.17 The final rule relating to concreteness requires further explanation. Fang states that the following matters must be determined prior to undertaking an analysis: Length comparison or breadth comparison – whether the examination is of laws of different historical periods, or of different countries during the same historical period; 15 16 17 Fang, above n 6, 34. Ibid 35. Ibid 35. 71 Macroscopic or microscopic comparison – whether the examination involves comparison of the legal system as a whole, or on similar specific laws of different countries; Inner comparison or outer comparison – whether laws are of the same or a different type comparatively; and Functional comparison or structural comparison – a functional comparison looks at what laws countries have adopted to deal with similar situations, whereas a structural comparison compares the structures of legal systems.18 These rules are satisfied in relation to this study. The subject to be compared is clearly defined; this thesis will compare how obligations and restrictions on land title and use are managed in the subject jurisdictions. Further, the study will involve examining both the laws ‘on paper’ and ‘in reality’. Second, the comparison is defined. This thesis is examining a very specific part of each jurisdictions legal system, namely, how information concerning obligations and restrictions is managed, and specifically, whether the land title register is utilised at all for this purpose. Finally, in relation to Fang’s third rule regarding concreteness, the following observations may be made: A breadth comparison is being used, as this thesis will examine laws of different countries in the same time period; A microscopic comparison will be made, as this thesis is only looking at laws concerning obligations and restrictions on land title and use; An inner comparison will be made, as the comparison will involve laws of the same type; and A functional comparison will be made as this thesis will look at laws rather than the structure of legal systems. As these rules are satisfied, the comparative methodology is appropriate for application to this study. 18 Ibid 35. 72 2.5. Carrying out the comparative process Since the prerequisites and rules for the comparative methodology are satisfied, it is necessary to discuss how the comparison will be carried out. Kamba developed a process for comparing legal systems consisting of three steps: Descriptive phase – involves describing the systems involved, and examining the legal solutions provided by those systems; Identification phase – involves identifying similarities and differences between the systems; and Explanatory phase – during this phase the similarities and differences are accounted for.19 Kamba states that all of these phases are essential to the comparative process, as merely describing various systems without attempting to relate them is not comparative law.20 The following quote best emphasises the nature of comparative law: the ultimate test in evaluating the technique or techniques employed is: does the technique of comparison employed adequately or effectively fulfill the object or objects which the comparatist has decided on? Does it, for example, promote the better understanding of one’s own law, the formulation of reliable theories of law, the promotion of law reform or unification?21 Kamba’s approach has been built upon by other commentators. Hutchinson identified four distinct stages of the comparative process: Identification of an issue which crosses boundaries; Examination of the context or framework of the jurisdictions selected; A brief description of each jurisdiction; Analysis of differences and relationships between the jurisdictions.22 19 20 21 22 W Kamba, ‘Comparative law: a theoretical framework’ (1974) 23 International and Comparative Law Quarterly 485, 511-2. Ibid 512. Ibid. Hutchinson, above n 1,108. 73 This once again emphasises that the comparative process must go beyond simply listing attributes of the legal systems under review. de Cruz provided a more detailed analysis of the comparative process, separating it into eight distinct phases: Step One – identify the problem and state it as precisely as possible; Step Two – identify which foreign jurisdictions will be compared to the home jurisdiction; Step Three – decide which primary sources of law are going to be needed; Step Four – gather and assemble the material relevant to the jurisdiction being examined; Step Five – organise the material in accordance with headings reflecting the legal philosophy and ideology of the legal system being investigated; Step Six – map out possible solutions, taking note of any differences which may affect comparison; Step Seven – critically analyse the legal principles; Step Eight – set out conclusions within a comparative framework, ensuring that they relate to the original purpose of the enquiry.23 It is necessary to address how the comparison will be carried out in this thesis. As discussed above, a comparative analysis must follow a distinct method. Chapters Four, Five and Six will describe the systems in place in each jurisdiction, and assess them according to uniform guidelines for comparison. These guidelines are useful for clearly identifying similarities and differences between the systems. Chapter Seven will then compare and analyse the distinctions between the jurisdictions, and Chapter Eight will make recommendations for reform, taking into account any potential legal issues and barriers to implementation. The comparative methodology in this thesis will also satisfy de Cruz’s process: Chapters Four, Five and Six will examine the jurisdictions selected, and provide a detailed description of the operation of their system for the management of obligations and restrictions on title and use. These chapters 23 de Cruz, above n 5, 242-245. 74 will also assess each jurisdiction according to the guidelines set out below. This will satisfy steps three, four and five of de Cruz’s comparative process; and Chapters Seven and Eight of this thesis will satisfy steps six to eight, by critically analyzing the results of the case studies, and providing suggestions for reform. This has demonstrated that the comparative methodology will be applied appropriately in this thesis. 2.6. Conclusion This section has demonstrated the applicability of the comparative methodology to this thesis. One of the most important pre-requisites to applying this methodology appropriately is ensuring that jurisdictions are assessed on the same features. The following section will develop guidelines for comparison which will be used in this thesis to assess the case study jurisdictions, thereby satisfying this requirement. 3. Guidelines for comparison The purpose of this thesis is to analyse how obligations and restrictions on title and use, particularly those regulating environmental outcomes, can be most effectively managed within the context of a Torrens framework of land registration. The outcome of this thesis will be a series of recommendations for a new system for the management of obligations and restrictions on land title and use, which comprehensively catalogues all obligations and restrictions. The intended benefits of such a system are twofold: 1. A comprehensive register or management system would provide greater certainty for landholders and prospective purchasers, as they could more easily access information on obligations and restrictions affecting a parcel of land. This would also benefit decision-makers by ensuring they had access to current and accurate information; and 2. Such a system would also contribute to sustainable use of natural resources, by ensuring that any obligations and restrictions on land title and use designed to 75 promote environmental protection are brought to the attention of affected persons. Cases discussed in Chapter Two demonstrated that compliance with environmental laws is difficult in the absence of accurate and complete information. Thus complete and accurate information can contribute to compliance with environmental laws. As part of this analysis, three case studies will be examined to determine how obligations and restrictions on title and use are currently being managed across different jurisdictions. Each jurisdiction will be assessed with the aim of ascertaining the features needed for a management regime to provide the benefits listed above. It is not the intention of this thesis to pick one jurisdiction of the three as the ‘best’, and thus suggest that its approach should be adopted entirely. Rather, the purpose of this thesis is to assess several distinct methods of management of information concerning obligations and restrictions, to ascertain which features are effective and which are ineffective. It will also identify and address any potential legal problems with these features, and barriers to implementation. The end result of this thesis is to make recommendations for reform, and the findings of the case studies will inform these recommendations. The literature outlining the comparative process emphasised the need to compare the systems to identify points of similarity and difference. In order to undertake this analysis, it is necessary to determine which aspects of the systems will be compared. To do this, a set of uniform guidelines for comparison will be used. As there are no set guidelines for examining the legal merits of a system for the management of obligations and restrictions on title and use, this thesis will adopt its own set of guidelines. These guidelines will merely provide a point of comparison amongst the jurisdictions, and will not be used to rank the jurisdictions surveyed. Rather they will be used to identify which features of a system assist with effective management of obligations and restrictions on land title and use. The guidelines in this thesis have been developed on the basis of the relevant literature surveyed in Chapter Two. Chapter Two discussed the literature 76 chronologically, and from this review the literature appears to fall within two broad categories: Literature addressing the components of a Torrens system – this is literature which addresses the traditional components of the Torrens system, and outlines the key features of a Torrens system; and Literature addressing the components of a modern land registration system – this is literature which is written predominately from a surveying perspective, and examines how a modern land registration system can contribute to sustainability. The first category of literature places emphasis upon protection of private rights. In contrast, the second category relates largely to public rights, and focuses upon how effectively the land administration system facilitates sustainability as a public right. As noted by one commentator, ‘where common law was primarily concerned with resolving conflicts between individuals…modern environmental and land use regulation proceeds from a more integrated ecocentric and community oriented view of land use and environmental responsibility’.24 This encapsulates the distinction between these two categories of literature. Both private and public rights are relevant to the objective of this thesis, which is to determine how information concerning restrictions on and obligations affecting title to and use of land may be most effectively managed in Australia. One of the intended outcomes of this thesis is to make recommendations for a management regime which provides greater certainty to landholders and prospective purchasers, which is a private right. However, an additional outcome of this thesis is to make recommendations which allow for more effective management of obligations and restrictions on use to ensure that their environmental protection purposes are being fulfilled. This involves protection of a public right. Thus both categories of literature are relevant. 24 David Grinlinton, ‘Property Rights and the Environment’ (1996) 4 Australian Property Law Journal 41, 62. 77 It is inappropriate to consider only literature addressing the Torrens system alone, as many obligations and restrictions on title and use are managed through different systems. Additionally, the range of obligations and restrictions has increased exponentially since the development of the Torrens system, as ESD has become a pressing concern. To recognise this, the guidelines for comparison in this thesis need to consider a broader range of issues. These two categories of literature will be discussed in turn below. Finally, a set of guidelines will be developed for the purpose of this thesis, which attempt to strike a balance between public and private rights, and assess the degree to which each management regime provides for effective management of obligations and restrictions on title and use. These guidelines for comparison will be used to assess how effectively the system meets the traditional goals of the Torrens system, whilst ensuring that modern obligations and restrictions on land use are visible to affected persons. Therefore this thesis will be assessing the jurisdictions upon more than just its land title register. Each jurisdiction will be assessed according to what obligations and restrictions on land title and use are present, and how these obligations and restrictions are managed. The guidelines to be applied must reflect this. 3.1.1. Guidelines underpinning the Torrens framework of land registration Land registration systems were traditionally concerned only with the protection of private rights. When the Torrens system was developed in the mid-19th century as a new land registration system, and there were a number of principles underpinning its operation. The literature relating to the Torrens system has been discussed in detail in Chapter Two, and will not be discussed again here. From the literature review in Chapter Two, it is possible to isolate the following guidelines against which the success of a Torrens system of land registration can be measured: Simplicity; Accuracy; Security of title; 78 Independence of title (ie. It is not necessary to examine historical transactions to establish good title); and Lowered transaction costs.25 These guidelines are sourced from an examination of the literature in Chapter Two, including the writings of Ruoff and Fortescue. This chapter does not propose to restate the material discussed in Chapter Two. An effective Torrens system will provide simplicity, by ensuring that a prospective purchaser need not undertake numerous searches. This will also lead to lowered transaction costs. A Torrens register will provide an accurate picture of title, and it will also be secure. Title will be independent of previous transactions. These guidelines reflect the prevailing social concerns at the time the Torrens system was developed, namely security of landholding. Lyons et al remarked that ‘the administration of freehold land has been mainly concerned with the granting and recording of title and support to conveyancing’.26 As a result, the Torrens system was not initially designed to support broader societal goals such as sustainability, and was implemented merely to protect private rights. As one of the aims of this thesis is to propose a management regime which provides greater certainty to landholders and prospective purchasers, these guidelines are relevant. 3.1.2. Guidelines for a modern land administration system 3.1.2.1. The concept of land ‘administration’ and the changing role of property Whilst the above guidelines relate solely to land title registration, more recent literature has focused upon the broader concepts of land ‘administration’ and ‘management’. Lyons et al noted that land administration traditionally ‘has been mainly concerned with the granting and recording of title and support to conveyancing’.27 In contrast, land management has a slightly different meaning, and is also discussed by Lyons et al as follows: land management has generally been considered to be how an “owner” uses and manages land for a productive economic purpose, and to apply to rural and large 25 26 27 See Chapter Two, 3.1-3.4. Lyons et al, above n 8, 42. Ibid 42. 79 holdings, rather than small urban holdings. Traditionally land management was viewed as an owner’s business alone but this is no longer the case due to environmental and sustainability concerns. A range of recent Legislation has imposed restrictions and /or a duty of care on some landholders. Traditionally land administration and land management were seen to have little in common, but this is no longer the case.28 What this analysis demonstrates is that a land title registration system is no longer sufficient, and it is necessary to consider a broader system of land administration which incorporates any obligations and restrictions on use. As such, this thesis will need to adopt guidelines for comparison which ensure that the case studies are assessed according to whether they provide for effective dissemination of information concerning both title and use. This shift toward land administration as a broader concept has been driven primarily by changing societal concerns throughout the past century. At the time that the Torrens system was introduced, property was viewed primarily as a means of economic development. As a result, it was traditionally subject to few restrictions on its use. However, during the 20th century, it was recognised that environmental quality was deteriorating, and land use subsequently became subject to a number of restrictions. 3.1.2.2. Guidelines for assessing a land administration system Governments in Australia have responded to the environmental crisis mainly through the enactment of legislation which generally regulates the use of a single environmental resource. This is evident in the report compiled by Lyons et al, who noted that whilst ‘there are various calls on the urgent need to manage land more holistically (for environmental and sustainability reasons), the administration of the rights, obligations and restrictions on land and its components, tends not to be carried out holistically’.29 This point was reiterated by Godden and Peel, who noted that ‘what has been lacking for ESD to date is not acceptance in environmental law but, rather, effective legal implementation’.30 28 29 30 Ibid 43. Ibid 43. Lee Godden and Jacqueline Peel, Environmental Law: Scientific, Policy and Regulatory Dimensions (Oxford University Press, Melbourne, 2010) 283. 80 Lyons et al concluded that sustainable development requires a more integrated and holistic view of land administration, because of the following matters: Holistic land management and improvements in sustainability are likely to be much more difficult to attain without holistic property rights and markets, management and information; A lack of holistic property rights management and administration is likely to adversely affect the security of rights, their value and tradability; and Any non-holistic approach will very likely be less effective and efficient.31 They suggested some guidelines which should underpin modern land administration systems. These guidelines emphasise that property rights should be: Clearly defined; Completely and exclusively allocated (that is, holders of property rights should be guaranteed exclusive use); Secure; Legally enforceable; and Tradable.32 Additionally, they stated that the objectives of a land administration system should be: To ensure property rights are clearly defined and secure; To support the operation of markets in property rights; To ensure transactions can be carried out To provide legally correct, integrated information; To enable property rights to be used as a source of capital; To contribute to social stability; To contribute to natural resource and environmental sustainability; and To operate effectively and efficiently.33 31 32 33 Ibid 44. Ibid 68. Ibid 6. 81 These are similar to the guidelines set out by the International Federation of Surveyors (“FIG”) in their 1995 Statement on the Cadastre. Although this Statement refers specifically to cadastral systems, a broad definition of the cadastre is adopted. FIG define ‘cadastre’ to include the following elements: It is a land information system managed by one or more government agencies; It provides those involved in land transactions with relevant information and helps to improve the efficiency of those transactions and security of tenure in general; It is a parcel-based system, ie. information is geographically referenced to unique, well-defined units of land; and Graphical indices of these parcels, known as cadastral maps, show the relative location of all parcels in a given region.34 Given the broad definition of ‘cadastre’ adopted in the statement, it appears that the guidelines developed by FIG could potentially apply to parcel-based land registration systems, such as that used in Australia. Additionally, the FIG Statement also addressed the evolving nature of land administration systems, noting that ‘today, the information is also increasingly used by both private and public sectors in land development, urban and rural planning, land management, and environmental monitoring’.35 As such, the FIG guidelines are useful to examine for the purposes of this thesis. Although FIG acknowledged that success may be a relative term, they developed the following guidelines for measuring the success of a cadastre: a) Security: the system should be secure to encourage investment. Records should also be physically secure; b) Clarity and Simplicity: the system should be clear and simple to understand and to use. This ensures that costs are minimised, access is fair, and the system is maintained; 34 35 International Federation of Surveyors, FIG Statement on the Cadastre (1995) FIG <http://www.sli.unimelb.edu.au/fig7/cadastre/statement_on_cadastre.html> at 27 October 2008. Ibid. 82 c) Timeliness: The system should provide up-to-date information in a timely fashion. The system should also be complete, with all parcels included in the system; d) Fairness: the cadastral system should not be influenced by political processes, and should have decentralised offices, simple procedures, and reasonable fees; e) Accessibility: the system should be capable of providing efficient and effective access to all users; f) Cost: The system should be low cost or operated in such a way that costs can be recovered fairly and without unduly burdening users; and g) Sustainability: There must be mechanisms in place to ensure that the system is maintained over time. This includes procedures for completing the Cadastre in a reasonable time frame and for keeping information up-to-date.36 Both the guidelines set down by Lyons et al and by FIG acknowledged that land administration systems need to serve a broader purpose than the traditional title registration approach. 3.1.3. Guidelines for comparison in this thesis The guidelines for comparison developed in this chapter will be used to assess the effectiveness of the case study jurisdictions, for the purpose of identifying features which may assist in the effective management of obligations and restrictions on land title and use. As the purpose of this thesis is twofold, it is necessary to assess how effectively each system provides certainty for landholders, and how effective the system is in facilitating compliance with environmental laws. As land in Australia is registered under the Torrens system of land registration, it is important to determine whether the system assessed fulfils the goals of the Torrens system, including security and certainty. However, given that ESD is a pressing concern for governments, any examination must also take into account whether the regime provides for effective management of natural resources. Therefore, the guidelines for comparison developed in this chapter will not be used to address the land title register solely; they will be used to assess the overall effectiveness of the 36 Ibid. 83 jurisdiction’s regime for the management of all obligations and restrictions on land title and use. Although the goals of the Torrens system in the 19th century and land administration today are very different, the discussion above demonstrates that the success of both is dependent upon a number of similar factors. Both a title registration system, and a broader land administration system must be underpinned by common principles to succeed. The following guidelines for comparison will be used in this thesis: 1. Does the jurisdiction provide for integrated management of information concerning obligations and restrictions on land title and use? This will involve a consideration of whether information concerning obligations and restrictions on title and use is fragmented across a number of registers and Acts, or whether the jurisdiction has taken steps to integrate this information. Both sets of literature discussed above place emphasis upon security of landholding, and security is dependent upon being able to accurately ascertain what obligations and restrictions impact upon a parcel of land. 2. Is the land title register utilised for the purpose of recording obligations and restrictions on use? As discussed above, the literature concerning the Torrens system focuses mainly upon whether it accurately provides information concerning title. However the recent proliferation of obligations and restrictions upon land use means that a record of title no longer gives a landholder or prospective purchaser an accurate picture of the uses to which their land may be put. This guideline will assess whether the land title register has been used in the subject jurisdictions to register or record obligations and restrictions on use, as well as title. 3. How easily can landholders or prospective purchasers ascertain what obligations and restrictions on title and use apply in relation to a parcel of land? 84 One of the main purposes of the Torrens system was to simplify the conveyancing process, and save purchasers from having to undertake onerous searches. Furthermore, the literature also shows that modern land administration systems should be clear and easily understandable. This guideline will be used to assess how easily information concerning obligations and restrictions on land title and use may be obtained in the subject jurisdiction. Ease of obtaining information provides certainty for landholders, as well as promoting compliance with environmental laws. 4. Who has responsibility for the accuracy of information concerning obligations and restrictions on title and use? This is also relevant to whether the system is secure and certain. As stated above, the purpose of this thesis is to devise recommendations for a system which provides greater certainty for landholders and prospective purchasers by allowing them to more easily access information on obligations and restrictions affecting their title and use, and well as contributing to sustainable use of natural resources. For these purposes to be achieved, it is necessary that landholders are able to rely on the information that they access. Therefore, it is necessary to determine whether a government agency has responsibility for accuracy of the information. 5. Is the accuracy of information concerning title and use guaranteed, and is compensation available where information is incorrect? One of the principles underpinning the Torrens system is the insurance principle, which provides that landholders must be compensated for any interference with their title. It is necessary to examine whether the jurisdictions have any mechanisms in place through which landholders can obtain compensation. 4. Conclusion This chapter has discussed the comparative methodology, and demonstrated why it is appropriate to this thesis. As part of this discussion, guidelines for comparison have been developed and will be used to assess the case studies. 85 The following three chapters will each consist of a case study – Queensland, Western Australia and New Zealand. Each chapter will outline the system, and then apply the guidelines for comparison to the subject jurisdiction. 86 Chapter Four Queensland Case Study 1. Introduction The objective of this thesis is to examine how information concerning obligations and restrictions on land title and use can be managed within a Torrens land registration framework. To determine this, three case studies are being considered. Queensland provides a useful case study as it represents the approach of most Australian states; it uses a Torrens system of land registration, and has a fragmented system for the management of obligations and restrictions on land title and use. In Queensland, all freehold land is registered under a Torrens system of land registration. The Torrens system was first introduced in Queensland by the Real Property Act 1861 (Qld), and is presently regulated by the Land Title Act 1994 (Qld) (“LTA”). The system underwent major reform with the enactment of the LTA, and the objective of the 1994 Act is to ‘consolidate and reform the law about the registration of freehold land and interests in freehold land and, in particular— (a) to define the rights of persons with an interest in registered freehold land; and (b) to continue and improve the system for registering title to and transferring interests in freehold land; and (c) to define the functions and powers of the Registrar of titles; and (d) to assist the keeping of the registers in the land registry, particularly by authorising the use of information technology.’1 The LTA establishes the land title register, which will be discussed in further detail below. The land title register is administered by the Queensland Department of Environment and Resource Management (“DERM”). Prior to 2009 this Department was known as the Department of Natural Resources and Water, thus some references will be made to this entity. The reorganisation of government departments in 2009 does not affect the material in this chapter in any substantive sense. There are some 1 Land Title Act 1994 (Qld) s 3. 87 references in this chapter to legislation being administered by the Environmental Protection Agency (“EPA”), which has now been absorbed under the umbrella of DERM. However the ‘Environment’ and ‘Natural Resource’ functions of DERM are still very much separate, and the restructure has not at this stage led to greater integration of the agencies.2 The land title register operates in conjunction with the state’s cadastre, called the ‘Digital Cadastral Database’ (“DCDB”). The DCDB ‘is a continuous spatial dataset defining all State land, freehold land, and non-property parcels within the state’.3 Whilst the cadastre sets out the boundaries and descriptors of land in the state, the land title register contains details of ownership of, and encumbrances affecting land. As the Torrens register has been in operation since 1861, all legislative obligations or restrictions in favour of environmental sustainability have had to operate within a well-established framework. Most obligations and restrictions on land title and use are created by legislation without any requirement for registration on the land title register. Some of this legislation is administered by the DERM, and some is administered by either the Environmental Protection Agency (“EPA”) which since 2009 is part of DERM, or the Department of Mines and Energy (“DME”). This chapter will commence with a brief overview of the Queensland approach, and a discussion of the methodology used to compile this case study. It will then provide a review of all legislation in Queensland which impacts upon land title and use. This review will be organised according to how information concerning obligations and restrictions on title and use is made available under legislation. Because Queensland uses a fragmented approach to natural resource management, it is necessary to consider each Act which imposes obligations or restrictions on title or use individually. 2 3 Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). Steven Jacoby and Bronwyn Huitfeldt, ‘A Queensland perspective in the context of the LAS model’ (paper presented at the Expert Group Meeting on Incorporating Sustainable Development Objectives into ICT enabled Land Administration Systems, Melbourne, 9-11 November 2005), 145. 88 Once the Queensland approach has been outlined and discussed in detail, it will be assessed according to the guidelines for comparison developed in Chapter Three. 2. The Queensland approach – a case study 2.1. Overview of the Queensland approach Management of information concerning obligations and restrictions on land title and use in Queensland is fragmented. Information concerning these obligations and restrictions on title and use may be found in one of four places: 1. Registered on the land title register; 2. Recorded on title as an administrative advice; 3. Recorded on a separate, resource-specific register; or 4. Not recorded anywhere, and only found in legislation, regulations or plans. The LTA establishes the land title register, and also provides for the recording of administrative advices. In addition to the system of registration set out in the LTA, there are a number of resource-specific registers that operate externally to the land title register, which are established under separate legislation. These registers will be discussed in detail below at 3. 2.2. Methodology To accurately assess and analyse the Queensland approach, it was necessary to review all items of legislation which create, or enable the creation of obligations and restrictions on land title and use, where such legislation was enacted for the purpose of environmental protection. In undertaking this review, particular reference was made to whether the legislation made any provision for notification of obligations or restrictions on title or elsewhere. Several types of legislation have been deliberately excluded from this review, namely legislation which: Applies only to land under the Land Act 1994 (Qld), which is Crown land; Enables a specified entity to hold property; 89 Applies to all property in emergency situations. For example, the Ambulance Act 1991 (Qld) allows for ambulance officers to enter private premises in an emergency; and Applies generally to all property (for example, the general environmental duty contained in the Environmental Protection Act 1994 (Qld)). The first exclusion applies because this thesis is only considering obligations and restrictions on title and use applying to private land. The second and third exclusions apply because they are irrelevant to this thesis. The fourth exclusion applies because this thesis is concerned with obligations and restrictions on land title and use, and not duties which apply generally to all landholders. The list of legislation reviewed in this thesis has been compiled using several methods. First, a survey was undertaken of the following government department websites to obtain lists of legislation administered: Department of Natural Resources and Water; Environmental Protection Authority; Department of Mines and Energy; and Department of Primary Industries. This review was undertaken in 2008, prior to the reorganisation of Queensland government departments. Second, reference was made to a review of environmental legislation in Queensland commissioned by the State government in 2002. This report stated that ‘in Queensland there are at least 188 separate pieces of legislation that define land related Property rights or impact on their administration/management’.4 This list of legislation was reviewed, but it was found that many of these Acts were irrelevant for present purposes. This was because they were repealed, or were Acts as passed and the operational provisions had been amalgamated into other Acts, or because they fell into the list of exclusions mentioned above. 4 Ken Lyons, Ed Cottrell and Kevin Davies, 'Report on the Efficiency of Property Rights Administration in Queensland' (2002). 90 Third, searches were conducted on the Office of the Queensland Parliamentary Counsel website to ensure that no Acts had been overlooked using the above methods. In conducting these searches, combinations of the following keywords were used: Land; Property; Register; Title; and Use. From these sources a list of relevant legislation was compiled. The following section will discuss and analyse this legislation in terms of what obligations and restrictions on land title and use they create, and whether these obligations and restrictions are registered or recorded on any register. As this thesis is primarily concerned with how obligations and restrictions on land title and use can be managed within a Torrens framework of land registration, it is especially important to consider if and how any obligations and restrictions are presently registered or recorded. As such, the review of the legislation will be organised into the following sections: Registration on the land title register; Notification as an administrative advice; Notification on another register; and Obligations and restrictions which are not registered. This structure was deliberately chosen to demonstrate the various ways in which information concerning obligations and restrictions on title and use is made available. 91 3. Review of legislation 3.1. The Land Title Register 3.1.1. Operation of the Land Title Register The LTA requires the Registrar to keep a register of freehold land.5 The LTA clearly establishes a Torrens system of title by registration,6 as it states that ‘an instrument does not transfer or create an interest in a lot at law until it is registered’.7 The land title register in Queensland is now computerised, and this allows the titles office to provide greater information.8 The Registrar is obliged to record the following information on the land title register: Details of every lot under the Act; Every interest registered in the register; The names of persons holding a registered interest; All instruments registered in the register, and when they were lodged and registered; and Anything else required to be recorded by the LTA or another Act.9 These obligations reflect the traditional Torrens model of registration, which involves only providing information on registered interests and instruments. The LTA does provide the Registrar with additional powers. Whilst the matters above are details that must be recorded, the LTA also states that the Registrar may record certain additional information, namely: Anything the Registrar is permitted to record by the LTA or another Act; and Anything the Registrar considers should be recorded to ensure that the register is an accurate, comprehensive and useable record of freehold land in the State.10 5 6 7 8 9 10 Land Title Act 1994 (Qld) s 27. See Chapter Two for an explanation of this concept. Land Title Act 1994 (Qld) s 181. Despite this, equitable claims are interests remain recognisable: Barry v Heider (1914) 19 CLR 197, 208. However they may be defeated by a later indefeasible title. Michael Weir, ‘An Australian View: The Queensland Land Title Act 1994’ in David Grinlinton (ed), Torrens in the Twenty-first Century (LexisNexis NZ, Wellington, 2003) 295, 298. Land Title Act 1994 (Qld) s 28. Land Title Act 1994 (Qld) s 29. 92 These provisions empower the Registrar to record administrative advices, which will be discussed in detail below. All entries registered in the land title register attract the benefits of indefeasibility, which was discussed in detail in Chapter Two. The so-called ‘paramountcy’ provision is contained in s 184(1) of the LTA, which states that ‘a registered proprietor of an interest in a lot holds the interest subject to registered interests affecting the lot but free from all other interests’.11 The LTA does contain several exceptions to the paramountcy provision, mostly relating to errors and misdescriptions in the register.12 There is also an exception where there is fraud on the part of the registered proprietor,13 or where there is an equity arising from the act of the registered proprietor.14 The equity exception essentially refers to ‘an act of the registered proprietor which makes it unconscionable of that registered proprietor to deny an unregistered, or…no longer registered, right or interest’.15 An example of the exception applying is the case of Bahr v Nicholay.16 In this case a registered proprietor took their interest on the condition that they would sell the land to the appellants at a later date. The registered proprietor subsequently refused to do so. The High Court ordered re-transfer of the property, and noted that the registered proprietors held the property on a constructive trust for the benefit of the appellants.17 The system of land title registration in Queensland also gives effect to the insurance principle, as discussed in Chapter Two. The LTA states that a claimant is entitled to compensation from the State where they are deprived of a lot, or an interest in a lot, because of: The fraud of another person; Administrative errors in registration; Tampering with the freehold land register; 11 12 13 14 15 16 17 Land Title Act 1994 (Qld) s 184(1). Land Title Act 1994 (Qld) s 185(1)(b)-(g). Land Title Act 1994 (Qld) s 184(3)(b). Land Title Act 1994 (Qld) s 185(1)(a). White v Tomasel & Anor [2004] QCA 89 at [20]. Bahr v Nicolay [No 2] (1988) 164 CLR 604. Ibid 638-9. 93 Loss, destruction or improper use of documents held by the land title registry; or An omission, mistake, breach of duty, negligence or misfeasance by the Registrar or registry staff.18 Furthermore, a claimant is entitled to compensation for loss or damage because of: The incorrect creation of an indefeasible title in the name of another person; Incorrect registration; An error in an indefeasible title or in the freehold land register; Reliance on the incorrect state of the freehold land register; Loss, destruction or improper use of a document deposited or lodged at the land registry or held by the land registry for safe custody; Omission, mistake, breach of duty, negligence or misfeasance of or by the Registrar or a member of the staff of the land registry; or The exercise by the Registrar of a power in relation to an application or dealing of which the person had no connection.19 However, s 188A further states that a claimant is not entitled to compensation under this section for loss or damage caused by the incorrectness of a register kept by the Registrar if the Registrar may correct the register.20 Therefore if no loss is actually suffered, and the mistake can be easily rectified, there is no entitlement to compensation. These provisions reflect the traditional concept of land registration, namely that registered interests can only be affected by subsequent registered interests. They also give effect to the insurance principle (discussed in Chapter Two) which provides that compensation will be payable by the State where a registered proprietor suffers loss. A search of the land title register will show all registered interests affecting the land. A sample title search is annexed to this thesis at Appendix A as an example. 18 19 20 Land Title Act 1994 (Qld) s 188. Land Title Act 1994 (Qld) s 188A(1),(2). Land Title Act 1994 (Qld) s 188A(3). 94 3.1.2. Expansion of the Land Title Register – restrictions on use Traditionally only a limited range of interests were registrable in Queensland, namely transfers, leases and mortgages. These are all characterised as restrictions on title, as all involve a restriction on the owner’s right to possess land.21 In recent years new instruments have been developed, including statutory covenants and profits á prendre.22 These all allow for obligations and restrictions to be placed on the landholder’s use of the land, without affecting their right to possession. The creation of these new registrable instruments has allowed for a broader range of obligations and restrictions to be registered on title. It is relevant to note at the outset that these obligations and restrictions are all ones that affect single parcels of land, as opposed to blanket restrictions affecting all parcels in a specified region. The first registrable instrument which may be used to register obligations and restrictions affecting land use is statutory covenants. As discussed in Chapter Two, statutory covenants are registrable in Queensland subject to certain conditions.23 The Nature Conservation Act 1992 (Qld) utilises statutory covenants in some circumstances as a means of securing nature refuge agreements. Under the Nature Conservation Act, a nature refuge may be created on private property. A nature refuge is classed as a ‘protected area’ under the Act,24 which means that environmental obligations are imposed upon the landowner. A nature refuge may be created by agreement, or by compulsory declaration. From a reading of the Nature Conservation Act, it appears that different types of instruments are used dependent on whether the nature refuge is established by agreement. If the landholder and Minister agree to the establishment of a nature refuge, the relevant instrument used is a conservation agreement.25 In contrast, where a compulsory declaration is made, the Minister must specify a conservation covenant applying to the area.26 21 22 23 24 25 26 Although in the case of mortgages, this restriction is deferred until such time as the mortgagee defaults on the loan. See Chapter Two for details. Namely they must relate to use of the land, the government must be covenantee, etc: Land Title Act 1994 (Qld) s 97A. Nature Conservation Act 1992 (Qld) s 14(h). Nature Conservation Act 1992 (Qld) s 45. Nature Conservation Act 1992 (Qld) s 49. 95 It is not entirely obvious from reading the legislation what the distinction is between agreements and covenants, but it is conceivable that covenants could be registered as statutory covenants, pursuant to the LTA. Conservation agreements are not registrable, and will be discussed in further detail below. Furthermore, in practice it appears that the usual approach employed by the EPA is to record either agreement as an administrative advice.27 Statutory covenants are however widely used to register obligations and restrictions on land use, and are most commonly used to register planning requirements created by local governments. The requirements may include the preservation of natural or physical features on land. Some specific examples provided by the Queensland Registrar of Titles include a covenant between a landholder and a local council for the ‘preservation of native vegetation’, which obliges the landholder to preserve all vegetation in its natural state, and not undertake any development which interferes with vegetation. Another example between a landholder and a local council provides for the ‘preservation of native plant and animal’, and prevents the owner from clearing vegetation, and requires them to ensure that the movement of fauna onto their land is not impeded by restrictive fencing.28 This demonstrates that statutory covenants may be used to register both positive obligations and negative restrictions affecting land. Other more recent examples include obliging owners to have water-sensitive housing (used in semi-rural areas), and obliging owners to have noise-sensitive housing (having double-glazing on windows etc when located near a busy road), or requiring landholders to keep their land clear for fire-fighting purposes in fire-prone areas.29 An example statutory covenant is annexed to this thesis as Appendix B. Another type of registrable instrument used to register restrictions on use is easements. An Act which uses easements for this purpose is the Sugar Industry Act 27 28 29 Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). Ibid Ibid. These restrictions are not imposed by legislation, but are rather the product of agreement between the State or local government, and the landholder. 96 1999 (Qld). The Sugar Industry Act is administered by the Department of Primary Industries and Fisheries (“DPIF”), and its object is ‘to facilitate an internationally competitive, export oriented sugar industry based on sustainable production that benefits those involved in the industry and the wider community’.30 To achieve this object, the Act sets out a number of provisions whereby a mill owner or grower can gain access rights over privately owned land.31 The access right may be in the form of a permit to pass, or a cane railway easement.32 A cane railway easement may be granted to a mill owner to facilitate supply to the mill.33 This allows for a cane railway line to pass over privately owned land, to allow growers to transport cane to the mills. Where a cane railway easement is granted, relinquished, or cancelled, the grantee must notify the Registrar.34 The easement may then be registered upon title.35 To enable this to happenit was necessary to amend the LTA. As the grantee of such a right does not necessarily own appurtenant land the normal requirement for a dominant and servient tenement was not satisfied. To allow cane railway easements to be registered the LTA definition of ‘public utility easements’(which carried no requirement for a dominant tenement)36 was amended in 2008 to include reference to cane railway easements.37 This is a key example of how the scope of the land title register can be extended, through legislative change, to allow for registration of a broader range of interests. Traditionally easements had to comply with common law requirements to be registrable, but this requirement has been modified by legislation to allow for a broader range of obligations and restrictions to be registrable. 30 31 32 33 34 35 36 37 Sugar Industry Act 1999 (Qld) s 3. Sugar Industry Act 1999 (Qld) ss 64-65. Sugar Industry Act 1999 (Qld) s 63(1). Sugar Industry Act 1999 (Qld) s 63(5). Sugar Industry Act 1999 (Qld) s 71(1),(2). Sugar Industry Act 1999 (Qld) s 71(3). Land Title Act 1994 (Qld) s 89(1). Land Title Act 1994 (Qld) s 89(2)(a)(vii). 97 The final example of the land title register being used to register environment obligations and restrictions involves profits á prendre. Profits á prendre are used for environmental purposes under the Forestry Act 1959 (Qld). Under this Act, an owner of land may enter into an agreement with another person, either vesting property of a natural resource product in the other person, or granting a right for the other person to maintain, harvest, or otherwise deal with the natural resource product.38 If such a right is granted, the person’s rights are registered as a profit á prendre.39 For the purposes of the Act, ‘natural resource product’ is defined to mean a tree or vegetation, carbon stored in a tree or vegetation, or carbon sequestration by a tree or vegetation.40 This essentially allows the landholder to grant the right to use their trees for carbon storage, for financial gain. To date, these are the only instances of registrable instruments being used to register environmental obligations and restrictions on land use. There are clear benefits to registering obligations and restrictions this way. Bell and Christensen note that ‘the major benefit of these rights being registered on title is that a search of the land title register will alert an owner, prospective purchaser and a government department of their existence. In addition, the question of whether the rights or restrictions are enforceable against subsequent owners is clear’.41 This is because the LTA clearly states in its indefeasibility provisions that a landholder takes their interest subject to registered interests.42 Although there are only several environmental obligations and restrictions capable of registration, the above analysis shows how new instruments may be created, and existing instruments modified, to allow for a broader range of registrable interests. 3.2. Recording of Administrative Advices In addition to these registered instruments, the LTA permits the Registrar to keep other information separate to the register, where it is considered necessary or 38 39 40 41 42 Forestry Act 1959 (Qld) s 61J. Forestry Act 1959 (Qld) s 61J(5). Forestry Act 1959 (Qld) schedule 3. Justine Bell and Sharon Christensen, ‘Use of property rights registers for sustainability – a Queensland case study’ (2009) 17(1) Australian Property Law Journal 86, 90. Land Title Act 1994 (Qld) s 184(1). 98 desirable for the effective or efficient operation of the register.43 The explanatory notes to the legislation state that such information could include, for example, ‘administrative advices which list references to such matters as contaminated land sites, heritage listings etc’.44 Administrative advices differ from registered interests in that most of the principles relating to registration do not apply to them. The principle of indefeasibility does not apply to administrative advices, as s 184(1) of the LTA makes it clear that a registered owner takes their interest subject only to other registered interests. As a result, obligations and restrictions recorded as administrative advices do not necessarily operate in rem, unless the enabling statute states that they do. Furthermore, the state guarantee of title does not apply to these entries, and entitlements to compensation that apply to registered instruments are not applicable. Administrative advices are not registered on title, but are merely recorded for informational purposes. They are part of the land title register, and are visible on a title search. The current Queensland Registrar of Titles describes registered interests as being ‘above the line’ on a title search, whereas administrative advices are recorded ‘below the line’, thus not attracting the benefits of registration.45 A sample title search is annexed to this thesis as Appendix A, and shows this distinction. This distinction between registered and recorded instruments is not necessarily reflected in the form of the title. The title search annexed to this thesis shows two separate headings – “easements, encumbrances and interests”, and “administrative advices”. However the ‘line’ that the Registrar of Titles refers to is not physically present, and it may be difficult for a landholder or prospective purchaser to ascertain the difference between these two entries. Furthermore, administrative advices do not provide any detail of the obligation or restriction, but merely flag its existence. The Land Title Practice Manual states that 43 44 45 Land Title Act 1994 (Qld) s 34(1). Explanatory notes, Land Title Bill 1994 (Qld) 6. Interview with Max Locke, Registrar of Titles, Queensland Department of Natural Resources (Interview, 30 July 2008). 99 ‘enquiries relating to an administrative advice should be directed to the relevant authority or department administering the legislation or issuing the notice. The registry will not provide any further detail other than that disclosed on the notice’.46 The insurance principle also does not apply to such entries, as the LTA expressly states that a person is not entitled to compensation for deprivation, loss or damage arising from the recording or keeping of information under the section discussed above, where: The information is incorrect; and It was given to the Registrar for keeping by another entity; and The incorrectness was not because of an error of the Registrar in the recording or keeping.47 The procedure for notifying the Registrar of an administrative advice is usually set out in the relevant Act. In most instances it is up to the Department responsible for the administration of the Act to initiate an administrative advice. A form 14 general request must be filed with the Registrar of Titles specifying the details of the administrative advice, and it is then notified on title.48 At present, there has only been one case in Queensland referring to the recording of administrative advices. This case is Beames v The State of Queensland,49 which is part of a long series of cases, and is related to the earlier case of Beames v Leader,50 which concerned shifting property boundaries due to accretion and erosion. Mr Beames tried to lodge a survey plan with the titles office, and it was refused on the basis that the boundary lines had changed. The court overturned the findings of the Registrar, and held that he was obliged to register the plan once it was satisfactory in form. After this decision, the Registrar included a reference to the survey plan as an administrative advice. Mr Beames contested this decision, arguing that the survey 46 47 48 49 50 Queensland Department of Environment and Resource Management, Land Title Practice Manual (2009) ¶ 52-0000. Land Title Act 1994 (Qld) s 189(1)(l). Interview with Max Locke, Registrar of Titles, Queensland Department of Natural Resources (Interview, 30 July 2008). [2002] QSC 83. (1998) Q ConvR 54-506. 100 plan should be given status as a registered interest. As the land title register only allows for registration of a narrow range of interests, an officer of the Registrar of Titles gave evidence that to include a reference to the new plan under the heading "easements, encumbrances and interests" (as shown on the title search annexed to this thesis as Appendix A) would require re-designing the database tables of the Land Titles Office.51 The judge concluded that including the plan under the heading "Administrative Advices" constituted conformity with the order. His Honour paid particular attention to s 8(1) of the LTA, which provides that the register may be kept by the Registrar in the form that the Registrar considers appropriate.52 The judge did comment that this approach ‘has its imperfections’, but noted that is not erroneous or misleading.53 The significance of this decision is that a Queensland Court has recognised that the recording of administrative advices is a sound method of ensuring that information is notified, even though it does not fit within any of the instruments capable of registration. At present, the following legislation creates, or enables the creation of, obligations and restrictions that must be notified as administrative advices: Acquisition of Land Act 1967; Coastal Protection and Management Act 1995; Environmental Protection Act 1994; Fossicking Act 1994; Sustainable Planning Act 2009;54 Nature Conservation Act 1992; Planning (Urban Encroachment – Milton Brewery) Act 2009; Queensland Heritage Act 1992; Recreation Areas Management Act 2006; River Improvement Trust Act 1940; 51 52 53 54 [2002] QSC 83 at [19]. Ibid [21]. Ibid [21]. Replaced the Integrated Planning Act 1997 (Qld) on 18 December 2009. 101 State Development And Public Works Organisation Act 1971; Sugar Industry Act 1999; Vegetation Management Act 1999; Water Act 2000; and Wet Tropics World Heritage Protection and Management Act 1993. All of these Acts relate to environmental matters, with the exception of the Fossicking Act 1994. The Acts relating to environmental matters will be discussed in detail below to compare the various ways in which they provide for administrative advices. The obligations and restrictions on title and/or use created by each Act will be discussed, and analysed. 3.2.1. Acquisition of Land Act 1967 The Acquisition of Land Act empowers the government to take land, which is obviously the most significant potential interference with title. Under the Act, the Crown and the local government are empowered to take land in specified circumstances.55 The list of specified circumstances is lengthy, and allows land to be taken for a large number of public purposes.56 As such, the Act is potentially a threat to security of title. The legislation sets out a process by which landholders must be notified of any proposed resumption. If either entity intends to take land, they must first serve a notice of intention to resume.57 Where the notice of intention to resume relates to land under the LTA, it shall be filed with the land registry.58 The Registrar will then record the existence of the notice as an administrative advice. Consequently, any potential purchaser or interested member of the public should be able to determine whether the land is subject to a proposed resumption through conducting a title search. One flaw with this system is that records will only be made on the title of land which is to be resumed. There will not be records made on the titles of neighbouring land, 55 56 57 58 Acquisition of Land Act 1967 (Qld) s 5(1). Including for roads, railways, vehicle parking, harbours, airports and bridges: Acquisition of Land Act 1967 (Qld) sch. Acquisition of Land Act 1967 (Qld) s 7(1). Acquisition of Land Act 1967 (Qld) s 7(4). 102 even though the resumptions may have an impact on value. For a purchaser to determine whether there are any resumptions indirectly affecting land, they need to make enquires with the Department of Main Roads. The potential use of spatial databases will be discussed later in this thesis, and perhaps a mapping tool is a solution which would allow owners or prospective purchasers of neighbouring properties to ascertain whereby there are any proposals in a region. 3.2.2. Coastal Protection and Management Act 1995 The Coastal Protection and Management Act prescribes an objective of protection, conservation and rehabilitation of the coast.59 To achieve this objective, the Act requires creation of both a state coastal management plan, as well as regional management plans.60 These plans place limitations and restrictions upon development in coastal areas, which is a restriction on land use. To provide security to landholders, the Act uses administrative advices for two separate purposes. First, an owner of an interest in land is entitled to be paid compensation where the existing use of the land is changed by a prohibition imposed by a coastal plan or declaration.61 The Act sets out a procedure for claiming compensation, and further states that as soon as practicable after compensation is paid, the chief executive must notify the Registrar.62 The Registrar is then required to record the notice as an administrative advice.63 Presumably this is so that prospective purchasers are aware that any rights to compensation have been exhausted. Second, under the Act, the chief executive may serve a coastal protection notice on a person requiring them to take positive action, or stop an activity stated in the notice.64 The Act also contains a similar provision relating to tidal works notices.65 Where either of these notices are given, the chief executive must notify the Registrar of Titles, who must keep a record of the notice.66 The Act specifically states that these 59 60 61 62 63 64 65 66 Coastal Protection and Management Act 1995 (Qld) s 3(a). Coastal Protection and Management Act 1995 (Qld) ss 30, 35. Coastal Protection and Management Act 1995 (Qld) s 150(1). Coastal Protection and Management Act 1995 (Qld) s 158(1). Coastal Protection and Management Act 1995 (Qld) s 158(3). Coastal Protection and Management Act 1995 (Qld) s 59(2). Coastal Protection and Management Act 1995 (Qld) s 60(1). Coastal Protection and Management Act 1995 (Qld) s 63(2),(3). 103 notices are intended to operate in rem, but a buyer will only be bound by the notice if the purchaser notified them of it. If the purchaser fails to notify the buyer, then the agreement is of no effect.67 This is quite an unusual approach, and is not used by many other Queensland Acts. It essentially mimics the mandatory disclosure regimes used in other parts of Australia.68 In some respects it is a good approach, as it requires information to be provided to a purchaser for the restriction or obligation to take effect. However, another approach would be merely to state that it does not take effect unless recorded. A title search will almost always be conducted in a conveyance, thus this is sufficient to ensure the purchaser is alerted to the existence of the notice. Requiring the vendor to alert the purchaser may result in an unnecessarily harsh outcome where the vendor innocently fails to notify the purchaser. One disadvantage of this Act is that it only provides for these specific notices to be recorded as administrative advices. It does not provide for details of obligations and restrictions generally to be notified on title. Consequently, a search of the land title register will not alert a landholder to any generic restrictions on development imposed by the plans. Therefore administrative advices are only used under this Act in relation to obligations and restrictions which apply to individual parcels of land. They are not used to record details of blanket restrictions affecting multiple blocks of land. 3.2.3. Environmental Protection Act 1994 This Act establishes the contaminated land register, and the environmental management register, both of which will be discussed in detail below. The Act states that where an entry is made on the contaminated land register, the Registrar must be notified in order to record an administrative advice.69 Entries on the environmental management register are not recorded as administrative advices. The Act is silent as to whether these entries operate in rem, although the overall intent of the Act clearly indicates that they do. The Environmental Protection Act, similarly to the Coastal Protection and Management Act, requires vendors to notify purchasers 67 68 69 Coastal Protection and Management Act 1995 (Qld) s 63(4),(5). See for example the Sale of Land Act 1962 (Vic) s 32 which requires a vendor to provide a purchaser with certain information. The contract may be rescinded in some instances if information is not provided. Environmental Protection Act 1994 (Qld) s 422(1). 104 of the existence of certain matters. Under the Environmental Protection Act, a vendor must notify the purchaser that the land is recorded in the contaminated land or environmental protection register. Failure to do so entitles the purchaser to rescission.70 The Act also creates a number of other obligations and restrictions which are not required to be recorded as administrative advices, or on the separate registers. To accurately determine whether land is subject to any obligations and restrictions under the Act, it is necessary to consult the legislation itself, in addition to the registers. 3.2.4. Planning (Urban Encroachment – Milton Brewery) Act 2009 This recent enactment is aimed at protecting the use of the Milton Brewery and restricting criminal and civil proceedings in relation to activities conducted on the premises.71 The Act is related to environmental issues, but in contrast to most other issues, it protects actions which may be viewed as harmful to the environment. This Act applies to the area surrounding the Milton Brewery, which is currently subject to increased residential development. The government enacted this legislation to prevent litigation from new residents in these developments relating to emissions from the Brewery, where the emissions are within the Brewery’s licence conditions.72 Under the Act, a person is prohibited from taking legal proceedings asserting that acts done at the Brewery interfere with an environmental value due to emissions of noise or odour.73 This only applies in relation to new developments.74 If a person in this area applies for a development application, they must give the Registrar of Titles notice that the Act applies.75 The Registrar must keep a record 70 71 72 73 74 75 Environmental Protection Act 1994 (Qld) s 421(2), (3). Planning (Urban Encroachment – Milton Brewery) Act 2009 (Qld) s 3. Planning (Urban Encroachment – Milton Brewery) Act 2009 (Qld) ss 5, 7; Explanatory Notes Planning (Urban Encroachment – Milton Brewery) Bill 2008 (Qld) 1. Planning (Urban Encroachment – Milton Brewery) Act 2009 (Qld) s 8. This applies provided that development conditions of the brewery and any code of environmental compliance have been complied with: s 8(2). This provision is activated when the person proposes to undertake development: s 7. Explanatory Notes, Planning (Urban Encroachment – Milton Brewery) Bill 2008 (Qld), 1. Planning (Urban Encroachment – Milton Brewery) Act 2009 (Qld) s 9(1). 105 showing the notice.76 If the person has not notified the Registrar, and sells the property, the buyer is entitled to terminate the contract.77 3.2.5. Queensland Heritage Act 1992 The Queensland Heritage Act also establishes a separate register, which will be discussed below. Similarly to the Environmental Protection Act, where an entry is made on the register, the Registrar is to be notified,78 and must notify the existence of the entry as an administrative advice.79 The Queensland Heritage Act specifically states that heritage agreements operate in rem, and bind each person who is from time to time the owner, regardless of whether they signed the agreement.80 3.2.6. Nature Conservation Act 1992 The object of the Nature Conservation Act is ‘the conservation of nature’.81 Much of the Act applies to State land, however there are some provisions relating to privately owned land. To achieve the objects of the Act in relation to private land, the Act sets out a procedure for establishing nature conservation covenants and agreements relating to land. These agreements are discussed above at 3.1. Where an agreement is reached, or where a refuge is compulsorily declared, there may be significant restrictions placed upon the use of land, or obligations imposed. If an agreement is reached, the chief executive must notify the Registrar of Titles within 14 days.82 The Registrar is required to maintain records showing that the land is subject to a registrable conservation agreement or covenant.83 The Nature Conservation Act explicitly addresses the effect of these conservation agreements, noting that once registered, the agreement is binding on the land-holder and any successors in title.84 Given that the Act requires notice to be given to the Registrar within 14 days, the land title register should hopefully be updated relatively soon after 76 77 78 79 80 81 82 83 84 Planning (Urban Encroachment – Milton Brewery) Act 2009 (Qld) s 9(2). Planning (Urban Encroachment – Milton Brewery) Act 2009 (Qld) s 10. Queensland Heritage Act 1992 (Qld) s 174(1). Queensland Heritage Act 1992 (Qld) s 174(3). Queensland Heritage Act 1992 (Qld) s 174(7). Nature Conservation Act 1992 (Qld) s 4. Nature Conservation Act 1992 (Qld) s 134(1). Nature Conservation Act 1992 (Qld) s 134(2). Nature Conservation Act 1992 (Qld) s 51(1)(a). 106 an agreement is reached. It is relevant to note though that the Nature Conservation Act does not state whether there are any consequences for failure to notify. 3.2.7. Recreation Areas Management Act 2006 The purpose of the Act is to establish recreation areas, taking into account the conservation, cultural, educational, production and recreational values of the areas, as well as the interests of area land-holders.85 The Act details a process whereby private land can be declared to be a recreation area. Once land is declared a recreation area, the Minister must prepare a management plan outlining the recreational objects to be achieved for planning, developing and managing the area.86 Under the management plan, there may be restrictions placed on the manner in which the owner may use their land. As soon as practicable after entering into a recreation agreement, the chief executive must give notice of the agreement to the Registrar of Titles.87 The Registrar must record details of the notice in the relevant register so a search will show the agreement.88 Provided that the agreement is notified in accordance with this legislation, a search of the land title register should reveal the existence of any restrictions on use imposed under this Act. Problems may arise though because the Act is silent as to whether there are any consequences for failure to notify the Registrar of Titles. This lack of consequences could lead to delays in notifying the Registrar. Furthermore, these agreements operate in rem, as the legislation specifically states that they are binding on the landholder and any successors in title.89 3.2.8. River Improvement Trust Act 1940 The River Improvement Trust Act is silent as to its objectives, but contains a number of provisions aimed at the preservation of rivers. The Act states that a trust constituted 85 86 87 88 89 Recreation Areas Management Act 2006 (Qld) s 4(1). Recreation Areas Management Act 2006 (Qld) s 20(1). Recreation Areas Management Act 2006 (Qld) s 10(1)(a). Recreation Areas Management Act 2006 (Qld) s 10(2). Recreation Areas Management Act 2006 (Qld) s 11(1). 107 under the Act may prohibit a person by notice from doing anything which caused or contributed to damage already done by a flood or cyclone to a river bank, or is likely to cause such damage in the future.90 Such prohibitions may in effect create restrictions upon the use of land. Failure to comply with any prohibition is an offence.91 Where an improvement notice is given in relation to freehold land, the trust must give the notice to the Registrar of Titles.92 The Registrar shall record in the register the fact of the giving of the improvement notice.93 Thus a title search should detail any restrictions on use imposed by this Act. These notices are intended to operate in rem. The Act states that ‘where an improvement notice is given to the occupier of land in respect of which the improvement notice was given, a person who subsequently to the giving of that notice becomes the occupier of that land shall, whether or not the person had or would be deemed in law to have had notice of its existence, comply in every respect with the notice unless it has ceased to subsist or operate’.94 Therefore notices are binding on successors in title. 3.2.9. State Development and Public Works Organisation Act 1971 The State Development and Public Works Organisation Act is also silent as to its objectives, but it essentially regulates development which is considered to be significant to the State. Part 5A of the Act relates to prescribed projects, and lists its objectives as: to provide for the identification of projects of state significance; to provide a decision-making scheme; to provide for conditions to be imposed on prescribed projects, addressing the nature of the project, and the proper management of environmental effects of the project; and 90 91 92 93 94 River Improvement Trust Act 1940 (Qld) s 11(1). River Improvement Trust Act 1940 (Qld) s 11(4). River Improvement Trust Act 1940 (Qld) s 11A(1)(a). River Improvement Trust Act 1940 (Qld) s 11A(2)(a). River Improvement Trust Act 1940 (Qld) s 11(3A). 108 to promote the use of voluntary environmental agreements to encourage the conservation, maintenance, rehabilitation or enhancement of the 95 environment. Voluntary environmental agreements may be entered into by an applicant, and may contain provisions relating to preventing, controlling or mitigating detrimental environmental effects of a prescribed project, or conserving, maintaining, rehabilitating or enhancing aspects of the environment.96 Under these agreements, obligations and restrictions may be placed upon the manner in which land may be used. Administrative advices are used to record details of these agreements. The Act states that the coordinator-general must, within 14 days after entering into a recorded voluntary environmental agreement in relation to land, give the Registrar written notice of the agreement.97 The Registrar must keep records that show the particulars of the land, and state the places where particulars of the agreement may be inspected.98 Once registered, the agreement operates in rem, and is binding on successors in title, and anyone who has an interest in the land.99 3.2.10. Sugar Industry Act 1999 The regime established under the Sugar Industry Act is discussed above at 3.1. The Act provides for cane railways easements, which are registrable on title, and permits to pass. A permit to pass allows the permit holder to use another party’s land subject to the conditions of the permit,100 and an easement may be granted to allow a mill owner access to another mill.101 Administrative advices are used to record details of permits to pass. If a permit to pass is granted, relinquished or cancelled, the grantee must notify the Registrar within 28 95 96 97 98 99 100 101 State Development and Public Works Organisation Act (Qld) s 76A. State Development and Public Works Organisation Act (Qld) s 76S(1). State Development and Public Works Organisation Act (Qld) s 76U(1). State Development and Public Works Organisation Act (Qld) s 76U(3). State Development and Public Works Organisation Act (Qld) s 76U(6). Sugar Industry Act 1999 (Qld) s 63(2),(3). Sugar Industry Act 1999 (Qld) s 63(5). 109 days of the event.102 The Registrar must ensure that a notice appears in the relevant register so that a search will show that the event has happened.103 The Act is silent as to whether permits to pass are intended to operate in rem or in personam. However, the Act does state that a permit to pass must state a period to which it has effect,104 and if this is omitted, it has effect until it is cancelled.105 Presumably the intention then is for permits to pass to operate in rem. The use of administrative advices to record details of permits to pass is relatively new, with a separate register being in place up until 2008. The Sugar Industry Act underwent substantial amendment in 2008, and one of the major changes was to notification of access rights. The rationale for the overhaul of access rights registration was described in the Bill’s Explanatory Notes as follows: the recording of notices will ensure that all current access rights are recorded permanently and accurately as notices on Queensland’s Automated Titles System and that searches can be conducted efficiently. Further, the notices will resolve a major difficulty with the accuracy of the current access rights register, by providing automatic updates for ownership and land description changes.106 The amendments to the Sugar Industry Act perhaps represent a positive step towards reforming the Torrens system, by abolishing a separate register, and instead placing access rights directly on the land title register as administrative advices, or as registered interests. By placing restrictions directly on the land title register, the number of searches required to accurately ascertain all obligations and restrictions affecting land title and use is reduced. It would be beneficial for the Sugar Industry Act to explicitly state the legal effect of permits to pass. 102 103 104 105 106 Sugar Industry Act 1999 (Qld) s 71(1), (2). Sugar Industry Act 1999 (Qld) s 71(3). Sugar Industry Act 1999 (Qld) s 63(4). Sugar Industry Act 1999 (Qld) s 285(2). Explanatory Notes, Primary Industries and Other Acts Amendment Bills 2008 (Qld) 6. 110 3.2.11. Vegetation Management Act 1999 The purpose of the Vegetation Management Act is essentially to regulate vegetation clearing in a manner that promotes ecologically sustainable development.107 To achieve this purpose, the Act places a number of limitations upon development, and therefore upon the use of land. Administrative advices are utilised by the Act for several purposes. First, the Act provides for two types of notices binding on landholders – stop work notices, and restoration notices. Stop work notices are negative in nature, and require a person who is committing a vegetation offence to stop doing so.108 A restoration notice is positive in nature, and requires a person who committed a vegetation offence to rectify the matter.109 The Vegetation Management Act makes it clear that restoration notices run with the land.110 As soon as practicable after a restoration notice has been given, the chief executive must notify the Registrar of Titles.111 The Registrar must keep records showing that the notice has been given, in such a way that a search of the register will show that the restoration notice has been given.112 Second, the Act allows the Minister to make a declaration stating that an area is an area of high nature conservation value, or an area vulnerable to land degradation.113 As soon as practicable after a declaration is made, the chief executive must notify the Registrar of titles.114 The Registrar is required to keep the records in a way that a search will show that the declaration has been made.115 These declarations are expressed to be binding on ‘each person who is from time to time the owner of the land’,116 which means that they operate in rem. 107 108 109 110 111 112 113 114 115 116 Vegetation Management Act 1999 (Qld) s 3(1). Vegetation Management Act 1999 (Qld) s 54A. Vegetation Management Act 1999 (Qld) s 54B. Vegetation Management Act 1999 (Qld) s 55. Vegetation Management Act 1999 (Qld) s 55A(1). Vegetation Management Act 1999 (Qld) s 55A(3). Vegetation Management Act 1999 (Qld) s 16(1). Vegetation Management Act 1999 (Qld) s 19K(1). Vegetation Management Act 1999 (Qld) s 19K(4). Vegetation Management Act 1999 (Qld) s 19K(6). 111 Finally, if development approval is given in relation to vegetation, or a property map of assessable vegetation is made, the chief executive must give the Registrar of Titles written notice of the approval or the map.117 However, it seems the Act only makes use of the register in relation to obligations and restrictions that a specific to individual parcels of land. In addition to these parcelspecific obligations and restrictions, the Act places a number of general restrictions upon development which affect entire regions, and administrative advices are not used to record any of these restrictions. To ascertain whether land is subject to any such restrictions, it is necessary to consult the legislation, and any associated plans and policies. There are also some other registers established under the Vegetation Management Act which record details of obligations and restrictions. These registers will be outlined below. As a result, a search of the land title register will not conclusively outline all potential restrictions imposed under the Vegetation Management Act. 3.2.12. Water Act 2000. The main mechanism for recording interests under the Water Act is the Water Register, which will be discussed in detail below. Administrative advices are used in a limited sense to record details of private water supply agreements, and distribution operations licenses.118 3.2.13. Wet Tropics and World Heritage Protection and Management Act 1993 Where private land is located in the Wet Tropics area, a person is prohibited from destroying a forest product, or carrying out any other act prescribed by regulation, unless granted a permit.119 Where any prohibitions apply to private land, the Registrar must maintain records that show this.120 117 118 119 120 Vegetation Management Act 1999 (Qld) s 70B. Water Act 2000 (Qld) ss 1000-1001, 1007. Wet Tropics and World Heritage Protection and Management Act 1993 (Qld) s 56. Wet Tropics and World Heritage Protection and Management Act 1993 (Qld) s 66. 112 This is a good model as all restrictions created by the Act or regulations which affect land will be notified on title. 3.2.14. Sustainable Planning Act 2009 The Sustainable Planning Act 2009 (Qld)121 only makes use of the land title register in relation to its compensation provisions. Under the Sustainable Planning Act, a person is entitled to be paid compensation where: a change to the planning scheme reduces the value of the interest; and a development application (superseded planning scheme) for a development permit relating to the land has been made; and the application is assessed having regard to the planning scheme and planning scheme policies in effect when the application was made; and the assessment manager, or, on appeal, the court refuses the application, or approves the application in part or subject to conditions or both in part and subject to conditions. 122 Where compensation is paid, the local government must notify the Registrar of Titles, who is then required to make a notification on title.123 3.2.15. Conclusion The above analysis highlights the different ways in which administrative advices are used. In most cases, the legislation obliges the relevant person to notify the Registrar of Titles of a specified matter, who will then record an administrative advice. Administrative advices do have the potential to assist with effective management of restrictions and obligations on title and use. They ensure that information is drawn to the attention of persons searching the land title register without conferring the benefits of registration. However, there are some problems with the current use of administrative advices. 121 122 123 Replaced the Integrated Planning Act 1997 (Qld) Sustainable Planning Act 2009 (Qld) s 704. Sustainable Planning Act 2009 (Qld) s 713. 113 There are several distinctions amongst the legislation in terms of how administrative advices are utilised. There are different timeframes imposed in relation to notifying the Registrar. In some cases the Act is silent as to a timeframe, with other Acts imposing a timeframe of 14 days, 28 days, or ‘as soon as practicable’. There are potential problems with accuracy where an Act fails to specify a timeframe, as a department may not notify the Registrar in a timely manner. Also, even where Acts do specify a timeframe, they are silent as to whether there are any consequences for failure to notify. For example, they could state that interests do not take effect until they are notified, or they could grant a right to compensation where loss is suffered due to a failure to notify. Also, whilst some Acts state that obligations and restrictions are binding on successors in title, this is not uniform. Thus it is difficult to ascertain whether obligations and restrictions are intended to operate in rem or in personam. Administrative advices do not automatically operate in rem, and are dependent upon a statutory provision clarifying their effect. Conceivably there could be some administrative advices which bind successors in title, and some which do not. To find out, the landholder or prospective purchaser would have to consult the legislation. Furthermore, whilst administrative advices are a good method of notifying information on title without conferring the benefits of registration, the manner in which administrative advices are used differs between the Acts discussed above. In some cases administrative advices are used to record all details of obligations and restrictions on private land imposed by the Act (for example, the Recreation Areas Management Act), whereas in other cases, only selected matters are recorded as administrative advices (for example, the Vegetation Management Act). In the latter situation, the land title register does not provide an accurate picture of obligations and restrictions on land title and use imposed by an Act, making it necessary to consult the text of the legislation, regulations and plans for complete details of obligations and restrictions. 114 Additionally, for the most part it seems as though administrative advices are used more frequently in the instance of obligations and restrictions that are specific to an individual parcel of land. It does not appear that administrative advices are used in the case of blanket restrictions that affect multiple parcels of land. For example, the Vegetation Management Act and associated plans create restrictions that apply to entire regions. These restrictions are not noted on title. Finally, administrative advices are not used by all Acts which create restrictions on land title and use. Therefore a search of the land title register will not show all obligations and restrictions on use. To fully ascertain whether there are any obligations and restrictions on land title and use, there are a number of other registers which must be consulted, in addition to the legislation itself in many cases. 3.3. Other registers Some of the Acts surveyed establish separate registers that operate externally to the land title register. These Acts are: Aboriginal Cultural Heritage Act 2003; Environmental Protection Act 1994; Land Protection (Pest and Stock Route Management) Act 2002; Nature Conservation Act 1992; Petroleum Act 1923; Petroleum and Gas (Production and Safety) Act 2004; Queensland Heritage Act 1992; Soil Conservation Act 1986; Torres Strait Islander Cultural Heritage Act 2003; Vegetation Management Act 1999 (Qld); and Water Act 2000. This section will also briefly discuss the Sustainable Planning Act 2009 (Qld) and the associated local government planning schemes. Whilst this Act does not establish a register, it is possible to obtain property searches under the relevant planning schemes. These searches essentially involve the local government providing a summary of information from their own internal systems, therefore it is relevant to 115 this discussion. Similarly, it will also discuss sustainability declarations provided under the Building Act 1975 which are provided prior to sale of a property. Each of these registers will be discussed in detail below. 3.3.1. Aboriginal Cultural Heritage Act 2003 and Torres Strait Island Cultural Heritage Act 2003 The Aboriginal Cultural Heritage Act and the Torres Strait Island Cultural Heritage Act are almost identical in terms of structure. The registers established under both Acts are very similar in operation, and are both administered by the DERM. These registers were created to serve an informational purpose – namely, to assemble in one place information concerning cultural heritage studies, management plans, bodies, and any other relevant information.124 Furthermore, the register is intended to be used in land use planning, as well as in research.125 At present, entries in these registers are not notified as administrative advices. This is unlikely to change in the future, as there are problems with accuracy due to difficulties associated with validating claims.126 Despite this, both registers are required by legislation to be available to the public.127 It appears that all relevant obligations and restrictions imposed by the Act are registered on this register, however because it is not linked to the land title register, it may not always be consulted by a landholder or prospective purchaser. 3.3.2. Water Act 2000 The Water Act 2000 and its associated water register are also administered by the DERM. The regime established under the Water Act differs from other regimes as its the main object is to facilitate trade in water entitlements. The purpose of the regime 124 125 126 127 Aboriginal Cultural Heritage Act 2003 (Qld) s 47(1); Torres Strait Island Cultural Heritage Act 2003 (Qld) s 47(1). Aboriginal Cultural Heritage Act 2003 (Qld) s 47(2); Torres Strait Island Cultural Heritage Act 2003 (Qld) s 47(2). Interview with Max Locke, Registrar of Titles, Queensland Department of Natural Resources (Interview, 30 July 2008). Aboriginal Cultural Heritage Act 2003 (Qld) s 51; Torres Strait Island Cultural Heritage Act 2003 (Qld) s 51. 116 is to allow registration of, and dealings with, water allocations.128 As such, it is a register of ownership and entitlements, as opposed to a register of obligations and restrictions. The water register is similar to the land title register in a number of ways. The Act states that ‘a person has notice of an interest in a water allocation if the interest is included in the register’.129 Furthermore, most interests and dealings recognised under the Land Title Act are capable of registration on the water register (eg. mortgages).130 Despite this, the provisions of the Land Title Act relating to indefeasibility and compensation for loss are specifically exempted.131 The Water Register operates separately to the land title register, but is linked to it. When a water license is registered on the water register, it is automatically linked to the land title register. This is possible due to interlinked computer systems in the DERM.132 This contributes to accuracy of land records, by ensuring that a landholder is notified of any water allocations linked to their land. 3.3.3. Environmental Protection Act 1994 The Environmental Protection Act and the Queensland Heritage Act establish registers that are administered by the EPA. The Environmental Protection Act prescribes an objective of ecologically sustainable development,133 and to this end, the EPA is required to keep a number of registers, including the contaminated land and environmental management registers.134 These registers are used to record details of ‘notifiable activities’ and ‘contaminated land’. Schedule three of the Act lists approximately 40 activities which are classified as ‘notifiable activities’ for the purposes of the legislation. The list includes asbestos 128 129 130 131 132 133 134 Water Act 2000 (Qld) s 94(b). Water Act 2000 (Qld) s 148(3). Water Act 2000 (Qld) s 150(1). Water Act 2000 (Qld) s 151(1)(h). Interview with Max Locke, Registrar of Titles, Queensland Department of Natural Resources (Interview, 30 July 2008). Environmental Protection Act 1994 (Qld) s 3. Environmental Protection Act 1994 (Qld) s 540. 117 manufacture or disposal, chemical and paint manufacture and storage, dry cleaning, and pest control as example. The Act mandates that landowners and local governments must advise the EPA where a notifiable activity is being carried out on property.135 ‘Contaminated land’ is defined as land contaminated by a hazardous contaminant,136 which includes substances such as arsenic, DDT, or oil.137 The Act mandates that landowners and local governments must advise the EPA where they become aware of contaminated land.138 If the EPA decides the land has been, or is being, used for a notifiable activity or is contaminated land, the administering authority must record particulars of the land in the environmental management register.139 According to the EPA, ‘sites on the environmental management register in most circumstances pose a 'low risk' to human health or the environment under their current land use. Entry on the environmental management register does not mean that the land must be cleaned up or that the current land use must stop’.140 Notification on the contaminated land register is more serious. Prior to entering land on this register, a number of investigations must be carried out. If the EPA is satisfied that the land is contaminated land and action needs to be taken to remediate the land to prevent serious environmental harm, then an entry will be made.141 Where an entry is made on the contaminated land register, the Registrar is to be notified in order to record an administrative advice.142 This does contribute to 135 136 137 138 139 140 141 142 Environmental Protection Act 1994 (Qld) ss 371(1), 372(1). Environmental Protection Act 1994 (Qld) ss 371(2), 3722). Queensland Government, Contaminated Land (2007) Environmental Protection Agency <http://www.epa.qld.gov.au/environmental_management/land/contaminated_land/> at 28 November 2007. Environmental Protection Act 1994 (Qld) ss 371(1), 372(1). Environmental Protection Act 1994 (Qld) s 374(3). Queensland Government, Management of Contaminated Land (2007) Environmental Protection Agency < https://www.epa.qld.gov.au/environmental_management/land/contaminated_land/management_ of_contaminated_land.html#gen3> at 8 December 2009. Environmental Protection Act 1994 (Qld) s 384(2)(c). Environmental Protection Act 1994 (Qld) s 422(1). 118 certainty, as a landholder is advised of the existence of an entry on this register through an ordinary title search. Furthermore, now the DNR and EPA have merged, there is the possibly for further integration of these registers in the future.143 In contrast, entries made on the environmental management register are not required to be notified as administrative advices. As noted above, landholders are required to notify prospective purchasers where the land is notified on either register.144 This should ensure that prospective purchasers are aware of entry on either register. For clarity though, it would perhaps be sound for entries on both registers to be recorded as administrative advices. This is particularly so as an entry on the environmental management register may become an entry on the contaminated land register depending on the outcome of investigations. This may then require the landholder to take positive action to remediate land. 3.3.4. Queensland Heritage Act The Queensland heritage register is also administered by the EPA. The object of the Queensland Heritage Act is ‘to provide for the conservation of Queensland’s cultural heritage for the benefit of the community and future generations’.145 To this effect, the Act establishes the Queensland heritage register. A place may be entered in the register if it fulfils any of the criteria listed in s 35(1), most of which relate to its cultural significance. If a place is entered in the heritage register, any development applications must be assessed, and may be refused if the development would destroy or substantially reduce the cultural heritage significance.146 Where an entry is made on the register, the Registrar is to be notified in order to record an administrative advice.147 143 144 145 146 147 Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). Environmental Protection Act 1994 (Qld) s 420. Queensland Heritage Act 1992 (Qld) s 2(1). Queensland Heritage Act 1992 (Qld) ss 44(1), (2), (3). Queensland Heritage Act 1992 (Qld) s 174(1). 119 3.3.5. Petroleum Act and Petroleum and Gas (Production and Safety) Act 2004 The Petroleum Act 1923 and the Petroleum and Gas (Production and Safety) Act 2004 are administered by the DME. Under these Acts, all petroleum is, and has always been, property of the Crown,148 but both Acts provide for various access rights to petroleum located on privately owned land. Both regimes also establish registers to provide details of these access rights.149 These registers are available for access by the public upon payment of a prescribed fee.150 In contrast to some of the other Acts surveyed, they do not provide for register entries to be notified to the Registrar of Titles. A prospective purchaser or other interested party has to contact the DME to conduct a search of these registers, as the existence of any obligations and restrictions contained within them will not be visible on an ordinary title search. 3.3.6. Land Protection (Pest and Stock Route Management) Act 2002 The purpose of this Act is to provide for pest management for land, and stock route network management.151 With regards to pest management, the Act states that this purpose is to be achieved by declaring certain animals and plants to be pests, and restricting and preventing activities concerning these animals and plants.152 Pest management is relevant to environmental sustainability, as it is ‘an integral part of managing natural resources and agricultural systems’.153 A regulation may declare an animal or plant to be a pest for the whole or part of the state.154 Where such a declaration has been made, it is an offence to: introduce a declared pest;155 feed a declared pest animal;156 148 149 150 151 152 153 154 155 156 Petroleum Act 1923 (Qld) s 9; Petroleum and Gas (Production and Safety) Act 2004 (Qld) s 26(2). Petroleum Act 1923 (Qld) s 80A(1); Petroleum and Gas (Production and Safety) Act 2004 (Qld) s 564(1)(a). Petroleum Act 1923 (Qld) s 80C(1); Petroleum and Gas (Production and Safety) Act 2004 (Qld) s 566(1). Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 3. Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 4. Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 9. Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 36. Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 39. Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 40. 120 keep a declared pest;157 release a declared pest;158 or supply a declared pest.159 However, all of these activities may be authorised by a declared pest permit. A person may apply to the Chief Executive for a declared pest permit to carry out any of the activities listed above.160 Under the legislation, the Chief Executive is required to maintain a register of declared pest permits.161 The legislation is silent as to whether this register is available for public inspection. Furthermore, there is no obligation placed upon the Chief Executive to notify the Registrar of Titles of any entries on the register. As such, this register must be searched in addition to a title search, to ensure that an accurate picture of all restrictions on title and use is attained. Additionally, there is no register containing details of what plants and animals are declared pests, and the geographic areas to which these restrictions apply. As a result, the register in place is of little use in determining what restrictions affect a given parcel of land. It is necessary to consult the text of the legislation and regulations to determine whether there are any relevant declarations in place. 3.3.7. Soil Conservation Act 1986 The Soil Conservation Act differs from most environmental legislation as it does not explicitly state its objective. The Act defines ‘soil conservation’ to mean the prevention or mitigation of soil erosion,162 and is therefore clearly in place for the purpose of environmental protection. The Act uses two different instruments to achieve soil conservation, namely property plans and project plans. 157 158 159 160 161 162 Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 41. Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 43. Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 44. Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 58. Land Protection (Pest and Stock Route Management) Act 2002 (Qld) s 75(1). Soil Conservation Act 1986 (Qld) s 6. 121 Property plans are a voluntary undertaking, which depend upon the consent of a landowner. They apply to a single property, or part thereof. A landowner may instigate a property plan by making an application to the DERM for approval of the plan.163 Under the Act, a property plan must detail all ‘soil conservation measures, undertakings, acts, proposals, prohibitions and things designed, carried out, enforced or proposed to be carried out or enforced…for the purpose of soil conservation’.164 A landowner may also apply for financial assistance to carry out the necessary works.165 In contrast, a project plan can be imposed upon landowners without their consent. A project plan typically applies to an area covering between 10 and 20 properties.166 The first step is for the Chief Executive to prepare a plan for an area, which contains the same information necessary for property plans.167 Once the plan has been prepared, the Soil Conservation Act specifies that a community consultation period must follow, allowing members of the public to lodge objections to the plan.168 If no objections are made, the Chief Executive may then forward the plan to the Governor-in-Council for approval.169 Once a project plan is in place, the Chief Executive may, in accordance with the plan, issue a soil conservation order to a landowner, requiring them to construct or maintain the soil conservation measures listed in the order.170 The Act requires the Chief Executive to keep a register of all approved plans, and also to keep a copy of each approved plan and details of all revocations. These records must be available for inspection by any person, free of charge.171 There is no provision for this register to be linked to the land title register, therefore an additional search must be undertaken to determine whether there are any obligations or restrictions in place. 163 164 165 166 167 168 169 170 171 Soil Conservation Act 1986 (Qld) s 10(1). Soil Conservation Act 1986 (Qld) s 10(2). Soil Conservation Act 1986 (Qld) s 24. Queensland Government, Soil Conservation Planning in Cropping Lands (2006) Department of Natural Resources and Water <http://www.nrw.qld.gov.au/factsheets/pdf/land/l83.pdf> at 26 November 2007. Soil Conservation Act 1986 (Qld) s 14. Soil Conservation Act 1986 (Qld) ss 14(7); 21. Soil Conservation Act 1986 (Qld) s 15(1). Soil Conservation Act 1986 (Qld) s 17(1). Soil Conservation Act 1986 (Qld) s 33. 122 3.3.8. Nature Conservation Act 1992 The Nature Conservation Act also establishes a separate register. Under s 133, the chief executive must keep a register including most instruments under the Act. Those relevant to private land are conservation agreements, management and conservation plans, and interim conservation orders.172 The register must be made available for public inspection during office hours on business days. A prescribed fee is payable, and a person may take extracts of the register.173 This register is effectively linked to the land title register. As stated above, the chief executive is required to notify the Registrar of these instruments, and they must be recorded as administrative advices. 3.3.9. Sustainable Planning Act 2009 The Sustainable Planning Act was enacted to achieve ecological sustainability through managing the development process and its effects on the environment, and coordinating and integrating planning at the local, regional and state levels.174 Amongst other things, the Sustainable Planning Act sets out the process whereby local governments are to create planning schemes, which are given the force of law.175 An example planning scheme is Brisbane’s City Plan. This is a very detailed plan which sets out its overall objectives, and then has a number of local plans for suburbs, which outline performance criteria and solutions for development in those areas. Although neither the Sustainable Planning Act nor the local planning schemes provide for public registers, a prospective purchaser can apply for property information, which the council will provide using information from their own information sources. For example, in Logan City Council a prospective purchaser can 172 173 174 175 Nature Conservation Act 1992 (Qld) s 133(1). Nature Conservation Act 1992 (Qld) s 133(2). Sustainable Planning Act (Qld) s 3. Sustainable Planning Act (Qld) s 80. 123 apply for a property search, which gives information on the property ownership and location, the valuations, details of rates levied, details of zoning, including planning schemes, vegetation management and building envelopes, details of any building work, engineering resumptions and realignments, and water consumption.176 An example property search is annexed to this thesis as Appendix C. However these property searches are not comprehensive, and if a landholder or prospective purchaser wishes to develop the land, it would be prudent to consult the planning scheme in detail. If there are any inaccuracies in the information that is provided, the local government is required to pay reasonable compensation.177 3.3.10. Building Act 1975 Under recent amendments to this Act, a seller of a property is required to prepare a sustainability declaration to provide to prospective purchasers.178 The declaration will be an approved form which provides information about the property’s sustainable energy or water use, or amenity or safety of persons using the building.179 This system differs from the other Acts discussed as it does not require a searcher to actively seek the information; it must be provided to them by law. This ensures that purchasers are provided with relevant information, and is similar to the mandatory disclosure regimes used in other jurisdictions.180 3.3.11. Vegetation Management Act 1999 The Vegetation Management Act creates several registers: Register of clearing notifications; Register of regrowth clearing authorisations; and. Register of offsets. These registers will be discussed in turn. 176 177 178 179 180 Logan City Council, Application for Residential Property Information http://www.logan.qld.gov.au/NR/rdonlyres/D0CB5715-3470-4CC0-9BAD46B4D0BD5B0C/0/ps1.pdf> at 11 August 2009. Sustainable Planning Act (Qld) s 707. Building Act 1975 (Qld) s 246C. Building Act 1975 (Qld) s 246B. See for example Sale of Land Act 1962 (Vic) s 32(1). (2009) < 124 The Vegetation Management Act and the associated Regrowth Vegetation Code set out a very complicated system defining when regrowth may be cleared. Under the Regrowth Vegetation Code, certain types of clearing are allowed provided that DERM is notified.181 The Act states that a person must not clear regulated regrowth vegetation under the regrowth vegetation code unless they have given a clearing notification to DERM.182 The register of clearing notifications is used to record details of these notifications.183 This essentially negates the need for DERM to assess these applications. If a person wishes to clear regrowth vegetation in a way that does not comply with the regrowth vegetation code, they need to apply for a regrowth clearing authorisation.184 DERM have to assess these applications.185 If an authorisation is given, it is registered on the register of regrowth clearing authorisations.186 Importantly, these authorisations do not run with the land.187 It is probably not important that regrowth clearing authorisations are not notified on title as they do not operate in rem. However it may be beneficial for clearing notifications to be notified, in the event that a purchaser of land wishes to conduct clearing that has already been notified. The Vegetation Management Act also has an associated Policy for Vegetation Management Offsets. This may contain matters regarding offsets as a condition of development approval.188 The chief executive must keep a register of these offsets.189 There is no provision for this register to be linked to the land title register, but the Vegetation Management Act contemplates the use of statutory covenants to secure 181 182 183 184 185 186 187 188 189 Queensland Government, Regrowth Vegetation Code (2009) Department of Environment and Resource Management < http://www.derm.qld.gov.au/publications/docs/p203735.pdf > at 14 December 2009. Vegetation Management Act 1999 (Qld) s 19V. Vegetation Management Act 1999 (Qld) s 19X. Vegetation Management Act 1999 (Qld) s 19ZA. Vegetation Management Act 1999 (Qld) ss 19ZB – 19ZD. Vegetation Management Act 1999 (Qld) s 19ZG. Vegetation Management Act 1999 (Qld) s 19ZE. Vegetation Management Act 1999 (Qld) s 10D. Vegetation Management Act 1999 (Qld) s 22DL. 125 these offsets.190 This is also discussed in the Policy, but is not mandated.191 This is potentially a sound method of providing information on these offsets, but should be used on a uniform basis. 3.3.12. Conclusion Although a number of Acts establish registers, the operation of these registers differs considerably. In some Acts the register is effectively linked to the land title register through the recording of administrative advices, whereas in other cases it is not. An administrative advice will not provide any detail of the obligations and restrictions, and it is necessary to undertake a separate search. Regardless, this method does ensure that the existence of any obligations and restrictions is flagged on a title search. In cases where the register is not linked, it is necessary to conduct an additional search to determine whether or not there are any obligations or restrictions affecting the property. The purpose of the registers also differs. The Water Register was developed to facilitate trade of water entitlements, whereas the registers established under the Aboriginal Cultural Heritage Act and the Torres Strait Islander Cultural Heritage Act are merely an informational tool. Additionally, some registers are comprehensive and contain details of all relevant obligations and restrictions under their establishing Act, whereas others (for example, the Land Protection (Pest and Stock Route Management) Act 2002) only contain some restrictions. In the latter case, it is also necessary to consult the legislation, regulations and plans to fully ascertain what obligations and restrictions affect land. 190 191 Vegetation Management Act 1999 (Qld) s 10D(2)(d). Queensland Government, Policy for Vegetation Management Offsets (2009) Department of Environment and Resource Management < http://www.derm.qld.gov.au/about/policy/documents/3450/veg_2006_2888.pdf> at 14 December 2009. 126 3.4. Restrictions which are not registered A number of the Acts surveyed also impose restrictions on title and use, which are not registrable on any register. These Acts include: Electricity Act 1994; Land Tax Act 1915; Local Government Act 1993; Metropolitan Water Supply and Sewerage Act 1909; Soil Survey Act 1929; and Wild Rivers Act 2005. As these restrictions are not registrable, it is necessary to consult the legislation itself, as well as any regulations and plans, for details of restrictions on title and use. From this list of legislation, the Soil Survey Act 1929 and Wild Rivers Act 2005 are the only Acts that create, or enable the creation of restrictions, in favour of environmental sustainability. These two Acts will be discussed in detail below. 3.4.1. Soil Survey Act 1929 The Soil Survey Act is silent as to its objectives. It states that authorised persons are permitted to enter land for the purpose of carrying out a soil survey. They are also permitted to dig or bore into land, take samples, and conduct any inspection or investigation.192 The Act is silent as to how details of such authorisations may be obtained. 3.4.2. Wild Rivers Act 2005 The purpose of the Act is to ‘preserve the natural values of rivers that have all, or almost all, of their natural values intact’.193 The Act sets out a number of principles for achieving this purpose, including regulating activities to preserve wild rivers, taking a precautionary approach, and taking into account the impact of activities on wild rivers natural values.194 192 193 194 Soil Survey Act 1929 (Qld) s 3. Wild Rivers Act 2005 (Qld) s 3(1). Wild Rivers Act 2005 (Qld) s 3(3). 127 To achieve these purposes, the Minister is empowered to declare an area to be a wild river area.195 The area is then divided into two parts – the high preservation area, and the preservation area.196 Once an area has been declared a wild river area, there are limitations upon development. More stringent provisions apply in respect of high preservation areas. If a development application is made for a material change of use of premises or operational work for agricultural or animal husbandry activities, and part of the area is a high preservation area in a wild river area, the assessment manager must refuse the application.197 If a development application is made for a material change of use of premises or operational work: In a wild river area; That is residential, commercial or industrial development; and That is assessable under IPA; The assessment manager’s decision must comply with the applicable code mentioned in the wild river declaration for the area.198 The Act does not make any provision for notification of wild river declarations. As a result, a party applying for a material change of use of premises or operational work needs to contact the department directly to determine whether any restrictions apply. Details of wild river declarations are available on the DERM website. At present, there are six wild river declarations in place, with a further proposal currently underway.199 If a party is not aware of any declaration, this may affect their application, as the declaration may not be specifically addressed. 195 196 197 198 199 Wild Rivers Act 2005 (Qld) s 7. Wild Rivers Act 2005 (Qld) s 41. Wild Rivers Act 2005 (Qld) s 42. Wild Rivers Act 2005 (Qld) s 43. The State of Queensland, Declared Wild River Areas (2008) Department of Natural Resources and Water < http://www.nrw.qld.gov.au/wildrivers/declared_areas.html> at 9 March 2009. 128 3.4.3. Conclusion In both Acts surveyed there is potential for use of a register. In the case of the Soil Survey Act, any authorities to enter land could be recorded as administrative advices. As the Wild Rivers Act places limitations upon development, it is even more important that some registration system be used to ensure that landholders are properly informed of restrictions upon use. This would also enable landholders to properly frame any applications for development approval. 3.5. Conclusion The following table briefly summarises the findings regarding the use of registers Aboriginal Cultural Heritage Act 2003 No register Recorded as administrative advices Separate register Land Title Register under the Acts discussed above. X Acquisition of Land Act 1967 X Building Act 1975 X Coastal Protection and Management Act X X 1995 Electricity Act 1994 X Environmental Protection Act 1994 Forestry Act 1959 X X X X Fossicking Act 1994 X Sustainable Planning Act 2009 X Land Protection (Pest and Stock Route X X X Management) Act 2002 Land Tax Act 1915 X Local Government Act 1993 X Metropolitan Water Supply and Sewerage X 129 No register Recorded as administrative advices Separate register Land Title Register Act 1909 Mineral Resources Act 1989 Nature Conservation Act 1992 X X X Planning (Urban Encroachment – Milton X X Brewery) Act 2009 Petroleum Act 1923 X Petroleum and Gas (Production and X Safety) Act 2004 Queensland Heritage Act 1992 X X Recreation Areas Management Act 2006 X River Improvement Trust Act 1940 X Soil Conservation Act 1986 X Soil Survey Act 1929 X State Development And Public Works X Organisation Act 1971 Sugar Industry Act 1999 Torres Strait Islander Cultural Heritage X X X Act 2003 Vegetation Management Act 1999 X X Water Act 2000 X X Wet Tropics World Heritage Protection X X and Management Act 1993 Wild Rivers Act 2005 X This table clearly shows a fragmented approach to the recording of information concerning obligations and restrictions on land title and use. There are a number of registers that must be consulted as well as some obligations and restrictions which are 130 not recorded anywhere, and can only be found within the relevant legislation, regulation, or plan. This section has analysed each Act on an individual basis. It is now necessary to assess the system for management of obligations and restrictions on title and use as a whole in accordance with the guidelines for comparison set out in Chapter Three. 4. How effective is the Queensland approach as a whole? 4.1. Does the jurisdiction provide for integrated management of information concerning obligations and restrictions on land title and use? As discussed in detail above, information concerning obligations and restrictions on land use can be found in one of four places: Registered on the land title register; Recorded as an administrative advice; Registered in a separate register; or In legislation, regulations or plans. As a result, there are a number of different places where obligations and restrictions on land title and use may be found, often with little interlinkage between them. Administrative advices may be recorded on title, but only a small number of Acts require this. Furthermore, many of those Acts which do use administrative advices only do so in a minimal way, and information on many obligations and restrictions created by those Acts is only available in the text of the legislation, regulations, or plans. As discussed above at 3.3, obligations and restrictions may also be found on a separate register established under legislation (for example, the heritage register). Some of these Acts require that entries on these registers be entered as administrative advices, effectively linking the register to the land title register, but this obligation does not apply universally. Furthermore, even where the obligation does exist, the registers are not interlinked, and all administrative advices must be made manually.200 200 Interview with Max Locke, Registrar of Titles, Queensland Department of Natural Resources (Interview, 30 July 2008). 131 Entries are therefore dependent upon the diligence of the administering agency. Additionally, an administrative advice merely alerts the searcher as to the existence of the obligations and restrictions, and a search of the separate register is necessary to obtain the details. In addition to these registers, there are a number of obligations and restrictions on title and use that are not recorded on any register, and exist solely in legislation. To ascertain what these obligations and restrictions are, it is necessary to consult the legislation, and in some cases, regulations and plans. An example of the complexity of the current system can be found in the Queensland Court of Appeal decision of Burns v State of Queensland & Croton.201 Mrs Burns purchased vacant land at a Crown auction in 1968, and decided to sell the land in 2002 as she was experiencing significant financial hardship. She decided to clear the land prior to sale in the hope that it would increase the price, and applied for a permit to clear native vegetation. This decision was described as leading her ‘into the web of intricacies of the Integrated Planning Act’.202 Mrs Burns’ application for a clearing permit was refused on the basis that her land was a known habitat for the endangered mahogany glider and cassowary. As a result, the value of her land was substantially reduced, with Jerrard JA noting that ‘she has been singled out to bear a very substantial cost of preserving the habitat of the mahogany glider’.203 Mrs Burns challenged the refusal to grant a permit, and despite the Court’s sympathy for Mrs Burns’ situation, her appeal was dismissed as the encumbrance over her land had its basis in legislation. Unfortunately, this encumbrance could only be found by reading the Integrated Planning Act 1997 (Qld), in conjunction with the Integrated Planning Regulation 201 202 203 [2006] QCA 235. Burns v State of Queensland & Croton [2006] QCA 235 [5]. The Integrated Planning Act 1997 (Qld) has since been replaced by the Sustainable Planning Act 2009 (Qld), but this does not effect the outcome of this case. Ibid [5]. 132 1998 (Qld), the Vegetation Management Act, and the State Policy for Vegetation Management on Freehold land. As this restriction was not notified on title, Mrs Burns was not notified of its existence. Furthermore, if Mrs Burns had sold the land without clearing it, an innocent purchaser could have purchased the land without knowledge of this restriction on development. Whilst this thesis does not attempt to enter into a discussion as to the necessity for legislative obligations and restrictions on land, this case does demonstrate a need for clearer information systems which draws together fragmented legislative regimes. This problem is also apparent in the case of Wall v Doyle,204 discussed in Chapter One, which involved land clearing which was allowed under one statutory regime, but not under another. Recent events which occurred in Collingwood Park in Queensland also demonstrate how the present system can result in landowners being unaware of major issues affecting their land. A number of persons purchased and built upon land in Collingwood Park, unaware that there were a number of disused mines under the area. In April 2008, these disused mines caused land subsidence, causing a number of the properties to sink, which in some cases caused irreparable damage.205 The existence of these mines could not be found through the usual conveyancing searches. Since the land subsidence occurred, the Queensland government proposed new legislation which will enable owners of land in Collingwood Park to have a legal note placed on their title, which will provide an alert that the property is in an at-risk area, and also allow the owner, or any future owner, to claim financial assistance if the land is damaged further in the future.206 This legislation was passed in November 2008, and will be discussed below at 4.2. The government further resolved to introduce legislation that will prevent future development in old mining areas.207 204 205 206 207 [2008] QPEC 23. Queensland Government, Collingwood Park Subsidence (2009) Department of Mines and Energy < http://www.dme.qld.gov.au/cp_subsidence.cfm> at 27 January 2009. Ibid Queensland Government, Collingwood Park inspires new legislation (2008) Department of Mines and Energy <http://www.dme.qld.gov.au/media_centre.cfm?item=562.0> at 27 January 2009. 133 Despite these proposals, landowners have still had to endure a lengthy process to obtain financial assistance for damage to their homes. Furthermore, the damage has had a flow-on effect to neighbouring landowners, who have not suffered any physical damage, but have seen their property values decrease. These problems quite possibly could have been prevented had the land title register provided relevant information about these mines. In conclusion, the current system used in Queensland does not provide for integrated management of information concerning obligations and restrictions on land title and use, as a myriad of registers, statutes, regulations and plans must be consulted to obtain a complete understanding of all obligations and restrictions affecting land. There has been movement in recent years towards making more information available, although this has largely occurred on a reactive basis as a response to specific problems, as in the Collingwood Park example. There is some potential for greater integration to occur now that the DNRM and EPA are merged under the umbrella of the DERM, but such integration will be slow to occur, and will not be total. For example, there may eventually be potential for the contaminated land register to be linked to the land title register.208 4.2. Is the land title register utilised for the purpose of recording obligations and restrictions on use? The land title register only allows for the registration of certain instruments. As discussed above, some Acts have utilised these instruments as a mechanism of registering obligations and restrictions on use. This has become more widespread in recent years as more instruments have been created and made capable of registration, such as covenants and profits á prendre. The main examples of these instruments being used for environmental purposes are statutory covenants for conservation or preservation of nature, profits á prendre under the Forestry Act, and easements under the Sugar Industry Act. These examples are all 208 Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). 134 quite recent, with covenants being available only since 1997, and the relevant sections of the Forestry Act and Sugar Industry Act inserted in 2000 and 2008 respectively. This demonstrates that the use of the land title register to register obligations and restrictions on use is growing. There are also a number of Acts which provide for administrative advices to be recorded on title. Although these do not attract the benefits of registration, these entries are visible on a title search and will alert the searcher to the existence of the obligation or restriction. In some cases, these entries will also bind successors in title. The use of administrative advices is also growing, and effectively extending the scope of the land title register. A very recent example of the land title register being extended is in the case of properties affected by land subsidence at Collingwood Park. The Mineral Resources Act 1989 (Qld) was amended in November 2008 to provide a state guarantee for land affected by subsidence. This guarantees that the state will pay for all works necessary to stabilise the land and repairs to land, or alternatively, they will purchase the land where repairs are not cost-effective.209 Where this guarantee is given, the owner of affected land may, in writing, ask the chief executive to have a record of the guarantee for the land included on the freehold land register.210 The chief executive must notify the Registrar, who must in turn keep a record so that a search of the register will show the guarantee.211 The explanatory notes make it clear that this record is to operate as an administrative advice.212 Therefore the use of administrative advices is also growing. Additionally, there is increased use of external registers to record details of obligations and restrictions on use. Only one of these registers links directly to the land title register, and this is the water register. Any entries on it synchronise with the land title register automatically, and this is possible because both registers are administered by the same department. 209 210 211 212 Mineral Resources Act 1989 (Qld) s 381B(1). Mineral Resources Act 1989 (Qld) s 381C(1). Mineral Resources Act 1989 (Qld) s 381C(2), (3). Explanatory notes, Mines and Energy Legislation Amendment Bill 2008 (Qld) 34. 135 There are other registers which are not directly linked to the land title register, but are intended to operate in conjunction with it, as legislation obliges the relevant persons to notify the Registrar where entries are made on the register. One deficiency with this system is that none of that Acts surveyed state whether there are any consequences for failure to notify the Registrar of Titles. Potentially there could be obligations and restrictions which have not been notified. In contrast to the water register, these other external registers are not linked to the land title register, and updates do not occur automatically. The relevant department has to physically lodge the administrative advice with the DERM in the form of a form 14 general request. The DERM has no way of checking whether the departments are filing all administrative advices; their role is simply to record the information that is given to them. If departments breach their statutory obligation to notify the register of administrative advices, the DERM has no means of finding out.213 Although there is provision for information to be recorded on title, whether or not this is occurring is difficult to assess. Furthermore, the lack of statutory consequences for noncompliance could be acting as a barrier to departments providing information in a timely manner. If for example legislation stated that obligations and restrictions did not take effect unless notified, this would be a good incentive for departments to ensure that information is notified in a timely manner. Thus the land title register is used for the purpose of recording information on obligations and restrictions on land title and use, but only in a limited way. However the scope of the land title register has grown in recent years, and the Registrar of Titles has indicated that there is potential for further growth in the future.214 Arguably the register should be used to register and record a broader range of interests. As noted by Weir: one fundamental aspect of the Torrens system is that a party can search and ascertain all relevant interests in relation to that parcel of land. If an interest in land cannot be registered or denoted on the register in some way, this limits the ability to enforce and 213 214 Interview with Max Locke, Registrar of Titles, Queensland Department of Natural Resources (Interview, 30 July 2008). Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). 136 secure this interest. A titles system which is able to accommodate the widest variety of interests provides the maximum flexibility for the development of land. The inability to record an interest or to provide some indication on the register such as a caveat diminishes the mirror which the register should provide.215 Further expansion of the scope of the land title register to register and record new interests would contribute to restoration of the mirror principle. 4.3. How easily can landholders or prospective purchasers ascertain what obligations and restrictions on title and use apply in relation to a parcel of land? As discussed above, there is no single information source which may be consulted to identify all obligations and restrictions affecting land title and use. Consequently, it is not easy to obtain information on obligations and restrictions on title and use due to the myriad of registers and Acts which must be consulted. To ascertain the full range of information concerning obligations and restrictions on land title and use, it is necessary to undertake a number of searches, and consult legislation, regulations and plans. Standard conveyancing practice suggests that, at the very least, the following searches should be undertaken: 215 216 Title search (land title register); Planning search (through the relevant local council); Land tax search; Queensland Transport search; Main Roads search; Contaminated land and environmental management register search; Energex search; and Court registry and ASIC search.216 Michael Weir, ‘Land Title Act 1994 (Qld) – Statute for a New Millenium?’ (2000) 4 Flinders Journal of Law Reform 185, 194. Sharon Christensen and Bill Duncan, Queensland Conveyancing Protocol – Buyer Inquiries (2008) Queensland Law Society < http://www.qls.com.au/content/lwp/wcm/resources/file/ebc03e4640b5593/Qld%20Conveyancin g%20Protocol%20v3%20_10%20September%202008.pdf> at 14 August 2009. 137 As outlined above there are many additional searches that could be conducted, but are generally not undertaken in a standard residential conveyance, unless there is a particular reason to do so. For example, a mining search may be conducted, but will usually only be conducted where the area is a known mining area. This has recently become a major issue in Collingwood Park, as discussed above, where properties have been built upon a disused mine, and subsequently affected by land subsidence. The existence of the mine was not revealed through ordinary searches, and purchasers did not conduct specialised mining searches. All of the registers surveyed are available to the public. The land title register is searchable by any person on payment of a prescribed fee. The Act permits persons to search and obtain copies of the indefeasible title of the lot, a registered instrument, or any information kept under the Act.217 A land title register search will also disclose the existence of obligations and restrictions recorded as administrative advices, but the searcher must contact the relevant department for details. All of the other external registers surveyed permit public access, most upon payment of a prescribed fee.218 In summary, it is difficult to ascertain what obligations and restrictions on title and use affect a parcel of land. Most purchasers of residential property engage a solicitor to complete the conveyance of property, in which case the standard searches listed above would generally be undertaken. However, there are a number of obligations and restrictions which may not be found through conducting these standard searches, and there is no easy way to determine if there are any such obligations and restrictions affecting land. Additionally, as almost all searches entail a fee, it may prove too much of a financial burden for prospective purchasers to conduct every possible search. Furthermore, for an individual representing themselves, it would be exceptionally difficult for them to accurately ascertain all obligations and restrictions affecting their property, due to the large number of registers, statutes, regulations, by-laws and plans which must be consulted. 217 218 Land Title Act 1994 (Qld) s 35(1)(a). Aboriginal Cultural Heritage Act 2003 (Qld) s 51; Petroleum Act 1923 (Qld) s 80C(1); Petroleum and Gas (Production and Safety) Act 2004 (Qld) s 566(1); Queensland Heritage Act 1992 (Qld) s 32(1); Water Act 2000 (Qld) s 153; Torres Strait Islander Cultural Heritage Act 2003 (Qld) s 51(1). 138 4.4. Who has responsibility for the accuracy of information concerning obligations and restrictions on title and use? The land title register is only accessible by the titling staff at DERM; no other agency may place information on these registers. The Registrar of Titles suggested an approach whereby other Departments could access a database similar to the AAR and record details of obligations and restrictions themselves. Such an approach does have disadvantages though, as there may be numerous problems with accuracy, currency, and also liability for incorrect information.219 Although only the titling staff have access to the register, staff will not question the substantive information contained in a general request to record administrative advice; they will only ensure that it complies with requirements as to form. Once general requests to record an administrative advice are received by the titling staff, they are examined for compliance with the legislation. If the dealing complies with the legislation, it is registered.220 Therefore, it is the responsibility of the administering agency to ensure that information is correct. Additionally, it is the responsibility of the administering agency to provide notice to the Registrar where an administrative advice is required, therefore liability for omitted entries would be attributable to the responsible agency. As discussed above, there are differences amongst the legislative regimes regarding when events must be notified to the Registrar in order for an administrative advice to be recorded. Whilst some Acts specify timeframes in which the Registrar must be notified, others state ‘as soon as practicable’, and others are silent as to a timeframe. The responsibilities are therefore defined by the relevant Act. However as noted above, it is unclear what the consequences are where information is not notified within these timeframes. 219 220 Interview with Max Locke, Registrar of Titles, Queensland Department of Natural Resources (Interview, 30 July 2008). Queensland Land Registry, The Titling Process (2008) Department of Natural Resources and Water <http://www.nrw.qld.gov.au/property/titles/pdf/titlingprocess.pdf> at 17 September 2008. 139 Administering departments will be responsible for information contained in external registers not linked to the title register. With regard to obligations and restrictions contained only in legislation, it is the searcher’s responsibility to ensure that the most recent version of legislation is consulted. 4.5. Is the accuracy of information concerning title and use guaranteed, and is compensation available where information is incorrect? The guarantee of accuracy given to information varies considerably depending on its source. The only entries that are guaranteed completely are those registered on the land title register. As mentioned at 3.1, the insurance principle applies to the land title register. The LTA states that a claimant is entitled to compensation from the State in a number of circumstances, including where they are deprived of an interest in a lot because of fraud, administrative errors, tampering with the register, loss or destruction of documents, or conduct of registry staff.221 Furthermore, a claimant may be entitled to compensation for loss or damage in other circumstances, provided that the register cannot be corrected.222 The insurance principle does not extend to other obligations and restrictions notified as administrative advices, and other external registers, as well as restrictions found only in legislation. The LTA specifically states that the Registrar of Titles will not be liable for incorrect information recorded as an administrative advice.223 As mentioned above, the Queensland Registrar of Titles characterises these entries as being ‘below the line’, therefore not attracting the same benefits as those registered interests ‘above the line’.224 Therefore if a landholder is affected by an obligation or restriction which is not registered on title, they will not have an action against the Registrar of Titles. One possible option would be to bring an action against the administering agency for breach of statutory duty, or negligent misrepresentation where inaccurate information 221 222 223 224 Land Title Act 1994 (Qld) s 188. Land Title Act 1994 (Qld) s 188A(1),(2). Land Title Act 1994 (Qld) s 189(1)(l). Interview with Max Locke, Registrar of Titles, Queensland Department of Natural Resources (Interview, 30 July 2008). 140 is provided. However, this right is less certain than the statutory right to compensation provided in the case of registered interests. Entries on external registers are also not subject to the state guarantee of title. Although the water register is closely modelled on the land title register, it specifically excludes the provisions of the Land Title Act granting indefeasibility.225 Therefore, there are very few statutory entitlements to compensation where loss is suffered as a result of inaccurate information. Furthermore, there are few entitlements to compensation where legislation impacts on the manner in which land may be used. Where land is taken under the Acquisition of Land Act, a claimant may apply to the relevant authority for compensation, which is assessed at the value of the estate or interest on the date it was taken.226 This restriction clearly affects title though, rather than use. This potential inequity is highlighted in the Queensland Court of Appeal decision in Bone v Mothershaw.227 In this case, Mr Bone was sent a notice advising him that the council had made a vegetation protection order in respect of his property. Despite this, the vegetation on Mr Bone’s land was destroyed and removed, at some point after the notice had been provided. Although the Court upheld the validity of the order, McPherson JA made the following comment: what is really Mr Bone’s fundamental complaint about the whole process of vegetation protection that has been imposed on his land...is that, by the council’s action in making the order, his land has been struck with sterility in relation to the uses he can now lawfully make of it. Except with council approval, there is practically nothing he can do with it except grow vegetation and perhaps walk on it…For this severe limitation on his rights as owner, he has received and will receive no compensation, although he continues to enjoy the privilege of paying the rates that the council levies on his land.228 225 226 227 228 Water Act 2000 (Qld) s 151(1). Acquisition of Land Act 1967 (Qld) ss 19-20. [2003] 2 Qd R 600. Bone v Mothershaw [2003] 2 Qd R 600, 611. 141 Despite this dissatisfaction expressed by the Court of Appeal, there remains no recourse available to owners whose land use is affected by legislation, unless the government decides to grant compensation on an ad hoc basis, such as in the Collingwood Park example, or as granted under the Nature Conservation Act. The only alternative basis for claiming compensation is where there has been a misrepresentation made. Rights to compensation for misrepresentation will be discussed in Chapter Eight, but it is relevant to note at this point that rights are quite restricted. Additionally, this right is only available where information provided is inaccurate. There is no entitlement to compensation merely where rights to use land are affected. 5. Conclusion It is evident from this chapter that the system for management of information concerning obligations and restrictions on land title and use in Queensland is not cohesive. The application of the guidelines for comparison developed in Chapter Three demonstrated that the Queensland system does not ensure security and certainty for landholders. This is largely because is difficult to obtain information concerning obligations and restrictions on land title and use, due to the large number of Acts, regulations, plans and registers which must be consulted. This lack of certainty and security has, in turn, decreased the effectiveness of environmental legislation in meeting its objectives. This is clear from cases such as Wall v Doyle,229 where a lack of information resulted in unauthorised land clearing, which in turn destroyed the environmental values which the legislation aimed to protect. This case study has demonstrated that a fragmented approach to management of information concerning obligations and restrictions on land title and use is not effective in facilitating sustainable development. The remaining two case studies will provide examples of systems that have taken a more integrated approach to management of information concerning obligations and restrictions on land title and use. 229 [2008] QPEC 23. 142 Chapter Five Western Australia Case Study 1. Introduction Western Australia has been chosen as a case study because of its innovative approach to the management of information concerning obligations and restrictions on land title and use. The Western Australian government uses two separate but complementary systems for this purpose. First, there is a land title register, which serves its traditional function of registering details concerning ownership and restrictions on title. In addition, there is a new platform called the ‘Shared Land Information Platform’ (“SLIP”), through which users can easily obtain information from government departments concerning obligations and restrictions on land use, through a search called ‘Interest Enquiry’. These systems are not interconnected, but searches of both are becoming commonplace in conveyancing.1 Although SLIP is still in development, the intention of the government is to gradually expand the information available through SLIP, so that it will eventually be comprehensive, and cover all obligations and restrictions on use. This chapter will discuss and critically analyse the Western Australian approach, and assess it according to the guidelines for comparison developed in Chapter Three. 1.1. Structure of chapter This chapter will commence by discussing the historical background to the Western Australian system. It will outline how the system has evolved, and examine mechanisms previously used for recording information on land use. It will also discuss an important Standing Committee Report which was a major impetus for law reform in Western Australia. This chapter will then discuss the present system, and how the land title register and SLIP each operate. 1 Interview with Natasha Bowler, Senior Project Officer, Landgate (Perth, 7 May 2009). 143 This chapter will conclude by analysing the effectiveness of the Western Australian approach, having regard to the guidelines for comparison being used in this thesis. 1.2. Methodology To complete this case study, a review of legislation and literature concerning land titles registration and SLIP was undertaken. Once this was complete, a number of semi-structured face-to-face interviews were conducted with representatives of Landgate, the statutory authority responsible for administering land, as well as the Registrar of Titles. The information in this chapter was compiled in a different manner to the information in the Queensland case study chapter. In the Queensland case study a very detailed review of legislative obligations and restrictions on title and use was undertaken. This was necessary to demonstrate the different regimes being used for provision of information concerning obligations and restrictions on use, as the Queensland approach is fragmented in nature. Also, the information systems used in Queensland all emanate from statute. In contrast, Western Australia utilises SLIP as a mechanism which will eventually provide information on all obligations and restrictions on use. The recording of information on SLIP is not a legislative requirement, but rather a product of government policy. As a result, the substantive details of legislative obligations and restrictions in Western Australia were not considered in any depth. The focus in this chapter is instead upon the approach being used for notification of the obligations and restrictions, rather than the content of the legislation creating them. Regardless, both chapters outline the jurisdiction’s approach to management of information concerning obligations and restrictions on land title and use, thus the prerequisite of comparability is satisfied. 2. History of land title and use registration in Western Australia Western Australia is being examined as a case study because it has developed a novel approach to the management of obligations and restrictions on land title and use. This 144 approach has only become operational in recent years, and so it is useful to consider the reform process undertaken, as this may inform the recommendations of this thesis. 2.1. Land titles registration Title to privately-owned land in Western Australia is registered under the provisions of the Transfer of Land Act 1893 (WA) (“TLA”), which requires the Registrar to maintain a register of titles.2 The TLA incorporates the principle of indefeasibility, and states that until an instrument is registered, it shall not be effectual to pass any estate or interest in any land under the operation of the TLA.3 The land title register was initially designed to serve the traditional function of recording details of ownership, as well as allowing for registration of a limited range of interests over title. 2.2. Legislative reform Although the land title register was initially designed to serve a narrow purpose, the TLA has been amended several times over the past two decades to allow it to operate in a broader capacity. The two most significant amendments will be discussed in turn. These are an amendment in 1996 to allow for restrictions on use and enjoyment to be recorded on title, and an amendment in 2003 to allow titles to be digitised, and for additional information to be recorded on title. 2.2.1. Restrictions on use and enjoyment In 1996 a new provision was added to the TLA, to allow factors affecting use and enjoyment of land to be recorded on title. Section 70A of the Act states that when the local government considers it desirable that proprietors or prospective proprietors of the land be made aware of a factor affecting the use or enjoyment of the land or part of the land, the local government may cause a notification of the factor to be prepared in an approved form and lodged with the Registrar.4 2 3 4 Transfer of Land Act 1893 (WA) s 48(1). Transfer of Land Act 1893 (WA) s 58. Transfer of Land Act 1893 (WA) s 70A(1). 145 A further subsection qualifies this by stating that the Registrar may only endorse the notification where it is accompanied by written consent of the proprietor of the land.5 The objective of this amendment is outlined in the parliamentary debates. Prior to the introduction of s 70A, government agencies had in many cases asked the Department of Land Administration if they could record information concerning use and enjoyment of land on title. This was to reduce the instances where purchasers of land were unaware of restrictions unless they did ‘a lot of detailed homework’.6 It was asserted that s 70A ‘provides an effective means of alerting purchasers to any limitations on the land being purchased’.7 It was also intended to benefit governments seeking to record information on title, and to provide prospective purchasers with a wider range of information concerning land.8 The following examples were provided of when these notifications could be used: Building envelopes contained in development; A compulsory requirement to connect to a sewer; A notification that building work has been approved; A requirement to leave a minimum area of land to construct a septic system; The imposition of zoning controls; Warnings as to unexploded ordinances; Contaminated land warnings; and Landfill warnings.9 Another stated advantage was to ‘reduce or eliminate the incidence of other legislation undermining the indefeasibility principle of the Act without amending the Transfer of Land Act’.10 Thus the government recognised that restrictions on land use posed a threat to the principles underpinning the Torrens system of title, and s 70A was an attempt to alleviate this threat. 5 6 7 8 9 10 Transfer of Land Act 1893 (WA) s 70A(2). Western Australia, Parliamentary Debates, Legislative Council, 22 May 1996, 2224 (Mark Nevill). Western Australia, Parliamentary Debates, Legislative Assembly, 29 August 1996, 4862 (Graham Kierath, Minister for Lands). Ibid. Ibid. Ibid. 146 There are two cases which provide examples of how these notifications may operate. In Baker v Town of Vincent,11 the court ordered that a notification be placed on title stating that vehicular access to the rear of a property was prohibited. This was ‘designed to ensure that future owners are aware that the use of the structure for a motor vehicle and adjacent wall are non-compliant, and the potential impact it may have on the safety of passing pedestrians’.12 Another example is Huachong Development Pty Ltd v Western Australian Planning Commission. In this case a developer was required to lodge notifications that a development close to Perth airport may be affected by aircraft noise.13 This amendment to the TLA was made prior to the development of SLIP, and indeed before the technology needed for a system like SLIP was possible. As a result, the use of this provision is somewhat limited today, and many obligations and restrictions are better suited to SLIP, as it prevents the title from becoming ‘cluttered’.14 However, existing notifications will remain on title. In the case of new obligations and restrictions, it will be necessary to consider whether land title or SLIP is the more appropriate place to record the details. 2.2.2. Expansion of certificates of title The TLA was amended again in 2003 to allow the government to record a broader range of interests on certificates of title. To enable this, the amendments provided for a move to a digital title system. The explanatory memorandum to the amending Act stated that this will allow the then Department of Land Administration (“DOLA”) to ‘use its own considerable datasets in relation to land and link them to the title for the relevant land. It will also permit DOLA to link to other datasets in State and local government to enable the title to become the “one stop shop” for all interests and information about particular parcels of land’.15 This essentially extends the purpose of 11 12 13 14 15 [2008] WASAT 4. Baker v Town of Vincent [2008] WASAT 4 at [15]. Huachong Development Pty Ltd v Western Australian Planning Commission [2008] WASAT 188 at [28]. Interview with Bruce Roberts, Registrar of Titles, Western Australia (Perth, 7 May 2009). Explanatory Memorandum, Transfer of Land Amendment Bill 2001 (WA) 1. 147 the certificate of title to allow it to contain information on land use. The certificate of title will contain this information, or at the very least state where it can be found.16 To ensure that this additional information is exempt from the State guarantee, the certificate of title is broken into two parts. The rationale for this is best described in the explanatory memorandum: the first part of the title will be the traditional land tenure, interests and encumbrances recorded on the title such as the ownership of the land, mortgages, charges, leases, memorials, easements, restrictive covenants, caveats, warrants and notifications of factors affecting the use and enjoyment of land. All of the tenure and interests will be subject to the usual State guarantee under the indefeasibility of title provisions of the TLA. The second part of the title will contain information about the land, which will not be subject to the State guarantee, but will be a very useful addition to the title and give a greater degree of relevant information about the land…There are endless possibilities in relation to the amount and nature of information about the land that can be included on the digital title. It can even permit the linking of information contained in other datasets held by DOLA, other State agencies and Local Government.17 This amendment provides for a very similar system to the administrative advices used in Queensland, where registered interests subject to the guarantee are registered ‘above the line’, whereas notifications not attracting the benefits of registration are recorded ‘below the line’. This distinction is perhaps clearer on the Western Australian title search than it is on the Queensland title search. A Western Australian title search is annexed to this thesis as Appendix F, and it quite clearly shows a line accompanied by a statement ‘end of title search’. Additional information appears below this line. This is preferable to the Queensland method, as it makes it clear to searchers that the information below the line is not part of title. Under the TLA, the Registrar has an obligation to endorse on a certificate of title the particulars of all dealings and matters affecting the land where they are required by 16 17 Ibid 3. Ibid 4. 148 the Act to be registered.18 Under the 2003 amendments, additional information may be endorsed on the certificate with approval of the register. This information may be: Information about the land which is not information about title, or information required to be endorsed; or A graphic demonstrating the extent of the land, or an easement or covenant that affects it.19 This amendment allowed for the register to be expanded to include information not traditionally capable of inclusion. The Western Australian Registrar of Titles also describes this provision as a typical ‘above the line’ and ‘below the line’ provision, allowing additional information to be recorded, without impacting upon title.20 According the Registrar, the most common use of this provision is to record the street address of a property on title, as well as a reference to the sketch of land.21 This section could potentially be used for a broader range of purposes, but similarly to s 70A notifications, the introduction of SLIP has largely eclipsed the need for information to be recorded on title in this manner. There has thus far been little litigation concerning this provision. In McGiveron v Stanton-Bovis the court had to consider whether a public access way operated. There was no formal registration of transfer of the access way, but there was a handwritten note concerning it that would have been found upon a search of the register.22 The judge agreed that this should have constituted notice to the purchaser, but noted that law in this area is not settled, and some of the facts in the case were in dispute. Therefore the matter could not be concluded at the interlocutory stage.23 The example title search annexed to this thesis as Appendix F shows how this provision has been used to include street address details on a title search. 18 19 20 21 22 23 Transfer of Land Act 1893 (WA) s 48A(2). Transfer of Land Act 1893 (WA) s 48A(1A). Interview with Bruce Roberts, Registrar of Titles, Western Australia (Perth, 7 May 2009). Ibid. McGiveron v Stanton-Bovis [2007] WASC 240 at [5]. Ibid [19]-[20]. 149 2.3. Calls for further reform of the Western Australian system Despite these amendments to the TLA in 1996 and 2003, it became evident that obligations and restrictions on land title and use were still posing problems to landholders and prospective purchasers. Additionally, advances in technology meant that more sophisticated computer databases could be used to provide land information. To determine how obligations and restrictions could be most effectively managed, the government commissioned an inquiry to consider options for reform. This section will discuss the recommendations of this inquiry, as well as the government’s response. 2.3.1. Standing Committee Inquiry - 2004 In 1999 the Western Australian government directed the Parliamentary Committee on Constitutional Affairs to conduct an inquiry entitled ‘the erosion of private property rights without compensation due to Acts, regulations and policies’. In 2001 after a change of government, this Committee was abolished, and the new Standing Committee on Public Administration and Finance took over this inquiry as part of a larger review. The Standing Committee published its findings in 2004, in a report titled ‘Report on the impact of State government actions and processes on the use and enjoyment of freehold and leasehold land in Western Australia’.24 From the outset, the Committee noted that there are a myriad of ways in which the government can and do impact upon the use and enjoyment of land.25 In the report, the Committee paid particular attention to submissions made by the now defunct Department of Land Administration (“DOLA”). In its 2001 submission, DOLA made the following observation, which is worthy of full repetition: in Western Australia there is no one agency that oversees land administration and in most cases a single activity is managed by a number of differing government agencies. From a stakeholder and customer perspective, the continued introduction of new land 24 25 Standing Committee on Public Administration and Finance, Western Australia Legislative Council, Report on the impact of State Government actions and processes on the use and enjoyment of freehold and leasehold land in Western Australia (2004). Ibid 35. 150 related legislation is increasing the complexity of land administration in this State, and this has a significant impact upon the recording of all rights, restrictions and responsibilities on the land titles (Torrens) register. It is a fundamental part of this submission that the efficiency and integrity of the land registration system (through the Torrens system) is being eroded because many of the limitations and prohibitions affecting land and interests in land are not collected and are not centrally available for access by everyone.26 DOLA also noted that search costs had increased substantially because purchasers had to search for interests operating outside of the Torrens register.27 DOLA recommended that a central portal be established, where customers could find all information on obligations and restrictions affecting land. However, they recommended that the Torrens register remain in its current state, with all other obligations and restrictions collated elsewhere.28 This is because it would be administratively difficult and cost prohibitive for everything to be noted on the certificate of title.29 The report took account of DOLA’s submissions, and made two recommendations in this area: In the short term, the Department of Land Administration should continue to implement its aim of establishing itself as a “one stop shop” database of all interests affecting land as an urgent priority; and In the long term, the Department of Land Administration should introduce, as soon as practical, an electronic three dimensional certificate of title which records all interests affecting the land described on the certificate of title.30 These recommendations differed from DOLA’s submissions, as they suggested expanding the scope of the land title register for recording obligations and restrictions, rather than establishing a separate database. 26 27 28 29 30 Ibid 524-525. Ibid 526. Ibid 524-525. Ibid 526. Ibid 530 151 2.3.2. Government response to the Standing Committee Inquiry The State government issued a response to the Standing Committee Inquiry in 2004. The government supported the first recommendation, that DOLA establish themselves as a “one-stop shop” for information in land, commenting that ‘the system will enable interested parties to source a wide range of government land information including key details about rights, restrictions and obligations associated with a land parcel or certificate of title’.31 The government did not support the second recommendation, which was that the certificate of title should be expanded to record details of all interests affecting land. This is in accordance with the submissions made by DOLA. The government expressed the following rationale for this decision: a certificate of title has the benefit of a State guarantee as to its accuracy. With the recording of all “possible” interests affecting land on the certificate of title, it would not be feasible to extend this guarantee to all items and this may have the effect of eroding the integrity and indefeasibility of the certificate of title. The significant costs of such a proposal ultimately would need to be passed on and may have the effect that obtaining a copy of an absolute certificate of title would be cost prohibitive.32 In summary, the government supported the introduction of an integrated system, but did not support the expansion of the Torrens register for this purpose. As a result, it was necessary for a system to be established whereby obligations and restrictions on use are managed holistically, but externally to the land title register. 2.3.3. Conclusion This Standing Committee inquiry was the main impetus for the development of SLIP.33 The following section will discuss the present system used in Western Australia, which consists of the land title register, and the Shared Land Information 31 32 33 Western Australian Government, Response to the Report on the impact of State Government actions and processes on the use and enjoyment of freehold and leasehold land in Western Australia (2004) pp 29-30. Ibid 29-30. Interview with Bruce Roberts, Registrar of Titles, Western Australia (Perth, 7 May 2009). 152 Platform. Following the recommendations of DOLA and the State government’s response, these systems remain separate, but together aim to provide a comprehensive account of obligations and restrictions affecting title. 3. Review of the present system A combination of legislative reform as well as the Standing Committee recommendations led to major reform of the Western Australian system. Currently information concerning title is contained in the land title register, whilst the objective of SLIP is to provide information on obligations and restrictions concerning use. This section will discuss the roles of the land title register, and SLIP, noting how they complement one another. 3.1. The Land Title Register 3.1.1. Instruments capable of registration The Western Australian land title register has retained its traditional function of only registering interests affecting title. Traditional interests capable of registration include mortgages34 and leases.35 Restrictive covenants are also capable of registration, but the legislation states that they ‘may be created and made binding…so far as the law permits’.36 As a result, registration does not confer validity; this is still determined in accordance with general principles of law. The TLA does not deal with registration of easements, but does empower the courts to extinguish, discharge or modify easements which have been created.37 In Western Australia the scope of the land title register has been extended to allow for the registration of carbon rights, carbon covenants and tree plantation agreements. As discussed in Chapter Two, these instruments allow a person to gain a legal interest in the carbon sequestered in trees on another person’s property. These interests are created by the Carbon Rights Act 2003 (WA), which provides for the registration on 34 35 36 37 Transfer of Land Act 1893 (WA) s 105. Transfer of Land Act 1893 (WA) s 91. Transfer of Land Act 1893 (WA) s 129A Transfer of Land Act 1893 (WA) s 129C(1). 153 title to land of a ‘carbon right’, and an accompanying ‘carbon covenant’.38 The legislation was designed to encourage trading in carbon rights by reducing the legal risks associated with such transactions, by enabling a carbon right to be registered over title to land as a separate interest.39 To register a carbon right and covenant, it is first necessary to lodge a form for the creation of a carbon right with the Registrar.40 This form must be signed by the registered proprietor of the land in respect of which the carbon right is to be created.41 The carbon right may be accompanied by a carbon covenant,42 which may contain the terms of the carbon right.43 Essentially the carbon covenant will contain details of ‘how much carbon is to be sequestered, over what time frame, in what form, how it is to be measured, and so on’.44 Once the form has been registered, the carbon right becomes a separate interest in land.45 Despite this amendment to the TLA, as well as the amendments above to allow for restrictions on use to be notified, the land title register has largely retained its traditional role as a repository of information concerning restrictions on title only. Furthermore, in 2004 it was estimated that there were more than 180 interests that could affect use and enjoyment of land, but only a small number of these were visible on the certificate of title.46 3.1.2. Instruments capable of being recorded on title Amendments made to the TLA in 1996 and 2003 have allowed for additional information to be recorded on title. These amendments will not be discussed again in 38 39 40 41 42 43 44 45 46 Western Australia, Parliamentary Debates, Legislative Assembly, 22 May 2002, 10960, (Francis Logan). Ibid 10960-10961. Carbon Rights Act 2003 (WA) s 5(1). Transfer of Land Act 1893 (WA) s 104B(1)(a). Carbon Rights Act 2003 (WA) s 10(1). Carbon Rights Act 2003 (WA) s 11. Western Australia, Parliamentary Debates, Legislative Assembly, 22 May 2002, 10961, (Francis Logan). Carbon Rights Act 2003 (WA) s 6(1). Government of Western Australia, Shared Land Information Platform Implementation Plan: Final (2004) Landgate p 23 < http://www.landgate.wa.gov.au/docvault.nsf/web/SLIP_ImpPlanFinRepVol1_271004/$FILE/SL IP_ImpPlanFinRepVol1_271004.pdf> at 6 February 2009. 154 any detail, but it is relevant to note again that such notifications do not receive the benefits of indefeasibility, and are recorded on title purely for informational purposes. 3.1.3. Administration of the Land Title Register The administration of the land title register in Western Australia is interesting to consider, as it differs considerably to the position in Queensland. Prior to 2006, the land title register was administered by the Department of Land Administration. In 2006 legislation was passed to create a statutory authority responsible for land administration, and this change became effective on 1 January 2007.47 In 2006, the Western Australian Land Information Authority was established under legislation.48 This Authority is more commonly known as ‘Landgate’. The explanatory notes to the Bill noted that ‘information about land and its ownership, use and management is vital for Western Australia's economic, social and environmental development. The agency to be created by this Bill will be the first of its kind in Australia and will help maintain the State's competitive edge in the national and global economy’.49 The purpose of the legislation was to establish a land information statutory authority with commercial powers.50 Its objectives are twofold: To act as a body through which the State performs certain functions related to land information on a basis that does not involve making a profit; and To generate for the State a fair commercial return from providing goods and services on a basis that may involve making a profit.51 47 48 49 50 51 Western Australian Land Information Authority, About Us (2007) Landgate http://www.landgate.wa.gov.au/corporate.nsf/web/About+Us> at 16 March 2009. Land Information Authority Act 2006 (WA) s 5(1). Explanatory Memorandum, Land Information Authority Bill 2006 (WA) 1. Ibid. Land Information Authority Act 2006 (WA) s 8. < 155 Thus the Authority is responsible for carrying out government business, as well as creating a profit. The explanatory notes to the Bill further elaborated upon the authority’s role, and noted that it will: deliver core government services in land titling, land information and valuation that are currently provided by the Department of Land Information; provide new systems and online services to open up access to extensive government databases about land; and lead the commercial development of the State's land information, which has acquired market value in recent years as a result of significant changes in technology, use and demand.52 The explanatory notes also asserted that improved access to land information will provide a number of benefits for government, business and the community, including in planning, and land and property development.53 The Land Information Authority Act elaborates further upon the functions of the Authority in a section titled ‘functions’. This section states that the Authority’s main responsibilities include administering and providing access to information in land information systems as the laws of the State require.54 The following subsections then broaden this, allowing the Authority to provide information other than that required by legislation.55 This gives the Authority a very wide power to provide information on obligations and restrictions. This contrasts to the position in Queensland, whereby the Registrar of Titles only records information provided by government departments pursuant to legislation. Furthermore, as a statutory authority, the Authority has far broader powers than a government department may have. The Authority may exercise the following powers for the purpose of exercising its functions under the Act: acquire, develop, dispose of, and otherwise deal with, property; 52 53 54 55 Explanatory Memorandum, Land Information Authority Bill 2006 (WA) 1. Ibid. Land Information Authority Act 2006 (WA) s 9(1). Land Information Authority Act 2006 (WA) s 9(2)-(4). 156 enter into any contract or arrangement, including a contract or arrangement with any person for the performance of the function by that person on behalf of the Authority; act as an agent or provide consultancy, professional, or technical services or other assistance under a contract for services or other arrangement; participate, with the Minister’s approval, in any business concern and, with the Treasurer’s approval, acquire, hold, and dispose of, shares, units, or other interests in, or relating to, a business concern; carry out any investigation, survey, exploration, feasibility study, evaluation, or review; collaborate in, carry out, or procure the carrying out of, research and publish information that results from the research; produce and deal in any equipment, facilities, or system associated with the performance of the function; use information that it derives from the performance of any function that this or any other Act gives the Authority or a member of its staff; develop and turn to account any technology, software, or intellectual property that relates to the function and, for that purpose, apply for, hold, exploit, and dispose of any patent, patent rights, copyright, or similar rights; and promote the Authority and promote and market its goods and services.56 Because the Authority is a statutory authority rather than a government department, it is able to exercise a far broader range of functions. This in turn expands the Authority’s ability to manage obligations and restrictions falling outside of the traditional range of interests registered on the land title register. 3.1.4. Future role of the Land Title Register The amendments made to the TLA in 1996 and 2003 allow the land title register to be used for a potentially broader range of purposes. However, the Registrar of Titles has expressed the view that information concerning obligations and restrictions on land use is better suited to SLIP, as the technology is better equipped to demonstrate 56 Land Information Authority Act 2006 (WA) s 12(2). 157 obligations and restrictions which affect multiple blocks of land, and it also prevents the register from becoming ‘cluttered’.57 The Registrar does recognise that some additional information should be recorded on the land title register, but has requested greater clarity in the terminology to be used. The Registrar wrote a policy regarding consistency of language, which he has asked the Parliamentary Counsel to adopt in drafting.58 He remarked that legislation uses the term ‘memorial’ in three distinct senses: 1. A memorial which charges the land with payment of money; 2. Memorials which merely notify of the existence of a particular factor affecting the use and enjoyment of land; and 3. Memorials which attempt to achieve both. The Registrar submitted that ‘it is inappropriate to call something a memorial when it is only advising an owner of something which is affecting the use and enjoyment of land. The term “memorial”, in my opinion, is better used in circumstances where it is charging the land with payment of money’. He added that ‘the term “notification” [should] be used where it is intended that a person is notified of something which affects the use and enjoyment of land’. 59 He states that these two distinct terms should be used as each instrument has a different effect on title. The key legal difference is that ‘a notification is not a registered encumbrance over the land whereas a memorial is. A memorial can prevent a land transaction from occurring whereas a notification should not be permitted to do so’.60 As a result, the land title register will continue to operate largely as a depository for information concerning title, but also for some information concerning use. The Registrar hopes that greater consistency in language will be used for future legislation utilising the land title register. 57 58 59 60 Interview with Bruce Roberts, Registrar of Titles, Western Australia (Perth, 7 May 2009). Letter from Bruce Roberts, Registrar of Titles, Western Australia, to Greg Calcutt, Parliamentary Counsel, 19 April 2006. Ibid. Ibid. 158 3.1.5. Conclusion The role of the land title register in Western Australia is very similar to the role of the land title register in Queensland. Only a limited range of interests are capable of registration, but further legislative provisions have allowed for additional information to be registered or recorded. The significant difference is that the Western Australian government have moved away from recording information on title, instead recording it on SLIP. In contrast, the use of administrative advices in Queensland appears to be growing. The following section will discuss SLIP in detail. 3.2. The Shared Land Information Platform The Shared Land Information Platform (“SLIP”) is a distinct platform which operates separately to the land title register. This section will discuss the impetus for development of SLIP, and what objectives it aims to achieve. It will also discuss the operation of SLIP, and in particular the Interest Enquiry function, which is essentially a search function which utilises the SLIP technology. 3.2.1. Impetus for the Shared Land Information Platform Development of the Shared Land Information Platform (“SLIP”) began shortly after the 2001 state election. The government commissioned the Functional Review Taskforce to identify costs and efficiencies associated with the project, which was completed in 2002.61 Following on from this, AOT Consulting (commissioned by the Department of Treasury and Finance) conducted a review, and provided a report in 2003. AOT identified that the mechanisms used by agencies at the time for sharing of information were ‘cumbersome, resource intensive, and the data is prone to becoming out-of-date’.62 Further, AOT concluded that: SLIP would offer significant strategic benefits to government and the broader community; It is technically feasible; and 61 62 Government of Western Australia, above n 46, 2. Ibid. 159 It could realise financial benefits.63 This confirmed that SLIP would be beneficial, and that such a system was possible. Following these reviews, the government began development of the SLIP. 3.2.2. The objectives and benefits of the Shared Land Information Platform The aim of SLIP was to ‘streamline the government’s land and property information by providing the infrastructure and services necessary to link individual agencies together so customers can better access the range of information available’.64 The objectives of the SLIP were stated as follows: To simplify access to the government’s land information; To improve the efficiency of the government’s business processes; and To implement government strategy involving drawing agencies closer together.65 The intended benefits of SLIP for the general public were: Better sharing and integration of land information; Improved quality of decision-making and times; Improved management of community-supplied information; Reduced errors and subsequent rework at an agency level; and Value-adding to an agency’s data by combining it with other like datasets in order to provide context.66 Thus the goal of SLIP is to eventually make all obligations and restrictions on land use available through a single search. 63 64 65 66 G Searle and D Britton, ‘The Western Australian Shared Land Information Platform and Modern Land Administration Systems’ (Paper presented at the Expert Group Meeting, Sustainability and Land Administration Systems, Melbourne, 9-11 November 2005) 120-121. Kylie Armstrong, ‘Shared Land Information Platform – a Cost Effective Spatial Data Infrastructure Supporting Sustainable Development’ (Paper presented at the GSDI 10 Conference, Trinidad, 25-29 February 2008) 2. Government of Western Australia, above n 46, 3. Ibid 8. 160 3.2.3. Development of the Shared Land Information Platform SLIP aims to draw all land information together through one single platform. This was considered important, because obligations and restrictions on land title and use are managed by 26 different government agencies, and there are as many as 6,100 government employees using this information in their work.67 One important feature of SLIP is that it does not function as a complete register of information. Rather than assembling all information in one place, SLIP draws upon data that remains in control of the relevant government department. The aim of SLIP is to streamline information by ‘providing the infrastructure and services necessary to link individual agencies together so customers could better access the range of information available’.68 Although only one search is required, this search draws upon numerous databases to provide this information. This process is best described by the following passage from the SLIP Implementation Plan: the SLIP Enabling Framework takes advantage of current internet-based technologies and standards so that data can be accessed transparently as a single, integrated land information system whilst data remains within the control of custodial agencies. Agencies retain accountability for their data; information security is improved; access to data is opened up; and there are opportunities to automate many land-related processes, currently considered labour intensive.69 As a result, the data stays within the control of the custodian, but is drawn together through a single search. The SLIP consists of four distinct focus areas: 1. Emergency management; 2. Natural resource management; 3. Interest Enquiry (previously called Register of Interests); and 4. Land development process.70 67 68 69 70 Ibid 4. Searle and Britton, above n 63,120-121. Government of Western Australia, above n 46, 4. Ibid 40. 161 The emergency management focus area is clearly irrelevant for present purposes. The natural resource management focus area is also not relevant, as it is more targeted at government agencies and community groups seeking information for the purpose of decision-making concerning resources. This thesis is focussed instead on availability of information to landholders. However, this does show that integrated management systems can provide wider benefits, and may also assist decision-makers. Also, the land development focus area is not relevant, as it enables development application details to be easily shared amongst government agencies to expedite the decisionmaking process. Therefore for the purposes of this thesis, the Interest Enquiry or Register of Interests focus area is of most relevance. 3.2.4. Development of the Interest Enquiry function (Register of Interests) The Interest Enquiry function, or Register of Interests as it was initially titled, was developed because ‘repeatedly individuals and businesses find their dreams and development plans curtailed due simply to not knowing what interests exist over a parcel of land’.71 To alleviate this, the Interest Enquiry’s aim was to provide a single system through which all information on obligations and restrictions on use could be found. These obligations and restrictions are broadly termed ‘interests’ for the purposes of the Interest Enquiry, and this term will be used in this context in this thesis. An ‘interest’ is defined as ‘anything that may affect the use or enjoyment of an area of land, sea or air. It must have some form of legislation or regulation governing the interest and have a defined custodian for the provision of that interest information’.72 Prior to the Interest Enquiry function becoming operational, a landholder or prospective purchaser needed to contact the relevant government departments or custodians directly to obtain information. Given that there were 23 different 71 72 Ibid 6. Government of Western Australia, Shared Land Information Platform ROI Focus Area Implementation Plan: Final Report (2004) Landgate p 8 < www.egov.wa.gov.au/documents/SLIP_RoIFocusAreaImpPlanFin_271004. pdf> at 6 February 2009. 162 custodians in control of land data, this was a lengthy and cumbersome process.73 The intended purpose of Interest Enquiry was to allow landholders and prospective purchasers, as well as industry representatives and government agencies, to identify interests with a single search, rather than having to contact multiple agencies.74 One of the main drivers behind the establishment of the Interest Enquiry was the need to provide certainty to landholders. It was noted that there is an increasing recognition of the need to manage risk. Local authorities in particular are facing increasing pressure to ensure that there are no undiscovered interests prior to planning approvals being issued, with legal action having resulted where interests have been discovered later. The community have a growing expectation that information will be accessible within government to support the decisions which affect them.75 Furthermore, the State government concluded that if the Interest Enquiry was not implemented, the following problems would arise, or continue: land management and improvements in sustainability are likely to be much more difficult to attain without a holistic view of interests and markets, management and information; a lack of holistic interests information management and administration is likely to adversely affect the security of rights, their value and tradability; and the existing non-holistic approach will very likely continue to be less effective and efficient.76 This specifically acknowledges that sustainable use of resources is unlikely to occur without integrated management of land and natural resources. This is further elaborated upon in the objectives of the Interest Enquiry, which are: to ensure that all property rights in the Interest Enquiry are clearly defined, and are clear, certain, unambiguous, exclusive, legally enforceable, tradeable, and the area/spatial extent to which each specific property rights applies is clear, certain and unambiguous; 73 74 75 76 Government of Western Australia, above n 46, 49. Armstrong, above n 64, 5. Government of Western Australia, above n 46, 51. Government of Western Australia, above n 72, 9. 163 to support markets in property rights; to ensure that transactions and trading in property rights can be carried out, and that dealings are simple, transparent, certain in outcome, easily accessible, affordable, conducted expeditiously, with no disincentives; to provide legally correct information on all property rights that applies to, or affects any area of land, sea and air, and to ensure that integrated information on all property rights applying to any land parcel(s) is quickly and easily obtainable at low cost; and to contribute to natural resource and environmental sustainability, by providing for efficient and effective management of property rights to further environmental and sustainability objectives.77 Thus the objectives of Interest Enquiry are essentially twofold – it serves an economic purpose by providing better information to facilitate the trade of property, and it also serves an environmental purpose by providing better information to facilitate sustainable management of resources. This essentially mirrors the objectives which will underpin the recommendations of this thesis. As with all of the SLIP focus areas, data available through the Interest Enquiry remains in the control of the custodians. This is reiterated in the Register of Interests (as it was then called) Implementation Plan, which stated that ‘the Register of Interests is not a central repository where all interests are stored and managed. Rather, it is an enabling framework/mechanism providing access to interest information managed by multiple custodial agencies’.78 The SLIP Implementation Plan describes the operation of the Interest Enquiry as follows: 1. The customer selects the purpose of the enquiry, and identifies the area or land parcel of interest, using an online map; 2. The system determines agencies to contact and sends requests automatically; 77 78 Ibid 14. Government of Western Australia, above n 72, 6. 164 3. Agencies’ responses are sent to the Interest Enquiry system as they are completed; 4. The system notifies the user of known interests and the status of enquiries in progress; and 5. The customer can log on to the system to check later responses and their status.79 The benefit of this approach is that the risk of undiscovered interests is reduced, and the government can provide significantly improved service.80 This in turn also lowers transaction costs for landholders and prospective purchasers.81 3.2.5. Operation of the Interest Enquiry service The Interest Enquiry service (changed from ‘Register of Interests’) is now operational, and use of this service is becoming standard practice in conveyancing, along with a title search.82 It is relevant to briefly explain how Interest Enquiry works. A user logs into ‘My Landgate’, and selects the ‘Interest Enquiry’ function. The user then searches for a property using its street address. The search function then zooms to this property on a map. Once the property has been located, the user then either selects specified interests to search, or instead searches for all interests. Interest Enquiry then searches all available government data. This occurs in a variety of ways. Where agencies have their data represented on their own spatial database, these datasets are accessible via SLIP Enabler. SLIP enabler uses the coordinates to compare a property selected in Interest Enquiry against each agency’s spatial dataset. The process is best described by a representative of Landgate: we use the coordinates of the property (as defined in Landgate’s cadastral data) to make a shape for comparison against agencies data. If you can imagine that an interest may visually cross into the boundary of a property – we essentially are looking for any lines 79 80 81 82 Government of Western Australia, above n 46, 50. Ibid 52. Ibid 52. Interview with Natasha Bowler, Senior Project Officer, Landgate (Perth, 7 May 2009). 165 or points from that agencies dataset that fall within the properties boundary. If we locate something inside the boundary this results in a ‘yes’ response’. If we do not find any overlapping data then this results in a ‘no response’.83 The situation is more complex where agencies do not have existing spatial datasets. In some cases, agencies have created new datasets which are accessible by the SLIP Enabler.84 Landgate are also looking at other methods to use if agencies do not want to provide access to the spatial dataset via SLIP Enabler, or if they do not use spatial data. It is anticipated that Interest Inquiry could be expanded to do the following: Text Query into databases - Landgate could use an identification number to locate information in tables of data. Examples would include title number, address or other common identifier to locate information; Web services – Landgate could use web services to gain access to ‘reports’ already provided by an agency’s existing website. The SLIP enabler would essentially access their existing system and the user would be delivered information in the same format as the agencies system supplies it; and Agency Notification - Landgate could send through an email (or similar) to an agency enquiring whether a property has any interests affecting it. It is likely that this would be suitable for those agencies whose data needs to be investigated manually and/or in the case of agencies which have limited technical know-how or support. Landgate would then act as a conduit for manual enquiries in place of phone calls, enquiry forms etc.85 It is relevant to note that these methods are all potential methods, and are not yet used in Western Australia. At present there are some restrictions on the type of agency data that can be found by SLIP. Once Interest Enquiry has searched all available government data, it provides a summary of all interests affecting land. The User can then order separate reports for 83 84 85 Email from Natasha Bowler, Senior Project Officer, Landgate, to Justine Bell, 19 October 2009. Ibid. Ibid. 166 each identified interest. Screen captures demonstrating this process are annexed this thesis as Appendix D. At present, not all information on interests is available through an Interest Enquiry. Currently Landgate estimate that there are 54 different interests affecting land title and use.86 The following list outlines the interests that are available either through an Interest Enquiry, or through contacting the relevant custodian: Aboriginal Communities; Aboriginal Heritage Sites; Acid Sulphate Soil Risk; Acquisitions; Bush Forever areas; Carbon Rights; Control of access on state roads; Emergency Services Levy; Mining titles; Native Title and Indigenous land use agreements; Petroleum tenures; Regional planning schemes; Register of heritage places; Survey information; Threatened species and ecological communities; and Tree plantation agreements.87 An Interest Enquiry search will alert the customer where any of these potential interests affect their land. The customer is then able to order individual reports in relation to these interests. For example, the search may alert the customer to a potential risk of acid sulphate soils. A report can then be obtained from the relevant agency, which is the Department of Environment and Conservation. The report will advise the owner of the relevant level of acid sulphate soil risk in relation to their 86 87 Interview with Natasha Bowler, Senior Project Officer, Landgate (Perth, 7 May 2009). Landgate, Interest Dictionary Report (2009). 167 property, and the corresponding impacts upon development.88 An example report is included in this thesis as Appendix E. Although a number of interests can be ascertained through an Interest Enquiry, it is clear that a number can not. Interests not available include: Contaminated sites; Declared plants; National park, conservation park, and nature reserve; Native vegetation; Register of the national estate (heritage); and Salinity.89 To determine whether any of these interests affect a parcel of land, it is still necessary for the landholder or prospective purchaser to make their own enquiries with the relevant government department or agency. Regardless, an Interest Enquiry search will tell the purchaser that these interests are not covered, which at least provides the purchaser with some guidance in relation to what enquiries must be made. Additionally, these 54 interests which have been identified are only those that Landgate are aware of – there may well be other interests which have not yet been identified. Landgate are reliant upon information provided by other agencies, so there is a risk that Landgate may not be made aware of interests.90 As a result, whilst this list of interests purports to be complete, there may well be other restrictions which are not yet identified. Although Interest Enquiry presently covers only a relatively small number of interests on land use, it is the intention of Landgate to eventually extend the scope of Interest Enquiry to include all interests affecting land. This is dependant upon the cooperation of all government departments in the future. It does appear that government 88 89 90 Landgate, Sample Acid Sulphate Soil Risk Interest Report (2009). Landgate, Interest Dictionary Report (2009). Interview with Natasha Bowler, Senior Project Officer, Landgate (Perth, 7 May 2009). 168 support for the project does exist, and expansion of SLIP will most likely occur in the future.91 Furthermore, Interest Enquiry searches operate externally to the land title register. There is consequently a need to search the land title register as well as performing an Interest Enquiry search. 4. How effective is the Western Australian approach as a whole? This section will assess the Western Australian approach as a whole according to the guidelines for comparison developed in Chapter Three. It is relevant to note at this point that SLIP is still very much in its infancy, so it is difficult to accurately assess whether or not it has achieved its aims. As a result, this assessment will be completed on the basis of the information available at this point in time. This section will make some comments regarding the differences between Queensland and Western Australia, but most of the comparative analysis will occur in Chapter Seven. 4.1. Does the jurisdiction provide for integrated management of information concerning obligations and restrictions on land title and use? Western Australia has made significant progress in terms of providing security to landholders and prospective purchasers through the integration of information concerning obligations and restrictions on land title and use. The land title register in Western Australia has largely retained its traditional role of registering only a limited range of interests which affect title. A sample Western Australian title search is annexed to this thesis as Appendix F. The Interest Enquiry function through SLIP does however endeavour to draw all other interests together into a single interface. The intention of the government is to eventually make all interests on title and use visible through two searches (ie. Land title register search and Interest Enquiry search). 91 Ibid. 169 Although requiring landholders and prospective purchasers to undertake two searches does detract from the Torrens’ mirror principle, arguably it is preferable to the situation in Queensland, where numerous searches and enquiries are necessary. Additionally, as discussed above, it may be the case that the land title register is not the appropriate place to record information on land use. Thus having two sources of information may allow the government to provide more accurate and complete data than if they attempted to solely use the land title register for this purpose. Despite the positive features associated with SLIP, there are two potential problems with the Western Australian approach: Although an Interest Enquiry search will eventually provide information on all interests affecting land, it will not be collated in one place; and At present not all interests on land title and use are available through an Interest Enquiry. With regard to the first problem, it was noted earlier that all information on interests remains with the relevant government agency. An Interest Enquiry search effectively searches all of these agencies’ data simultaneously. Therefore, it is not a central repository of all information concerning land. The rationale for keeping the data with the custodians was explained by a SLIP representative in an interview: [SLIP] delivers the most up-to-date data available from participating organisations because when users connect to SLIP, they connect directly into the source data hosted and maintained by the custodian agency. “If you centralise data, taking it away from the owners, it just doesn’t work,” says Landgate’s Robin Piesse, Manager Market Development. The data must reside with the owners because they are the people who know their data the best. SLIP ensures that the data stays with the owner so that the end user gets the right data from the right people at the right time,” she said’.92 Thus the objective of keeping the data with the relevant agency is in fact to increase security, as the custodians are seen as better equipped to handle their own data. 92 Geoconnexion, ‘A new information era: the Australian Shared Land Information Platform (SLIP) development’ (2008/2009) 8(1) Geoconnexion International Magazine 46, 46. 170 Provided that the technology allows for all obligations and restrictions to be ascertained through this single search, it probably is immaterial that the data remains in control of the relevant custodians. Indeed leaving the data in the control of the custodian may allow for the provision of more accurate and up-to-date information. The second problem mentioned above is more likely to create issues in Western Australia. As discussed above at 3.2.5, not all indentified interests are presently available through an Interest Enquiry search. However, the intention of Landgate is to eventually have information on all interests available. A significant barrier to this is that some agencies are protective of their data, and are reluctant for it to be available through Interest Enquiry, although this attitude is beginning to change as the SLIP project gains increasing government, business and community support.93 If this barrier can be overcome, and information on all interests is made available through an Interest Enquiry search, the system will obviously provide a greater level of security to landholders and prospective purchasers. This could perhaps be achieved through legislative reform, and the enactment of a provision obliging government departments to make data available. Once all data is available through SLIP, the system in Western Australia will provide a good example of integrated management of information concerning obligations and restrictions on land title and use. This is because a prospective purchaser will be able to search the land title register and undertake an Interest Enquiry search prior to purchasing property, and through these two searches, get a clear picture of all obligations and restrictions on title and use affecting the land. However the current lack of information may prove problematic, and the potential liability of Landgate and other agencies will be discussed further below at 4.4. Furthermore, as Interest Enquiry does not yet cover all interests, independent enquiries are necessary to ascertain whether there are any other relevant interests impacting on title or use. Additionally, as these interests are often created by legislation, without any requirement for consent of the landholder, new interests may 93 Interview with Natasha Bowler, Senior Project Officer, Landgate (Perth, 7 May 2009). 171 arise subsequent to purchase. Therefore at this point in time a landholder or prospective purchaser can be affected by interests that are not notified either on title or through an Interest Enquiry search. The present approach used in Western Australia does not yet provide a high degree of certainty to landholders and prospective purchasers, and information has not yet been completely integrated. Despite these issues, the Western Australian approach is certainly more advanced than the Queensland approach, and represents a coordinated approach to reform, even though the process is not yet finished. 4.2. Is the land title register utilised for the purpose of recording obligations and restrictions on use? As noted above, there have been some attempts over the past few decades to extend the scope of the land title register. This has been achieved through legislative reform to allow for notification of information, without attracting the state guarantee. There has also been development in terms of interests capable of registration with the creation of registrable carbon rights and covenants. The rationale for using the land title register for this purpose was to provide these rights with security to encourage trade. Arguably this rationale could be applied to a broader range of interests, as placing obligations and restrictions on use on the register would provide landholders and prospective purchasers with greater security. However it appears that the preferred approach of the Western Australian government is for information on land use to be made available through SLIP rather than on the land title register. As mentioned above, government representatives have formed the view that SLIP is a more appropriate forum to record information on use, as it prevents the register from becoming ‘cluttered’.94 Although providing this information through the SLIP platform rather than on a land title search does derogate from the mirror principle, arguably there are sound reasons for this. Certainly SLIP appears to be a more appropriate forum for restrictions which affect multiple parcels of land. 94 Interview with Bruce Roberts, Registrar of Titles, Western Australia (Perth, 7 May 2009). 172 As there are advantages to using SLIP to record this type of information, perhaps better integration between the systems could solve the problems posed by using two different systems. At present there is no interaction between the land title register and SLIP, although this could perhaps be achieved relatively easily. If land title searches were amended to include a note directing searchers to conduct an Interest Enquiry, this would solve the information deficiency in a simple way. 4.3. How easily can landholders or prospective purchasers ascertain what obligations and restrictions on title and use apply in relation to a parcel of land? Theoretically it will be easy to obtain information on obligations and restrictions on title and use, through performing a search of the land title register and an Interest Enquiry. At present though, it is necessary to make independent enquiries with government departments to accurately ascertain all obligations and restrictions affecting land. Therefore, there is currently a need for a landholder or prospective purchaser to make enquiries in addition to the two searches, which could be quite onerous. However if the range of information available through an Interest Enquiry search is expanded in accordance with the government’s intention, the result will be a system that does allow for easy access to information concerning obligations and restrictions on title and use. To alleviate this problem of incomplete information available through Interest Enquiry, a search will also provide a list of what information is not covered.95 This does make it easier for a landholder or prospective purchaser to ascertain what interests could potentially affect their land. However, as Interest Enquiry gives no information on whether these interests affect a given parcel of land, it is necessary to make numerous enquiries with different agencies to gain a complete picture of obligations and restrictions affecting land. The list merely gives the landholder or prospective purchaser some parameters for these further enquiries. Furthermore, Landgate have specifically acknowledged that there could be additional interests 95 Interview with Natasha Bowler, Senior Project Officer, Landgate (Perth, 7 May 2009). 173 which they have not been made aware of, therefore the existence of these will not be shown through an Interest Enquiry search. In standard conveyancing practice, a search of the land title register and an Interest Enquiry would be performed. Any member of the public may perform a search of the land title register. To access Interest Enquiry, it is necessary to obtain a ‘My Landgate’ ID. Any member of the public can do this. Most of the data in Interest Enquiry is available to everyone, although the technology allows for certain datasets to be made private, and only available to restricted users.96 There is no cost for using the Interest Enquiry function, although there may be a charge imposed for accessing certain data. Whilst Interest Enquiry will alert a user to the existence of an obligation or restriction affecting land, to learn the details of this interest, it is necessary to purchase a report. At present these reports only attract a $5.50 service fee, although it is anticipated that this charge will increase as use of the Interest Enquiry search becomes more widespread.97 These two searches are consequently quite easy to undertake. 4.4. Who has responsibility for the accuracy of information concerning obligations and restrictions on title and use? Landgate are responsible for information on the land title register, and the state guarantee will be discussed below at 4.5. The situation concerning information available through an Interest Enquiry is more complex. As noted above, there are two possible issues with the Interest Enquiry function: 96 97 Information remains in the control of the agency; and Not all information is available at present. Ibid. Ibid. 174 With regard to the first issue, it appears unlikely that this will cause any major problems. As stated above, there are sound reasons for leaving the data in control of the relevant custodians. Therefore each agency is responsible for their own data. The only problem that may arise is with regard to how data is made available to the SLIP Enabler. At present, SLIP Enabler accesses spatial datasets used by agencies. If these datasets are the main datasets used by the agencies, and are kept up-to-date, this should not be a problem. If however data is put onto a spatial dataset purely for the purposes of Interest Enquiry, and agencies use different data in their day-to-day work, it will be necessary for agencies to ensure that information on the spatial database remains current. If agencies are using different data in their work and for the purposes of SLIP, there is potential for inaccuracies to occur. The second issue may lead to potential liability for lack of complete data. Landgate have recognised that this lack of complete information could lead to litigation, but have reached the view that it is better to have some information available through a central repository than to have none at all.98 Furthermore, the issue of risks was canvassed in the SLIP Implementation Plan. It was noted that as SLIP is an automated system, it may provide incorrect or incomplete information. The government noted that this may lead to liability issues, but thought this was unlikely due to the following: The degree of automation will be managed according to types of interests and the associated risk levels. The system provides for manual validation of responses to enquiries; and The system will provide information on interests using custodians’ information. This is no different from the current situation.99 Because an Interest Enquiry search will not provide any information which was not previously available; there is no greatly increased risk. This was further elaborated upon later in the Implementation Plan, where the possible legal liability for misinterpretation of datasets was discussed. The authors noted that ‘with increased access and availability of land and geographic data, there is increased potential and 98 99 Interview with Bruce Roberts, Registrar of Titles, Western Australia (Perth, 7 May 2009). Government of Western Australia, above n 46, 53. 175 risk that data could be used and misinterpreted, which could lead to litigation’. This risk of litigation was downplayed though, with the authors noting that ‘risk levels are commensurate with current uses of land and geographic data. While some legal and regulatory issues remain, they are less significant than originally perceived. Current systems already handle the legal and regulatory issues. Most of the data to be included in SLIP is already available in digital form’.100 Therefore, although there is a risk of liability for misrepresentation, the government is of the view that this risk is not any greater than it was prior to the introduction of Interest Enquiry. This is because SLIP merely draws together data that was previously available. Furthermore, as the data remains in control of the agency, any liability will likely attach to the agency rather than to Landgate. There are two steps which have been taken to mitigate legal risks associated with the Interest Enquiry, namely the use of disclaimers, and memorandums of understanding between Landgate and the agencies providing data. First, there are a series of disclaimers which users are alerted to. The memorandum of understanding entered into between Landgate and the custodian agency obliges Landgate to provide a web display of a disclaimer for customers including the following information: General – a disclaimer that Landgate and other government agencies will not be liable ‘for any loss or damage, however caused (including through negligence, error, omission or otherwise) which may be directly or indirectly suffered in connection with the use of SLIP’; Good faith – the materials available through SLIP are provided ‘in good faith and are considered true and correct at the time of publication’. The disclaimer further states that changed circumstances after publication may affect accuracy of material; No warranties – all warranties are disclaimed, and Landgate and other agencies ‘do not warrant or accept any liability for the information as to its quality, suitability, completeness, availability or accuracy’; and 100 Ibid 101. 176 No reliance – ‘customers using SLIP information remain responsible for making their own assessment of it and should verify all information with their own professional advisers or the relevant government agency sources’.101 This disclaimer will be visible when conducting an Interest Enquiry search. This essentially conveys to the customer that the information available through SLIP is provided merely for informational purposes, and is not intended to be relied upon solely. The general Landgate website also provides the following disclaimer: the information and materials presented at this web site are distributed by Landgate as an information source only. While every effort has been made to ensure the accuracy and completeness of the information, no guarantee is given nor responsibility taken by the Landgate for errors or omissions in the database. The information is provided solely on the basis that readers will be responsible for making their own assessment of the matters. Readers are advised to verify all relevant representation, statements and information with their own professional advisers. The Landgate does not accept any liability for any loss or damages for the information or advice provided at this web site or incorporated into this web site by reference, or which is incurred as a result of the use of, or reliance upon, the information and advice contained at this web site. In addition to locally mounted information, the Landgate web server provides links to other Internet sites. These external information sources are outside the Department's control and it is the responsibility of the Internet users to make their own decisions about the accuracy, reliability and correctness of information found.102 This disclaimer emphasises that data is given purely for informational purposes, and Landgate do not undertake to guarantee the accuracy or completeness of the data. It also states that users should verify information with their own advisers. It is doubtful 101 102 Landgate, Memorandum of Understanding Template (2009) clause 4.1(b). Landgate, Disclaimer of Liability (2009) http://www.landgate.wa.gov.au/corporate.nsf/web/disclaimer+of+liability> at 22 July 2009. < 177 that advisers would be in a position to know more about government data than the government themselves. Given that Landgate are in a superior position and have effective control of the data, it is unclear whether a court would uphold these disclaimers given the opportunity. Additionally, each government agency includes their own disclaimer within their Interest Enquiry report. For example, the Department of Environment and Conservation provides the following disclaimer with their Acid Sulphate Soil risk report: this Interest Report has been prepared by Department of Environment and Conservation (DEC). While DEC makes every effort to ensure the accuracy, currency and reliability of this information at the time it was prepared, circumstances may have changed since the information was originally provided. Users must exercise their own skill and care when interpreting the information contained within this Interest Report and, where applicable, obtain independent professional advice appropriate to their circumstances. In no event will DEC, its agents or employees be held responsible for any loss or damage arising from any use of or reliance on this information. Additionally, this Interest Report must not be reproduced or supplied to third parties except in full and unabridged form.103 This echoes the disclaimer required to be provided by Landgate, in that it discourages the customer from relying on the information provided. However, it is unlikely that recipients could obtain information from any other source, as government departments effectively have a monopoly over their own data. This may be a factor a court would consider in determining whether to uphold a disclaimer, and will be discussed in detail in Chapter Eight. Despite the use of these disclaimers, liability issues may still arise in relation to SLIP. Writing about aggregated data, Christensen et al noted that ‘the majority of consumers who obtain information through an official government website will expect that the provenance of the data has been checked for accuracy both in the original information 103 Landgate, Sample Acid Sulphate Soil Risk Interest Report (2009). 178 and in the way in which the aggregated data is represented’.104 Thus even where a disclaimer is used, there is the risk that users will rely on the information. Furthermore, it is evident from the Australian case law that courts will not necessarily uphold disclaimers; they are merely one of the factors relevant to a discussion of liability. Disclaimers will be discussed in detail in Chapter Eight. The disclaimers used in SLIP may be effective to transfer liability from Landgate to the relevant government agency, but it doubtful whether the agency themselves would be immune from liability. The second step taken to mitigate liability in Western Australia is memorandums of understanding entered into between Landgate and the agencies providing data. This is important because data provided via an Interest Enquiry is not maintained by Landata, but remains in the control of the custodians. Christensen et al have discussed this situation, and stated that ‘as the government agency responsible for releasing the information may not be the agency statutorily responsible for the truth of the information consideration should be given to the protocols put in place for obtaining quality information from multiple agencies and to the use of the disclaimer’.105 Landgate have put in place protocols in an effort to ensure that information provided by agencies is quality information. Landgate have entered into separate memorandums of understanding with each of the agencies, which ensure that the agencies provide information responsibly. In the template memorandum of understanding, the custodian agency is specifically obliged to provide ‘the best information or datasets available, at the time of their publication’.106 Therefore although all information provided is heavily disclaimed, agencies are obliged to essentially use their best endeavours to provide accurate material. As discussed above, it is likely that any liability for negligent misrepresentation will attach to the agency rather than Landgate itself, providing a good incentive for agencies to ensure that their data is complete and accurate. 104 105 106 Sharon Christensen, Bill Duncan and Amanda Stickley, ‘Shifting Paradigms of Government Liability for Inaccurate Information’ (2008) 15(2) Murdoch University Electronic Journal of Law 185, 205. Ibid 205. Landgate, Memorandum of Understanding Template (2009) clause 4.1(a). 179 Although the Western Australian approach does not provide complete certainty to landholders and prospective purchasers, it does appear to have made good progress in endeavouring to make information on interests available through two searches. With regard to information which is not yet available via an Interest Enquiry, it is necessary to contact the agency directly for details of obligations and restrictions. Thus the relevant agency will be responsible for the accuracy of information. 4.5. Is the accuracy of information concerning title and use guaranteed, and is compensation available where information is incorrect? The insurance principle applies only to interests capable of registration on the land title register. Section 201 of the TLA allows a person deprived of an interest or estate in land to recover compensation from the state. ‘Estate’ is defined to mean any ‘legal or equitable estate or interest, easement, right, title, claim, demand, charge, lien, or encumbrance in, over, to, or in respect of the land’.107 This clearly only extends the guarantee to persons deprived of a registered right. As obligations and restrictions on use do not go so far as to deprive a person of title, this guarantee will not apply. This was one of the government’s concerns when considering the recommendations of the Standing Committee Inquiry (discussed above at 2.3.1). The Standing Committee recommended that the certificate of title be expanded to include all restrictions on use. The government rejected this idea, as it was not considered feasible to extend the guarantee beyond its present scope. As the guarantee only extends to registered interests, there is no compensation available in relation to information gained through an Interest Enquiry search, unless of course liability arises for negligent misrepresentation. 6. Conclusion Whilst the Western Australian approach does not yet provide landholders and prospective purchasers with a complete picture of all obligations and restrictions on 107 Interpretation Act 1984 (WA) s 5. 180 land title and use, it has made significant progress in this area. Additionally, the government is taking steps to increase the range of information concerning obligations and restrictions available through SLIP, which will hopefully remedy this issue. This could perhaps be achieved more easily through legislative mandates requiring agencies to make data available through SLIP. Although SLIP does not interact with the land title register, thus derogating from the mirror principle, it is arguable that the land title register is not the appropriate place to record all government information. As a SLIP search is becoming standard in conveyancing practice regardless, it is probably of little consequence that information is spread across two separate registers or platforms. However to effectively integrate the systems, the government could possibly enact legislation requiring a note to be placed on all titles, advising searchers to also consult SLIP and conduct an Interest Enquiry to ascertain all information concerning their land. This could possibly even be done under s 48A of the TLA, as amended in 2003. This would be a small measure that would increase the degree of integration within the Western Australian system. SLIP is still very much in its infancy, so it is difficult to properly assess whether it is an effective model for the notification of obligations and restrictions on title and use. Assuming that SLIP can be expanded in the future to include all information on land use, it most likely represents an effective model for the management of obligations and restrictions on land title and use, when used in conjunction with the land title register. 181 Chapter Six New Zealand Case Study 1. Introduction New Zealand was chosen as a case study because it is recognised as a world leader in integrated natural resource management. New Zealand is useful for comparative purposes as it has a Torrens system of land registration, but it also has a novel method of management of information concerning obligations and restrictions on title and use, which may help to inform the Australian approach. New Zealand has been at the ‘cutting edge’ of environmental law developments, being one of the first countries in the world to implement the ‘sustainability principle’.1 Thus New Zealand may potentially provide some useful lessons for Australia.2 Most natural resources in New Zealand are managed holistically under the Resource Management 1991 (NZ) (“RMA”) regime, which amalgamated a number of fragmented management regimes into a single regime. The RMA contains a number of substantive provisions relating to resource management, and also defines the roles of regional and district councils with regard to natural resource management. The New Zealand government also uses an important document called a ‘Land Information Memorandum’ (“LIM”) to provide information on obligations and restrictions affecting land to prospective purchasers. It is relevant to briefly note the differences between Australia and New Zealand in terms of government, as this is necessary to an understanding of the resource management regime. The system of government in New Zealand differs from Australia in that it is centralised, and New Zealand does not have formal states or provinces. As a result, legislation is only made at the national level. Additionally though, there are local government instrumentalities which are granted power under the RMA to make policies and plans, and any rules prescribed in plans have the legal 1 2 David Grinlinton, ‘Property Rights and the Environment’ (1996) 4 Australian Property Law Journal 41, 41. David Grinlinton, ‘Contemporary Environmental Law in New Zealand’ in Klaus Bosselmann and David Grinlinton (eds) Environmental Law for a Sustainable Society (New Zealand Centre for Environmental Law, Auckland, 2002) 19, 30. 182 effect of regulations.3 The country is divided into regions, which each have a regional council, and then further into districts and cities, which each have a district or city council. The RMA vests each level of government with certain powers and responsibilities. This is in effect similar to the system in Australia where responsibility for resource management is divided between the federal, state and local governments. This Chapter will commence by discussing the operation of the Torrens system in New Zealand. It will then address the resource management regime, discussing each level of government in turn. It will conclude by critically analysing the New Zealand approach having regard to the guidelines for comparison set out in Chapter Three. 2. Land registration in New Zealand 2.1. Historical development Development of the present land titles registration system in New Zealand followed a similar path to the Australian system. Originally land in New Zealand was registered under a deeds conveyancing system. The deeds system was introduced by legislation in 1841, and amended in 1908.4 The deeds system is still in force in New Zealand, but its use is limited as most land has been brought under the Torrens system.5 The Torrens system of land registration was introduced in New Zealand in 1870 by the Land Transfer Act 1870 (NZ). There have been several amendments and consolidations made since this first enactment, and the current Torrens Act is the Land Transfer Act 1952 (NZ).6 The 1952 Act has also been significantly amended in recent years to accommodate electronic registration and conveyancing.7 The New Zealand government has switched over to an electronic conveyancing system called ‘Landonline’, which has made titles available electronically. Landonline also allows for electronic lodgment.8 3 4 5 6 7 8 Resource Management Act 1991 (NZ) ss 68(2), 76(2). Tom Bennion et al, New Zealand Land Law (Brookers, Wellington, 2005) 37. Ibid. Ibid 38. Ibid. Landonline, An Introduction to Landonline (2009) <http://www.landonline.govt.nz/aboutlandonline/introduction.asp> at 27 July 2009. 183 The New Zealand Torrens system is underpinned by the same key principles which underpin the Australian system – namely the mirror, curtain and insurance principles.9 These principles are discussed in detail in Chapter Two of this thesis. The principle of indefeasibility is enshrined in the New Zealand legislation, although the term ‘indefeasibility’ is seldom used.10 Section 62 essentially states that the registered proprietor of land shall, except in case of fraud, hold the land subject to such encumbrances, liens, estates, or interests as may be notified on the register but absolutely free from all other encumbrances, liens, estates, or interests whatsoever. This is reiterated by Edwards J in the leading New Zealand case of Fels v Knowles, who stated that ‘the cardinal principle of the statute is that the register is everything, and that, except in cases of actual fraud on the part of the person dealing with the registered proprietor, such person, upon registration of the title under which he takes from the registered proprietor, has an indefeasible title against all the world’.11 As with most Torrens jurisdictions, there are several exceptions to this general rule. A registered proprietor’s estate may be affected by: the estate or interest of a proprietor claiming the same land under a prior certificate of title or under a prior grant registered under the provisions of this Act; an omission or misdescription of any right of way or other easement created in or existing upon any land; and any portion of land erroneously included in the grant, certificate of title, lease, or other instrument evidencing the title of the registered proprietor by wrong description of parcels or of boundaries.12 These bear some similarities to the Queensland Land Title Act. 9 10 11 12 Bennion et al, above n 4, 39. Ibid 45. Fels v Knowles (1906) 26 NZLR 604, 620. Land Transfer Act 1952 (NZ) s 62. 184 New Zealand Courts have interpreted the Torrens legislation in the same manner as Australian Courts, by emphasising the concept of completeness. This is most evident in the following dicta, which outlined the goal of the Torrens system as: to contain within its four corners a complete system which any intelligent man could understand…the cardinal principle of the statute is that the register is everything, and that, except in the cases of actual fraud on the part of the person dealing with the registered proprietor, such person, upon registration of the title under which he takes…has an indefeasible title against all the world.13 Therefore, the intention is that the land title register contains all information concerning land. However this concept of completeness has been eroded by an increasing number of obligations and restrictions impacting on land use. In New Zealand here has been a recent push to reform the Torrens system, in recognition of the fact that it is no longer achieving its goals. The following section of this chapter will discuss the work of the New Zealand Law Reform Commission on this issue. 2.2. Law reform A recent Issues Paper by the New Zealand Law Reform Commission addressed whether the central features of the Torrens system are presently being met in New Zealand. It concluded that the principle of indefeasibility has achieved its aims to the extent that the Torrens system removes the need for historical investigations of title. However the Commission noted that there are a number of exceptions to indefeasibility, which to some extent undermine the principle. Furthermore, the mirror principle does not operate effectively, as the register is not a complete reflection of all interests relating to land.14 The Issues Paper specifically dealt with the issue of overriding statutes, and the authors noted that ‘there are many statutes that merely affect or create limitations on the use of land but most interests are entered or noted on the register’.15 The Commission also noted that there are good policy reasons for these statutes, even 13 14 15 Fels v Knowles (1906) 26 NZLR 604, 619. New Zealand Law Reform Commission, Review of the Land Transfer Act 1952, Issues Paper No. 10 (2008) 17. Ibid 102. 185 where not recorded on title.16 This recognised that statutes such as the RMA were enacted to serve social important goals, including sustainable development. However it recognised that there is a tension between these statutes and titles registration. This is emphasised later in the report, where the authors considered arguments for and against registration of overriding statutes. In terms of an argument for the registration of overriding statutes, the authors stated the following: one view is that these statutory interests undermine the conclusive register and the security of a proprietor’s title. If a registered title may potentially be affected adversely by interests that do not appear in the register, it does not provide a complete and reliable record. People may need to look behind the register to verify the accuracy of title information or there may be serious practical implications. The effect is that people may lose confidence in the reliability and efficiency of the system and in the security of their indefeasible title.17 Thus the authors contended that the current state of affairs has led to problems with accuracy of the title register, which could potentially be remedied through the registration or recording of overriding interests on title. Conversely, they noted that the policy grounds behind the existence of overriding statutes justify their existence, thus potentially outweighing any negative impact upon landholding. They also contended that these statutes are unlikely to have a significant impact on indefeasibility regardless.18 If this viewpoint is to be adopted, the registration of obligations and restrictions is unnecessary, and their existence in any case is more important that providing landholders or prospective purchasers with accurate information. Certainly the assertion that overriding statutes are unlikely to have an impact on indefeasibility is contrary to the position in Australia. Chapter Two and Four discussed a number of cases where overriding statutes have had a negative impact on indefeasibility. Whilst there may well be sound policy reasons behind the existence of 16 17 18 Ibid. Ibid 106. Ibid 107. 186 these overriding statutes, it is important that interested parties are able to gain information about these statutes easily. One of the purposes of this Law Reform Commission review is to examine which of these arguments should prevail, and whether the Land Title Act should be amended to provide for registration of these overriding interests. It is hoped that the Law Reform Commission will recognise the importance of providing information on these statutes, and propose some methods to address this. This review was not finalised at the time of submission of this thesis, but it is relevant to note though that this problem is currently being considered and reviewed in New Zealand, and future law reform may occur. 3. Natural resource management in New Zealand The above section of this chapter considered the arrangements for land titles registration in New Zealand. As the purpose of this thesis is to determine how obligations and restrictions on land title and use can be most effectively managed, it is necessary to also consider other arrangements for management of information in New Zealand. As with the other case studies, the focus is on obligations and restrictions enacted to promote sustainable use of natural resources. Natural resource management in New Zealand is essentially regulated by two means. First, the RMA contains a number of provisions directly affecting natural resource management. These provisions are contained in Part 3 of the RMA, and they lay down a series of duties relating such activities as the use of land, the coastal marine area, the beds of lakes and rivers, water, and discharge of contaminants.19 Second, the RMA also provides for ‘an elaborate hierarchy of policy statements, plans and rules’.20 The RMA divides New Zealand into 12 regional councils, based on river catchment boundaries.21 Within these 12 regions, there are 69 district and city 19 20 21 Tony Randerson, 'Resource Management Act 1991' in David Williams (ed), Environmental and Resource Management Law in New Zealand (Butterworths, Wellington, 2nd ed, 1997) 55, 70. Ibid 71. Caroline Miller, 'Alternative Methods in Resource Management: A New Zealand Example' (2000) 15 Planning, Practice and Research 129, 129; David Grinlinton, ‘Integrating the normative principle of sustainability into environmental governance in New Zealand’ (Paper presented at the IUCN Academy of Environmental Law 7th annual Colloquium, Wuhan, China, 3 November 2009) 6. 187 councils.22 There are plans to cut down the number of councils in New Zealand, but this is not expected to occur until 2011.23 The functions of these councils will be discussed in detail below. At this point it is relevant to note there are three different levels of regulation which are relevant to natural resource management in New Zealand: National (or central); Regional; and District. Under the RMA there is a system of vertical integration, whereby each level of government is granted separate, but sometimes overlapping responsibilities. The RMA provides that lower level plans must ‘give effect to’ higher level policies and plans, which assists with the achievement of vertical integration.24 This aims to ensure that there are no conflicts. This section will discuss natural resource management at each of these levels in turn. As it is not feasible to discuss all regional and district plans, an example will be chosen at each level. The purpose of this examination is to gauge how obligations and restrictions are managed, which will inform a discussion as to the effectiveness of the New Zealand model. It is also important to note that there are statutes other than the RMA which are relevant to natural resource management in New Zealand.25 These Acts will be discussed where relevant, but as it is mainly the RMA which impacts upon private land use, this will be the focus of this Chapter. 3.1. National regulation - the Resource Management Act 1991 3.1.1. Introduction The RMA is recognised as a crucial development in New Zealand’s legal history. The 22 23 24 25 New Zealand Ministry for the Environment, Getting in on the Act (2006) Ministry for the Environment <http://www.mfe.govt.nz/publications/rma/everyday/overview-jun06/overviewjun06.pdf> at 8 January 2008. Interview with Paul Davies, General Counsel, Franklin District Council (Telephone interview, 7 August 2009). Resource Management Act 1991 (NZ) ss 55, 62, 65, 73, 75; Grinlinton, above n 21, 6. For example Fisheries Act 1996 (NZ); Forests Act 1949 (NZ); Crown Minerals Act 1991 (NZ). 188 Act was drafted following a governmental review of its predecessor legislation, as well as a Ministry for the Environment report on the implications for New Zealand of the Brundtland Report.26 Environmental issues became prominent in New Zealand following a change of government in 1984. 27 However it was the publication of the Brundtland Report in 1987 which led to significant reform, with one commentator remarking that the Brundtland report is possibly the most important source of many of the concepts found in the RMA.28 The Ministry for the Environment report made a number of recommendations, which suggested that ‘in essence, a single, integrated resource management statute would replace the separate procedures found in nine existing Acts’.29 One of the most important features of the RMA is the adoption of integrated environmental management. Williams describes the need for integrated management as follows: in the past environmental regulation has often proceeded on an ad hoc basis pursuant to which one aspect of a development has been controlled in isolation. This approach is flawed because the principal types of pollution, air, water and land, are closely linked and a prescription for the reduction of one frequently leads to the increase of another.30 This recognition that fragmented environmental management was flawed was the major driver behind reform in New Zealand to provide for a more holistic approach to the management of natural resources. Shortly after the RMA came into operation, the Ministry for the Environment asserted that this integration of resource management needs to occur at two levels. First, there needs to be integration across media – different natural resources need to be managed in conjunction with one another. Second, there needs to be integration across agencies – this involves joint decisionmaking, management and responses.31 The RMA was a significant step towards 26 27 28 29 30 31 David Williams, Environmental and Resource Management Law in New Zealand (Butterworths, Wellington, 2nd ed, 1997) 59. Grinlinton, above n 2, 25. Ibid 57. Constance Hunt, Peter Bobeff and Kenneth Palmer, ‘Legal Issues arising from the Principle of Sustainable Development: Australia, Canada and New Zealand’ (1991) 9(1) Journal of Energy and Natural Resources Law 1, 19. Williams, above n 26, 61. New Zealand Ministry for the Environment, ‘Not Just An Add-On’ (1993) Planning Quarterly 18, 19. 189 integrated management, as it affected over 50 pieces of legislation, and repealed a number of major Acts.32 Despite the significance of the RMA, it has not been completely effective in achieving its goals, with the government conceding that ‘in the 18 years since the RMA came into force there has been growing criticism of its ability to effectively manage complex environmental issues and the slow and costly plan preparation and consenting processes’.33 As a result, the RMA was amended in 2009, with amendments coming into force on 1 October 2009. Even though the RMA is considered to be a leading example of environmental legislation, this demonstrates that reform is necessary to ensure that law evolves and changes alongside developing environmental issues. This section will discuss the RMA and its consequent amendments, with particular attention given to its objectives and aims, as well as the substantive provisions of the Act. 3.1.2. Objectives of the RMA The goals of sustainable management and integration are reflected in the objects of the RMA. This was viewed as a significant development in environmental law at the time, because prior to the RMA there were no guiding principles for the administration of legislation managing natural resources.34 Furthermore, the RMA was one of the earliest examples of the sustainability concept being incorporated as a guiding principle into domestic law.35 This emphasis on sustainable management and integration is evident from Part 2 of the Act, which sets out purposes and principles that underpin the RMA. The purpose of the RMA is outlined in s 5 as the promotion of ‘sustainable management of natural 32 33 34 35 Grinlinton, above n 21, 7. New Zealand Ministry for the Environment, Overview of the Resource Management (Simplifying and Streamlining) Amendment Act 2009 (2009) < http://www.mfe.govt.nz/rma/central/amendments/resource-management-simplify-andstreamline-amendment-bill-2009/overview-rma-2009.html> at 10 November 2009. Grinlinton, above n 21. Rhoanna Stanthorpe, ‘A Vision for the Future? The Concept of Sustainable Development in the Netherlands and New Zealand’ (2000) 4 New Zealand Journal of Environmental Law 147, 167. 190 and physical resources’.36 The term ‘sustainable management’ is defined under the Act to mean ‘managing the use, development, and protection of natural and physical resources in a way, or at a rate, which enables people and communities to provide for their social, economic, and cultural wellbeing and for their health and safety while— Sustaining the potential of natural and physical resources (excluding minerals) to meet the reasonably foreseeable needs of future generations; and Safeguarding the life-supporting capacity of air, water, soil, and ecosystems; and Avoiding, remedying, or mitigating any adverse effects of activities on the environment’.37 There has been a lot of academic debate in New Zealand concerning the interpretation of the term ‘while’,38 sparked by some divergence in judicial approaches.39 If this word is taken to be a coordinating conjunction, then all factors are taken to be equal – in effect, economic, social and cultural factors are granted the same level of importance as environmental factors. Alternatively, if a subordinating conjunction is implied, then the environmental requirements are given priority.40 Initially courts preferred the latter approach, also known as an ‘environmental bottom-line’ approach,41 but more recently courts have preferred an approach which strikes a balance between economic and environmental factors.42 This has been described as the ‘overall broad judgment’ approach by the Courts, noting that the Act requires ‘an overall broad judgment of whether a proposal would promote the sustainable 36 37 38 39 40 41 42 Resource Management Act 1991 (NZ) s 5(1). Resource Management Act 1991 (NZ) s 5(2). See for example Douglas Fisher, An Introduction to Resource Management (1991); John Milligan, ‘Pondering the “While”’ (1992) Terra Nova 7, 8; Kerry Grundy, ‘In Search of a Logic: Section 5 of the Resource Management Act’ (1995) New Zealand Law Journal 40; Stephanie Curran, ‘Sustainable Development v Sustainable Management: The Interface Between the Local Government Act and the Resource Management Act’ (2004) 8 New Zealand Journal of Environmental Law 267, 277; Klaus Bosselmann,‘Property rights and sustainability: can they be reconciled?’ (Paper presented at the Property Rights and Sustainability conference, Auckland, 16-18 April 2009) 13. See for example North Shore City v. Auckland Regional Council [1997] NZRMA 59. Curran, above n 38, 277. See for example New Zealand Rail Ltd v Marlborough District Council (1993) 2 NZRMA 449, 470. Ibid 278-9. 191 management of natural and physical resources…such a judgment allows for comparison of conflicting considerations’.43 Thus the current approach to natural resource management is in line with the definition of ‘ecologically sustainable development’ espoused at the international level. However, when the RMA was drafted, the term ‘sustainable management’ was deliberately chosen over ‘sustainable development’, because the main driver behind the Act was sustainability in an environmental sense, rather than a social or economic sense.44 This has caused some controversy, as current judicial approaches have been viewed as less protective of the environment. Section 6 of the RMA goes on to prescribe matters of ‘national importance’, which are to be recognised and provided for by persons managing the use, development, and protection of natural and physical resources. These matters are as follows: (i) The preservation of the natural character of the coastal environment (including the coastal marine area), wetlands, and lakes and rivers and their margins, and the protection of them from inappropriate subdivision, use, and development; (ii) The protection of outstanding natural features and landscapes from inappropriate subdivision, use, and development; (iii) The protection of areas of significant indigenous vegetation and significant habitats of indigenous fauna; (iv) The maintenance and enhancement of public access to and along the coastal marine area, lakes, and rivers; (v) The relationship of Maori and their culture and traditions with their ancestral lands, water, sites, waahi tapu, and other taonga; (vi) The protection of historic heritage from inappropriate subdivision, use, and development; and (vii) The protection of recognised customary activities. These factors have been described as providing significant guidance towards 43 44 North Shore City v. Auckland Regional Council [1997] NZRMA 59, 94. Sarah Kerkin, ‘Sustainability and the Resource Management Act 1991’ (1992-1995) 7 Auckland Universities Law Review 290, 295. 192 achieving the goals in s 5, and one commentator has remarked that requiring decisionmakers to ‘recognise and provide’ places a relatively strong positive obligation upon them to ensure that these matters are considered.45 These factors are also supplemented by the ‘other matters’ prescribed in s 7. Section 7 states that all persons exercising functions and powers under the RMA in relation to managing the use, development, and protection of natural and physical resources, shall have particular regard to— the ethic of stewardship; the efficient use and development of natural and physical resources; the efficiency of the end use of energy; the maintenance and enhancement of amenity values; intrinsic values of ecosystems; maintenance and enhancement of the quality of the environment; any finite characteristics of natural and physical resources; the protection of the habitat of trout and salmon; the effects of climate change; and the benefits to be derived from the use and development of renewable energy. The Treaty of Waitangi is also relevant to decision-making.46 It is clear from this examination of the objectives of the RMA that sustainable management of natural resources is the key feature underpinning the RMA. Regardless of the interpretation of these provisions, it is evident that environmental factors are a major, if not the sole, driving force behind natural resource management in New Zealand. 3.1.3. Operational provisions of the RMA Whilst Part 2 of the RMA sets out the objectives and guiding principles underpinning the Act, Part 3 of the RMA is entitled ‘duties and restrictions under this Act’, and it contains the substantive provisions of the RMA. Part 3 places a number of restrictions 45 46 Williams, above n 26, 83. Resource Management Act 1991 (NZ) s 8. 193 upon land use in order to achieve the objects of the Act. These provisions will be discussed in detail below. Prior to discussing these substantive provisions, it is necessary to outline the role of resource consents under the RMA. Part 6 of the RMA provides for the use of resource consents, which are an important mechanism under the Act. A resource consent is a consent to do something which would contravene stated sections of the Act.47 The operation of resource consents has been described as follows: persons have the ability to apply for a resource consent to obtain permission to do something that would otherwise result in a contravention of the Act’s restrictions on use of the coastal marine area, water and air. Consents operate as a way to allow individual uses of a resource where the activity applied for is generally unavailable under the scheme of the RMA or may raise sustainable management concerns.48 There are several types of resource consents under the RMA: land use consents; subdivision consents; coastal permits; water permits; and discharge permits.49 The nature of each of these consents and permits will be discussed in detail below. To obtain a resource consent, an application must be made with the relevant local authority.50 When the RMA was enacted, it provided for public consultation prior to obtaining a resource consent, unless the application was for a controlled activity, or where the authority was satisfied that the environmental effects would be minor.51 47 48 49 50 51 Resource Management Act 1991 (NZ) s 87. Laura Fraser, ‘Property Rights in Environmental Management: The Nature of Resource Consents in the Resource Management Act 1991’ (2008) 12 New Zealand Journal of Environmental Law 145, 163. Resource Management Act 1991 (NZ) s 87. Resource Management Act 1991 (NZ) s 88(1). Resource Management Act 1991 (NZ) s 93(1) (repealed). 194 This reflected one of the key underlying principles of the RMA, which was public participation in consent applications.52 However this resulted in large numbers of resource consent applications requiring public notification, which led to delays in processing applications.53 As a result, the 2009 amendments to the RMA repealed the existing provisions relating to public notices, and inserted new provisions. Now public consultation is only required where: The consent authority decides that the activity will have or is likely to have adverse effects on the environment that are more than minor; or the applicant requests public notification of the application; or a rule or national environmental standard requires public notification of the application.54 In the first instance, namely where the activity is likely to have adverse effects on the environment, there are several limitations placed upon the consent authority in reaching their decision: they must disregard any effects on persons who own or occupy the land in, on, or over which the activity will occur, or any land adjacent to that land; they may disregard an adverse effect of the activity if a rule or national environmental standard permits an activity with that effect; in the case of a controlled or restricted discretionary activity, they must disregard an adverse effect of the activity that does not relate to a matter for which a rule or national environmental standard reserves control or restricts discretion; they must disregard trade competition and the effects of trade competition; and they must disregard any effect on a person who has given written approval to the relevant application.55 There has already been some concern expressed in relation to these amendments. One commentator noted that reducing public participation may prove problematic, stating 52 53 54 55 Grinlinton, above n 21, 14. New Zealand Ministry for the Environment, above n 33. Resource Management Act 1991 (NZ) s 95A(2). Resource Management Act 1991 (NZ) s 95D. 195 that ‘dissatisfaction through exclusion from the process often leads to ongoing public and political agitation, and protracted and expensive litigation’.56 Given that public participation was a key feature of the RMA, this amendment could potentially lead to public dissatisfaction. These amendments are very recent, and it will be interesting to see other academic and judicial commentary on the topic over time. Regardless of the requirement for public notification, resource consents are one of key means by which actions may be allowed under the RMA. The nature of resource consents is explicitly addressed in the RMA, which states that resource consents ‘are not real or personal property’.57 Given this classification, the RMA had to explicitly state the legal effect of these consents. In the case of land use consents and subdivision consents, they shall attach to the land to which each relates, and therefore benefit the owners and occupiers of the land for the time being, unless the consent expressly provides otherwise.58 The remaining types of permits do not attach to land, and separate provisions apply in relation to each of them. Coastal permits may be transferred to another person.59 There is no requirement that the transferee have any interest in the relevant land. In contrast, a holder of a water permit granted for damming or diverting water may only transfer the permit to any owner or occupier of the site in respect of which the permit is granted; they may not transfer the permit to any other person.60 Thus these permits are effectively tied to the land, although they do not attach to it and are not automatically transferred with the land. Wild J has described this as being the factor which distinguishes these permits from land use resource consents.61 Similarly, discharge permits may only be transferred to another owner or occupier of the site.62 56 57 58 59 60 61 62 Grinlinton, above n 21, 14. Resource Management Act 1991 (NZ) s 122(1). Resource Management Act 1991 (NZ) s 134(1). Resource Management Act 1991 (NZ) s 135. Resource Management Act 1991 (NZ) s 136(1). Altimarloch Joint Venture Ltd v Moorhouse & Ors [2008] NZHC 1031 [136]. Resource Management Act 1991 (NZ) s 137(1),(2). 196 Therefore it is clear that coastal, water and discharge permits do not attach to the land, but instead may need to be transferred separately. Thus if a prospective purchaser of land is particularly interested in damming or diverting water, or discharging contaminants, they would need to clarify with the vendor whether the permits are to be transferred. The operational provisions of the RMA will now be discussed in detail, with further attention given to the role of resource consents. 3.1.3.1. Land Part 3 commences with a section regarding restrictions on the use of land. Section 9 states that no person may use land in a manner that contravenes a district plan or regional plan unless the use is allowed by a resource consent.63 A resource consent, as described above, is a consent to do something which would otherwise be prohibited by the Act.64 The type of resource consent relevant to land is a land use consent.65 It is evident from s 9 that the RMA is not concerned with the regulation of land use, instead it delegates this role to district and regional councils. District and regional plans will be discussed in detail below. It is relevant to note though that even where action is prohibited by a district or regional plan, it may be allowed where a resource consent has been properly granted. One commentator remarked that a council’s standard reply to complaints from members of the public regarding restrictions in plans was that a person could instead apply for a resource consent, which would be considered on its merits.66 Prior to the 2009 amendments, this application process would usually be informed by public consultation. Since the recent amendments restricted this right to public consultation, a resource consent application may prove futile. Given that council created the plan, it is unlikely they would award a resource consent allowing activity that they deemed should be restricted. Thus it may now prove difficult for members of the public who are dissatisfied with a plan to access any remedy. 63 64 65 66 Resource Management Act 1991 (NZ) s 9(1),(3). Resource Management Act 1991 (NZ) s 87. Resource Management Act 1991 (NZ) s 87(a). Ken Palmer, ‘Zoning “Wipeout” and the No Compensation Principle’ (1997) 1 New Zealand Journal of Environmental Law 316, 317-8. 197 3.1.3.2. Coastal marine area The RMA sets out a number of restrictions regarding the coastal marine area, which is defined as the foreshore, seabed, coastal water, and airspace above the water.67 These restrictions prohibit any person from: Reclaiming or draining any foreshore or seabed; Erecting or removing a structure on any foreshore or seabed; Disturbing any foreshore or seabed, including by excavating, drilling, or tunneling; Depositing any substance that is likely to have an adverse affect on the foreshore or seabed; Destroying, damaging or disturbing are foreshore or seabed; and Introducing any plant on the foreshore or seabed.68 These restrictions apply unless the activity is allowed by a regional plan or resource consent.69 The RMA also sets out specific rules with regard to coastal marine areas vested in the regional council. These rules prohibit any person from occupying any part of the coastal marine area, and from removing any sand, shingle, shell, or other natural material from the land.70 However, this second rule only applies where the material is removed in such a quantity that a licence or profit á prendre is necessary.71 Additionally, the RMA prohibits a person from carrying out any activity on a coastal marine area in a manner that contravenes a regional plan, unless the activity is specifically allowed by a resource consent.72 Therefore the RMA uses a combination of direct restrictions on activity, and also delegates some responsibility to regional councils. 67 68 69 70 71 72 Resource Management Act 1991 (NZ) s 2(1). Resource Management Act 1991 (NZ) s 12(1). Resource Management Act 1991 (NZ) s 12(1). Resource Management Act 1991 (NZ) s 12(2). Resource Management Act 1991 (NZ) s 12(4)(b). Resource Management Act 1991 (NZ) s 12(3). 198 3.1.3.3. River and lake beds River beds and lake beds are defined in s 2 of the RMA. A river bed is defined as the space of land which the waters of the river cover at its fullest flow without overtopping its banks.73 A lake bed is defined as the space of land which the waters of the lake cover at its highest level without exceeding its margin.74 The RMA prohibits persons from carrying out the following activities on a river or lake bed: Using, erecting, removing or demolishing a structure or part of a structure on, under, or over the bed; Excavating, drilling, tunneling or otherwise disturbing the bed; Introducing a plant in, on, or under the bed; Depositing any substance in, on, or under the bed; and Reclaiming or draining the bed.75 These restrictions apply unless the activity is allowed by a regional plan or resource consent.76 Although regional plans would usually be required to give way to the RMA, this provision allows plans to override the RMA is these circumstances. Furthermore, unless expressly authorised, a person may not enter or pass across any river or lake bed, or disturb or remove any plant or animal on the river or lake bed in contravention of a regional or district plan.77 3.1.3.4. Water The RMA broadly defines ‘water’ to include water in all its physical forms, whether flowing or not, and whether over or under the ground.78 ‘Geothermal water’ means water that is heated within the earth by natural processes to a temperature exceeding 30 degrees Celsius, and includes steam, water and water vapour.79 The definition of 73 74 75 76 77 78 79 Resource Management Act 1991 (NZ) s 2(1). Resource Management Act 1991 (NZ) s 2(1). Resource Management Act 1991 (NZ) s 13(1). Resource Management Act 1991 (NZ) s 13(1). Resource Management Act 1991 (NZ) s 13(2). Resource Management Act 1991 (NZ) s 2(1). Resource Management Act 1991 (NZ) s 2(1). 199 water for the purposes of the RMA includes fresh water, coastal water and geothermal water, but does not include water in any form while in any pipe, tank, or cistern.80 Under the RMA, a person may not take, use, dam or divert any water, heat or energy from water, or heat or energy from the material surrounding geothermal water.81 There are several exceptions to this general rule. A person is not prohibited from the above actions in relation to water if: The action is expressly allowed by a rule in a regional plan or a resource consent; In the case of fresh water, where the water, heat or energy is required for an individual’s reasonable domestic needs, or for an animal’s drinking water, provided that the taking does not have an adverse effect on the environment; In the case of coastal water, the water, heat or energy is required for an individual’s reasonable domestic or recreational needs, and the taking, use or diversion does not, or is not likely to, have an adverse effect on the environment; or The water is required for fire-fighting purposes.82 Therefore the RMA grants some access rights to water in limited situations, although the main task of regulating water allocations is devolved to regional councils. 3.1.3.5. Discharge of contaminants The RMA sets out a number of rules in relation to contaminants. ‘Contaminant’ is defined to include any substance that either by itself or in combination with another substance, is likely to change the physical, chemical or biological condition of water, land, or air upon discharge.83 Individuals are prohibited from discharging any: 80 81 82 83 Contaminant or water into water; Resource Management Act 1991 (NZ) s 2(1). Resource Management Act 1991 (NZ) s 14(1). Resource Management Act 1991 (NZ) s 14(3). Resource Management Act 1991 (NZ) s 2(1). 200 Contaminant onto or into land in circumstances which may result in that contaminant entering water; Contaminant from any industrial or trade premises into air; or Contaminant from any industrial or trade premises onto or into land; unless the discharge is expressly allowed by a rule, resource consent or regulations.84 Additionally, no person may discharge any contaminant into the air, or onto land, in a manner that contravenes a rule in a district or regional plan, unless expressly allowed by a resource consent.85 The RMA also recognises the inter-relationship between discharge of contaminants, and the coastal marine area. Specifically, the RMA states that no person may, in the coastal marine area, dump any waste or matter from a ship, aircraft or offshore installation, or incinerate any waste or any matter in a marine incineration facility.86 This applies unless the discharge is permitted by a resource consent, regulation, or district or regional plan.87 3.1.3.6. Noise The RMA recognises that activities permitted under the RMA and regional and district plans may generate noise, and addresses this issue. Under the RMA, every occupier of land, and every person carrying out an activity in, on, or under a water body, or in the coastal marine area, shall adopt the best practicable option to ensure that the emission of noise from that land or water does not exceed a reasonable level.88 However, the RMA does not limit the right of local authorities to prescribe noise emission standards in regional or district plans, or resource consents.89 84 85 86 87 88 89 Resource Management Act 1991 (NZ) s 15(1). Resource Management Act 1991 (NZ) s 15(2). Resource Management Act 1991 (NZ) s 15A(1). Resource Management Act 1991 (NZ) s 15A(2). Resource Management Act 1991 (NZ) s 16(1). Resource Management Act 1991 (NZ) s 16(2). 201 3.1.3.7. Duty to mitigate adverse effects In addition to the fairly specific provisions of the RMA, the Act obliges all persons to comply with more general environmental duties. Under the RMA, every person has a duty to avoid, remedy, or mitigate any adverse effect on the environment arising from an activity carried on by or on behalf of that person, whether or not the activity is in accordance with a rule in a plan or a resource consent.90 Although most provisions of the RMA operate in conjunction with district and regional plans, this provision is clearly intended to override any plans or resource consents in the event of a conflict. This provision does not impose any specific and enforceable duties on parties,91 but may be used to impose an enforcement or abatement order on a person requiring them to stop doing something harmful, or to mitigate activity already undertaken.92 3.1.4. Role of the Registrar of Titles There is some provision for interaction between the RMA and the land titles register. This interaction is quite limited, and most obligations and restrictions imposed under the RMA are not registered or recorded on title. However the Registrar has been described as having a limited ‘gatekeeper role’ under the RMA.93 The main interaction exists in relation to subdivision of land. The RMA prohibits subdivision of land, unless expressly allowed by a district plan or resource consent, and where a survey plan has been deposited with the Registrar.94 The local authority is also permitted to place conditions upon subdivision, but is required to first consult the Registrar to determine the practicality of any condition.95 Once the local authority has granted consent to subdivide, this consent is registered upon land, and is deemed 90 91 92 93 94 95 Resource Management Act 1991 (NZ) s 17(1). Resource Management Act 1991 (NZ) s 17(2). Resource Management Act 1991 (NZ) s 17(3). Email from Warren Moyes, Senior Advisor to the Registrar-General of Land, to Justine Bell, 8 July 2009. Resource Management Act 1991 (NZ) s 11(1). Resource Management Act 1991 (NZ) s 220(3). 202 to be a covenant running with the land.96 These consents are characterised as subdivision consents for the purposes of the RMA.97 The conditions which may be placed upon subdivisions include conditions that parts of land must be amalgamated, or that reservations be made, or easements be entered into.98 Where there is a condition requiring land to be amalgamated, the authority shall specify that land be held in one certificate of title, or that a covenant be entered into prohibiting the parts of the land being transferred or leased separately.99 These conditions are relevant to the Registrar, as once a covenant is entered into, or where a condition requires amalgamation, the Registrar shall not issue a certificate of title for separate lots.100 Furthermore, where a consent requires easements or reservations, the Registrar must refuse to register a transfer or lease unless satisfied that easements or reservations have been duly made.101 It has been acknowledged that there are limitations upon the interaction between the land title register and the RMA, with a representative of the registry making the following observation: not all local authority conditions or restrictions are noted on the title however, so searching LINZ records will not disclose everything a prospective purchaser might want or need to know. Such information may be obtained via a LIM report (Land Information Memorandum) from the relevant local authority which contains a variety of data about the land (district plan information, special problems etc.) that will not be available from searching the title.102 The role of Land Information Memorandums will be discussed below in the section discussing district councils. However it is relevant to note at this stage that the land title register plays only a limited role in the regime established under the RMA. 96 97 98 99 100 101 102 Resource Management Act 1991 (NZ) s 221(4),(5). Resource Management Act 1991 (NZ) s 87(b). Resource Management Act 1991 (NZ) s 220(1). Resource Management Act 1991 (NZ) s 220(2). Resource Management Act 1991 (NZ) ss 240(1), 241(1) Resource Management Act 1991 (NZ) s 243(c). Email from Warren Moyes, Senior Advisor to the Registrar-General of Land, to Justine Bell, 8 July 2009. 203 3.1.5. Conclusion The foregoing analysis shows that the main importance of the RMA is its statement of objectives and guiding principles, as well as the establishment of resource consents. Whilst the RMA does create some substantive rules in terms of management of resources, for the most part this role is delegated to regional and district councils. Thus it is necessary to consider the role of the regional and district councils in some detail to fully understand the system for resource management and management of information regarding obligations and restrictions on land title and use in New Zealand. 3.2. Regional policy statements and plans Under the RMA, regional councils are vested with a number of functions. These functions include: The establishment, implementation and review of objectives, policies and methods to achieve integrated management of the natural and physical resources of the region; The preparation of objectives and policies in relation to any actual or potential effects of the use, development, or protection of land which are of regional significance; The control of the use of the land for the purpose of soil conservation, the maintenance of water quality, maintenance of ecosystems and mitigation of hazards and adverse effects; Contaminated land investigations; Control of coastal marine areas; Control of taking, use, damming and diversion of water; and The strategic integration of infrastructure with land use through objectives, policies. 103 Regional councils also have the power to create two types of documents with respect to resource management, which are termed regional policies, and regional plans. 103 Resource Management Act 1991 (NZ) s 30(1). 204 Regional policies are required to provide an overview of the ‘resource management issues of the region and policies and methods to achieve integrated management of the natural and physical resources of the whole region’.104 In essence, policies state the objectives of any regional efforts regarding resource management. In contrast to the broad nature of regional policies, regional plans are designed ‘to assist a regional council to carry out any of its functions in order to achieve the purpose of this Act’.105 Therefore, plans will contain the substantive provisions regarding resource management. To effectively provide for integrated management of natural resources, decisionmakers in regional councils have to take account of likely effects on all natural and physical resources when developing policies and making decisions.106 Therefore policies and plans will address all natural resource components together. Given the number of regional councils in existence, it is not possible to discuss all council policies and plans within the scope of this thesis. Instead, Auckland Regional Council has been chosen as an example. The reason for this is that Auckland is a very large and diverse region, thus the regional plan is required to address a variety of resource issues. 3.2.1. Overview of the Auckland Regional Council area The Auckland Regional Council (“ARC”) boundaries include Auckland city and surrounds. The ARC area contains a high density of the country’s population, with more than a third of the New Zealand population residing in the council boundaries. It is also the country’s fastest growing council area.107 3.2.2. Auckland Regional Council Policy Statement As stated above, each region may have a regional policy, and a regional plan. Auckland Regional Council’s policy is set out in the Auckland Regional Council 104 105 106 107 Resource Management Act 1991 (NZ) s 59. Resource Management Act 1991 (NZ) s 63(1). New Zealand Ministry for the Environment, ‘Not Just An Add-On’ (1993) Planning Quarterly 18, 18. Auckland Regional Council, Population and Statistics (2006) <http://www.arc.govt.nz/auckland/population-and-statistics/population-andstatistics_home.cfm> at 22 July 2009. 205 Policy Statement. The introduction to the policy statement describes its purpose as follows: it is a statement about managing the use, development and protection of the natural and physical resources of the Region. It sets in place the policy for promoting the sustainable management of these resources. It also clarifies the respective roles of the agencies with responsibilities under the Resource Management Act (RM Act) in this Region. Its aim is to achieve integrated, consistent and coordinated management of the Region’s resources. Its aim is also to provide greater certainty over the ways that natural and physical resources are to be managed and hence create an awareness of the constraints and opportunities in this Region.108 Thus the aim of the regional policy statement is to achieve the purposes of the RMA in carrying out council functions. In keeping with the theme of the RMA, there is emphasis placed upon the notion of integrated management of natural resources. The Auckland Regional Council Policy Statement addresses the following matters: Transport; Energy; Heritage; Coastal Environment; Water Quality; Water Conservation and Allocation; Air Quality; Natural Hazards; Soil Conservation; Minerals; Pests; Waste; Hazardous Substances; Contaminated Sites; and 108 Auckland Regional Council, Regional Policy Statement: Chapter One, Introduction (1999) Auckland Regional Council < http://www.arc.govt.nz/albany/fms/main/Documents/Plans/Regional%20Policy%20and%20Plan s/ARPS/ARPS%20Policy.pdf> at 2 June 2009. 206 Esplanade Reserves and Strips. Thus the matters for which the regional council is responsible for are quite similar to the matters which fall under the control of state governments in Australia. For each of these matters listed above, a number of objectives are set out. Due to the size of the policy statement (240 pages), it is impossible to fully canvass all these matters within this thesis. By way of an example, in relation to the Coastal Environment, the following objectives apply: Auckland’s coastal environment ranges from areas which are predominantly in their natural state to areas which have been highly modified. This needs to be taken into account when preserving the natural character of the coastal environment and protecting it from inappropriate subdivision, use and development; Subdivision, use and development within the coastal environment needs to be in an appropriate location, and of an appropriate form, which meets the purpose of the RMA; and Some forms of subdivision, use and development are dependent on the natural and physical resources of the coastal environment for their operation and provision needs to be made for these in appropriate locations.109 This is a theme that is repeated throughout the policy statement. Policy statements do not take the form of set rules, but rather overall guiding principles for development. These principles underpin the substantive provisions in regional plans. 3.2.3. Auckland Regional Council Plans The following regional plans exist in Auckland: 109 Coastal; Farm dairy discharges; and Sediment control. Auckland Regional Council, Regional Policy Statement: Chapter Seven, Coastal Environment (1999) Auckland Regional Council < http://www.arc.govt.nz/albany/fms/main/Documents/Plans/Regional%20Policy%20and%20Plan s/ARPS/ARPS%20Policy.pdf> at 2 June 2009. 207 There is also a proposed plan relating to air, land and water. For present purposes this plan is the most relevant, thus it will be considered. The proposed plan gives effect to the goal of integrated environmental management, stating that ‘a key component to promoting sustainable management is integrating the management of natural and physical resources, hence the reason for dealing with most of the ARC’s functions in relation to air, land and water resources in one plan’.110 The proposed plan sets out a number of policies relevant to development planning. The following are examples of policies: Use and development of air, land and water within Urban Areas is appropriate where it is consistent with the strategic directions of the Auckland Regional Policy Statement, and adverse effects are avoided, remedied or mitigated; and Use and development of air, land and water within Greenfield is appropriate where efficient use is made of available land, and Permanent rivers and streams with significant ecological, habitat and water quality values are maintained where practicable, and adverse effects are remedied or mitigated.111 Policies in regional plans are therefore more prescriptive in nature than regional policy statements. However, at the time of writing this thesis, the Air, Land and Water regional plan was merely a proposal and had not yet been formally adopted. 3.3. District/city plans The third level of regulation occurs at the district level. As with regional councils, district councils are required to prepare plans and policies relevant to their duties. District councils fulfil a similar role to local governments in Australia, and are 110 111 Auckland Regional Council, Proposed Auckland Regional Plan: Air, Land and Water (2008) Auckland Regional Council < http://www.arc.govt.nz/albany/fms/main/Documents/Plans/Regional%20Policy%20and%20Plan s/Proposed%20ARP%20Air%20Land%20and%20Water/Proposed%20ALWP%20%20Title%20and%20Contents.pdf> at 2 June 2009. Ibid. 208 responsible for most of the substantive rules governing matters such as land use and sub-division.112 The purpose of the preparation, implementation, and administration of district plans is to assist territorial authorities to carry out their functions in order to achieve the purpose of the RMA.113 A district plan is required to state: the objectives for the district; and the policies to implement the objectives; and the rules (if any) to implement the policies.114 Within the Auckland region, there are seven districts or cities: Auckland City Council; Franklin District Council; Manukau City Council; North Shore City Council; Papakura District Council; Rodney District Council; and Waitakere City Council. Franklin District Council has been chosen as an example of a district within the Auckland Regional Council area. Franklin was chosen as an example because of its diversity – it is close to Auckland City, but it is largely a rural area.115 The Franklin District Plan is guided by a number of principles: Effective management of resources – managing environmental impacts on natural and physical resources; Minimising unnecessary regulation – this is achieved by relying on performance standards rather than listing allowable activities; 112 113 114 115 Interview with Paul Davies, General Counsel, Franklin District Council (Telephone interview, 7 August 2009). Resource Management Act 1991 (NZ) s 72. Resource Management Act 1991 (NZ) s 75(1). Franklin District Council, Franklin District Plan, (2006) [1.1] < http://www.franklin.govt.nz/PlansPoliciesBylaws/DistrictPlan/DistrictPlanParts/tabid/230/Defau lt.aspx> at 9 November 2009. 209 Providing certainty – assisting the public to determine whether acts are allowable; Cumulative effects – the Plan will control activities which may produce an adverse effect when combined with other activities; Consultation; Precautionary approach – where there is insufficient information available, the council has adopted the precautionary approach; and Plan review – the council stated an intention to review the Plan frequently.116 The district plan consists of numerous chapters, dealing with issues such as cultural heritage, recreation and reserves, forest conservation, development and subdivision. Examining all content of the district plan is outside the scope of this thesis, so the chapter concerning development in residential areas has been chosen as an example. This chapter establishes a hierarchy of activities, from those which are least regulated to those which are most highly regulated. This chapter commences by listing permitted activities. These activities are permitted under the plan, and do not require a resource consent. These include: A single dwelling house; A multi-unit development (subject to restrictions); Accessory buildings; Swimming pools; Schools; and Hospitals. The Plan then lists controlled activities, which require a resource consent, but the Plan stipulates that a resource consent shall be granted. These activities include: Multi-unit housing (larger than developments which are permitted activities); and 116 Traveller’s accommodation. Franklin District Council, Franklin District Plan, (2006) [2.7] < http://www.franklin.govt.nz/PlansPoliciesBylaws/DistrictPlan/DistrictPlanParts/tabid/230/Defau lt.aspx> at 9 November 2009. 210 Finally, the Plan lists Discretionary (Restricted Assessment) Activities, and Discretionary Activities. Restricted Assessment activities require a resource consent, which may be either granted or refused dependent on the content of the application. The activities include: Horticulture; and Cemeteries. Discretionary Activities also require a resource consent, which may be granted either conditionally or unconditionally, or refused. These include: Funeral service premises; Service stations; and Veterinary centres. The chapter then sets out standards for all activities, including such things as road setback, stormwater drainage, and parking spaces. Consultation of the district policies and plans is one of the main methods of ascertaining whether development is allowed in an area. Another important mechanism used by all district councils are Land Information Memorandums (“LIMs”). These are quite similar to property certificates available in Australian jurisdictions, although they are more comprehensive in their scope. Under the Local Government Official Information and Meetings Act 1987 (NZ), a person may apply to a territorial authority for the issue of a LIM in relation to matters affecting any land in the district of the authority.117 The LIM must be provided within 10 working days.118 This provision was inserted into the Act in 1992 by the Local Government Official Information and Meetings Amendment Act (No 2) 1991 (NZ). Under legislation, LIMs are required to contain the following information: 117 118 Local Government Official Information and Meetings Act 1987 (NZ) s 44A(1). Local Government Official Information and Meetings Act 1987 (NZ) s 44A(1). 211 Information identifying special features or characteristics of the land, including potential erosion, avulsion, falling debris, subsidence, slippage, alluvion, or inundation, or likely presence of hazardous contaminants. This applies where the feature is known to the council, and not apparent from the district plan; Information on private and public storm-water and sewerage drains as shown in the territorial authority's records; Information that has been notified to the council by a drinking-water supplier that water will not be supplied to any further residential properties in that area; Information on whether the land is supplied with drinking water, and any conditions that are applicable to that supply: Information relating to any rates owing in relation to the land; Information concerning any consent, certificate, notice, order, or requisition affecting the land or any building on the land previously issued by the council; Information concerning any certificate issued by a building certifier pursuant to the Building Act 1991 or the Building Act 2004; Information notified to the territorial authority under section 124 of the Weathertight Homes Resolution Services Act 2006; Information relating to the use to which that land may be put and conditions attached to that use: Information which, in terms of any other Act, has been notified to the territorial authority by any statutory organisation having the power to classify land or buildings for any purpose; and Any information which has been notified to the territorial authority by any network utility operator pursuant to the Building Act 1991 or the Building Act 2004.119 A LIM may also contain ‘such other information concerning the land as the authority considers, at its discretion, to be relevant’.120 A sample LIM is annexed to this thesis as Appendix G, and shows that Franklin District Council has used this provision to record information about property zoning. 119 120 Local Government Official Information and Meetings Act 1987 (NZ) s 44A(2). Local Government Official Information and Meetings Act 1987 (NZ) s 44A(3). 212 A controversial example of the power to record ‘such other information’ occurred recently in the Auckland Regional Council. In 2002 Auckland Regional Council became aware that up to 5000 properties in the Auckland City and Waitakere City areas had previously been used for horticultural use, and therefore could possibly be contaminated. Local governments decided to place a statement on the relevant LIMs, noting that soil testing might be required in the future, but this did not indicate that there were definitely contaminants on the site.121 Therefore this did not fall within s 44A(2) as information about ‘the likely presence of hazardous contaminants’ as there was insufficient information as to whether contaminants were in fact present. There was public protest concerning these entries, as they were seen to have a negative impact on land value. Auckland City Council removed these notations, but Waitakere City Council retained them. A General Counsel for Waitakere City Council made the following observation: property purchasers in Waitakere now generally accept that statement without further enquiry since they appreciate that the advice is purely precautionary. If however in the future the property is subdivided, testing for contaminants is required and the presence of contaminants requiring remediation is disclosed by those reports then there can be no potential to challenge against the Council.122 In 2006 a Waitakere resident challenged a valuation made by a valuer retained by the council immediately prior to the notation. The resident alleged that the valuation should have been lower given the impending notation, thus his rates should have been lowered. The Land Valuation Tribunal held that he had adduced insufficient information concerning value, and therefore dismissed his appeal, but noted that ‘the council withheld information from its valuer to the effect that it was about to adversely note any LIM report applicable to the property. That information had the potential of being relevant to the determination of land value’.123 However these comments were set aside by the High Court, who noted that these conclusions were 121 122 123 Denis Sheard, Information Management (2008) NZ Society of Local Government Managers < http://www.solgm.co.nz/NR/rdonlyres/FCC32537-9D8E-4C11-AA092B09D48FB021/60719/SOLGMInformationManagement.pdf> at 10 August 2009. Ibid. Lovelock v Waitakere City Council [2006] NZVLT 15 at [17]. 213 beyond the jurisdiction of the Tribunal, who were charged with valuing land, and nothing else.124 It is suggested that noting this information on a LIM is a sound approach, as the information is therefore easily ascertainable. However the landholder should be advised of this notation and it should also be taken into account in any property valuation. It is also relevant to briefly discuss the process for obtaining a LIM. Obtaining one is in effect similar to undertaking a search of a register. The district council will search their own internal registers or information systems, and then set the information out in a single document for the applicant. It was noted in Parliamentary debates at the time of introduction that councils ‘will be required to have land information documentation, which means that anybody who is building a home or wanting to acquire one can go to their local authority at any time to find out details relating to that land and building’.125 This essentially means that councils are required to keep information systems. The internal processes for compiling a LIM were discussed in Resource Planning Management Ltd & Marlborough Wine Centre Ltd v Marlborough District Council.126 France J noted that: the usual process would be for the Land Information Memorandum to go to each department within the Council depending on what information was required. For example, information about rates would be sought from the Finance Department. Essentially, the exercise undertaken was one of compiling the information from that on the Council file.127 This ensures that all relevant information held by the council is included. 124 125 126 127 Waitakere City Council v Auckland Land Valuation Tribunal & Lovelock [2007] HC AK CIV 2007-404-3483 at [6]. New Zealand, Parliamentary Debates, 1991, 5297 (Chairman of Internal Affairs and Local Government Committee), cited in Resource Planning Management Ltd & Marlborough Wine Centre Ltd v Marlborough District Council [2003] HC BLM CIV-2001-485-814 at [164]. [2003] HC BLM CIV-2001-485-814. Resource Planning Management Ltd & Marlborough Wine Centre Ltd v Marlborough District Council [2003] HC BLM CIV-2001-485-814 at [167]. 214 Whilst a LIM is quite comprehensive, it is still necessary to consult the district plan, particularly where a purchaser intends to develop the land. As shown at Appendix G, the LIM does state that there is a district plan in place. Although it does not give any details of the matter contained in the district plan, it does solve some informational problems by alerting the searcher to the existence of the plan. LIMs are a very important information source for prospective purchasers, especially since the legislation states that a LIM is to be conclusive evidence of the information contained within.128 This establishes a very strong basis for liability for incorrect information, which will be discussed in detail below. 3.4. Conclusion Whilst natural resource management in New Zealand is split across three levels of government, as in Australia, it appears that there is a lot more integration of these agencies, and their roles are more clearly defined. However, although there is integration of government agencies, as well as integrated management of resources, it does not appear that there are any registers or databases in place through which a landholder or prospective purchaser can accurately ascertain all obligations and restrictions affecting land. Despite this lack of registers, the LIM appears to be quite a powerful source for landholders and prospective purchasers to gain information concerning land, particularly due to the provision regarding liability. The purpose of the following part of this Chapter is to assess the New Zealand model according to the guidelines for comparison set out in Chapter Three to assess effectiveness. 4. How effective is the New Zealand approach as a whole? 4.1. Does the jurisdiction provide for integrated management of information concerning obligations and restrictions on land title and use? The New Zealand approach has been revolutionary in terms of condensing the number of information sources that a prospective purchaser needs to consult to accurately ascertain all obligations and restrictions on land title and use. As discussed above, the 128 Local Government Official Information and Meetings Act 1987 (NZ) s 44A(5). 215 RMA condensed a number of different Acts into a single Act, and allowed for most natural resources to be managed under a single legislative regime. The RMA does not regulate all natural resources directly, and instead provides for regional and district councils to take responsibility for certain matters. There are sound reasons for adopting such an approach, as obviously different areas of the country have different resources, and consequently different problems. Furthermore the RMA very clearly sets out the functions of each level of government. As a result, even though responsibilities are broken down amongst three levels of government, the approach is still integrated in nature. This contrasts with Queensland for example, as Chapter Four showed that in some instances different agencies have overlapping responsibilities.129 From the review of the New Zealand approach, it appears that a purchaser can get a relatively sound picture of obligations and restrictions affecting land by obtaining a title search and a LIM, as well as through consulting the relevant regional and district plans. Whilst this is by no means a simple process, it does involve significantly less information sources than in Queensland. Furthermore, the LIM does direct the reader to the district plan, thus effectively linking the two resources. 4.2. Is the land title register utilised for the purpose of recording obligations and restrictions on use? At present the land title register in New Zealand is not used to register or record obligations and restrictions on use to the same extent as the land title register in Queensland. The New Zealand Law Reform Commission noted that ‘in a system of title by registration, the register should be as inclusive, as complete and accurate as possible to ensure maximum certainty, efficiency of conveyancing and accuracy of records. But even if everything that could be registered was to be registered, exceptions (such as trusts in many Torrens systems) and interests that override the register by virtue of 129 For example, the case of Wall v Doyle & Anor [2008] QPEC 23 showed that two separate government agencies had responsibility for regulating vegetation. 216 other statutes would remain’.130 It will be interesting to see the recommendations made by the final report of the Law Reform Commission, as the proposal may well be to expand the scope of the land title register to include additional information concerning obligations and restrictions on land title and use. However, it is unlikely that the land title register will be extended in any significant way. As stated by Warren Moyes, the Senior Adviser to the Registrar-General of Land: the LT register is not and has not been regarded as being appropriate as a noticeboard for everything relevant to the land concerned. It is an ownership record that has had superimposed over it by statute a number of notification requirements or restrictions because the Registrar has been seen as a convenient gatekeeper.131 In terms of other rights which may affect title and use, there may be a resource consent attached to land. In some circumstances resource consents operate in rem, but it appears that the existence of such consents will be disclosed in a LIM. Other resource consents appear to be treated separately to title, and are not necessarily conveyed with property. This could be a sound rationale for recording or registering consents which operate in rem, to ensure that the distinction is clear. It would also ensure that prospective purchasers are informed of any resource consents attaching to the land, in the unlikely event that this information was overlooked in a LIM. Another instrument affecting use which may be created is a private covenant entered into by a landholder. These may be positive or restrictive in nature, and may be noted on the land title register. This notification is similar to the use of administrative advices in Queensland, as the covenants do not receive the benefits of registration, and have no greater effect than they would have otherwise had.132 As part of the review of the Land Transfer Act, the Law Reform Commission is considering whether covenants in gross may be created and recorded against title.133 130 131 132 133 New Zealand Law Reform Commission, above n 14, 21. Email from Warren Moyes to Justine Bell, 3 August 2009. Property Law Act 2007 (NZ) s 307; Email from Warren Moyes to Justine Bell, 3 August 2009. Email from Warren Moyes to Justine Bell, 3 August 2009. 217 In terms of other obligations and restrictions which may be notified on title, few are relevant to this thesis. One relevant example arises under the Building Act 2004 (NZ). Under this Act, an Authority must refuse to grant building consent where the land is subject to a natural hazard, and building work is likely to accelerate, worsen, or result in a natural hazard on that land or any other property.134 ‘Natural hazard’ is defined to include erosion, falling debris, subsidence, inundation (including flooding etc) and slippage.135 However, where it will not accelerate, worsen, or result in a natural hazard, the authority must grant consent.136 If consent is granted, the authority must notify the Registrar-General of land.137 The Registrar-General must then record on the certificate of title details of the consent and the natural hazard concerned. The Forests Act 1949 (NZ) has also been amended to allow landholders to enter into carbon sequestration agreements. Under these amendments, a landholder may enter into a forest sink covenant to allow them to access the value of carbon sequestered on their land.138 Where a covenant is entered into, the landowner must, within 180 days of agreement, submit that covenant to the Registrar-General of land. The RegistrarGeneral must register that covenant over land.139 Furthermore, the Resource Management Act provides for certain matters to be recorded on title. These matters are discussed above at 3.1.4. In summary, the land title register in New Zealand has a fairly limited role in the recording of obligations and restrictions on use. 4.3. How easily can landholders or prospective purchasers ascertain what obligations and restrictions on title and use apply in relation to a parcel of land? A title search and LIM will give a landholder or prospective purchaser the majority of relevant information, but will not provide a complete picture of obligations and 134 135 136 137 138 139 Building Act 2004 (NZ) s 71(1). Building Act 2004 (NZ) s 71(3). Building Act 2004 (NZ) s 72(1). Building Act 2004 (NZ) s 73. Forests Act 1949 (NZ) s 67W. Forests Act 1949 (NZ) s 67ZD. 218 restrictions affecting a parcel of land. It is necessary for the landholder or prospective purchaser to also consult regional and district policies and plans. The land title register is a public register, and is therefore available for searches by members of the public. To obtain a title search is relatively easy provided a user has the relevant licences. Similarly, a LIM is easy to obtain. Information not recorded on either of these documents is more difficult to ascertain, as it is necessary to consult legislation and plans. This is to some extent alleviated by the statement in the LIM referring the reader to the district plan. Although the LIM does not provide any details of the content of the plan, it at least alerts the searcher to its existence. In terms of public availability of material, there are limited statutory provisions that enable someone to have their title information ‘hidden’, but only if they fear that such information will be used to track them down and put them at risk. However that usually requires some form of Court protection order as a pre-requisite and such information is not likely to relate to land use, and therefore is not relevant to this thesis.140 LIMs are also publically available. Obtaining a LIM is in effect similar to searching a register or database, as the council will draw information from their own internal registers or databases and provide it to the applicant. One problem with this system is that whilst LIMs will alert prospective purchasers to any restrictions on use, existing landholders will not necessarily be notified of new obligations and restrictions placed on use, even though these may affect their rights, as well as their land value. This was noted in Lovelock v Waitakere City Council, where Judge Hole stated that: there seems to be no statutory admonition requiring the territorial authority to disclose to the registered proprietor of land in respect of which a LIM report might issue of any detrimental fact affecting that land. Thus, as here, it is possible for a territorial authority to remain silent on an issue, which it will reveal to a third party, which may affect the land’s value or, indeed the health and safety of the occupants of the property.141 140 141 Email from Warren Moyes to Justine Bell, 3 August 2009. Lovelock v Waitakere City Council [2006] NZVLT 15 at [6]. 219 Therefore in some circumstances, obligations and restrictions might be placed over properties without the landholder’s knowledge. These same obligations and restrictions may also be disclosed to prospective purchasers through a LIM. However in some cases, councils are advised to inform landholders of obligations and restrictions which will be disclosed on a LIM. For example, the Ministry for the Environment website encourages councils to advise landholders where their land is noted as contaminated, by providing template letters to be sent. This letter sets out that the land has been assessed as potentially contaminated, and seeks input from the landholder.142 This perhaps represents a sound model for informing landholders where obligations and restrictions have been placed on their use of land. This could also potentially encourage compliance with environmental laws by ensuring that landholders are aware of any obligations and restrictions in place. This letter is merely a recommendation though, and perhaps a legislative mandate would be more effective. Additionally, this would seem to only apply to obligations and restrictions imposed over individual parcels of land, as opposed to blanket obligations and restrictions contained in legislation and plans. Even though information may be obtained from these sources with relative ease, it is conceivable that new obligations and restrictions can be created without the landholder having knowledge of this fact. There could potentially be situations where a landholder’s rights are detrimentally affected after sale, which could impact upon the uses to which land may be put. It is also particularly important that landholders are advised of such matters in the case of positive obligations, which require them to take action in relation to land. However, it is also important that landholders are apprised of restrictions to ensure compliance. 142 New Zealand Ministry for the Environment, Contaminated Land Management Guidelines – Sample Notification Letters (2004) Ministry for the Environment < http://www.mfe.govt.nz/publications/hazardous/contaminated-land-mgmt-guidelinesno4/html/page9.html> at 10 August 2009. 220 Although this thesis does not enter into an assessment of whether or not obligations and restrictions on title and use are warranted, it may be argued that these obligations and restrictions would be more appropriately placed on a register or database where landholders can easily ascertain what interests affect their land should they wish to develop it. 4.4. Who has responsibility for the accuracy of information concerning obligations and restrictions on title and use? Accuracy of information on the land title register is the responsibility of Landonline. Access to the land titling system is protected, through mechanisms put in place by Landonline to ensure security of titles. Their system involves digital certificates, which are only issued to authorised firms.143 Furthermore, the records and the recording system are electronic and can only be accessed by licensed users. There are two separate licensing systems for searching the records, and for presentation of instruments for registration. The only persons who may apply for access for registration purposes are practising solicitors and licensed conveyancers.144 Therefore there is extremely restricted access to titles. The accuracy of information in the land title register is subject to the State guarantee of title, and entitlements to compensation for loss will be discussed below at 4.5. District Councils are responsible for the accuracy of information contained in LIMs. This responsibility will be discussed in further detail below at 4.5. 4.5. Is the accuracy of information concerning title and use guaranteed, and is compensation available where information is incorrect? 4.5.1. Land Title Register As with the Australian Torrens statutes, the New Zealand Land Transfer Act grants a right to compensation where a person: 143 144 New Zealand Landonline, Security (2009) <http://www.landonline.govt.nz/aboutlandonline/security.asp> at 27 July 2009. Email from Warren Moyes to Justine Bell, 3 August 2009. 221 Suffers loss or damage due to an omission, mistake, or misfeasance in the performance of any duty, function, or power imposed or conferred on the Registrar; or Is deprived of any land, or of any estate or interest in land...by the registration of any other person as proprietor of that land, or by any error, omission, or misdescription in any certificate of title, or in any entry in the register.145 Similarly to the Australian provisions, it is likely that this guarantee of compensation will only extend to cover interferences with title. An obligation or restriction on the use of land is unlikely to be sufficient to amount to a deprivation of an ‘estate or interest in land’. There is one important distinction between the Australian and New Zealand approaches, in that compensation may be available with regard to interests that are not registered on title. Compensation is available for failure to provide information regardless of whether it is required to be registered, or merely recorded, provided that there is an obligation to record that information.146 For example, a covenant is not a registered interest, but failure to record one that had been lodged for notification on the register could lead to a compensation claim for any loss or damage caused by such an omission.147 These covenants are in essence similar to administrative advices in Queensland, as they are placed on title without the benefits of registration. This is therefore a very important distinction given that administrative advices are specifically exempted from the State guarantee in Queensland. 4.5.2. Restrictions under the RMA The RMA explicitly exempts claims for compensation on the basis of land use controls. Under s 85 of the RMA, ‘an interest in land shall be deemed not to be taken or injuriously affected by reason of any provision in a plan unless otherwise provided for in this Act’.148 145 146 147 148 Land Transfer Act 1952 (NZ) s 172(1). This is covered by Land Transfer Act 1952 (NZ) s 172(1)(a). Email from Warren Moyes to Justine Bell, 3 August 2009. Resource Management Act 1991 (NZ) s 85(1). 222 There is an exception to this general rule. Where a person has an interest in land, and they consider that a provision or proposed provision of a plan would render that interest in land incapable of reasonable use, they are permitted to challenge that provision or proposed provision.149 ‘Reasonable use’ in relation to any land is defined under the Act to include ‘the use or potential use of the land for any activity whose actual or potential effects on any aspect of the environment or on any person other than the applicant would not be significant’.150 Upon a person challenging a plan, the Environment Court is required to adjudicate on the matter. If the Environment Court reaches a decision that a provision or proposed provision of a plan ‘renders any land incapable of reasonable use, and places an unfair and unreasonable burden on any person having an interest in the land’, the Court may direct the local authority to change the plan.151 Therefore there is still no entitlement to compensation for interference with land use, but in certain circumstances the landholder is permitted to challenge the law. The result of a successful claim would be that the law was changed back in their favour, thus negating the need for compensation. However due to the definition of ‘reasonable use’, any person who challenges a plan in relation to an activity which has a significant environmental impact is unlikely to be successful; if an obligation or restriction is deemed necessary for environmental protection, it is unlikely that a landholder has any recourse available to them. 4.5.3. Compulsory acquisition Additionally, as with other jurisdictions, there is compensation available where land is compulsorily acquired. The Public Works Act 1981 (NZ) is similar in operation to Queensland’s Acquisition of Land Act. Additionally, the RMA grants government authorities additional powers to acquire land. Under the RMA, a regional council may acquire by agreement any land or interest in land in its region or district, if, in accordance with its plan, the authority considers it necessary or expedient to do so for the purpose of terminating or preventing any non-complying or prohibited activity in 149 150 151 Resource Management Act 1991 (NZ) s 85(2). Resource Management Act 1991 (NZ) s 85(6). Resource Management Act 1991 (NZ) s 85(3). 223 relation to that land, or facilitating activity in relation to that land that is in accordance with the objectives and policies of the plan.152 This grants the landholder a right to compensation.153 4.5.4. Land Information Memorandums One important aspect of the New Zealand approach is that liability may attach to district councils for information in LIMs. The relevant legislation states that ‘in the absence of proof to the contrary, a land information memorandum shall be sufficient evidence of the correctness, as at the date of its issue, of any information included in it pursuant [to the provisions of the Act]’.154 Furthermore, the Local Government Official Information and Meetings Act 1987 creates a limited protection from liability, and provides that liability will not arise in relation to certain official information provided in good faith under the Act.155 However the parts of the Act relating to LIMs are not included in this protection. This makes it clear that liability is intended to attach to incorrect information given in a LIM. There are only two judgments concerning liability for incorrect information contained in a LIM. The first case is Resource Planning Management Ltd & Marlborough Wine Centre Ltd v Marlborough District Council,156 and relates to information omitted from a LIM. In this case, the plaintiff purchased land in 1996, and was provided with six separate LIMs relating to the property. In 1997 a Resource Management Plan and associated Flood Hazard Overlay was notified in relation to the land. Shortly after, the plaintiff applied for a resource consent to develop the land as a holiday and recreation park, which was refused. The plaintiff commenced proceedings against the council alleging, amongst other things, a failure to disclose in the LIMs. 152 153 154 155 156 Resource Management Act 1991 (NZ) s 86(1). Resource Management Act 1991 (NZ) s 86(3). Local Government Official Information and Meetings Act 1987 s 44A(5). Local Government Official Information and Meetings Act 1987 s 41(1). This protection applies with regard to information given under Parts 2, 3 and 4, which relate to access to information held by public authorities. [2003] HC BLM CIV-2001-485-814. 224 The LIM provided stated that the land was within an old river channel, and noted the remote possibility of flooding in the future. It also noted that council’s plans were subject to change at any time.157 The plaintiff led evidence that one council engineer had formed the view that the land was not suitable for building, it was liable to flood hazard, and it was in the “most dangerous” area of the flood plan.158 His opinions were not included in the LIM, as the council decided that they were merely opinions and not necessary to include, as they were not part of council policy.159 The plaintiff argued that his opinions were ‘information held by the council at the time’, thus should have been disclosed. The plaintiffs also argued that they should have been informed that the land would be included in the Flood Hazard Overlay.160 France J of the High Court found for the defendants, noting that s 44A does not require the council to disclose ‘the views of one person…who is out of step with those of everyone else involved’.161 Furthermore, France J did not find it problematic that the Council did not mention the future Flood Overlay, as the LIM ‘does in fact indicate the possibility of a change to the council’s policies and work programmes’. Her Honour also noted that Councils do not owe a duty of care to forecast possible planning changes.162 Generally speaking, her Honour discussed the duty to disclose, and stated that ‘the disclosure is a limited one in the sense that the authority is not required to provide all of the information on its files’. She also observed that ‘there has to be some cut-off point’ in terms of the volume of information to be disclosed.163 157 158 159 160 161 162 163 Resource Planning Management Ltd & Marlborough Wine Centre Ltd v Marlborough District Council [2003] HC BLM CIV-2001-485-814 [147]. Ibid [146]. Ibid [151]. Ibid [149]. Ibid [171]. Ibid [170]. Ibid [166]. 225 This decision restricts somewhat the information required to be provided under a LIM, excepting opinions of employees, and forecasts of future changes to Council plans. The recent case of Altimarloch Joint Venture Ltd v Moorhouse & Ors164 also considered liability for information contained in a LIM. This case concerned a local government’s liability for incorrect information, as opposed to omitted information considered above. In this case, the Moorhouses owned the property Altimarloch, and resource consents to take class A, B and C surface water. In 2000 the Moorhouses sub-divided Altimarloch and in 2001 sold one part to a third party, as well as half the class A, and all the class B water permits. In 2004, the plaintiff purchased the remaining part. The plaintiff believed that it was acquiring all the class A, B and C water permits, and the A permits were especially important to the plaintiff. A LIM granted by the council showed all the A permits attaching to the land. When the plaintiff became aware that the A permits did not all attach to the land, they brought actions against a number of parties, including the council. Wild J of the High Court found that the council was liable in negligence. In establishing a duty of care, His Honour considered the following matters to be relevant: the plaintiff’s loss would have been avoided had the LIM accurately described the A rights attaching to the land; Under the RMA, the council has a duty to keep records of all water rights granted, and any transfers; Section 44A of the Local Government Official Information and Meetings Act requires the LIM to be complete and accurate; It was apparent to the council that the information was sought for a serious and legal purpose; This would not limit the council’s freedom, as there was a statutory duty imposed; 164 Altimarloch Joint Venture Ltd v Moorhouse & Ors [2008] NZHC 1031. 226 This would not unduly burden the council, as there was a statutory duty to keep the relevant records, and the fee charged for the LIM was more than adequate to cover costs; This was a statutorily sanctioned way of obtaining information. The plaintiff was not required to go behind the LIM to check the information contained in it; It would not open the floodgates of liability; and Imposition of a duty of care is consistent with the statutory scheme.165 Furthermore, Wild J found that the council had also breached their statutory duty.166 Also, he held that any disclaimer would be ineffective as it would cut across the statutory duty owed.167 In reaching his decision, Wild J discussed Resource Planning Management Ltd & Marlborough Wine Centre Ltd v Marlborough District Council, and concluded that his decision accorded with France J’s comment that there must be a ‘cut-off point’.168 This is because the council here erroneously overlooked a transfer; it did not simply fail to disclose all information on its files.169 Thus there may be a stronger case where there is an error as opposed to an omission. The importance of this decision is that councils must exercise care in providing LIMs. If any information within their control is wrongly described, civil liability may well arise. If information is omitted, liability could potentially arise, although this was not the case in Resource Planning Management Ltd & Marlborough Wine Centre Ltd v Marlborough District Council. It is also relevant to note that the statutory provisions regarding LIMs prevent councils from protecting themselves through the use of disclaimers. 165 166 167 168 169 Ibid [129]-[135]. Ibid [149]. Ibid [153]. Ibid [128]. Ibid. 227 5. Conclusion The New Zealand approach is highly regarded for its efforts in integrating management of natural resources. Whilst is may not be feasible to recommend that Australian states follow New Zealand’s lead and integrate all environmental legislation, there are some features of the New Zealand approach which may assist with reform of the Australian system. These features will be discussed in Chapter Seven, which will compare the case studies and identify the desirable features for effective management of obligations and restrictions on land title and use. 228 Chapter Seven Analysis and comparison of case studies 1. Introduction The previous three chapters provided case studies of Queensland, Western Australia, and New Zealand. These chapters showed three fundamentally different models for providing information concerning obligations and restrictions on land title and use. Whilst the Queensland approach is fragmented in nature, the Western Australian government has introduced a system to manage information in an integrated manner, and the New Zealand government has enacted legislation to provide for integrated management of natural resources. Each of the case study jurisdictions were assessed according to a uniform set of guidelines for comparison to determine how effectively they manage information concerning obligations and restrictions on land title and use. As the purpose of this thesis is to examine how such information can be most effectively managed within the context of a Torrens framework for land registration, particular emphasis was placed upon the role of the land title register in each jurisdiction. The purpose of applying these guidelines for comparison was not to pick one jurisdiction as the most effective, but rather to isolate characteristics from all jurisdictions which can contribute to effective management of obligations and restrictions on title and use. The purpose of this chapter is first to compare and analyse the results of this assessment. Although none of the jurisdictions surveyed appear to be performing entirely effectively on the basis of the guidelines for comparison, all have specific features which can contribute to effective management of obligations and restrictions on title and use. This chapter will compare the jurisdictions with a view to indentifying the characteristics that are essential to an effective system for the management of obligations and restrictions on land title and use. 229 Second, based on this comparative analysis, this chapter will make preliminary recommendations for an effective system for the management of information concerning obligations and restrictions on land title and use. 2. Comparison of case studies Chapter Three set out guidelines for comparison, which were applied to each of the case study jurisdictions. This section will discuss each of these guidelines in turn, and compare how effectively each jurisdiction meets these guidelines. It will also identify which features of the case study jurisdictions contribute to effective management of information concerning obligations and restrictions on land title and use. 2.1. Provision for integrated management of information concerning obligations and restrictions on land title and use As noted in Chapter Three, this guideline involves a consideration of whether management of information concerning obligations and restrictions on title and use is fragmented, or whether the jurisdiction has taken steps to integrate this information. This guideline was applied to the three case study jurisdictions. It is clear from the analysis in Chapters Four, Five and Six that the jurisdictions surveyed have varying degrees of integrated management of obligations and restrictions on land title and use. There is some provision for integrated management of information in Queensland, although this has been largely reactive, and has occurred on a case by case basis. In some instances, legislation has been enacted to provide for better information where a specific problem has arisen, but there has not been widespread and coordinated reform. For example, information concerning disused mines was not previously visible on a title search. However, following the land subsidence in Collingwood Park, the Queensland government passed legislation to allow the landholder to place a note on title showing that the land has been affected by subsidence and is subject to a state guarantee.1 The purpose of this amendment was to stabilise land values in the area, by reassuring prospective purchasers that 1 Mineral Resources Act 1989 (Qld) Part 10AA. 230 compensation will be available for any future damage.2 It appears that placing such notifications on title was not contemplated by the government until problems arose. This ad hoc and reactive approach to the notification of obligations and restrictions on title has led to incomplete information. For example, although legislation was amended to allow information concerning disused mines to be placed on title, there is no provision for information concerning mining leases generally to be placed on title. Similarly, the recording of administrative advices has occurred on a piecemeal basis, and is only allowed where an Act specifically provides for recording.3 As shown in Chapter Four, a number of Acts do provide for obligations and restrictions to be notified as administrative advices, but the procedure is by no means uniform. Furthermore, the process is not automated. To record an obligation or restriction as an administrative advice, the administering department has to execute a separate form for every single obligation or restriction, and lodge it with the Registrar of Titles. Consequently, notification of obligations and restrictions is dependent upon the diligence of the administering agency. Therefore an administrative advice will only be recorded where first, legislation states that the obligation or restriction must be notified as an administrative advice, and second, where the relevant agency manually lodges a request with the Registrar of Titles. Although some statutes provide for set timeframes in which agencies must notify the Registrar of Titles, it is unclear whether there are any consequences for delays or failure to do so. In contrast, the Western Australian government has taken a more proactive approach to law reform, by taking steps to integrate information sources to prevent problems from arising. In recent years the government has invested significant funds into the development of the Shared Land Information Platform (“SLIP”), to provide landholders and prospective purchasers with integrated information concerning obligations and restrictions on land title and use. Although this project is not yet complete, and not all government information is presently available, it is developing 2 3 Queensland Government, Collingwood Park inspires new legislation (2008) Department of Mines and Energy <http://www.dme.qld.gov.au/media_centre.cfm?item=562.0> at 27 January 2009. Land Title Act 1994 (Qld) s 29(1), which states that the Registrar may record ‘anything that the Registrar is permitted to record by this or another Act’. 231 gradually. The project has a high level of government support, and should eventually expand to cover all obligations and restrictions. Another advantage of the SLIP infrastructure is that it allows for the process to be automated. When an Interest Enquiry search is performed, the software automatically searches all available government data. Therefore, integration is not dependent upon the lodgement of individual documents, meaning there is possibly less scope for error. There still remains some scope for error though, given that some government departments will need to upgrade their data, or place it upon a new database for it to be accessible by the SLIP enabler. Thus if government agencies are using one set of data in their day-to-day work, and making another set available to SLIP, there is potential for inaccuracies. If the system is adjusted so that the SLIP enabler can access the data actually used by the government agencies, this should alleviate any potential problems. The Western Australian approach therefore differs from Queensland in two major ways; all information will eventually be made available through an integrated system, and this information will be automatically available. Similarly to Western Australia, the New Zealand system was the product of a detailed program of reform, and is also a good example of integrated information concerning obligations and restrictions on title and use. The Resource Management Act 1991 (NZ) (“RMA”) simplified the legislative regimes creating obligations and restrictions on title and use considerably, and also provides clarification as to the roles of all levels of government. The Land Information Memorandum (“LIM”) available from district councils also appears to provide a lot more information than its Queensland equivalent (a local government property search). Whilst the New Zealand method is quite sophisticated, to implement a similar approach in any Australian state would require significant legislative reform to amalgamate all legislation creating obligations and restrictions and land title and use. At present, Australian states manage all natural resource components under separate legislative regimes. For example, Chapter Four showed that Queensland has 232 approximately 30 Acts that create obligations and restrictions on title and use for environmental purposes.4 Therefore it may not be feasible to recommend that Australian states enact legislation which provides for integrated management of all natural resources. The application of the comparative methodology requires the writer to take into account the legal background of the jurisdictions being compared. It may be the case that the structure of government in New Zealand facilitated reform of this scale, and it may not translate effectively to Australian jurisdictions. Furthermore, the New Zealand legislation was enacted almost twenty years ago. In this time, the number of environmental obligations and restrictions in Australia has increased exponentially in response to worsening environmental problems. Thus the system is even more complicated than it was when the RMA was enacted. This context means that suggesting integrated resource management legislation for Australian jurisdictions is inappropriate. For example, major legislative reform in a jurisdiction such as Queensland would be incredibly onerous due to the breakdown of responsibilities amongst government departments, and the large number of Acts which create obligations and restrictions. For this reason, the Western Australian approach may be more appropriate as it can operate within existing legislative and regulatory structures in Australian states. This approach allows the state governments to retain their existing legislative obligations and restrictions on title and use, and they can also remain in control of the current administering agencies. Furthermore, legislative reform needed to implement such a system is minimal. Although development of a platform such as SLIP does require a significant amount of government support and funding, it is perhaps better suited to Australian states than integrated legislation. It is likely that the most appropriate starting point for Australian jurisdictions is to examine how to manage obligations and restrictions through an integrated platform, 4 Other studies have shown that other jurisdictions have similarly large volumes of legislation. See for example Rohan Bennet and Abbas Rajabifard, ‘Spatially enabling government: a snapshot from Victoria’ (Paper presented at the Spatial Sciences Institute Biennial International Conference, Adelaide, 28 September-2 October 2009). 233 rather than trying to integrate the source of these obligations and restrictions. This essentially allows for natural resource management to remain fragmented, but for information to be integrated to provide greater certainty, and assist with decisionmaking and compliance with environmental laws. Both the New Zealand and Western Australian approaches show that successful integrated management cannot occur on a reactive basis; it needs to be underpinned by a specific program of reform, which takes into account management of all obligations and restrictions on title and use. It is not sufficient to enact legislation on a case-by-case basis to deal with individual issues as they arise. 2.2. Use of the land title register for the purpose of recording obligations and restrictions on use Chapters Two and Three noted that the land title register has traditionally been used to record only a narrow range of obligations and restrictions on title. This guideline assessed whether the use of land title register has been expanded in the subject jurisdictions to record obligations and restrictions on use, as well as title. The case studies show that the land title register is used to manage obligations and restrictions on use in all jurisdictions to some extent, although the degree to which it is used differs considerably. Queensland appears to make greater use of the land title register than the other surveyed jurisdictions. Although only several Acts in Queensland provide for obligations and restrictions to be registered on title, there are many more which require these instruments to be recorded as administrative advices. There are only two pieces of legislation which specifically provide for obligations and restrictions to be formally registered on title. The Forestry Act and the Sugar Industry Act create restrictions which are registrable in the format of profits á prendre and easements respectively. The difficulty in making legislative obligations and restrictions registrable is that they need to take the form of one of these categories of 234 registrable interests. This has been achieved in the case of these restrictions, mainly because new interests such as profits á prendre were created. It is difficult to discern why the Queensland government have elected to make these restrictions registrable on title, whilst others are not. One possible rationale is that these restrictions place a greater burden on land use rights than other obligations and restrictions. This is particularly so in the case of carbon rights, which grant the right to use the trees in a third party, thus completely removing the landholder’s right to use the trees. Arguably this amounts to an interference with possession of land, rather than merely with use. Alternatively, it is arguable that this degree of interference on land use is no different to other vegetation laws which prohibit clearing. The potential distinction though is that whilst vegetation laws prohibit clearing, they still allow the landholder to enjoy possession of the vegetation, and do not vest rights in a third party. Possibly a better rationale for treating these restrictions differently is that they consist of agreements entered into between two private parties; they are not imposed by the state. In contrast, many other obligations and restrictions, such as general prohibitions on clearing vegetation, are made under legislation, regulations or plans. There may be greater justification for registering private agreements than in the case of state imposed obligations and restrictions, as it is more difficult to gain information on private agreements. The remaining type of registrable instrument, statutory covenants, can be distinguished as covenants can only be entered into with the State as covenantee.5 As discussed in Chapter Four, covenants are used in Queensland to register agreements obliging landholders to undertake activities such as the preservation of native vegetation, and the protection of fauna. It is conceivable that these instruments could be used to register a broader range of obligations and restrictions on title. At this point in time they are only used on a case-by-case basis, where a State government department or local authority deems it necessary to secure restrictions or obligations relating to a specified parcel of land. There is presently no legislation which mandates 5 Land Title Act 1994 (Qld) s 97A(2). 235 the use of statutory covenants in specific situations. It may be considered too onerous to expand the use of statutory covenants to encompass all obligations and restrictions on land use. Regardless, they are a mechanism which can potentially be used to allow government imposed obligations and restrictions to be registered on title. Another feature common to all of these instruments is that they are relatively new creations. Statutory covenants were introduced to the LTA in 1997, and their use was expanded through amendments in 2000. Forestry profits á prendre were created in 2000, and sugar easements in 2008. This shows that the use of the land title register to register obligations and restrictions on use is growing. As noted above, the Registrar of Titles has indicated that he is willing to extend the scope even further and create new registered interests where there is a compelling case to do so.6 Therefore, there is the potential for the scope of the land title register in Queensland to extend even further. The other mechanism used to include information on title in Queensland is to record it as an administrative advice. Administrative advices essentially act as flags, and will alert the searcher that the obligation or restriction exists, but will not confer it with the benefits of registration. These administrative advices are used more often than registered obligations and restrictions, as Chapter Four showed that 15 Acts provide for their use. It appears that administrative advices are generally only used in the case of obligations and restrictions which affect individual parcels of land, as opposed to blanket restrictions which affect all parcels of land in a given area, such as zoning. In very general terms, the following may be said of the Queensland approach by way of a summary: Obligations and restrictions imposed by private agreement, rather than by the State, are registered on title (the exception being statutory covenants); Obligations and restrictions which affect individual parcels of land are often recorded on title; and 6 Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). 236 Obligations and restrictions which affect multiple parcels of land are rarely registered or recorded on title. However these distinctions are not applied universally, and Queensland may benefit from the development of set guidelines that specifically address where information on restrictions and obligations should be registered or recorded. Administrative advices are potentially a sound alternative to registering obligations and restrictions on title. They ensure that the existence of an obligation or restriction is flagged on title, but without unnecessarily extending the State guarantee of title. That said, the main problem with the Queensland approach is that it is not uniform. Only some Acts provide for obligations and restrictions to be recorded as administrative advices. Furthermore, many of these Acts only provide for some obligations and restrictions created under the Act to be recorded, but not all. Although the Queensland government have extended the scope of the land title register to incorporate many obligations and restrictions on land use, there is definitely room for further extension. Alternatively, the Registrar of Titles would ideally like to see a new register created called the Miscellaneous Interests Register, which would be accessible by all government agencies, and in which they could record their own data. At present though there is no government support for development of a new register, and the current processes are likely to remain in place for some time.7 If the Queensland government are to continue registering and recording information on title, it is essential that guidelines are developed to underpin this process, as the current ad-hoc approach to registration and recording is ineffective. Western Australia differs from Queensland as its land title register has largely retained its traditional role as a record of ownership details. The Western Australian government makes limited use of the land title register for the purpose of recording obligations and restrictions on land title and use, preferring instead to make this information available through an Interest Enquiry search. 7 Ibid. 237 This was not initially the case, and Chapter Five discussed legislative reform in the 1990s and early 2000s whereby the government allowed for additional information to be recorded on title. However, since then the government has moved away from this approach as technological advances have made the SLIP infrastructure possible. The Western Australian approach is arguably a good model despite operating externally to the land title register. This is because it integrates, or at least intends to integrate, information on a uniform basis. Once all agencies make their data available, an Interest Enquiry search, in conjunction with a title search, should give a landholder or prospective purchaser an accurate picture of all obligations and restrictions on title and use affecting a parcel of land. Although not all obligations and restrictions are presently available through an Interest Enquiry search, there is strong government support for further expansion of the platform, and this expansion is currently taking place. In contrast, the Queensland approach is not the product of coordinated reform, and expansion appears to occur on an ad-hoc basis. Furthermore, an intended benefit of the SLIP platform over the land title register is that it is easier and more efficient to record obligations and restrictions which affect multiple parcels of land on a spatial database rather than on a register. This is because on a parcel-based register an individual entry would have to be made for each affected parcel. Where the relevant obligation or restriction is, for example, a zoning control which affects thousands of blocks, it would be onerous for the government to make individual notations on each of these several thousand titles. In contrast, a single entry can be made on a spatial database, and this entry is represented as spanning across multiple blocks. Therefore, although the land title register plays a limited role in Western Australia, this is a conscious decision, because it is no longer viewed as the most effective repository for this type of information. Additionally, the problem of not including information on title could be easily remedied by providing a note on title, in a similar format to an administrative advice, alerting the searcher to the possibility of other relevant information available via an Interest Enquiry. This would ensure that the 238 presence of all information is flagged in a title search, even if details of the obligations and restrictions are not available in full. Another advantage of this is that if the notation merely directs the searcher to consult SLIP, it does not need to be updated, and the exact same notation can be placed on every single title. This approach would be quite easy and time efficient for governments to implement, and would to some extent ensure that the land title register acts as a mirror of all interests. Similarly, the New Zealand government only makes scant use of the land title register to record obligations and restrictions on land use. A possible reason for this is that the bulk of obligations and restrictions on land use are imposed at the district level rather than at the national level where the land title register is administered. Conversely in Queensland, the land title register, as well as most legislative obligations and restrictions, are administered by the same level of government. The LIM also appears to provide detailed information concerning these obligations and restrictions, and may be a sound alternative to placing obligations and restrictions on title. If the information was placed on title, the district councils would have to ensure that the information was continually updated. Under the current approach, the district councils merely have to maintain their own internal records to ensure that information given on a LIM is correct. If this is indeed a more appropriate approach to take, information deficiencies could be remedied through a note on title advising the purchaser to obtain a LIM. As noted above in the context of Western Australia, such an approach would at least notify the searcher of the existence of additional information that they should further investigate. In both Western Australia and New Zealand the only recent extension of the land title register to register or record obligations or restrictions on use is in the case of carbon covenants or agreements. These covenants and agreements are discussed in detail in Chapter Five and Six, but it is relevant to note that in both jurisdictions these covenants or agreements can be registered on title, and the justification for this is to encourage and facilitate trade. 239 It is interesting that both the New Zealand and Western Australian governments have seen fit to register carbon agreements and covenants, but no other obligations or restrictions on land use. Arguably this distinction has arisen because carbon agreements and covenants essentially take away a component of the land, whereas other obligations and restrictions merely alter the manner in which components may be used. In this sense, carbon agreements effectively alter rights to possession, rather than merely rights to use. Furthermore, as with most registrable restrictions in Queensland, these agreements are between private parties rather than obligations and restrictions imposed by the State. Both governments have explicitly recognised that registering these agreements provides greater security to affected parties, but it is conceivable that other obligations and restrictions on land use could also benefit from this increased security. This however is unlikely in Western Australia, as the government has expressed the view that SLIP is a more appropriate forum for the recording of obligations and restrictions, and carbon rights are likely to be a limited exception. The New Zealand Law Commission is presently examining this issue,8 and it will be interesting to see whether they recommend that the scope of the land title register be further extended. In summary, although there are major flaws with the Queensland approach, it may have some merits due to the extension of the scope of land title register to record obligations and restrictions on use. In the case of obligations and restrictions which affect parcels of land individually, there is a very strong case for making this information available on a title search. This is because such obligations and restrictions are generally imposed by agreement, order, or a Ministerial decision, and cannot be found in the text of legislation, regulations or plans. This is the fundamental distinction between these types of obligations and restrictions, and blanket restrictions which affect multiple parcels of land. Additionally, providing this information on a title search would help to restore the central pillars of the Torrens system, including completeness and accuracy. 8 See New Zealand Law Commission, Review of the Land Transfer Act 1952, Issues Paper No 10 (2008). Amongst other things, the Commission are considering whether to implement a system of interest recording, similar to the system of administrative advices used in Queensland. 240 However, in the case of blanket obligations and restrictions, such as zoning or planning controls, a platform such as SLIP may be a more appropriate forum for providing information. This is because representing these obligations and restrictions spatially is far easier and more cost effective than recording these details on every individual title. Although this does derogate from the Torrens ideal that the register is the sole source of information, this could be remedied by providing a short note on title flagging the existence of this database to searchers. Although this does not provide any information on the content of the database, it does in some respects ensure that all information, however abridged, is available through a title search. Furthermore, since the Torrens system was introduced in the 19th century, emphasis on protection of private property rights has given way to environmental protection, and it may be the case that the goals of the Torrens system need to be modified to suit current social conditions. 2.3. Ease with which landholders or prospective purchasers can ascertain what obligations and restrictions on title and use apply in relation to a parcel of land This guideline was used to assess how easily information concerning obligations and restrictions on land title and use may be obtained in the case study jurisdiction. This guideline was applied because ease of obtaining information provides certainty for landholders, as well as facilitating compliance with environmental laws. The case studies demonstrated three very different processes for ascertaining information on obligations and restrictions on land title and use. The Queensland approach consists of a complicated system of registers and legislative obligations and restrictions, and it is quite difficult for landholders or prospective purchasers to determine what obligations and restrictions affect their title and use. This is reflected in a growing body of case law, as well as increased media attention on the issue. The 2008 Queensland decision of Wall v Doyle9 involved a couple who purchased land at Ipswich, and cleared land for the purposes of building a home. A letter from the Department of Natural Resources (as it was then called) told them that there were no restrictions under the Vegetation Management Act, which they thought 9 [2008] QPEC 23. 241 gave them permission to clear the land. Upon clearing the land, they were fined by the Environmental Protection Agency, as the trees were protected under the Nature Conservation Act.10 The matter went before the Queensland Planning and Environment Court, which made very detailed and onerous orders requiring the Doyles to replant vegetation according to very stringent requirements.11 In his determination, Judge Robin QC made the following comment, which is worthy of full repetition: in fairness to the respondents the Court records information from [their solicitor] that they are a young couple, naïve in respect of matters dealt with by the Nature Conservation Act who purchased the property described with a view to establishing there a home for themselves and also certain facilities to permit them to pursue an interest in trotting. They inquired of the Local Authority when they were interested in purchasing whether there was on the land any protected vegetation on more than one occasion and were informed in the negative but, as I understand it, with an intimation that they ought to conduct further searches. [The solicitors] when brought into the matter, after his clients, as they admit, had cleared some five hectares in about March 2007 was successful after a couple of hours effort in discovering relevant mapping which revealed on lot 12 a "swamp tea tree" community.12 This demonstrates the complexity of the Queensland approach, as even the solicitors engaged by the Doyles took several hours to find the relevant restriction in place over the land. As there is no central database or register through which obligations and restrictions can be found, it is necessary to consult a myriad of Acts, regulations and plans. In contrast, the SLIP infrastructure brought into effect in Western Australia should eventually prevent problems such as this from arising. Once all government 10 11 12 Wall v Doyle [2008] QPEC 23. This case was also the subject of media attention in 2009: Channel Nine, ‘Treelopping Couple’, A Current Affair, 7 July 2009 < http://video.ninemsn.com.au/video.aspx?mkt=en-AU&brand=ninemsn&vid=77628dd6-b98d4a44-9d60-209055f91de1#::77628dd6-b98d-4a44-9d60-209055f91de1> at 13 August 2009. Wall v Doyle [2008] QPEC 23. Wall v Doyle [2008] QPEC 23, 8. 242 departments make their information available, all obligations and restrictions on land use will be ascertainable through an Interest Enquiry search. As a result, a single search should alert the landholder or prospective purchaser to all relevant information on obligations and restrictions on title and use. There is a clear benefit to the Western Australian approach, as it makes it much easier for landholders or prospective purchasers to discover obligations and restrictions on title and use. The current problem with the Western Australian approach is that it is not yet finalised, and at this point in time the Interest Enquiry search does not provide information on all obligations and restrictions. As a result, it is necessary to undertake a title search, an Interest Enquiry search, and then make further enquiries with regard to obligations and restrictions not covered by these searches. To assist with this process, the Interest Enquiry will also give searchers a list of information not covered through Interest Enquiry, which at least provides a landholder or prospective purchaser with some parameters in terms of enquiries to be made. It is also easier for landholders and prospective purchasers to obtain land information in New Zealand than in Queensland. This is due to the provision of detailed Land Information Memorandums (“LIMs”), which appear to cover a much broader range of obligations and restrictions than property searches in Queensland. It appears that a landholder or prospective purchaser in New Zealand can get almost all relevant information from a land title search and a LIM. In the case of information not available through these searches, it is necessary to consult the relevant legislation and plans. A sample LIM is annexed to this thesis as Appendix G, and it shows a reference to the district plan. This effectively links these two sources together, by directing the purchaser to make further queries. Furthermore, having to consult primary materials is not nearly as onerous as the process in Queensland, as there are significantly less sources to consult in New Zealand, due to integrated legislation. Therefore although it may be necessary to go beyond the standard searches, this process is certainly simpler than in Queensland. 243 In terms of ease of ascertaining information concerning obligations and restrictions on title and use, Western Australia and New Zealand both provide good models. An Interest Enquiry search and a LIM provide a similar breadth of information in a single document, or through a single search, making it quite easy for a landholder or prospective purchaser to find any obligations and restrictions on title and use affecting a parcel of land. The only key difference is that in Western Australia information is gathered from a number of different government entities, whereas in New Zealand all the information appears to be in the control of the district council. This may be due to fundamentally different structures of government, and is not an important distinction. Additionally, it may also be necessary in New Zealand to consult the primary materials to ascertain all obligations restrictions on use, but this process is much easier than in Queensland due to the substantially smaller number of Acts and regulations affecting land use, as well as the notation on the LIM directing the searcher to the district plan. In Western Australia this will not be necessary once all agencies provide their data through SLIP. Adoption of a model based on either the Western Australian or New Zealand approach would assist with effective management of obligations and restrictions on title and use. Both models make it easy for landholders and prospective purchasers to ascertain what obligations and restrictions affect title and use. The Western Australian approach is arguably more appropriate to Australian conditions, as it was designed to operate in a jurisdiction where obligations and restrictions derive from a number of different Acts, and are managed by several different government entities. As this is the case in most Australian jurisdictions, it could be adapted to suit other states. As noted above, large scale legislative reform, as occurred in New Zealand, may not be feasible in Australia states. 2.4. Responsibility for the accuracy of information concerning obligations and restrictions on title and use Chapter Three noted that it is important that landholders and prospective purchasers are able to rely on the information that they access. Therefore it was necessary to 244 determine which government agency has responsibility for the accuracy of the information provided. In all jurisdictions surveyed, responsibility for information generally lies with the government entity responsible for administering the legislation creating the obligation or restriction. When the Western Australian government reviewed their approach to management of obligations and restrictions, which resulted in the development of SLIP, they decided that this approach was preferable. They noted that agencies have more detailed information concerning their own obligations and restrictions, and are therefore in a better position to control the data. Attributing responsibility to the administering agency is most likely a sound approach, and should be adopted in an effective system for the management of obligations and restrictions on land title and use. This section will compare the approaches used in the three jurisdictions surveyed, to determine how this can best be achieved. In Queensland, responsibility for accuracy of information generally rests with the government department responsible for administering the obligation or restriction. The Department of Environment and Resource Management (“DERM”) are responsible for administering the land title register, and are also responsible for the accuracy of registered interests. In contrast, DERM are not responsible for information merely recorded on title. Where information is recorded ‘below the line’ on title, it is there solely for informational purposes, and is not conferred with any benefits of registration. Therefore, its enforceability falls to be determined by the general law, and the agency in charge is responsible for any inaccuracies. The Land Title Practice Manual makes this point explicit, and states that ‘enquiries relating to an administrative advice should be directed to the relevant authority or department administering the legislation or issuing the notice. The registry will not provide any further detail other than that disclosed on the notice’.13 As shown on the title search annexed to this thesis as Appendix A, very little information is disclosed in an administrative advice. Therefore, it is sensible that the Land Registry are not responsible for the data. The 13 Queensland Department of Environment and Resource Management, Land Title Practice Manual (2009) ¶ 52-0000. 245 searcher must contact the agency directly for full information, and it is logical that the agency bears responsibility. One observation that may be made about the Queensland title search annexed at Appendix A is that the physical distinction between registered and unregistered interests is not made clear. It may be useful to amend the appearance of title searches to ensure that this distinction is clarified. Similarly the accuracy of information on external registers is the responsibility of the administering agency. A similar approach has been adopted in Western Australia. Information available through an Interest Enquiry search remains within the control of the custodian. An Interest Enquiry search merely alerts the searcher that there is an obligation or restriction present, and the searcher then orders a report which is compiled by the relevant agency. Therefore, it is clearly the custodian, and not Landgate, who is responsible for the information provided. The technological developments behind SLIP make this possible, as the data comes directly from the agency. This is similar to the Queensland approach, as an administrative advice will merely alert the purchaser that an obligation or restriction exists, and they must then contact the agency directly. Both approaches achieve a similar purpose, but through different methods. However, there is at present potentially greater scope for liability on the part of data custodians in Western Australia. This is because many agencies have had to change their practices to allow data to be accessible by SLIP. If they are putting data on a database for access by SLIP, and using different data within the agency, there is potential for inaccuracy. It would be safer for SLIP to access data used by agencies on a day-to-day basis. Ideally the SLIP technology will develop to a point where this is feasible. In New Zealand, the main mechanism for providing information on land use is via a LIM. The responsibility for the accuracy of these documents rests with the issuing district council. In contrast to Queensland and Western Australia, the district council is in possession and control of all information in a LIM. Therefore, it is quite sensible that the district council is the responsible authority. 246 There are sound reasons for making each government entity responsible for the accuracy of their own information, even where it is collated on a central register, or through a central search. This is primarily because the administering agency is in the best position to know whether its own information is accurate. Additionally, both a land title register search in Queensland and an Interest Enquiry search in Western Australia do not provide any substantive information on the obligation or restriction, they merely alert the searcher that the obligation or restriction exists. Thus it would be inappropriate to impose liability on the entity administering the central register or search, as they do not possess detailed information about the obligation or restriction, and are merely passing on information provided by another agency. Another reason for attributing responsibility to the administering agency rather than the Registrar of Titles is that Registrars may be wary of placing additional information on title, and liability may be one of the reasons for this. By ensuring that liability rests with the administering agency, an approach which increases the range of restrictions and obligations found on title is likely to gain greater support with Registrars of Title. Furthermore, attributing responsibility to the administering authority may lead to improved data. The threat of liability may be an incentive for government departments to ensure that the information they are providing is accurate. This threat has been negated somewhat in Western Australia through the use of disclaimers. These disclaimers attempt to absolve from liability both the central authority administering Interest Enquiry searches, as well as the authorities responsible for the data. Chapter Eight will discuss the use of disclaimers in further detail, and analyse whether they are appropriate to use in an effective system for the management of obligations and restrictions on land title and use. However, it is relevant to note that if the disclaimers were not used, or if they were was overturned by a court, it is likely that the agency responsible for the data would be the liable party. In summary, all jurisdictions surveyed support an approach whereby responsibility for the accuracy of information is attributed to the agency charged with administering the 247 legislation, rather than with the agency responsible for operating the central register or database. Such an approach appears to be a necessary component for an effective system. The only problem with this approach exists where agencies attempt to disclaim responsibility for information provided. This will be discussed below. 2.5. Guarantees as to the accuracy of information concerning title, and availability of compensation where information is incorrect Because the Torrens system is underpinned by a number of principles, including the insurance principle, it was necessary to examine whether the jurisdictions have any mechanisms in place through which landholders can obtain compensation. In all jurisdictions instruments registered on title to land are protected by the state guarantee. Therefore carbon rights in all jurisdictions, as well as sugar easements and environmental statutory covenants in Queensland, are guaranteed by the State. This means that a small number of obligations and restrictions on use are guaranteed, and compensation is available for any loss suffered. One of the major differences between the subject jurisdictions though is their approach to liability for other information. In Queensland and Western Australia, the general approach is for governments to attempt to absolve themselves of any liability for other information provided. In Queensland, the Land Title Act specifically states that administrative advices are not subject to the state guarantee of title.14 The only instance where compensation for incorrect information concerning obligations and restrictions on use is available arises with regard to planning certificates in Queensland. Where information in a planning certificate is incorrect, the local government is liable to pay compensation.15 This is an entitlement specifically granted under statute, and most statutes creating obligations and restrictions on use do not contain similar provisions. In Western Australia the government relies heavily upon disclaimers to negate liability for information provided via an Interest Enquiry. Searchers are alerted to 14 15 Land Title Act 1994 (Qld) s 189(1)(l). Sustainable Planning Act 2009 (Qld) s 707. 248 disclaimers on both the Landgate website when they initiate an Interest Enquiry, as well as in each report provided by government agencies. The intention is that information given in an Interest Enquiry is merely there for informational purposes, and is not to be relied upon. In contrast, the New Zealand government have recognised that information provided via a LIM is generally sought by a landholder or prospective purchaser who intends to rely on the information therein for serious purposes. To give effect to this, the Local Government Official Information and Meetings Act 1987 (NZ) specifically provides that a LIM is sufficient evidence of the correctness of the information included within.16 This is a more appropriate approach to take, as it is likely that information on land use controls will generally be sought for serious purposes. A prospective purchaser may seek this information when deciding whether to purchase a property, and a landholder may seek information prior to commencing development or land clearing. As a result, it is important that information sources are accurate, as the consequences are potentially serious. Indeed if information is disclaimed, this seems to defeat the purpose of making it available. Furthermore, even though there are no express provisions for compensation in Queensland and Western Australia, and in some cases information is even disclaimed, liability may still arise under common law misrepresentation. This will be discussed in detail in Chapter Eight, but it is relevant to note that the serious nature of information may lead to liability, even where not expressly provided by statute, or even where it is disclaimed. An effective system for the management of obligations and restrictions on title and use is one which can be relied upon by prospective purchasers and landholders. Therefore, the approach adopted in New Zealand appears to be the best model, as it ensures that district councils are liable for inaccurate information. Although Australian governments might fear an increase in litigation if liability is statutorily 16 Local Government Official Information and Meetings Act 1987 (NZ) s 44A(5). 249 imposed, to date there have only been two reported cases in New Zealand relating to LIMs. This is potentially because the threat of liability encourages governments to take greater care in providing data, thus fewer errors are made. Furthermore, a guaranteed statutory right to compensation where errors result in loss may remove the need for lengthy and expensive litigation. For these reasons, it may be appropriate to adopt a similar legislative provision in Australia. 3. What features of the case study jurisdictions will contribute to effective management of obligations and restrictions on land title and use? The above section compared the various approaches of the case study jurisdictions, and identified some features which are desirable in a system for effective management of obligations and restrictions on land title and use. This section will make some preliminary recommendations for such a system. Although the New Zealand approach has proven very successful, it is unlikely that this type of large-scale legislative reform is possible in Australian jurisdictions. Therefore, it is necessary to make any recommendations on the basis that natural resource management is likely to continue to occur on a fragmented basis, through various Acts, regulations and plans. The intention of this thesis is therefore to recommend reform within this framework, to provide for more effective and integrated management of information concerning these fragmented obligations and restrictions. Both the Western Australian and New Zealand case studies show that development of an effective system for the management of obligations and restrictions on title and use is dependent upon a specific and coordinated program of reform. It is necessary to undertake a detailed and comprehensive review of the system for the management of obligations and restrictions to prevent problems from arising, rather than reacting to problems on a case-by-case basis. The Western Australian approach provides a very good model, as all information will eventually be available via a title search and an Interest Enquiry search. Although this information is sourced from a number of different agencies rather than collated in one 250 place, it appears that this method supports more accurate and up-to-date information. Furthermore, although it derogates from the mirror principle, a note on title would alert searchers to the existence of SLIP, thus solving any information deficit. A spatial database also may be more appropriate than the land title register for natural resource management, as the land title register was developed before environmental protection became a pressing governmental concern. Therefore it was not designed to manage this volume and variety of obligations and restrictions. The Queensland approach does have its merits as the government has broadened the scope of the land title register to incorporate a number of obligations and restrictions on use. The problem with this approach is that it has not occurred on a uniform basis, and has generally only allowed for registration or recording of obligations and restrictions affecting single parcels of land, rather than blanket restrictions which affect multiple parcels of land. A suggested approach would be a combination of both the Western Australian and Queensland approaches. A spatial map representing obligations and restrictions affecting multiple lots is a good model, as it is more cost effective and easier to update. If such a database existed in Queensland, a case like Wall v Doyle17 might not have arisen, as they could have seen the restriction represented visually. However, a spatial database should also be linked to the land title register, and any obligations or restrictions which affect parcels on an individual basis should be visible on a title search. This is because such obligations and restrictions are generally not imposed by legislation, but rather by an agreement or a ministerial decision. Therefore they are fundamentally different in nature to obligations and restrictions affecting a number of parcels. It is also relevant to note that, from the Queensland case study, it is generally positive obligations which affect individual properties (eg. Replanting orders, heritage register entries which require properties to be maintained), and negative restrictions which affect multiple parcels of land (eg. Tree clearing laws, planning controls). This is 17 [2008] QPEC 23. 251 another rationale for requiring interests affecting individual parcels of land to be registered or recorded on title. A positive obligation requires the landholder to actively take steps to comply with the law, agreement, or order. In contrast, a restriction may be complied with merely by doing nothing. Arguably positive obligations therefore have more serious consequences for security of landholding, and require a higher level of compliance. Thus they should be recorded on title. To ensure that all relevant information is recorded, it is necessary to consider at the outset what information should be recorded on title, and make records accordingly. The reactive approach in Queensland could indeed lead to more confusion, as some information is recorded on title, but not all. A detailed program of reform is needed to ensure that a uniform method is applied. All jurisdictions surveyed generally leave data in the control of the administering agency. This is likely to be a good model, as individual agencies have superior knowledge concerning their own data, and are in a better position to update any information sources. Furthermore, the threat of liability is a good incentive for agencies to ensure information is accurate and up to date. In terms of liability, the New Zealand approach effectively guarantees that information given in a LIM is correct. This is a sound approach, as it is largely pointless to provide information on land use which cannot be relied upon by landholders and prospective purchasers. Although it may be necessary to provide disclaimers in Western Australia at present, as not all information is available yet, the usefulness of the system will be undermined if all information remains disclaimed. Furthermore, the existing system need only have a disclaimer as to its completeness, not to its accuracy. Agencies that have already made data available should ensure that the data provided is correct. The disclaimers should only alert searchers that not all information affecting land is available through a search. For a system to be effective, it may be necessary to enact legislation similar to that used in New Zealand, stating that a search of the title register, and the spatial database, is evidence as to the correctness of the material therein. It is unlikely this 252 will lead to increased litigation, and may indeed support greater accountability for data. In summary, the following preliminary recommendations are made: All Australian jurisdictions should embark on a detailed program of reform, rather than taking reactive measures when problems arise. The Queensland case study demonstrated that imposing obligations and restrictions on land title and use on an ad hoc basis has led to a confusing and complex system. It is unlikely that there are any significant differences amongst the Australian states in this respect.18 A coordinated program of reform is preferable to the continuation of ad hoc measures; The land title register should be expanded to provide for all obligations and restrictions on land use which affect individual parcels of land. This is necessary because these obligations and restrictions are usually imposed by agreement or ministerial decision, and cannot be found through consulting legislation, regulations, or plans; A spatial database should be developed to represent obligations and restrictions which affect multiple parcels of land. This is because research shows that these obligations and restrictions are well suited to this type of technology as opposed to a parcel-based register. It is easier and more costeffective to make a single spatially-represented entry which covers multiple parcels of land, as opposed to making a notation on every individual title. The model used in WA is a good model to use; The system used should leave information in control of the administering agency, and attribute liability to this agency; and Information obtained from a title search and a spatial database search should be legislatively guaranteed. This will be discussed in more detail in Chapter Eight, but it is relevant to note here that development of a new system for the management of obligations and restrictions on title and use would be defeated unless users are able to rely upon the data provided. 18 Brendan Edgeworth, ‘Planning law v property law: Overriding statutes and the Torrens system after Hillpalm v Heaven's Door and Kogarah v Golden Paradise’ (2008) 25 Environmental and Planning Law Journal 82, 83. 253 The feasibility of these recommendations will be considered, and any amendments made, in Chapter Eight. 4. Conclusion This chapter compared and analysed the results of the case studies, and identified the features of these jurisdictions which will most effectively contribute to the management of obligations and restrictions on land title and use. On this basis, preliminary recommendations were made. It is argued that these recommendations could be used to provide for integrated management of information concerning obligations and restrictions on land title and use in Australia. The following chapter will canvass the potential legal issues associated with implementing these recommendations, and note strategies that may be adopted to prevent these issues from arising. The following chapter will also make recommendations for reform, and suggest legislative amendments incorporating these recommendations. 254 Chapter Eight Legal issues associated with integrated management of obligations and restrictions on land title and use 1. Introduction Chapter Seven identified the features of the case study jurisdictions which are likely to contribute to effective management of information concerning obligations and restrictions on title and use. Based upon this, Chapter Seven made preliminary recommendations for a new system to be developed in Australian jurisdictions. These recommendations were: A detailed program of reform must take place in each jurisdiction, rather than a series of reactive measures designed to fix existing problems; Expansion of the land title register to provide for all obligations and restrictions on land use which affect individual parcels of land; Development of a spatial database to represent obligations and restrictions which affect multiple parcels of land; Use of a system which leaves information in control of the administering agency, and attributes liability to this agency; and A legislative guarantee of accuracy for all information obtained from a title search and a spatial database search. The purpose of this chapter is to discuss the potential legal problems that could arise from the recommendations made in Chapter Seven, as well as any barriers to implementation of the recommendations. The matters to be considered are: Indefeasibility and issues with placing obligations and restrictions on title; The state guarantee of title and compensation for loss; Statutory and common law liability for incorrect information; and The effect of in rem versus in personam obligations and restrictions. This chapter will then devise a detailed set of final recommendations taking these issues and barriers into account. 255 2. Indefeasibility and issues with placing obligations and restrictions on title Chapter Seven made a distinction between two different types of obligations and restrictions: Those which affect individual parcels of land on a case-by-case basis; and Those which affect multiple parcels of land through imposition of a blanket restriction. In recognition of this distinction, Chapter Seven suggested that any obligations or restrictions that affect individual parcels of land should be noted on a title search. This is because these obligations and restrictions are often the result of agreements or ministerial decisions, and cannot be found in primary legal materials. It also suggested that obligations and restrictions that affect multiple parcels of land should be represented on a spatial database. This recommendation was based upon the Western Australian experience, which suggests that it is less costly and more efficient to record these obligations and restrictions in this manner. Chapter Seven also noted that many agreements and ministerial decisions create positive obligations rather than negative restrictions. It is important that these are notified to a landholder or prospective purchaser, as active steps are needed to ensure compliance. This is another possible rationale for notifying these instruments on title. There are several different methods by which information may be made available on a title search: Registering obligations and restrictions on title, similarly to the covenants and profits á prendre used in Queensland; or Recording obligations and restrictions on title without the benefits of registration. Within this second category, information may be recorded on title for one of three purposes: Purely for informational purposes; To grant priority; or Recording as a precondition to effect. The alternative approach to recording or registering information on title is notification on a completely separate register or database. Although this may derogate from the mirror 256 principle, measures may be taken to ensure that this database operates in conjunction with the land title register, thus lessening the problem. This section will discuss each of these approaches in turn, specifically addressing the positive and negative features of each. 2.1. Registration on title If obligations and restrictions on land use are registered on title, they will receive the benefits of registration. The main benefit of registration is indefeasibility. The principle of indefeasibility was discussed in Chapter Two, where it was noted that indefeasibility is the key feature of the Torrens system. Indefeasibility essentially means that an interest can only be affected by subsequent registered interests, and deprivation of an interest may allow the landholder to obtain compensation (compensation will be discussed below at 3). The principle of indefeasibility is given effect in all Australian jurisdictions through their various versions of the paramountcy provision.1 There are a number of benefits associated with registering obligations and restrictions on use over land title. These benefits are demonstrated by the Queensland case study, which allows for several obligations and restrictions on land use to be registered over title to land. One example is profits á prendre that are registrable under the Forestry Act 1959 (Qld).2 The explanatory notes to the amending Act outline the government’s rationale for registering these instruments, which is: to ensure that the contractual rights are recognised and capable of being ascertained by any potential buyer, the contract may be registered as a profit á prendre. Registration will allow the principles of indefeasibility under the Land Title Act 1994 to apply. There is of course no obligation to register the contract as a profit á prendre under the Land Title Act 1994. In fact, a contract may be entered into by the parties outside of these provision[s], however, the contract would not have the benefit of the government backed indefeasibility of title obtained by registration under that Act.3 1 2 3 Land Title Act 1994 (Qld) s 184; Real Property Act 1900 (NSW) s 42; Transfer of Land Act 1958 (Vic) s 42; Real Property Act 1886 (SA) s 69; Transfer of Land Act 1893 (WA) s 68; Land Titles Act 1980 (Tas) s 40; Land Title Act 2000 (NT) s 188. Forestry Act 1959 (Qld) s 61J. Explanatory notes, Forestry Act and Land Title Amendment Bill 2001 (Qld) 3-4. 257 Thus the purpose of registration is this instance is twofold – first, to alert potential purchasers to the existence of an agreement, and second, to confer upon the contract the benefits of registration. Furthermore, it has been recognised in Queensland that the registration of obligations and restrictions on use may offer environmental benefits. In Queensland, covenants may be registered on title in a number of circumstances (discussed fully in Chapter 2), and it is noted that covenants are ‘binding on subsequent landholders, ensuring that land and other important natural resources are not diminished in the future’.4 Thus registration may provide the added benefit of providing information to prospective purchasers to ensure that environmental values are retained through compliance. The Western Australian government also recognised that extending the scope of the land title register can indirectly provide environmental benefits. In the second reading speech to the Bill creating carbon covenants, it was noted that establishing such a system for trading carbon rights could provide significant environmental benefits. However, the success of such a system was dependent upon reduction of commercial and legal risks associated with these covenants.5 To achieve this, the government decided to introduce registrable covenants, and stated that the Bill would ‘provide security for the owner of the carbon right in land by enabling a carbon right to be registered on the land title’.6 Therefore, there are both direct and indirect benefits associated with registering obligations and restrictions on land use on the land title register. There is scope for the land title register to be expanded further to include additional and new obligations and restrictions. The Queensland Registrar of Titles has expressed the view that he is willing to consider the creation of new registrable instruments if a government agency makes a compelling case for the creation of such an instrument.7 4 5 6 7 Queensland Government, ‘Facts: Statutory Covenants’ (2007) Department of Natural Resources and Water < http://www.nrw.qld.gov.au/factsheets/pdf/land/l98.pdf> at 30 July 2009. Western Australia, Parliamentary Debates, Legislative Assembly, 22 May 2002, 10960 (Francis Logan). Ibid 10961. Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). 258 These benefits though are to be balanced against the negative issues associated with registration of these interests on title. First, there is the risk that the State guarantee of title will be extended too far. This was discussed in the Standing Committee report undertaken in WA, where it was noted that placing obligations and restrictions on title was not desirable, as ‘it would not be feasible to extend this guarantee to all items and this may have the effect of eroding the integrity and indefeasibility of the certificate of title’.8 Additionally, government departments may not want the guarantee to extend to cover these obligations and restrictions, and may instead want them recorded to merely create a ‘flag’ for persons searching the register. In such cases recording instruments as administrative advices or notifications may be more appropriate than registering them.9 It may also be the case that the land title register is neither the most appropriate, nor the most effective place to record information concerning obligations and restrictions on land use. As discussed above in Chapter Five, the Western Australian Registrar of Titles prefers for information on land use to be managed through SLIP rather than the title register, for two reasons – first, the technology is better equipped to demonstrate obligations and restrictions which affect multiple blocks of land, and second, it also prevents the register from becoming ‘cluttered’.10 With regard to the first point raised by the Western Australian Registrar of Titles, it is unclear to what extent a spatial database is more effective than a register at recording blanket restrictions due to the early stage of the SLIP project. At present in Queensland the land title register is only used in the case of agreements which affect single parcels of land, thus the Queensland approach offers little guidance as to whether the register can be effectively used for the recording of blanket restrictions which affect a number of parcels of land. As the Western Australian approach is still in its infancy, more information may be needed based upon the continued operation of SLIP. 8 9 10 Western Australian Government, Response to the Report on the impact of State Government actions and processes on the use and enjoyment of freehold and leasehold land in Western Australia (2004) pp 2930. Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). Interview with Bruce Roberts, Registrar of Titles, Western Australia (Perth, 7 May 2009). 259 SLIP also aims to prevent the register from becoming ‘cluttered’. This problem of ‘cluttering’ the register was addressed by the New South Wales Law Reform Commission, which considered whether statutory interests should be noted on title, and concluded that: the Commission is of the view that these interests should not, in general, be required to be recorded on the Register, because many of them are neither legal nor equitable interests in land, and they would clutter and confuse the Register.11 This built upon the stance taken in the earlier Issues Paper, which considered whether ‘interests and proposals of government departments and authorities which, whilst not amounting to proprietary interests in land, may affect the value, use or enjoyment of land’ should be recorded and subject to the state guarantee. The Issues Paper concluded that: some commentators argue that these interests should be recorded in the register and compensation paid if loss occurs because they exist but are not recorded. However, the more usual view is that interests of this type are not appropriate for recording since they amount to neither legal nor equitable interests and would clutter the register. It is accepted conveyancing practice that buyers and sellers of land should make numerous enquiries (apart from title) to ascertain the existence of statutory interests affecting the subject property. Aside from the argument of ‘completeness of the register’, there is little reason why this practice should change and the State be made liable if this information is not recorded on title but available from other sources.12 Thus whilst the Law Reform Commission noted that the existence of these overriding statutes derogated from the ‘completeness’ aspect of the register, they did not see fit to record such statutory interests on the title to land. To some extent the Commission relied on the fact that standard conveyancing practice dictated that a number of additional inquiries must be made upon the purchase of property. Their issue with recording was that the State would be liable where information was omitted from the register. However, as the Queensland case study shows, there are steps that could be taken to exempt the State from liability, and place it upon the agency responsible for administration of the obligation or restriction. Also, it is relevant to note that these comments were made 20 years ago, and perhaps a different conclusion would be reached now given the exponential increase in statutory 11 12 New South Wales Law Reform Commission, Torrens Title: Compensation for Loss, Report No 76 (1996) [4.21]. New South Wales Law Reform Commission, Torrens Title: Compensation for Loss, Discussion Paper No 19 (1989) [45]. 260 obligations and restrictions since then. This increase in obligations and restrictions has rendered present conveyancing practice inadequate. As the Queensland case study shows, only a small number of possible obligations and restrictions are searched for in a standard conveyance. The Queensland Registrar of Titles has also noted this problem of ‘cluttering’ the register, but views it mainly as an issue in terms of currency of material, as agencies may place material on the register, and then fail to update it. Thus his concern is not so much having extra information on the register, but having inaccurate information on it.13 This could perhaps be addressed by a statutory obligation to update material. In summary, the benefits of registering obligations and restrictions on title are certainty, the applicability of the state guarantee, as well as improved environmental management. In contrast, the potential problems are extending the state guarantee too far, and cluttering the register. Alternative options to registering obligations and restrictions on title include recording them on title, or on a spatial database. It is relevant to consider whether either of these alternatives would alleviate these potential problems. 2.2. Recording on title Another option to ensure that landholders and prospective purchasers are advised of obligations and restrictions on land title and use is to record, rather than register, information on title. This essentially means that information is placed on title, and is therefore visible through a title search, but does not attract the benefits of registration. There are several different approaches to recording information on title, each with different legal consequences. These approaches are: Recording purely for informational purposes; Recording to grant priority; and Recording as a precondition to effect. Each of these approaches will be discussed in turn. 13 Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). 261 2.2.1. Information recorded on title for informational purposes Information may be recorded on title purely to alert the searcher to the existence of an obligation or restriction. This approach is used in Queensland, through the recording of administrative advices on title. Administrative advices essentially act as a flag alerting the searcher to consult the relevant administering agency. According to the Land Title Practice Manual, the purpose of administrative advices is to ‘advise interested parties that a matter authorised under the relevant Act exists. These notices are entered as administrative advices on the relevant title for the lot the subject of the notice’.14 Where an administrative advice is recorded, there will merely be a very brief notation made on title to alert the searcher of the existence of the obligation or restriction. The Land Title Practice Manual also states that ‘enquiries relating to an administrative advice should be directed to the relevant authority or department administering the legislation or issuing the notice. The registry will not provide any further detail other than that disclosed on the notice’.15 Annexed to this chapter at Appendix H is an excerpt from the Land Title Practice Manual which provides a list of codes used to record administrative advices. This demonstrates that very little information about these obligations and restrictions is recorded on title. As noted in Chapter Four, the Queensland Registrar of Titles describes registered interests as being ‘above the line’ on a title search, in contrast to administrative advices which are recorded ‘below the line’, thus not attracting the benefits of registration.16 This division is reflected physically on a title search, which differentiates between the two types of entries. A title search is annexed to this thesis as Appendix A, and shows the two separate headings labelled ‘easements, encumbrances and interests’ and ‘administrative advices’. It is arguable that the distinction between these two types of instruments is not made sufficiently clear. The ‘line’ referred to by the Registrar of Titles does not physically appear on title, and it is possible that searchers may not appreciate the legal consequences relating to each type of instrument. In contrast, the Western Australian title search (annexed as Appendix F) has a 14 15 16 Queensland Department of Environment and Resource Management, Land Title Practice Manual (2009) ¶ 52-0000. Ibid. Interview with Max Locke, Registrar of Titles, Queensland Department of Natural Resources (Interview, 30 July 2008). 262 line following the registered interests, accompanied by the statement ‘end of certificate of title’. Following this is a heading ‘statements’, and a disclaimer noting that the information should not be relied upon as a substitute for inspection of the land and relevant documents. Where information is recorded on title purely for informational purposes, it is suggested that an approach similar to the Western Australian approach be used, as it clearly states that there are differences in effect between the two varieties of instruments. Chapter Four also showed that administrative advices in Queensland are generally only used in the case of obligations and restrictions which affect parcels of land on an individual basis. There are no examples of administrative advices being used in instances where legislation creates obligations or restrictions affecting a large area of land, encompassing multiple parcels of land. As there are no examples of this, it is difficult to comment upon whether the register is the appropriate forum for registration of these interests. In summary, it does appear that recording obligations and restrictions affecting individual parcels on title as administrative advices is a sound method. It solves information deficits by ensuring that the existence of the instrument is flagged on a title search, but it does not extend the scope of indefeasibility unnecessarily. For these notifications to succeed though, it is necessary that they are used on a uniform basis to ensure completeness. Bell and Christensen have suggested that this current approach of only recording selected administrative advices on title ‘could arguably exacerbate the problem by leading owners to believe that their title contains a complete and accurate picture of restrictions affecting their land’.17 Thus to ensure security of landholding, and facilitate compliance with environmental laws, a uniform approach must be adopted. One possible barrier to extending the scope of instruments registrable as administrative advices is that the Queensland Registrar of Titles can only record them where legislation specifically provides for it.18 As a result, legislative reform may be necessary to ensure that 17 18 Justine Bell and Sharon Christensen, ‘Use of property rights registers for sustainability – A Queensland case study’ (2009) 17(1) Australian Property Law Journal 86, 100. Land Title Act 1994 (Qld) s 29(1); Interview with Max Locke, Registrar of Titles, Queensland Department of Environment and Resource Management (Interview, 3 August 2009). 263 all relevant obligations and restrictions on use are obliged by law to be notified to the Registrar of Titles. Another possible barrier is the lack of consequences for non-compliance. Although most of the statutes surveyed in Chapter Four specify a timeframe within which the administering agency must notify the Registrar of Titles, they are silent as to whether there are implications for failure to do so. This lack of consequences for administering agencies may lead to delays or omissions in notifying information. If a person suffers loss as a result of an omission, one possible solution would be to commence an action for breach of statutory duty. However this would be a costly, time-consuming and uncertain process, and is not desirable. A better solution would be to amend legislation incorporating consequences for non-compliance. One suggested way to do this would be to state that the obligation or restriction is not effective until recorded. This is done to some extent in other jurisdictions, and will be discussed below at 2.2.3. If these barriers are addressed, the Queensland approach could prove quite useful for management of information concerning obligations and restrictions on land title and use. Of the jurisdictions surveyed in this thesis, it is Queensland that makes the most extensive use of recording obligations and restrictions on title. This practice of recording obligations and restrictions on title was used in Western Australia prior to the development of SLIP, but has been largely overtaken by the SLIP technology.19 There are other jurisdictions which record information on title, but attach different legal consequences to the records. These methods will be discussed in turn. 2.2.2. Recording for priority Whilst information is recorded on title in Queensland purely for informational purposes, other jurisdictions allow information to be recorded to confer priority. In New Zealand, the Law Commission are currently in the process of examining whether additional information can be recorded on title.20 The Commission noted that overriding 19 20 See Chapter Five for a full explanation. New Zealand Law Commission, Review of the Land Transfer Act 1952, Issues Paper No 10 (2008). 264 legislation impacts upon indefeasibility of title,21 and are presently considering options for reform. Options suggested in the Issues Paper include amending the Torrens legislation to signal that statutory interests may affect title,22 and referring Bills affecting land to the Legislation Advisory Committee. The latter approach would include amending the Committee’s guidelines to ensure that registration or recording of interests is encouraged.23 Additionally, the Committee are considering whether to adopt an interest recording system, which would include unregistered interests. Such a system would alert the searcher of the existence of the interest, and confer priority, but would not confer ownership.24 Recording obligations and restrictions on title with priority is also used in other jurisdictions which have not been examined as case studies in this thesis. This is quite common in the case of restrictive covenants. As noted in Chapter Two, several jurisdictions allow for restrictive covenants to be registered in title. For example, in New South Wales restrictive covenants may be recorded on title.25 The relevant legislation states that such a record does not give the instrument any greater effect than the dealing creating it.26 This makes it clear that such a recording is not granted the status of a registered interest. However, it does state that a recording is deemed to be an ‘interest’ for the purposes of the Real Property Act 1900 (NSW) s 42. This is the paramountcy provision in New South Wales, and essentially grants the interest priority. Similar provisions exist in Victoria to allow covenants to gain priority.27 Interest recording is also used in the United Kingdom. Although the United Kingdom does not use a Torrens system as such, the systems are considered to be comparable, and English innovations may be very useful to Torrens jurisdictions.28 The United Kingdom approach focuses upon the rights of any third parties having interests in the land, and the enactment of the Land Registration Act 2002 (UK) c 9 (“LRA”) clarified the position in the United Kingdom considerably. 21 22 23 24 25 26 27 28 Ibid [9.1]. Ibid [9.44]. Ibid [9.45]-[9.48]. Ibid [6.53]. Conveyancing Act 1919 (NSW) s 88. Conveyancing Act 1919 (NSW) s 88(3)(b). Transfer of Land Act 1958 (Vic) s 88. Pamela O’Connor, ‘Registration of Title in England and Australia: A Theoretical and Comparative Analysis’ in Elizabeth Cooke (ed) Modern Studies in Property Law: Volume Two (Hart Publishing, Oxford, 2003) 81, 82-3. 265 Third party rights in the United Kingdom may be protected via a registrable interest termed a notice, whereby third parties can register rights over land. Prior to the enactment of the LRA, the English Law Commission considered the rationale for having these types of rights, and noted that ‘it is an essential feature of an effective land registration system that it should provide not only for security of title for landowners but also for the proper protection of third party rights over that land by means of registration’.29 A notice is defined under the LRA as ‘an entry in the register in respect of the burden of an interest affecting a registered estate or charge’.30 Notices are generally used to record information on third party rights, including easements, restrictive covenants, and options to purchase.31 The LRA specifically states that ‘the fact that an interest is the subject of a notice does not necessarily mean that the interest is valid, but does mean that the priority of the interest, if valid, is protected’.32 As a result, registration will not cure any defects in a notice, but where a notice is validly registered its priority is protected under the LRA.33 2.2.3. Recording as a precondition to effect Some jurisdictions allow for information to be recorded on title, and provide that the restriction or obligation does not operate until recording occurs. In Victoria, the Law Reform Commission suggested that all administrative controls affecting the use of the land should be accessible through a database called ‘Landata’, which would be integrated with the land registration system.34 Although the completely integrated system contemplated by the Law Reform Commission has not been realised, there have been a number of instances where information on land use has been made available through the land title register. This information may be recorded on title by virtue of the Transfer of Land Act 1958. Section 88(2) of this Act provides that ‘a charge on land or any other right in the nature of a charge or an easement or any other right over or affecting land’ acquired under a Victorian or Commonwealth Act may be notified to 29 30 31 32 33 34 Law Commission, Land Registration for the Twenty-First Century: A Consultative Document, Report No 254 (1998) [6.1]. Land Registration Act 2002 (UK) c 9, s 32(1). Martin Dixon, Modern Land Law (Routledge-Cavendish, London, 6th ed, 2009) 83. Land Registration Act 2002 (UK) c 9, s 32(3). Land Registration Act 2002 (UK) c 9, s 32(3). Law Reform Commission of Victoria, The Torrens Register Book, Report No. 12 (1987) at [19]. 266 the Registrar, and recorded on title. The legislation makes it clear that recording does not cure invalidities,35 but recording does ensure that the right binds successors in title.36 An example of an Act which uses this provision is the Conservation, Forests and Lands Act 1987 (Vic). Under this Act, the Secretary may enter into an agreement with a land owner relating to the management, use, development, preservation or conservation of their land, or otherwise to give effect to the objects or purposes of a relevant law, in relation to their land. 37 The Conservation, Forests and Lands Act states that such agreements are binding on a land owner, but are only binding on a successor in title where specifically stated.38 If an agreement is expressed to be binding on successors in title, the Secretary must as soon as practicable after entering into the agreement apply in writing to the Registrar of Titles to have a recording of the agreement made in the Register and on receiving that application, the Registrar of Titles must make that recording in the Register.39 Once recorded, the land owner's successors in title are deemed to have notice of the agreement, all rights and liabilities under that agreement are binding on and enforceable by or against the land owner's successors in title and run with the land.40 Therefore these agreements are not effective against subsequent registered proprietors unless they are notified on title. Although provisions such as this are not used on a uniform basis, this provision is potentially a good model as it states that an agreement will not be binding on a successor in title unless noted on title. This would address the potential problem with the Queensland approach, which is lack of consequences for failure to record information. If legislation specifically states that an instrument is ineffective, or fails to bind successors in title unless recorded, this will provide an incentive for agencies to notify the Registrar in a timely manner. 35 36 37 38 39 40 Transfer of Land Act 1958 (Vic) s 88(3). Under Transfer of Land Act 1958 (Vic) s 42 a landholder holds their land subject to encumbrances recorded on the relevant folio of the register. Conservation, Forests and Lands Act 1987 (Vic) s 69(1). Conservation, Forests and Lands Act 1987 (Vic) s 71. Conservation, Forests and Lands Act 1987 (Vic) s 72(1). Conservation, Forests and Lands Act 1987 (Vic) s 72(2). 267 Furthermore, Victoria has a vendor mandatory disclosure regime in place, which to some extent negates the need for all information to be available through a register or database.41 A vendor under a contract for the sale of land is legislatively obliged to give to the purchaser before he signs the contract a statement containing a number of matters.42 These matters are: particulars of any mortgage; particulars of any charge; a description of any easement, covenant or other similar restriction affecting the land; where a planning instrument applies - information about the planning instrument; amount of any rates, taxes, charges or other similar outgoings affecting the land; a list of services connected to the land; and particulars of any current land use restriction notice given in relation to the land under the Agricultural and Veterinary Chemicals (Control of Use) Act 1992 due to contamination.43 The vendor is also required to attach to the statement a copy certificate of title, and copies of any planning permits and subdivision plans.44 Although this model does provide the purchaser with some relevant information, it has been argued that it does so at an increased cost to the seller.45 In contrast, recording of information on title places the cost burden on the purchaser, who pays to search the system. Arguably this is sound, and is one benefit of interest recording over mandatory disclosure. Furthermore, interest recording involves information being provided by government agencies rather than by the seller. One major problem with mandatory disclosure regimes is that sellers are reliant upon the local authorities providing them with correct information.46 If a seller provides incorrect information they may be liable, even if the error was made by the government agency. In 41 42 43 44 45 46 Similar regimes are in place in New South Wales (Conveyancing Act 1919 (NSW) s 52A(2)); South Australia (Land and Business (Sale and Conveyancing) Act 1994 (SA) s 7); ACT (Civil Law (Sale of Residential Property) Act 2003 (ACT)); Tasmania (Property Agents and Land Transactions Act 2005 (Tas) s 185(1). Sale of Land Act 1962 (Vic) s 32(1). Sale of Land Act 1962 (Vic) s 32(2). Sale of Land Act 1962 (Vic) s 32(3). Sharon Christensen, W D Duncan, Amanda Stickley, ‘Evaluating information disclosure to buyers of real estate – useful or merely adding to the confusion and expense?’ (2007) 7 Queensland University of Technology Law and Justice Journal 148, 171. Ibid 173. 268 contrast, any liability under an interest recording system will attach to the government agency.47 2.2.4. Conclusion In summary, recording information on title is used in a number of jurisdictions, and there are benefits to using this approach. It ensures that information is flagged on title without guaranteeing its accuracy, and any responsibility for inaccuracy rests with the administering agency. Recording of administrative advices however should apply to all relevant obligations and restrictions on land use to be an effective method. The current ad-hoc approach to recording information used in Queensland is not the most appropriate model. Furthermore, the lack of consequences for failure to record information in Queensland may lead to inaccurate and out-of-date material. A suggested solution is to amend legislation creating obligations and restrictions to state that these instruments are ineffective until recorded on title. 2.3. Separate register or spatial database The alternative option to registering or recording information on title is to record it on either on a separate register, or on a spatial database. The preliminary recommendations in Chapter Seven suggested that such an approach may be appropriate to demonstrate obligations and restrictions which affect multiple parcels of land. The problem with this approach is that recording information on a separate register or database derogates from the mirror principle. To remedy this and to ensure that the existence of this information is at least flagged on a title search, there would have to be some mechanism effectively linking this separate register or database to title. This could be achieved simply by placing a note on the bottom of title, referring the searcher to the external register or database to obtain any additional information. This is similar to the approach used in New Zealand, whereby LIMs contain a note directing the searcher to the relevant district plan.48 Although the LIM does not disclose any details of this plan, it does solve the information deficiency to an extent by at least alerting the searcher to the existence of other sources which should be consulted. 47 48 Potential liability of government agencies will be addressed later in this chapter. See Appendix G. 269 Separate registers are used in Queensland, with examples including the heritage register, and the contaminated land register. In some cases these registers are effectively linked to the land title register. This is done by including a provision in the relevant Act requiring the person responsible for administering the Act to notify the Registrar of Titles of any notation on the separate register. The Registrar of Titles is then obliged to record an administrative advice, which will alert a searcher to the existence of this notation. In some respects this approach is sound, as it does ensure that the existence of the obligation or restriction is flagged in a title search. The search will not show any details of the instrument, and the landholder will need to conduct a separate search with the relevant agency to get this information. This is no different to other information recorded as an administrative advice. In the case of administrative advices, the searcher needs to make enquiries with the relevant government agency. The only distinction is that some government agencies may maintain separate registers which can be searched, where other departments do not have a formal process for obtaining information. This approach is supported by the argument that agencies are better equipped to manage their own data, thus leaving the information in their control is preferable. This method of leaving data in control of agencies is of course used in Western Australia, and is considered to be more effective than placing information in the control of the authority in charge of SLIP. Western Australia essentially uses a separate register, as obligations and restrictions are represented spatially on a cadastral map of land which operates externally to the land title register. As discussed above, the Western Australian Registrar of Titles prefers this approach as the technology allows for more detailed representations of obligations and restrictions, particularly in the case of those which cover more than one parcel of land. Given that the Western Australian model is very new, it is difficult to objectively assess exactly how effective it is in contrast to a traditional register method. It may well be the case though that representing blanket obligations and restrictions spatially is more cost effective than registering or recording information on title. It is also likely to be a more time efficient method, as a single entry covering multiple parcels may be entered, rather 270 than individual notations on every title. It was noted in the Western Australian Standing Committee report that recording information on titles would be ‘administratively difficult and cost prohibitive’.49 Presumably this is because information would have to be entered on each and every title individually. In contrast, information can be entered on a spatial database in a more timely manner, as only one entry needs to be made, although it may span over multiple parcels of land. Although the new technologies being utilised by SLIP have obvious benefits, there are also some potential problems with making information available in this manner. The main problem with this approach is that agencies may need to modify data so that it is in a form accessible by SLIP enabler. This could potentially lead to inaccuracies, particularly if the modified data is used purely for the purposes of SLIP, and the agencies use different sources of data in everyday work. For a platform such as SLIP to work effectively, it is imperative that it is designed to utilise the agency’s existing data. This will ensure that the platform is accessing the most up-to-date and accurate data available. In summary, there are advantages associated with having some information held externally to the land title register, as it allows the administering agency to retain accountability for the data. Additionally, it appears that a spatial database may also be a cost-effective alternative to traditional titling systems, particularly in the case of obligations and restrictions which affect multiple blocks of land. However where any external information source is used, it is important that it is linked back to the land title register to ensure completeness and certainty. This can be achieved by a simple note on title directing the searcher to the external database. 2.4. Conclusion This section has canvassed three possible approaches to providing information on obligations and restrictions on title and use; registration on title, recording on title, and recording on a separate register or spatial database. Furthermore, it noted that information can be noted on title for a variety of purposes. 49 Western Australian Government, above n 8, 526. 271 At present, none of these approaches are used in the case study jurisdictions in isolation. There are sound reasons for this, as it is unlikely that a title register or a spatial database alone can effectively cover all obligations and restrictions on title and use. Therefore it is necessary to consider what combination of approaches is most effective. Recent research has suggested that with the continuing development of spatial databases, agencies will need to determine whether obligations and restrictions are better suited to the Torrens register, or to a separate database.50 The authors considered several possible criteria for determining whether information should be recorded on title. One possible approach was recording instruments which granted property rights to a third party, whilst not recording obligations and restrictions on user which do not have a correlative right conferred on another person.51 This is essentially the approach currently used in Western Australia and New Zealand, where carbon rights, which confer an interest in land on a third party, are one of the few instruments registrable on title. However, O’Connor et al dismissed this classification, as it excludes some obligations that run with the land, and provides no clear guidance to searchers as to what information they can expect to find on the register.52 Instead, the authors suggest a ‘functional approach’ whereby ‘the method should be selected which is better suited to providing accurate, complete and current information to inquirers as cheaply as possible’.53 If a functional approach is to be adopted, several observations may be made. In the case of obligations and restrictions which affect multiple parcels of land, research has shown that it is cheaper, easier, and more time efficient to represent such information spatially, rather than making notations on every individual title.54 Therefore the functional approach would dictate that such obligations and restrictions be represented on a spatial database rather than on title. This would extend to obligations and restrictions such as planning controls, which affect entire regions. 50 51 52 53 54 Pamela O’Connor, Sharon Christensen and Bill Duncan, ‘Legislating for sustainability: a framework for managing statutory rights, obligations and restrictions affecting private land’ (2009) 34(2) Monash Law Review (forthcoming). Ibid. Ibid. Ibid. See 2.3. 272 In contrast, where an obligation or restriction affects an individual parcel of land, there is unlikely to be any significant difference in cost between putting information on title, or on a spatial database. The preferred approach would then be to place information on title, as it provides greater certainty. This is especially important where the obligation or restriction is imposed by order, or by private agreement, rather than by a publicly available statute, regulation or plan. This thesis supports the functional approach, but with the caveat that obligations and restrictions which affect a single parcel of land should be notified on title. From the case studies undertaken in this thesis and the analysis of the different approaches, the following recommendations are made: All obligations and restrictions which affect individual parcels of land should be recorded on title to ensure that landholders and prospective purchasers are notified of their existence. This is particularly important in the case of obligations and restrictions which are parcel-specific, as they are generally imposed by agreement or decision, and cannot be found by consulting legislation, regulations or plans; Legislation which creates, or allows for the creation of obligations and restrictions on title or use which affect individual parcels of land as opposed to regions, and which are intended to run with the land, should be amended to include a provision requiring the agency to notify the State’s Registrar of Titles; There should also be a provision in the legislation stating that the obligation or restriction does not take effect until it is recorded. This will ensure searchers do not suffer loss as a result of any delays on the part of administering agencies; These obligations and restrictions should be recorded on title, as opposed to registered, and should not attract the benefits of registration. The intention is merely to notify searchers of the existence of the obligation or restriction, therefore this method is sufficient, and will not extend the guarantee unnecessarily; The State’s Torrens legislation should be amended to provide for these records, and to specifically state that indefeasibility and other benefits of registration do not apply to these interests (if it does not already do so); 273 A spatial database should be used to demonstrate blanket obligations and restrictions which affect multiple parcels of land, such as planning controls, or generic restrictions on vegetation clearing; This database should be established under statute; and Land title register searches should also include a note at the foot advising searchers to consult this database. This effectively ensures that the register and database are linked. The following section will discuss whether these reforms would have any impact on the state guarantee of title, and how this can be avoided. 3. The state guarantee of title and compensation for loss Presently all Australian jurisdictions allow for compensation to be paid to persons for certain interferences with their title. However there are limitations placed on recovery, and compensation is only available in a fairly narrow range of circumstances. The State guarantee of title is an important aspect of the Torrens system. As discussed in Chapter Two, Ruoff identified three key principles underpinning the Torrens system – the mirror, curtain and insurance principles.55 For present purposes, the insurance principle is the most relevant. This principle essentially provides that although the register is intended to act as a ‘mirror’ of title, occasionally defects will occur, and it is therefore necessary to compensate the landholder.56 All Australian states have implemented the insurance principle in their Torrens legislation, by ensuring that compensation is available in specified circumstances.57 Additionally, entitlements to compensation are available through other Acts, mainly those relating to compulsory acquisition of land. The purpose of this section is to survey present entitlements to compensation to determine whether the recommendations of this thesis could lead to increased claims. Although this thesis does not promote an increase in obligations and restrictions on land title and use, it does suggest that more of these instruments be recorded on and linked to land title. 55 56 57 Theodore B F Ruoff, An Englishman looks at the Torrens System (Lawbook Co, Sydney, 1957) 8. Ibid 13. Real Property Act 1900 (NSW) ss 126-135; Transfer of Land Act 1958 (Vic) ss 109-111; Real Property Act 1886 (SA) ss 201, 203-219; Transfer of Land Act 1893 (WA) ss 195-213; Land Titles Act 1980 (Tas) ss 150-159; Land Titles Act 1925 (ACT) ss 143-158; Land Title Act 2000 (NT) ss 192-196 274 As a result, it is possible that there will be a greater perception that obligations and restrictions have affected a landholder’s title. Therefore, an examination of the present arrangements for compensation is warranted to determine whether the recommendations of this thesis could lead to increased liability for compensation. The reason for this analysis is that it is not feasible to extend entitlements to compensation to cover all interferences with use. Every parcel of land in Australia is affected by some obligation or restriction on use, thus making it impractical to provide compensation for all interferences with rights of use. Despite this impracticality, there have been some arguments that obligations and restrictions on use should be compensated. Professor Gray has considered this issue in great detail, posing the question as follows: the vital question relates, instead, to the allocation of the economic cost of environmental protection. It remains a contingent fact of life that environmental welfare comes at a price which must be paid either by the general community or by some subset of it. The critical resource is almost always land. Should the individual landowner be left alone to bear the cost of a regulatory intervention which enures to the wider benefit of the whole community? Is uncompensated regulation a form of environmental fascism, dumping on isolated landowners the economic burden of certain cherished public goods? In what circumstances (if any) should landowners receive reimbursement from public funds for their uncovenanted contribution to the general weal?58 The main point from Professor Gray’s analysis is that there must be a determination as to whether the state or individuals should bear the monetary cost of environmental protection. Professor Gray discusses several legislative presumptions, and notes the presumption that where property is taken, compensation will be paid. In contrast, it is presumed that where property rights are merely affected by regulation, compensation will not be paid.59 So the presumption favours landholders bearing the cost of environmental protection in the case of obligations and restrictions which only affect land use. This thesis does not attempt to discuss the soundness of this presumption, and accepts that the cost should be absorbed to an extent by landholders. Indeed given the vast number of obligations and restrictions on land use, providing entitlements to compensation would open 58 59 Kevin Gray, ‘Can environmental regulation constitute a taking of property at common law?’ (2007) 24(3) Environmental and Planning Law Journal 161, 162. Ibid 165-6. 275 the floodgates to essentially all landholders in Australia. Thus it is important to ensure that the recommendations for reform proposed by this thesis do not extend the scope of entitlements to compensation unnecessarily. This section will survey the entitlements to compensation in Queensland, and compare them to the entitlements available in Western Australia. The purpose of this survey will be to determine whether current legislation is sufficient to prevent claims for interference with use rights. It is not feasible to survey the compensation entitlements in all Australian jurisdictions within the scope of this thesis, so Queensland and Western Australia have been chosen to examine in depth because their systems have already been examined in detail in the case studies. This section will also consider the entitlement to compensation under the Commonwealth Constitution and associated case law. 3.1. Queensland In Queensland there is limited scope for compensation to be made available to landholders. In most cases, compensation is only available where there is an interference with a landholder’s title, not with their use rights. That is, where there right to possession of land is taken away, or otherwise interfered with. This seems to accord with the approach to compensation espoused by Professor Gray. One of the main mechanisms for obtaining compensation for loss is under the Land Title Act 1994 (Qld) (“LTA”). Under the LTA, a landholder may only recover compensation if they are deprived of a lot, or an interest in a lot, and only in a limited range of circumstances.60 It is unlikely that this provision would extend to cover interferences with land use for several reasons. First, in the author’s view, it is doubtful that this provision would be activated in the case of obligations and restrictions on land use, as they do not deprive a landholder of an interest in a lot, but merely impact upon the way in which land may be used. Second, the circumstances in which compensation may be awarded are limited, and include fraud, 60 Land Title Act 1994 (Qld) s 188. These circumstances are set out in detail in Chapter Two. 276 incorrect registration, tampering with the register, and mistake or omission of the Registrar. Thus compensation is not available where loss is caused merely by the existence of an instrument. Recording of an obligation or restriction on land use once again would not fall within the scope of these provisions. Section 188A of the LTA is slightly broader in scope, and provides that a landholder is also entitled to compensation if they suffer loss or damage due to: the incorrect creation of an indefeasible title in the name of another person; or incorrect registration; or an error in an indefeasible title or in the freehold land register; or reliance on the incorrect state of the freehold land register; or loss, destruction or improper use of a document deposited or lodged at the land registry or held by the land registry for safe custody; or omission, mistake, breach of duty, negligence or misfeasance of or by the Registrar or a member of the staff of the land registry; or the exercise by the Registrar of a power in relation to an application or dealing of which the person had no connection.61 This provision is broader in scope than s 188 as the landholder need only suffer loss or damage; it is not necessary that they be totally deprived of an interest. However, once again the range of circumstances in which compensation is available is limited, and it is unlikely that landholders could claim compensation where legislation merely affects the use of their land. Therefore, recording of additional notifications on title will not expose the state to increased claims for compensation, as the provisions of the LTA appear unable to extend that far. There is consequently no fear of increased liability in this respect. Another mechanism of obtaining compensation is provided by the Acquisition of Land Act 1967 (Qld). Under this Act, public authorities are permitted to take land, or an easement over land, for a number of prescribed purposes.62 Once the resumption notice has been published, 61 62 Land Title Act 1994 (Qld) s 188A. Acquisition of Land Act 1967 (Qld) s 5. The ‘prescribed purposes’ are set out in the schedule to the Act. 277 the land is vested in the Crown, and the estate and interest of persons entitled to the whole or any part of the land is converted into a right to claim compensation.63 If only an easement is taken, any person whose interest is injuriously affected has a right to claim compensation.64 It is necessary to determine whether recording obligations and restrictions on title could activate these provisions. The wording of the legislation focuses upon whether the person has an ‘estate or interest’ which is taken. The term ‘interest’ was considered by the Queensland Court of Appeal in Sorrento Medical Service Pty Ltd v Chief Executive, Department of Main Roads (“Sorrento”).65 In this case, the applicant for compensation was not the owner of land, but held a licence to use the land for car parking. The resumption did not affect the premises where the applicants carried on their business, but it did reduce their off-street carparks from ten to five. The Court had to determine whether this was sufficient to constitute an ‘interest’ in land. McMurdo P considered this issue, looking at definitions in the Act, which proved unhelpful, as well as the definition of ‘interest’ in the Acts Interpretation Act 1954 (Qld). The latter defines ‘interest’ as a ‘legal or equitable estate in the land’, or ‘a right, power or privilege over, or in relation to, the land or other property’.66 On this basis, McMurdo P concluded that the car-parking right did equate to an ‘interest’, making the following comment: this was an apparently valuable contractual right in relation to the resumed land, not only from an obvious commercial perspective but also because the local government approval for the conduct of the appellant’s medical practice turned on provision of sufficient off-street car parking spaces and access to them. Giving the words in the italicised phrase in s 12(5) their ordinary meaning, using the definition of “interest” in relation to land in s 36 Acts Interpretation Act and construing those statutes so that ambiguities do not limit or qualify a right to claim compensation, I am satisfied that the appellant’s apparently valuable contractual right to use the resumed land for car parking made it “entitled to the whole or part of the resumed land” within s 12(5).67 63 64 65 66 67 Acquisition of Land Act 1967 (Qld) s 12. Acquisition of Land Act 1967 (Qld) s 12(5). [2007] QCA 73. Acts Interpretation Act 1954 (Qld) s 36. Sorrento Medical Service Pty Ltd v Chief Executive, Department of Main Roads [2007] QCA 73 at [14]. 278 Chesterman J agreed with McMurdo J’s finding, but noted that s 36 could potentially give rise to claims which should not come within the definition of interest. Specifically, Chesterman J stated: it may be that to apply the full width of the definition of “interest” found in the Acts Interpretation Act might, in some cases, produce claims for compensation that might properly attract the epithet “absurd”, but the present is not of that kind. One has here a right of property clearly identified, the limits of which are specified and which had a value. The proprietor is identified and the existence of the licence was proved in a document available for public search. In my opinion it is a matter of plain justice, not absurdity, that the proprietor should be compensated when his property is destroyed, for the good of the wider public.68 It should be noted that Holmes J dissented in this case, stating that the right was not sufficient to amount to a proprietary interest in land.69 The effect of the decision in Sorrento is that ‘interest’ has been granted a wide interpretation, thus potentially expanding the scope of claims for compensation. The applicant in this case did not have title to the relevant land, so the interference was arguably with their right to use the land. This could potentially have application to other circumstances where a person’s use rights, if not their title, is affected. However, it most likely will only apply where the right is completely extinguished, and not merely altered or restricted. Additionally, it may be argued that although the applicant did not have title to the land, the interference was one with possession. As noted in Chapter One, the key distinction between interferences with title and use appears to be whether the interference impacts on the right to possess land. Given that the interference here extinguished the applicant’s right to possess the carparks, arguably it was an interference with title. Furthermore, Chesterman J specifically noted that an excessively wide interpretation of this provision could lead to ‘absurd’ results, thus purporting to restrict its operation. This examination shows that it is unlikely an affected landholder can claim under the Land Title Act or the Acquisition of Land Act where there is an interference with their right to use 68 69 Ibid [63]. Ibid [25]. 279 land. A right to compensation for interference with rights to use land will therefore only be available where specifically granted by statute. An example of this arises under the Nature Conservation Act 1992 (Qld). The Act sets out a voluntary mechanism for designating a nature refuge over private land, but if agreement cannot be reached, the Minister may compulsorily declare a nature refuge, if satisfied that the area is of major interest, or is a critical habitat.70 If such a declaration is made, and the landholder’s interest in land is injuriously affected, the landholder is entitled to be paid reasonable compensation.71 A representative of the Department of Environment and Resource Management noted that the Department has not yet even compulsorily declared any nature refuges.72 As a result, there has been no litigation thus far concerning this provision, so it is unclear to what extent compensation will be available. Furthermore, the Nature Conservation Act is one of the few legislative regimes which allows for positive obligations to be imposed on landholders without them having first breached a law.73 For example, the Vegetation Management Act allows for positive obligations in the form of replanting orders to be imposed upon landholders, although these obligations are imposed only where a landholder has unlawfully cleared vegetation. Arguably the Nature Conservation Act therefore allows for a higher degree of interference with landholding, thus necessitating an entitlement to compensation. Regardless, the Nature Conservation Act does appear to be the exception rather than the rule, as no other statutes were identified which award compensation to landholders affected by obligations and restrictions on use. 3.2. Western Australia The Western Australian Torrens legislation contains a similar provision to the Queensland statute. The Transfer of Land Act states that any person deprived of land or of any estate or interest in land may bring an action for damages, if it was caused by one of the following: 70 71 72 73 Nature Conservation Act 1992 (Qld) s 49(1). Nature Conservation Act 1992 (Qld) s 67(2). Email from Tony Baker to Justine Bell, 19 August 2009. A nature refuge may be imposed where the Minister deems the land to be an area of major interest or a critical habitat: Nature Conservation Act 1992 (Qld) s 49(1). The declaration may impose obligations on the landholder to take activities to conserve or rehabilitate land. 280 Fraud; Through the bringing of such land under the operation of this Act; By the registration of any other person as proprietor of such land estate or interest; or In consequence of any error or misdescription in any certificate of title or in any entry or memorandum in the Register.74 Similarly to the Queensland legislation, it is unlikely that this provision would extend to provide compensation for obligations and restrictions imposed on land use. There is also provision made for compensation under the Land Administration Act 1997 (WA), which deals with compulsory acquisition of land. Part 9 of the Act outlines the procedure for compulsory acquisition, and part 10 sets out entitlements to compensation. Under the Land Administration Act, every person having any interest in land, which is taken, is entitled to compensation for the interest from the acquiring authority.75 ‘Taken’ is defined to mean that the interest in land is totally extinguished,76 and ‘interest in land’ is defined to mean any legal or equitable interest.77 It is doubtful that this provision would apply to a person whose rights to use land have been affected, because the interest has to be completely extinguished – mere curtailment will probably not suffice. Additionally, the definition of ‘interest’ appears to be even narrower than the definition in the Queensland Acquisition of Land Act. However, the Planning and Development Act 2005 (WA) does extend compensation to any person whose land is injuriously affected by the making or amendment of a planning scheme from the responsible authority.78 This largely mirrors the entitlement to compensation under the predecessor Town Planning and Development Act 1928 (WA). The term ‘injurious affection’ applies in relation to the following actions: (a) Where land is reserved (whether before or after the coming into operation of this section) under the planning scheme for a public purpose; 74 75 76 77 78 Transfer of Land Act 1893 (WA) s 201. Land Administration Act 1997 (WA) s 202(1). Land Administration Act 1997 (WA) s 151(2). Land Administration Act 1997 (WA) s 151(1). Planning and Development Act 2005 (WA) s 173(1). 281 (b) where the scheme permits development on that land for no purpose other than a public purpose; or (c) where the scheme prohibits wholly or partially the continuance of any nonconforming use of that land, or the erection, alteration or extension of a building, where it otherwise would have been lawful.79 Although this appears to be quite broad in scope, the effect of this provision is in effect quite narrow. The Law Reform Commission of Western Australia has expressed the view that this provision requires paragraph (a), and either paragraph (b) or (c) to be met before an entitlement arises.80 As a result, a prohibition or control on development will not give a right to compensation unless the land has also been reserved. Additionally, the legislation makes it clear that conditions placed upon development are not taken to have the effect of prohibiting the ‘erection, alteration or extension’ of a building.81 There has thus far been little litigation concerning these new provisions. The effect of these provisions were considered in the case of City of Canning v Avon Capital Estates (Australia) Ltd.82 Avon Estates owned 19 lots in an estate, which were all reserved for public purposes, because the Water Corporation’s trunk main passed through the lots. Despite the reservation, development approval was granted, but subject to a number of conditions. Avon considered that the conditions were unacceptable, and consequently lodged a claim for compensation.83 The judge concluded that because the land was reserved for a public purpose, it automatically followed that it was injuriously affected.84 The Law Reform Commission also noted that this was potentially at odds with their interpretation of the meaning of s 174(1).85 Another case concerning these provisions is Canal Rocks Pty Ltd v Shire of Busselton.86 In this case, the appellant owned a 40ha parcel of land. 30ha of this land was zoned tourist, and the remaining 10ha was reserved for recreation under the relevant planning scheme. The appellant lodged an application to build a single house on the 10ha reservation, which was 79 80 81 82 83 84 85 86 Planning and Development Act 2005 (WA) s 174(1). Law Reform Commission of Western Australia, Compensation for Injurious Affection, Report No 98 (2008) p 38. Planning and Development Act 2005 (WA) s 174(2). [2008] WASAT 46. City of Canning v Avon Capital Estates (Australia) Ltd [2008] WASAT 46 at [6]-[7]. Ibid [33]. Law Reform Commission of Western Australia, above n 80, 38. [2009] WASCA 35. 282 deemed to be refused.87 The court upheld the refusal as it was consistent with the planning scheme, but did not deal with the issue of injurious affection. Because the courts have not yet had much opportunity to consider these provisions, it is unclear to what extent these provisions could extend. The Law Reform Commission of Western Australia released their final report on compensation for injurious affection in 2008. The terms of reference for this inquiry were that the Commission consider the following: (a) the provisions of s 241(7) of the Land Administration Act 1997 (WA), including particularly the rights affected thereby of persons whose land is, or is proposed to be, acquired by compulsory process by the state or by an instrumentality of the state or by any other instrumentality otherwise authorised or directed by statute to acquire interests in land compulsorily, and the extent to which the adjacent land of such persons is affected by such acts and resulting works; (b) the law and practices in relation to compensation payable or other accommodations capable of being extended to owners and other persons with interests in alienated land where such land is to be regarded as injuriously affected under the terms of those statutes set out in Schedule 1 regulating land for public purposes or the implementation of works of a public character; (c) the continued use and application of the expression ‘injurious affection’; and (d) any related matter.88 The Planning and Development Act 2005 (WA) is one of the Acts listed in Schedule 1 of the terms of reference, and thus was part of the review. The Law Reform Commission disagreed with the Court’s interpretation of s 174(1) in Avon, and stated that s 174(1) should not be read as an exhaustive definition of ‘injurious affection’. It is also necessary to consider whether the action actually affected the value of the property, and at what point in time the action occurred.89 The Commission recommended that the Act be amended to make it clear that it 87 88 89 Canal Rocks Pty Ltd v Shire of Busselton [2009] WASCA 35 [4]-[5]. Law Reform Commission of Western Australia, above n 80, 85. Ibid 38-39. 283 does not exhaustively define ‘land is injuriously affected by reason of the making or amendment of a planning scheme’.90 The Law Reform Commission appears to espouse an interpretation of the legislation that is at odds with judicial interpretation. However, should the recommendations of the Law Reform Commission be followed, it is likely that an entitlement to compensation will only arise where there has been a reservation of land. Thus there will be no entitlement to compensation where obligations and restrictions on land use, falling short of reservation, are placed on privately-owned land. It is noteworthy that the report does not make any recommendations to extend the present scope of compensation in Western Australia. As a result, it is unlikely that compensation for obligations and restrictions on use will be available in the near future. 3.3. Constitutional considerations Although this thesis has not dealt with Commonwealth laws affecting private land use, there is some useful jurisprudence in this area which warrants consideration. The Commonwealth Constitution grants Parliament the power to make laws with respect to ‘the acquisition of property on just terms from any State or person for any purpose in respect of which the Parliament has power to make laws’.91 The High Court of Australia has considered the term ‘acquisition’ on several occasions. In the Tasmanian Dams case92 the High Court had to determine whether Commonwealth laws which effectively prevented the Tasmanian State government from constructing a hydroelectric dam amounted to an ‘acquisition’ of property. A majority of the Court found that there was no ‘acquisition’.93 Mason J placed emphasis on proprietary rights, and in particular the fact that the Commonwealth were not obtaining any proprietary rights in the land by restricting use. He 90 91 92 93 Ibid 39. Commonwealth of Australia Constitution Act (Cth) s 51(xxxi). Commonwealth v The State of Tasmania (1983) 158 CLR 1. Gibbs CJ, Wilson and Dawson JJ not deciding on this issue. 284 stated that ‘it is not enough that legislation adversely affects or terminates a pre-existing right that an owner enjoys in relation to his property; there must be an acquisition whereby the Commonwealth or another acquires an interest in property, however slight or insubstantial it may be’.94 Murphy J took a similar approach, stating that ‘unless the Commonwealth gains some property from the State or person, there is no acquisition within the paragraph’.95 Brennan J also adopted this analysis.96 Deane J took his analysis further, noting that: laws which merely prohibit or control a particular use of, or particular acts upon, property plainly do not constitute an "acquisition" of property for purposes of the Commonwealth. Commonly, such laws are of general application and apply to property by reason of its being property of a particular description or by reference to the nature of the use or act prohibited or controlled. While a law which restricts or controls the use or enjoyment of property by means of specific identification of the property effected comes closer to the area of acquisition of property, it is, as a matter of ordinary language, impossible to say that there has been any acquisition of property if all that is involved is restriction of what can be done upon it.97 This thesis has drawn a distinction between laws which impact on property generally (termed ‘blanket restrictions’) and laws which affect individual parcels of land. Deane J’s judgment seems to indicate that in the latter case, there is a stronger argument that an ‘acquisition’ has occurred. Ultimately he concludes that a mere restriction on use will not amount to an acquisition regardless. Regardless, it may be prudent to amend acquisition legislation to clarify that such restrictions do not attract the protection of the Act. This issue was revisited by the High Court in Newcrest Mining (WA) Ltd v Commonwealth (“Newcres”).98 This case concerned mining leases which were affected the National Parks and Wildlife Conservation Act 1975 (Cth) which made the leased areas part of Kakadu National Park. This effectively extinguished Newcrest’s right, and it was alleged that this constituted an ‘acquisition’. The Court drew a distinction between this case and Tasmanian Dams – in this instance there was a proprietary interest as ‘the Commonwealth and the Director acquired identifiable and measurable advantages. In the case of the Director, those advantages were the acquisition of the land freed from the rights of Newcrest to occupy and 94 95 96 97 98 Commonwealth v The State of Tasmania (1983) 158 CLR 1, 145. Commonwealth v The State of Tasmania (1983) 158 CLR 1, 181. Commonwealth v The State of Tasmania (1983) 158 CLR 1, 247. Commonwealth v The State of Tasmania (1983) 158 CLR 1, 283. (1997) 190 CLR 513. 285 conduct mining operations thereon and, in the case of the Commonwealth, the minerals freed from the rights of Newcrest to mine them’.99 Furthermore ‘vesting in the Commonwealth of the minerals to that depth and the vesting of the surface and balance of the relevant segments of the subterranean land in the Director had the effect, as a legal and practical matter, of denying to Newcrest the exercise of its rights under the mining tenements’.100 Thus the distinction is whether property is vested in the Commonwealth. In the Newcrest case, this was clearly satisfied. More recently, this issue was considered in ICM Agriculture v Commonwealth.101 The main issue in this case was whether water could constitute ‘property’ for the purposes of s 51(xxxi), but the court also considered whether there was an ‘acquisition’. The Court followed Tasmanian Dams and Newcrest and concluded that there was no acquisition as there was no ‘identifiable or measurable advantage’ flowing from the restriction.102 The overall conclusion which may be drawn from this analysis is that it is unlikely that statutory restrictions and obligations affecting land use constitute an ‘acquisition’. Regardless, it is suggested that this matter be conclusively dealt with by amending the relevant land acquisition legislation to exempt restrictions and obligations from the definition of ‘acquisition’. 3.4. Conclusion From the above analysis, it appears that the proposals made in this thesis will not increase government liability for compensation on the basis that rights to use land have been interfered with. However even where the range of matters subject to compensation are exhaustively defined, it is prudent for governments to insert an additional provision in their Torrens legislation specifically exempting notifications on title from the state guarantee. This will provide an additional safeguard to ensure that no claims arise. 99 100 101 102 Newcrest Mining (WA) Ltd v Commonwealth (1997) 190 CLR 513, 634. Ibid 635. (2009) 170 LGERA 373. This case has not yet been reported in the Commonwealth Law Reports (“CLR”). Ibid 415. 286 Additionally, it is unlikely that obligations and restrictions on use will be compensable under the relevant land acquisition statutes, although the recent case of Sorrento demonstrates that the definition of ‘interest’ in Queensland can be extended beyond merely relating to fee simple title. As a result, it is perhaps also appropriate to amend land acquisition statutes to include a provision clarifying the definition of ‘interests’, and once again specifically exempting obligations and restrictions on use from compensation. Statute-specific entitlements to compensation such as the Nature Conservation Act should remain in their present state. It is quite clear that these entitlements are only available in limited circumstances, and are not applicable to all obligations and restrictions on use. The present regime for compensation is appropriate, and unless there is a specific legislative entitlement to compensation, landholders whose interest is subject to obligations and restrictions on use may not claim compensation. However, these additional legislative safeguards will ensure that there is not an increase in claims for compensation. 4. Statutory liability for incorrect or omitted information The above section noted that compensation is only available for interferences with title (as opposed to use), and only in limited circumstances. Where a landholder’s rights to use land are affected, and they are given correct information, there appears to be no entitlement to compensation. One means by which a landholder can obtain compensation for obligations and restrictions on their land use is where they have been given incorrect information as to what their use rights in fact are. An example would be where the existence of an obligation or restriction was not disclosed, which subsequently resulted in loss. One of the potential issues with making information available to landholders and prospective purchasers is liability for incorrect or omitted information. Chapter Six discussed the New Zealand model, and noted that the primary mechanism for providing information on land use obligations and restrictions is the LIM. District councils may be held liable for information omitted from or contained in a LIM, which states that ‘in the absence of proof to the contrary, a land information memorandum shall be sufficient 287 evidence of the correctness, as at the date of its issue, of any information included in it pursuant [to the provisions of the Act]’.103 Although placing such a provision in legislation could be seen as opening the floodgates to an unascertainable number of claims, to date there have only been two cases concerning this provision. The likely effect of this provision is that local governments have exercised care in providing information, thus preventing claims for incorrect information. There is a similar provision in place in Queensland, with respect to property certificates. The Sustainable Planning Act 2009 (Qld) states that ‘if a person suffers financial loss because of an error or omission in a planning and development certificate, the person is entitled to be paid reasonable compensation by the local government’.104 To date, there have been no reported cases whereby compensation has been awarded under this legislative provision. Also, this is a limited entitlement which only arises in the case of planning and development certificates. In other cases, liability is specifically exempted. For example, where information is recorded as an administrative advice in accordance with the provisions of the LTA, the information is explicitly exempted from the State guarantee in most circumstances. Section 189(1)(l) of the LTA states that no compensation is available where information is recorded as an administrative advice, and: the information or thing, as recorded or kept, is incorrect; and the information or thing was given to the Registrar for recording or keeping by another entity; and the incorrectness was not because of an error of the Registrar in the recording or keeping. Consequently the Registrar will not be liable for inaccurate information recorded as an administrative advice, provided that the inaccuracy is attributable to the administering agency. In such a case, any relevant action would be against the administering agency. 103 104 Local Government Official Information and Meetings Act 1987 s 44A(5). Sustainable Planning Act 2009 (Qld) s 707. 288 This thesis recommends expanding the number of obligations and restrictions notified on title, as well as creation of a separate, but linked spatial database. These measures could perhaps be supported by a legislative provision similar to the New Zealand provision, and Queensland provision in relation to property certificates. The purpose of these recommendations is to create a system which can be relied upon, and this purpose will be entirely frustrated if governments are not motivated to provide accurate and up-to-date information. A legislative provision attributing liability to administering agencies is perhaps a desirable addition to an effective system for the management of obligations and restrictions on title and use. The following section will discuss the applicability of common law principles to determining liability. In the absence of a statutory guarantee, this is an alternative mechanism for obtaining compensation for incorrect information. However, a statutory entitlement to compensation provides greater security to potential buyers of property, and will potentially encourage accountability on the part of government agencies providing data. 5. Common law liability for incorrect and omitted information The above section discussed limited statutory rights to compensation available where incorrect information is provided, or information is omitted. Even where a statutory right is not available, liability may still arise at common law. There have been a number of cases where landholders have successfully sued government agencies for providing incorrect information. If information on obligations and restrictions is made more readily available, this could perhaps increase the instances where liability may arise. This section will review the law relating to liability for negligent misrepresentation in the case of government agencies. It will discuss the potential liability for misrepresentation where a register is used, and ways in which liability may be reduced. 5.1. Negligent misrepresentation – L Shaddock & Associates Pty Ltd v Council of the City of Parramatta There have been a number of major cases in Australia dealing with negligent misrepresentation in the case of government information. 289 One of the leading cases in this area is L Shaddock & Associates Pty Ltd v Council of the City of Parramatta (“Shaddock”).105 A company proposed to enter into a contract for the purchase of land to be used for development. They engaged a solicitor, who made the following queries: Telephoned an unidentified officer of the municipal council, in whose district the land was, and asked whether there were any road widening proposals affecting the land. He was told that there were not any proposals; and Made an application in writing, by prescribed form, for a certificate under s 342AS of the Local Government Act 1919 (NSW). The form asked whether the property was affected by any road widening proposals. It was the council’s practice when it received a request for a s 342AS certificate and for information about road widening proposals to refer to the proposal, if there was one, at the foot of the certificate. The solicitor received a certificate which did not mention any proposals. Following these enquiries, the purchase was completed. The purchasers later discovered that there were proposals affecting the land, and claimed that they would not have completed the purchase had they known of the proposals. They subsequently brought an action against the council in the Supreme Court of New South Wales alleging negligent misrepresentation.106 The case went on appeal to the New South Wales Court of Appeal, and then to the High Court of Australia. Both the Supreme Court and Court of Appeal held that no duty of care was owed. On appeal, the High Court unanimously allowed the appeal, holding that a duty of care was owed. Gibbs CJ held that a duty of care should be owed, noting that it was the practice of the council to give such information, therefore its failure to supply this information could reasonably have been understood as meaning that no proposal existed.107 Furthermore, he stated that: the Council ought to have known that the road widening, if carried out, would adversely affect the use of the land for most conceivable purposes. The Council was so placed that others could reasonably rely upon its ability to give accurate information as to any local road widening 105 106 107 (1981) 150 CLR 225. L Shaddock & Associates Pty Ltd v Council of the City of Parramatta (1981) 150 CLR 225, 229. Ibid 230. 290 proposals and it followed the practice, in the course of exercising its functions, of making some information available.108 However, he made a distinction between the advice given over the telephone, and the advice given in the property certificate. In regard to the telephone query, he held that it would not have been reasonable for the appellants to rely on an unconfirmed answer given by an unidentified person in response to an inquiry made over the telephone.109 In contrast, as the certificate request was made by a solicitor, on the relevant form, for conveyancing purposes, the gravity of the inquiry was made known to the council. As a result, the failure to mention the local road widening proposals amounted to a statement that none existed.110 Stephens J agreed that a duty of care should be owed, essentially based upon the notion of control. He noted that the council was an information centre, and it alone had sole possession of information that was extremely valuable to those who owned, or contemplated owning property in the district.111 With regard to the importance of the information, he made the following observation: the information in question was of a kind which was known by all to be of great importance to those seeking it and it was largely inaccessible through other channels. Moreover, much of the information sought would concern the Council’s own actions. But it would be worse than valueless, it would be positively harmful in its effect should it prove to be incorrect.112 He noted that in establishing this duty of care, there was no requirement that the speaker possess a special skill. Because the council had exclusive possession of essential information, and were set up as a centre from which information was distributed to those who required it, there was no requirement for holding out of special skill or competence in order to lead to the inference that care will be taken in furnishing that information.113 108 109 110 111 112 113 Ibid 236. Ibid. Ibid Ibid 242. Ibid 242. Ibid 243. 291 Stephens J expressly dealt with the matter of disclaimers, and noted that ‘were a council to expressly qualify its answers, stating that they might be subject to errors for which it accepted no responsibility, the present practice would be rendered largely worthless’.114 Mason J also found that a duty of care was owed, and like Gibbs CJ, drew a distinction between the telephone query and the written query. He said that because the oral inquiry was informal, spoken, and the solicitor did not identify the officer to whom he spoke, there was some doubt that the officer would have realized that the solicitor would rely on the information. In contrast, the written enquiry was formal in nature.115 In finding a duty of care, Mason J made the following comment which is worthy of full repetition: the specialized nature of the information, the importance which it has to an owner or intending purchaser and the fact that it concerns what the authority proposes to do in the exercise of its public functions and powers, form a solid base for saying that when information (or advice) is sought on a serious matter, in such circumstances that the authority realizes, or ought to realize, that the inquirer intends to act upon it, a duty of care arises in relation to the provision of the information and advice.116 Mason J addressed the argument that imposition of liability may impinge upon essential council functions, and stated that ‘the suggestion that the imposition of a duty of care and consequential liability would unduly hamper statutory and local authorities in the discharge of their public functions is an unsupported assertion’.117 He noted that finding a duty of care would not stop the practice of providing property information, as there is a practical obligation to do so, and the information is of vital importance to an owner or prospective purchaser of land.118 Murphy and Aicken JJ agreed with the aforementioned judgments. Shaddock is the leading case in the area of government liability for incorrect information, and has been considered and applied in a number of subsequent decisions. The next section will 114 115 116 117 118 Ibid 242. Ibid 253. Ibid 252-253. Ibid 252. Ibid. 292 review these decisions to provide a detailed analysis of the principles relating to negligent misrepresentation in the case of government information. 5.2. Negligent misrepresentation post-Shaddock There have been a number of cases since Shaddock further defining and limiting the extent of negligent misrepresentation for government information. It has been held that a duty of care is not strictly limited to cases involving written representations, and Shaddock should not be interpreted as such. Bivone v City of Salisbury (“Bivone”)119 is a decision of the Supreme Court of South Australia, in which the plaintiff sought building approval for plans for the building of a house on a specified lot. The relevant local authority had received a letter from the Commissioner of Highways stating that construction could not be carried out without the Commissioner’s consent, and would be affected by road widening on both sides. The plaintiff sent their agent to make an application to build a dwelling house, and a representative of the council verbally informed the agent that there was no road-widening proposal in place which would affect the land. Matheson J held that although in Shaddock the courts held that there was no misrepresentation on the facts with regard to the oral telephone inquiry, ‘they emphatically did not say that for an action such as was there pleaded to succeed there must be a written misrepresentation’.120 Matheson J distinguished this case on the basis that there was more than an anonymous telephone query. In this case, the purchaser was known to the building inspectors, and ‘was making a serious and highly relevant inquiry of a man whom he knew, and whom he knew to be a building inspector, whether the plaintiff’s application to build a dwelling on land in the defendant’s own area was affected by any road widening plan’.121 As a result, Matheson J held that a duty of care was owed to the plaintiff. A similar conclusion was reached in the case of Kyriacou v Kogarah Municipal Council (“Kyriacou”).122 In this case, the plaintiff phoned the council to enquire about the existing use 119 120 121 122 (1981) 50 LGRA 94, Bivone v City of Salisbury (1981) 50 LGRA 94, 110. Ibid. (1995) 88 LGERA 110. 293 rights relating to a property she was considering purchasing. In this case Dunford J held that a duty of care did exist for the following reasons: when Mrs Kyriacou telephoned the Council she asked to be connected to the town planning department, and when put through asked to speak to someone who knew about the specific property. She then identified herself by name and gave the purpose of her inquiry explaining the future intentions of her husband and herself with the subject property, and also took care to identify by name the person to whom she was speaking.123 Wollongong City Council v Fregnan (“Wollongong CC”)124 is especially relevant for present purposes as it concerned information contained on a register. In this case, which originated in the Supreme Court of New South Wales, and went on appeal to the New South Wales Court of Appeal, the respondents entered into a contract to purchase a vacant lot, with the intention of building upon it. Prior to completion, the respondent spoke to a council officer, and asked whether anything was wrong with the land, to which the officer responded ‘not that he knew of’. After completion, the respondents applied for building approval, and were directed to relocate the cottage further from the street, which they did. Subsequently there was heavy rain, and land slippage occurred which damaged the cottage. The respondents brought an action against the council in negligence, and it was shown that the council kept a land slippage register, and the respondent’s land was listed as being affected. This register was not available for public inspection.125 Hutley JA held that for the purpose of establishing negligence, it is the verbal inquiry only which is relevant, and that this inquiry was informal in nature, and the council did not negligently give any information to an applicant. The only information given to the applicant was by an officer who denied any personal knowledge of the matter.126 With regard to the register, Hutley JA stated that the council is entitled to decide whether or not it will advise intending purchasers of the land as to the status of the slippage register. If they decline to advise prospective purchasers, there is no breach of duty. However they may be liable if they elect to undertake the supply of information, and do so negligently.127 123 124 125 126 127 Kyriacou v Kogarah Municipal Council (1995) 88 LGERA 110, 121. (1982) 46 LGRA 391. Wollongong City Council v Fregnan (1982) 46 LGRA 391, 391. Ibid 393-4. Ibid 394. 294 In this case, Hutley JA held that the council did elect to undertake the supply of information. The council were aware or ought to have been aware that the land was in an area prone to slippage, and should have warned the applicant of this.128 Furthermore, the original position of the cottage proposed by the applicant was in fact safer, thus the council caused the cottage to be placed in an area prone to land slippage. The council was obliged to consider the likelihood of slippage, and this land was in the slippage register. As a result, the council had a duty of care, and failed to take proper care in the performance of this duty.129 Glass J agreed that a duty of care was owed, because the causal relationship was established – the plaintiff would not have built the cottage in that location had they been told of the danger of slippage.130 Mahoney JA agreed with this reasoning. This case is particularly relevant to this thesis, as it concerned information on a register, although one not available for public inspection. The ramification of this decision is that where information is not available to the public, the onus is on the council to check the accuracy of the information. Had this register been available to the public, then perhaps the onus would have been on the purchaser to check for any entries. The next important development in the law of negligent misrepresentation was the case of San Sebastian Pty Ltd v Minister Administering the Environmental Planning Act (“San Sebastian”),131 which stands for the proposition that a duty of care cannot be owed in relation to government policy. In this case, Sydney City Council prepared a development plan in 1969 for Woolloomooloo, which had no statutory force, and was merely a guide to the public interest which the council was required to consider. The plan provided for high-density development of the area, and proceeded on the basis that developers would be encouraged to purchase land in the area and undertake high-density development. The appellants inspected the plan, and obtained copies. They subsequently purchased land in the area for the purpose of developing it in the manner contemplated by the plans. In 1972 the plans were abandoned, and the developers sued the council in negligence. 128 129 130 131 Ibid. Ibid 395. Ibid 399. (1986) 162 CLR 340. 295 The matter went on appeal to the High Court of Australia, where a majority held that a duty of care did not arise. Gibbs CJ, and Mason, Wilson and Dawson JJ delivered a joint judgment, holding that the council had not made a representation, as publication of plans or proposals should not be held to impose an obligation on a council to take care in making statements in those plans or proposals.132 Policies are often altered, and the Court will not readily infer that a plan contains an assurance of future action.133 Regardless, they did note that in an appropriate case, a statement made to a group at large, and statements volunteered rather than requested, could give rise to a negligent misrepresentation.134 Brennan J agreed that the appeal should be dismissed, but delivered a separate judgment. Another relevant case to consider is that of Burke v Forbes Shire Council (“Burke”).135 In the shire in question, non-urban areas permitted development for agriculture, but this definition was later amended in 1975 to exclude piggeries. The plaintiffs carried on business as farmers, and operated piggeries. The plaintiffs purchased several properties in this shire for this purpose, with details as follows: In 1982 the Burkes purchased ‘Bindi’ which was used as a piggery at that time. They applied for a planning certificate, which stated that agricultural use was permitted. The certificate had not been amended to exclude piggeries; The plaintiffs refinanced loans over Bindi in 1984, and again in 1986, and both times the same mistake appeared; In 1984 the Burkes purchased ‘Kaloola’, and the certificate also contained the same error, but it was dated 1983 and provided by the vendor; Three more properties were purchased by the plaintiffs, and all certificates contained the same error. But it was conceded that the Burkes relied not on the certificates, but on the fact that piggeries were permitted on their other properties. 132 133 134 135 San Sebastian Pty Ltd v Minister administering the Environmental Planning Act (1986) 162 CLR 340, 359. Ibid 359-60. Ibid 357-8. (1987) 63 LGRA 1. 296 The Burkes commenced proceedings against the Council in the Supreme Court of New South Wales alleging negligence. Allen J held that the obligation to provide information was to be characterised as statutory rather than contractual, thus there was no claim for breach of contract.136 As a result, the main focus of the judgment was liability for negligent misrepresentation. On the issue of negligent misrepresentation, Allen J held that the certificates in question were as important as those in Shaddock. Allen J made the following comment on this point which is worthy of full repetition: the certificates were as important as the certificate in Shaddock – ‘it is the official statutory certificate, the only form of certificate provided by that planning legislation, not only as to what buildings and works can be constructed on the land but even as to what use the land can be put to. It affects the market value of the land. It affects what economic return can be derived from activities carried on the land. It is of fundamental importance in selling, buying, lending borrowing and guaranteeing.137 As a result, the council had a duty of care in relation to the three certificates issued for Bindi, because the value of the property and its use were affected. Furthermore, it was not necessary that the council knew the precise use to which information would be put; it was sufficient that the council ought to have known that the Burkes had requested the certificates for a serious purpose.138 In Tilly v Toowoomba City Council (“Tilly”)139 the Supreme Court of Queensland found a duty of care on the basis of a planning certificate provided by a council to a purchaser of land. The planning certificate asked ‘whether there are any outstanding requisitions, of, or from your council in connection with the subject property’, and the response from the council was ‘nil’. There were in fact terms and conditions attached to a planning consent in relation to the current use of the land, and these had not been complied with. This was not drawn to the appellant’s attention until almost 12 months after taking possession, at which time failure 136 137 138 139 Burke v Forbes Shire Council (1987) 63 LGRA 1, 10. Ibid 15. Ibid16. (1989) 69 LGRA 399. 297 to comply with conditions could expose the appellant to prosecution for unlawful use of the land, and proceedings to prevent the unlawful use of the land.140 Connolly J held that the procedure for obtaining planning certificates invited the public to seek information from the council, and the council clearly must have realised that the recipient of the information intended to act and rely on it.141 Thus a duty of care was owed. Thomas and Ambrose JJ concurred with this reasoning. Pisano v Fairfield City Council (“Pisano”)142 was a decision of the New South Wales Court of Appeal concerning a certificate given by council. Under s 317A Local Government Act 1919 (NSW), a person could apply for a certificate to the effect that a building complied with the Act and ordinances, and any plans and specifications. This process involved a physical inspection of the building, and a written certificate of the findings. In Pisano a certificate was given to the vendor by council stating that a building complied in all respects with relevant legislation, and the purchase proceeded on this basis. In fact, there were defects with the building which were not detected by council on inspection, nor notified to the purchaser. Shortly after purchase, land subsidence occurred, damaging the building. The purchasers commenced proceedings against the council, but the council denied liability on the basis that the certificate was provided to the vendor, rather than the purchaser. This argument was rejected as the purchasers were clearly within the limits of a class to which a duty should be owed.143 President Kirby held that a duty of care was owed, and breached, as the council failed to adequately inspect the property, and thereby made a misrepresentation in the certificate.144 The case of Sved v Woollahra Municipal Council (“Sved”)145 differs slightly from the other cases concerning certifications, as the certificate had not been provided at the time of completion. Similarly to Pisano, this case also concerned a certificate under s 317 A of the Local Government Act 1919 (NSW). In this case, the plaintiff applied for a certificate and the 140 141 142 143 144 145 Tilly v Toowoomba City Council (1989) 69 LGRA 399, 400-01. Ibid 402. (1991) 73 LGRA 184. Pisano v Fairfield City Council (1991) 73 LGRA 184, 193. Ibid 194. (1995) 86 LGERA 222. 298 inspection was undertaken, and before completion, the plaintiff called council and stated ‘I need to know that the certificate is being issued, otherwise I’m not going to settle’. The council officer replied ‘everything has been done. The paperwork is in the pipeline and you will get it any day’. Eight days after completion the certificate was issued. It was clear, except from a note at the bottom saying that the certificate was ‘not an unequivocal affirmation of proper building standards’. Subsequently defects in the building became apparent.146 The plaintiffs brought an action against the defendant council in the Supreme Court of New South Wales. Giles J held that the council ought to have known of the importance of the certificate, and owed to the Sveds a duty to take care in issuing the certificate, and in informing them over the telephone that a certificate would be issued.147 5.3. The effect of disclaimers As stated above, Stephens J dealt with disclaimers in Shaddock and was sceptical as to their role, noting that the practice of providing information would be rendered ‘largely worthless’ if its accuracy were disclaimed.148 There are a number of other negligent misrepresentation cases which have expressly dealt with the issue of disclaimers. MLC v Evatt149 is a leading case in the area of negligent misrepresentation as it set out the ‘special relationship’ test. It is also relevant in the context of disclaimers, even though it was not a case involving government information. In MLC v Evatt, the plaintiff alleged negligent misrepresentation on the basis that the defendant company had given incorrect advice regarding the financial soundness of a subsidiary company. The plaintiff invested in the subsidiary on the basis of this advice, and the company subsequently went into liquidation. Although there was no disclaimer given in MLC v Evatt, the High Court took the opportunity to discuss the possible effect of disclaimers, and noted that a disclaimer would not necessarily 146 147 148 149 Sved v Woollahra Municipal Council (1995) 86 LGERA 222, 223-4. Ibid. L Shaddock & Associates Pty Ltd v Council of the City of Parramatta (1981) 150 CLR 225, 242. (1968) 122 CLR 556. 299 prevent a duty from arising; rather, it was just one of a number of factors to be considered. On this point, Barwick CJ made the following comment, which is worthy of full repetition: I doubt whether the speaker may always except himself from the performance of the duty by some express reservation at the time of his utterance. But the fact of such a reservation, particularly if acknowledged by the recipient, will in many instances be one of the circumstances to be taken into consideration in deciding whether or no a duty of care has arisen and it may be sufficiently potent in some cases to prevent the creation of the necessary relationship. Whether it is so or not must, in my opinion, depend upon all the circumstances of and surrounding the giving of the information or advice.150 This set out the first tentative rules regarding disclaimers in Australian law – namely, the existence of a disclaimer is a factor to be considered in determining whether a duty of care exists, having regard to all the circumstances, and it will be relevant to determine whether the recipient acknowledged it. The case of Mid-Density Developments v Rockdale Municipal Council151 involved a disclaimer in the context of government information. This case concerned certificates given under the Environmental Planning and Assessment Act 1979 (NSW) to a prospective purchaser of land. The certificates incorrectly stated that the council had no information regarding flooding on the parcel of land. In fact, there was a flood policy in place which obliged the council to note on all certificates relating to that street that the land is subject to the council’s Flood Management Policy. Compliance with the policy made the development unprofitable for the appellant, so they commenced proceedings against the Council in negligent misrepresentation. Relevant in this case was a legislative disclaimer in the Environmental Planning and Assessment Act stating that ‘a council shall not incur liability in respect of any advice provided in good faith pursuant to subsection (5)’. The information in question was given under subsection (5).152 Additionally, there was a disclaimer under the Local Government (Flood Liable Land) Amendment Act 1985 (NSW) drafted in similar terms.153 150 151 152 153 MLC v Evatt (1968) 122 CLR 556, 570. (1993) 44 FCR 290. Mid-Density Developments Pty Ltd v Rockdale Municipal Council (1993) 44 FCR 290, 294. Ibid 295. 300 The Court found for the appellant on two bases – first, that the council did not meet the requirement of good faith in the disclaimer, and second on the applicability of the disclaimer itself. With regard to the good faith aspect, the Court held that a party cannot be acting in good faith where ‘no real attempt has been made to have recourse to the vital documentary information available to the council, and the council has no proper system to deal with requests for information of the type in question’. Additionally, they held that the concept of ‘good faith’ requires ‘a real attempt by the authority to answer the request for information at least by recourse to the materials available’. In this case, the Court held that the council had neglected to do this, thus failing to meet the test of good faith. 154 Furthermore, the Court made the following comment with regard to the enforceability of the disclaimer: the circumstance that the relevant information provider is in a better position than anyone else to know of the accuracy of the information provided may, as the evidence indicates, be significant in considering the question of reasonable reliance.155 Thus one of the relevant circumstances will be control of the information, and it is possible that in any case concerning government information, the government authority will be in a better position to know of the accuracy of the information given. Another relevant case concerning disclaimers, although not in the context of government information, is BT Australia Lt v Raine & Horne Pty Ltd.156 This case involved a negligent valuation which resulted in loss. The valuation was accompanied by the following disclaimer: in accordance with company policy we state that this report is for the use only of the party to whom it is addressed and for no other purpose, and no responsibility is accepted to any third party for the whole or part of the contents of this report.157 In the context of this disclaimer, the Court held that it was effective to protect against liability to third parties, noting that: 154 155 156 157 Ibid 300. Ibid 301. [1983] 3 NSWLR 221. BT Australia Lt v Raine & Horne Pty Ltd [1983] 3 NSWLR 221, 224. 301 it is natural that there should be a general policy in a company giving valuations that, while prepared to stand behind the valuation in its use by the client who paid for it, it was not prepared to accept responsibility to anyone into whose hands the valuation might come and who might choose to act on it. In my view it gives a reasonable effect to the disclaimer to treat it as directed to the latter situation.158 However this was a fairly specific situation involving a third party, thus it is difficult to determine its applicability to other situations. It appears that on the basis of the Court’s comments, there would have been liability to the client had a problem arisen. Furthermore, it was in the context of commercial information, as opposed to government information, which could be a determining factor is deciding the enforceability of a disclaimer. It is evident from the limited case law available that the enforceability of a disclaimer will largely depend upon the circumstances of the case, and there are no set rules to determine whether liability will arise. The case law does seem to indicate that in the case of government information, the fact that the government effectively has a monopoly over the information may be a relevant factor towards negating any disclaimer. A recent article considered the effect of disclaimers for government information, specifically in the context of online disclaimers in searches, and proposed the following factors which a court may take into account in determining whether to uphold a disclaimer: Does the website hold itself out as providing official information? If so, a court may be reluctant to uphold the disclaimer where there are no other avenues for verifying the information; Is there also an alternative and more official way of gaining the information? If so, the court may view the search as being an informal inquiry, similar to the phone call in Shaddock; Is the government agency responsible for the accuracy of the information?; and Is the disclaimer effective? This will turn upon such matters as whether it is sufficiently narrow, whether the recipient has accepted it, and whether the disclaimer points the recipient to more authoritative sources.159 158 159 Ibid 237. Sharon Christensen, Bill Duncan and Amanda Stickley, ‘Shifting Paradigms of Government Liability for Inaccurate Information’ (2008) 15(2) Murdoch University Electronic Journal of Law 185, 205-7. 302 The authors also reached the conclusion that it will be difficult for governments to effectively disclaim information, because they are viewed as authoritative and have control over the material.160 This discussion of disclaimers has particular relevance to this thesis, as the recommendations of this thesis promote development of an integrated system for the management of data concerning obligations and restrictions on land title and use. If the Western Australian example is indicative, government departments may wish to protect themselves through the use of disclaimers. It is important to consider these rules and principles concerning the enforceability of disclaimers to determine whether any attempt to disclaim liability would be effective. On the basis of this analysis, it seems likely that disclaimers may be ineffective where information is omitted or incorrect, and loss is suffered as a result. Furthermore, the best approach may very well be to ensure government agencies take extra care to check the validity of information, thus preventing any problems from arising at the outset. 5.4. Summary of negligent misrepresentation principles From the above analysis of the cases involving negligent misrepresentations made by government bodies, a number of observations may be made. First, it is not necessary that an enquiry be made either in writing or verbally. Instead, liability will turn upon the circumstances, and whether the information was requested in circumstances that were ‘serious’. In all cases, requests for information relevant to the purchase of land were considered to be made in sufficiently ‘serious’ circumstances, mainly because they related to purchases of property, which is clearly of a serious nature. Thus potentially searches of any register made during the conveyancing process may also fall with this category of seriousness. In the context of registers providing aggregated data (ie. Data compiled from other agencies), Christensen et al note that: while it would not be possible for the government agency to know the precise use to which the information might be put in any particular instance, it would reasonably be able to ascertain the probable use to which the information could be put and the fact that the probable use may reveal a serious purpose.161 160 161 Ibid 207. Ibid 205. 303 A search of a register is more likely than not made for the purpose of ascertaining information for a property purchase, or development, thus a government agency could infer that the probable use of the information is serious in nature. Second, San Sebastian makes it clear that liability will not arise in relation to government policy, only advice. However, any information contained on a register will be more than mere policy, thus this exclusion is probably not of importance for present purposes. Finally, in Tilly reference was made to the fact that the council essentially invited members of the public to seek information, which led to an inference that a duty of care was owed. If information is contained on a register, it is obviously there for members of the public to view. As a result, incorrect information contained on a register could very well lead to a finding of negligent misrepresentation. Additionally, as discussed above, disclaimers will not necessarily negate liability, particularly in the case of government information which departments effectively have a monopoly over. Thus disclaimers such as those used in Western Australia may be ineffective in preventing liability from arising. 5.5. Conclusion If all information concerning obligations and restrictions on land title and use is to be brought into an integrated system, there is a definite possibility that claims will arise for negligent misrepresentations. There is potential for the number of claims indeed to increase, as an integrated register would purport to provide all information regarding these instruments, therefore any omissions or errors may give rise to liability. On the other hand, the above analysis demonstrates the number and variety of claims arising from the present system, showing that present methods of providing information are definitely not immune from attack. The purpose of providing information in the manner recommended in this thesis is to allow prospective purchasers to make informed decisions about property purchases, and also to assist with compliance with environmental laws. If information is incomplete or lacking on a 304 register, these purposes are going to be impaired. Thus imposing liability perhaps has its merits, as it would be antithetical to the objects of having an integrated system if government departments are not providing accurate information. As discussed earlier, this could even be achieved through a statutory entitlement to compensation for incorrect information or omissions. However, while such a system is in development there may be sound reasons for limiting government liability. This is because it will take some time to ensure that all information is entered on the register, and that all information is accurate. The Western Australian model provides some useful guidance in this respect, as their system is being developed gradually, and does not yet provide a complete picture of obligations and restrictions. In Western Australia liability is limited largely through the use of disclaimers, stating that information is provided for informational purposes only, although the above analysis demonstrated that such disclaimers may not provide an adequate defence against claims for negligent misrepresentation. On the basis of the case law, Courts seem reluctant to uphold disclaimers in similar circumstances. Furthermore, using such a disclaimer undermines the purpose of providing such information. Regardless, it may be an effective and necessary interim defence against a multitude of claims whilst a system is still being established. The purpose of integrating government data is to provide a system that can be relied upon by the public, thus the preferred approach is for government departments to use their best endeavours to ensure information is correct. Such an approach is preferable to allowing government departments to take a relaxed approach to the provision of such information, with reliance upon disclaimers to protect themselves. 6. The effect of in rem versus in personam restrictions When determining the appropriate forum for recording information concerning obligations and restrictions, it is necessary to determine whether they are intended to operate in rem or in personam. In rem interests are those which run with the land, whilst in personam interests are mere personal obligations. 305 This distinction was discussed by the High Court in the Hillpalm case (discussed in Chapter Two). In this case, the Court was required to consider first whether there was a local council consent condition over a parcel of land, and second whether that condition was enforceable against a successor in title. The High Court made the following comment: if the Council’s consent to the subdivision operated to create a right in rem that may be relied on by any later transferee of any lot in the subdivision, that would present a fundamental question about how the creation of such a right would be consistent with the effective operation of a system of Torrens Title. In particular, the existence of such a right would be inconsistent with s 42(1) of the Real Property Act [NSW’s paramountcy provision].162 Furthermore, they stated that: if the consent to the subdivision did create a right in rem, that would be a right or interest in the land not shown on the Computer Folio Certificate. There would then be a real and lively question about how the two statutory schemes (the scheme under the EPAA and the Torrens system for which the Real Property Act provides) were to be reconciled, and questions of implied repeal or amendment might arise.163 Therefore, the High Court have specifically acknowledged that where statutory obligations and restrictions operate in rem, there is a degree of uncertainty as to how these statutory schemes are to interact with the land title register. This is particularly relevant in Queensland, where a number of statutes creating obligations and restrictions provide that they are to bind successors in title.164 Although many of these statutes do require these instruments to be noted as an administrative advice, Bell and Christensen note that this creates an inconsistency, and perhaps a better approach would be to register these obligations and restrictions, as ‘all “interests” in the land would be registered thereby ensuring that the land title register meets the original goal of accurately mirroring all interests in the land’.165 Some jurisdictions in Australia have attempted to resolve this difficulty through legislation. In Victoria, the Torrens legislation imposes more stringent obligations on the Registrar than 162 163 164 165 Hillpalm Pty Ltd v Heaven’s Door Pty Ltd (2004) 211 ALR 588, 600. Ibid 600-01. See for example Coastal Protection and Management Act 1995 (Qld) and Nature Conservation Act 1992 (Qld). These statutes are discussed in detail in Chapter Four, at 3.2. Bell and Christensen, above n 17, 99. 306 in Queensland. The Victorian legislation states that the register ‘must contain the recordings that are required or authorised to be made in the register by or under this Act or any other Act and that affect the land for which the folio is created’.166 Additionally, many Victorian statutes have made recording a precondition to effect. An example is the Conservation, Forests and Lands Act 1987 (Vic), which was discussed earlier in this Chapter. As noted above, this Act allows the Secretary to enter into an agreement with a landowner relating to the management, use, development, preservation or conservation of their land, or otherwise to give effect to the objects or purposes of a relevant law, in relation to their land.167An agreement may contain terms restricting the manner in which the landowner may use their land. 168 The legislation states that such agreements are binding on a landowner, but will only bind a successor in title where specifically stated.169 If an agreement is expressed to be binding on successors in title, the Secretary must as soon as practicable after entering into the agreement apply in writing to the Registrar of Titles to have a recording of the agreement made in the Register and on receiving that application, the Registrar of Titles must make that recording in the Register.170 Once the agreement has been recorded on title, the land owner's successors in title are deemed to have notice of the agreement, and all rights and liabilities under that agreement are binding on and enforceable by or against the land owner's successors in title and run with the land.171 This is a good approach, as it ensures that any agreement expressed to operate in rem will be recorded on title, and therefore visible in a title search. It is suggested that where governments create obligations and restrictions on land use, they specifically address whether they are designed to operate in rem or in personam. In the instance of obligations and restrictions designed to operate in rem, it is imperative that the existence of these instruments is easily ascertainable by a prospective purchaser. This can be 166 167 168 169 170 171 Transfer of Land Act 1958 (Vic) s 27(6)(a). Conservation, Forests and Lands Act 1987 (Vic) s 69(1). Conservation, Forests and Lands Act 1987 (Vic) s 70. Conservation, Forests and Lands Act 1987 (Vic) s 71. Conservation, Forests and Lands Act 1987 (Vic) s 72(1). Conservation, Forests and Lands Act 1987 (Vic) s 72(2). 307 achieved through the methods discussed above – namely, by recording obligations and restrictions on title without the benefits of registration, or by representation on a spatial map. It is further suggested that governments review existing legislation which creates obligations and restrictions on use, and amend such legislation to include a provision stating whether the obligations and restrictions are intended to operate in rem or in personam. Where they are intended to operate in rem, these statutes should also have provisions requiring the administering agency to notify the Registrar of Titles, preferably within a prescribed time limit. The Torrens legislation should also be amended to oblige the Registrar to record this information against title. It is also advisable that legislation contain a provision stating that obligations and restrictions are not enforceable against a successor in title until recorded on title. This ensures that landholders or prospective purchasers will not be prejudiced where departments delay notifying information to the Registrar of Titles. These steps will ensure that obligations and restrictions designed to operate in rem will be easily ascertainable by a prospective purchaser. 7. Recommendations for reform Chapter Seven made a number of preliminary recommendations for reform applicable to those Australian jurisdictions currently managing obligations and restrictions on land title and use in a fragmented manner. These recommendations were based upon the findings of the case studies, and the features identified which could assist with effective management of obligations and restrictions on title and use. This chapter has considered any potential problems with these recommendations, and revised them accordingly. In summary, this thesis makes the following final recommendations: A new system should be developed incorporating the land title register and a spatial database The scope of the land title register must be expanded beyond its traditional role of recording only details affecting ownership; 308 All obligations and restrictions which affect individual parcels of land should be recorded on title; All legislation creating obligations and restrictions which affect individual parcels of land should be amended to include a provision obliging the agency to notify the Registrar of Titles within a certain period of time, and obliging the Registrar to record the restriction; This legislation should also contain a provision stating that the instrument does not bind successors in title until it is recorded; These obligations and restrictions should be recorded on title, as opposed to registered, and should not attract the benefits of indefeasibility; The State’s Torrens legislation should be amended to specifically address the existence and operation of these records, and to make it explicit that indefeasibility and other benefits of registration do not apply to these interests; Title searches should be amended so that the distinction between registered and recorded interests and the legal ramifications is made clear; A spatial database should be used to demonstrate blanket obligations and restrictions which affect multiple parcels of land, such as zoning. This is because spatial databases are likely to be more appropriate to these restrictions, and also more cost effective; This spatial database should be established under statute; Each State’s Torrens legislation should be amended to ensure that land title register searches include a note at the foot advising searchers to consult the spatial database. This effectively ensures that the register and database are linked; and The land title register and the spatial database together should contain all information on obligations and restrictions affecting land title and use. Compensation and liability Torrens legislation should be amended to specifically exempt these records on title from the state guarantee of title, and to provide that compensation is not available where obligations and restrictions affecting use are recorded on title; Land acquisition legislation should also be amended to make it clear that obligations and restrictions on land use do not constitute a ‘taking’ of property; 309 The provision of incorrect information could lead to liability for incorrect information, thus government departments should take steps to ensure that information is accurate; Disclaimers can be used while the system is being established, but their use should be minimised once the system is operational, as the entire purpose of providing this information is for searchers to rely on it, and to avoid the need for numerous queries; It may be appropriate to draft legislation specifically making compensation available where incorrect information is provided, either on the land title register or on the spatial database. It is unlikely this would increase liability, and may in fact encourage governments to take greater care providing information; The Memorandums of Understanding used in Western Australia could be adopted in other jurisdictions where agencies are providing information to the Registrar to be recorded on title. These documents could be used to oblige the agency to use their best endeavours in supplying the information, which can also ensure their accuracy; and Such a document could also clarify where liability will lie if information is incorrect, with the most appropriate entity being the agency responsible for the data. Obligations and restrictions designed to operate in rem All legislation creating obligations and restrictions on land title and use should be amended to specifically state whether these instruments are intended to operate in personam or in rem; All legislation creating obligations and restrictions on land title and use should also contain a provision requiring the agency to notify the Registrar of the instrument. This requirement should be mandatory, and a time period should be specified; Torrens legislation should be amended to require the Registrar to record this information. This requirement should be mandatory, and a time period should be specified; and Where obligations and restrictions are intended to operate in rem, recording should be a pre-condition to effect. The statute creating or enabling creation of the instrument should state that it is not enforceable against a successor unless it is recorded on title. Alternatively, the Torrens legislation could be amended to state that obligations and 310 restrictions are not enforceable against a successor unless recorded on title, or on a spatial database. To give effect to these recommendations, the following legislative amendments are proposed. Legislation to be Proposed amendment amended All legislation creating Obligation to notify Registrar of titles obligations or (1) This section applies where [an agreement is entered restrictions which affect into/restriction is imposed] under this [part/section] land use (amend according to the layout of the Act); (2) Where [an agreement is entered into/restriction or obligation is imposed], the [Chief Executive/Person responsible for administering the Act] must notify the Registrar of Titles within [7 days] by lodging the relevant form; (3) The Registrar of Titles must, as soon as practicable, record the existence of this [agreement/restriction or obligation] on title, so that a search of the register will disclose its existence; (4) This [agreement/restriction or obligation] does not bind the landholder and the landholder’s successors in title until such records are made. Effect of [agreement/restriction or obligation] (1) This [agreement/restriction or obligation] [does/does not] bind the landholder, and the landholder’s successors in title. Land Titles Legislation Definitions ‘Register’ or ‘registered’ refers to information on title which attracts the benefits of registration ‘Record’ or ‘recorded’ refers to information on title which is for information only, and does not attract the benefits of 311 registration To establish records (1) The Registrar of Titles may record additional information on title where authorised by another Act; (2) This information must be recorded in such a way that it is clearly distinct from information relating to title. To exempt guarantee (1) The State guarantee of title in [insert relevant section] does not apply to information recorded under [insert section of the above amendment]; and (2) Compensation is not available where restrictions or obligations on land use are recorded on title. To reference spatial database (1) The Registrar of Titles must, as soon as practicable, make a note on all indefeasible titles so that a search of the land title register will disclose the existence of a database containing additional obligations and restrictions on land use. New legislation Purpose establishing a database spatial (1) The object of this legislation is to establish a database whereby governments can spatially record obligations and restrictions affecting land Obligation (1) Government agencies must, as soon as practicable, provide information on all obligations and restrictions to the administering authority; (2) The administering authority must take steps to ensure that these obligations and restrictions are visible on a search of the database. Land legislation Acquisition No right to compensation for obligations and restrictions on land use (1) compensation is available where a person’s interest in land is taken; 312 (2) an interest in land is deemed to not be taken where legislation places obligations and restrictions on land use. Land Titles legislation Entitlement to compensation for incorrect information and New establishing legislation a (1) where information [recorded on title/recorded on the spatial database spatial database] is incorrect, and a person suffers loss as a result of this, the person may claim compensation from the government department who is responsible for the information. These suggested legislative amendments are very general in nature, and it is necessary to examine the jurisdiction’s particular legislative structure in depth to determine whether these amendments are the most appropriate legislative mechanisms to use. These amendments will then need to be refined to suit the relevant jurisdiction. However these recommendations generally should assist all Australian jurisdictions to develop a system which effectively manages all obligations and restrictions on land title and use within the context of a Torrens framework of land registration. 313 Chapter Nine Conclusion 1. Research findings This thesis commenced with the hypothesis that in most Australian states, information concerning obligations and restrictions on land title and use is not managed in a coordinated and consistent way. Chapter Four profiled the approach in Queensland, which is indicative of the approach used in other Australian states.1 This case study showed that obligations and restrictions on land use derive from a fragmented collection of Acts, regulations, and plans, and are administered by several different government agencies. This has led to several problems: The Torrens system is no longer meeting its goal of providing a complete and accurate picture of title; and This uncoordinated approach to the management of land titles, and obligations and restrictions on land use has created a barrier compliance with environmental laws. Chapters Five and Six profiled Western Australia and New Zealand, as both of these jurisdictions have undertaken detailed programs of reform to more efficiently manage information concerning obligations and restrictions on land title and use. Chapter Seven compared the findings of these three case studies, and identified the features of the jurisdictions that are likely to contribute to effective management of information concerning obligations and restrictions on land title and use. Based upon these features, Chapter Seven made preliminary recommendations for reform. These recommendations were as follows: A detailed program of reform must take place in each jurisdiction, rather than a series of reactive measures designed to fix existing problems; Expansion of the land title register to provide for all obligations and restrictions on land use which affect individual parcels of land; Development of a spatial database to represent obligations and restrictions which affect multiple parcels of land; 1 With the exception of Western Australia, and potentially Victoria. 314 Use of a system which leaves information in control of the administering agency, and attributes liability to this agency; and A legislative guarantee of accuracy for all information obtained from a title search and a spatial database search. Chapter Eight built upon this analysis, and anticipated a number of potential issues with the proposed recommendations, as well as barriers to their implementation. Chapter Eight considered the following matters: Indefeasibility and issues with placing obligations and restrictions on title; The state guarantee of title and compensation for loss; Statutory and common law liability for omissions and incorrect information; and The effect of in rem versus in personam obligations and restrictions. Taking these issues into account, Chapter Eight devised a final set of recommendations for reform. 2. Recommendations for reform It is recommended that Australian states currently managing obligations and restrictions on land title and use in a fragmented manner should embark on a detailed program of reform. This thesis advocates development of new systems for management of obligations and restrictions on title and use, incorporating the land title register and a spatial database. To this end, Chapter Eight made the following recommendations: The scope of the land title register must be expanded beyond its traditional role of recording only details affecting ownership; All obligations and restrictions which affect individual parcels of land should be recorded on title; All legislation creating obligations and restrictions which affect individual parcels of land should be amended to include a provision obliging the agency to notify the Registrar of Titles within a certain period of time, and obliging the Registrar to record the instrument; These obligations and restrictions should be recorded on title, as opposed to registered, and should not attract the benefits of indefeasibility. As stated above, it is not desirable that these instruments receive the benefits of indefeasibility; 315 Each State’s Torrens legislation should be amended to specifically address the existence and operation of these records, and to make it explicit that indefeasibility and other benefits of registration do not apply to these interests; Title searches should be amended so that the distinction between registered and recorded interests and the legal ramifications is made clear; A spatial database should be used to demonstrate blanket obligations and restrictions which affect multiple parcels of land, such as zoning. This is because spatial databases can represent these obligations and restrictions more accurately, and they are also a more cost effective solution; This spatial database should be established under statute; Each State’s Torrens legislation should be amended to ensure that land title register searches include a note at the foot advising searchers to consult the spatial database. This effectively ensures that the register and database are linked; and The land title register and the spatial database together should contain all information on obligations and restrictions affecting land title and use. This thesis has attempted to justify why these recommendations are the most appropriate course to follow in a jurisdiction using a Torrens framework for land registration. The comparative methodology requires regard to be had to the jurisdiction’s legal background, therefore the role of the land title register is very important to consider. It was noted that these recommendations could lead to increased claims for compensation, either on the basis that land use rights were affected by obligations and restrictions, or on the basis that incorrect information was provided. To combat these problems, the following recommendations were made: Torrens legislation should be amended to specifically exempt these records on title from the state guarantee of title, and to provide that compensation is not available where obligations and restrictions affecting use are recorded on title; Land acquisition legislation should also be amended to make it clear that obligations and restrictions on land use do not constitute a ‘taking’ of property. This is relevant because the definition of ‘interest’ in Queensland has recently been expanded; The provision of incorrect information could lead to liability, thus government departments should take steps to ensure that information is accurate; 316 Disclaimers can be used while the system is being established, but their use should be minimised once the system is operational. This is because the purpose of providing this information is for searchers to rely on it, and to avoid the need for numerous queries; It may be appropriate to draft legislation specifically making compensation available where incorrect information is provided, either on the land title register or on the spatial database. It is unlikely this would increase liability, and may in fact encourage governments to take greater care providing information; The Memorandums of Understanding used in WA could be adopted in other jurisdictions where agencies are providing information to the Registrar to be recorded on title. These documents could be used to oblige the agency to use their best endeavours in supplying the information, which will encourage accuracy; and Such a document could also clarify where liability will lie where information is incorrect, with the most appropriate entity being the agency responsible for the data. These recommendations should ensure that claims do not arise where landholder’s rights to use land are affected by legislation. Compensation for interferences with title should be retained. It is suggested that liability should attach to government agencies where incorrect information is given. It would be antithetical to the purpose of this thesis to provide for a system where information is available, but cannot be relied upon. Therefore a specific legislative provision imposing liability and making compensation available may well be appropriate to adopt. Furthermore, this thesis recommended that governments specifically address whether obligations and restrictions are intended to bind successors in title. The following specific recommendations were made: All legislation creating obligations and restrictions on land title and use should be amended to state whether these instruments are intended to operate in personam or in rem; All legislation creating obligations and restrictions on land title and use intended to operate in rem should also contain a provision requiring the agency to notify the 317 Registrar of the instrument. This requirement should be mandatory, and a time period should be specified; Torrens legislation should be amended to require the Registrar to record this information. This requirement should be mandatory, and a time period should be specified; and Where obligations and restrictions are intended to operate in rem, recording should be a pre-condition to effect. The statute establishing the obligation or restriction should state that it is not enforceable against a successor unless it is recorded on title. Alternatively, the Torrens legislation could be amended to state that obligations and restrictions are not enforceable against a successor unless recorded on title, or on a spatial database. Chapter Eight also proposed some draft legislative provisions to give effect to these recommendations. These provisions are very general in nature, and would need to be adapted to each jurisdiction’s existing legal framework. 3. Importance of this research As noted above, it is essential when applying the comparative methodology to have regard to the jurisdiction’s legal background. The purpose of this thesis is to make recommendations for law reform in Australia, and an important part of the legal background in Australia is the existence of the Torrens system of land registration. Although there has been some research in Australia addressing management of obligations and restrictions on title and use, very little of this research has considered the role of the Torrens system in depth, and any legal implications associated with extending its role. Therefore this research is important, and fills a gap in the existing academic literature. 4. Areas for further research This thesis has provided a starting point for future research. This thesis has made a number of recommendations for reform, which are intended to be of use to Australian jurisdictions managing obligations and restrictions on title and use in a fragmented manner. 318 As noted earlier, the implementation of these recommendations needs to be part of a detailed program of reform, as opposed to the current ad-hoc approach adopted in response to specific issues. This thesis analysed the Queensland approach in depth, and the recommendations are tailored to the legislative and regulatory structure in Queensland. Further research could examine the legislative structures other Australian states, as these recommendations may need to be adapted to their legislative background. Additionally, the proposed legislative amendments in Chapter Eight need to be tailored to suit each individual jurisdiction. Further, by necessity this research program was quite narrow in nature, and did not question the current legislative and regulatory structures in Australia; it merely devised recommendations for an information management system to operate within this structure. Further research could examine whether integrated legislation, such as is used in New Zealand, could be used in Australia. Additionally, this thesis did not question whether regulation is in fact the best method to achieve environmental outcomes. Further research could examine the merits of other methods, such as market-based instruments, and the role of the land title register in providing information concerning these instruments. 319 Appendix A Sample Queensland Title Search 320 321 322 Appendix B Sample Queensland Statutory Covenant 323 710139982 Vi REGISTERED Recorded Date 29/11/200611 :00 Page 1 of 3 COVENANT QUEENSlAND LAND REGISTRY Form 31 V..-sion 2 Land TiU. AclI994 and Land Act 1994 Page 1 of 3__ 710139982 $111.30 29/11/20!~ 11 :00 CS 616 1. 3. Lodger Code 754 MacDonnells Cnr Shields & Grafton Streets CAIRNS OLD 4870 PH: (07) 4030 0600 Rat. MRS:65520 I Covenantor Body Corporate for Argentea Beach CTS 2. Lodger (Name, addr.ss & phone number) 36~"1 Description of Covenant I Lot on Plan County Parish Covenant B in Common Property of Argentea Beach CT~n SP 184855 .. '~ ~ Nares Smithfield Title Reference 213SS"o2.7 Covenantee CAIRNS CITY COUNCIL 4. Description of Covenant (lndude re~nce 10 relevant section of legislation) ) c::;c Preservation ~ (i C~"G9f'/a\ie" 8f\a !!'IaiA\eREm~El'of Native Vegetation pursuant to Section 97A(3)(b)/land Title Act 1004. 5. Execution The Covenantor being the registered owner of the lot described in item 2 covenants with the Covenantee in respect of the covenant described in item 4 and:- 'the attached schedule; 'IRe altasReG sG~eG~I. aRe ses"meAI AG ............................... ; ses"",.",! Aa. ....... .................. ..... ........ ..... ('delete inapproprlale words) Witnessing officer must be aware of his/her obligations under section 162 of the Land Title Act 1994 ng Officer ..... Execution Date . .................................................. signature {, I ....J;&.4 . .1n.M"I1!.Q.if.I.....~11 name 111"biOb Covenantor's Signature Executed by the Body Corporate of Argentea Beach CTS 36;:0'1 by Palm Cove Developm'!£l.t-~I Nominees Ply Lld (ACN 110 613 342) as_"OWner by its duly authortsed y Leslie Anthony Davies under Power 0 No. 709660519 ~ ...... .$.~.I!:c./fo~ ............................... ,qualification (W"rtnesslng officer must be In accordance with Schejul& 1 of Land TItle Act 1994 eg Legal Practitioner, JP, C Dec) Witness! ng Officer . . . . . . . . . . . . . . .i.'y. . . . . . 'J. -' ~Ji.'. Signature'-' execution Date ~/l\ /0)0 )./' ............ :,:........;>. '.y.................................. fun ne.me Mayor ........::.~;:.: ............................................. qualification ",",,0 c:llIilfv. tht!OI {Witnessing officer must be In accordance with Sroedul& 1 of Land Title Act 1994 eg Lega! Practitioner•. ~>:£~~;p~ C The State of Queensland (Environment and Resource Management) 2009 324 SCHEDULE QUEENSLAND LAND REGISTRY land Tltie Act 1994. Land Act 1994 and Water Act 2000 Form 20 Version 2 Page 2 of 3 Title Reference This is the Schedule referred to in Covenant dated 1. .2006. Interpretation Unless tl'1e context otherwise requires 0( the contrary intention appears, the following terms shall have the meanings respectively assigned to them "Council" means Cairns City Council together with Its successors and includes its members, officers, employees, contractors and other persons authorised by the Council. "Covenant Area" means the area or areas referred to In item 2 of the Form 31 entered into between the Landowner and the Council and "Covenant Areas" has a similar meaning. "Landowner" means the registered proprietor(s) from time to time of the Covenant Area and all successors in title, lessees, trustees, occupiers and mortgagees of the registered proprietor's interest in the Lot. The term includes the Covenantor. "Lot" means the Lot or Lots described in Item 2 of the Form 31. 2. Description of Covenant This Covenant is for preservation of all native plants within the Covenant Area. 3. 4. Responsibility of Landowner (a) The Landowner must preserve all native vegetation in the Covenant Area in its natural slate with the exception of overgrown grass and dangerous, diseased, dying or dead plants and branches. (b) The Landowner must not allow the introduction of any non-endemic plant species into the Covenant Area. (c) The Landowner must not usa the Lot or undertake operational works in any way which interferes with or destroys any native vegetation, including undergrowth and regrowth in the Covenant Area. (d) The Landowner must not dispose of or store garden waste or any other waste within the Covenant Area. (e) The Landowner must not carry out any landscaping within the Covenant Area. (f) The Landowner must not cause damage to (either above or below ground) or destroy any vegetation within the Covenant Area protected by this Covenant without the prior written consent of the Council; (g) The Landowner must not construct any structures within Ihe Covenant Area except where previously approved or required by the Council; (h) The Landowner must not do anything to Impede or alter Or allow anything that impedes or alters the overland flow of water on the Covenant Area. Council's Right of Access and RectWlcation The Landowner hereby expressly authorises the Council at any reasonable time and upon giving reasonable notice set oul in Clause 7 to enter, re-enter, traverse and leave Ihe Covenant Area with all necessary tools and equipment for the following purposes:to ·,nspect, test and monitor the Covenant Area and vegetation on the Covenant Area 10 make good any breach of the obligations of the Landowner under this Covenant at the cost and expense of the Landowner. 5. RectWlcation Costs 325 QUEENSLAND LAND REGISTRY SCHEDULE Land TItle AcI1994, Land Act 1994 and Water Act 2000 Form 20 Version 2 Page 3 of 3 Title Reference In the event of the Council undertaking any rectification works pursuant to Clause 4, the cost of such rectifrcalion works as certified by an authorised representative or officer of the Council shall become a debt due and payable to the Council on demand. The costs of rectification works may indude labour costs of the Council andlor wildlife preservation services, and the costs of trees and/or plants, plant and equipment, administration costs, reasonable legal costs, interest and overheads. If the rectification works are carried out by an independent contractor, the costs of rectification will include the amount paid to such contractor. 6. Costs of Covenant The Landowner shall pay the Council's costs properly incurred in the preparation, stamping and registration of this Covenan!. 7. Service Any certificate demand or notice by or from the Council to or upon the Landowner shall be suffiCiently made, given or served if forwarded by registered mail in an envelope addressed to the landowner's last known address. Such certificate demand or notice shall be deemed 10 have been served at the time when in due course of post it would be delivered at the address 10 which it is sent. 8. WaIver Any alleged waiver of any breach of this Covenant by the Landowner is effectiVe only if it is given in writing by the Council. A waiver by the Council of a bnsach of this Covenant does not operate as a waiver of any other breach of this Covenant. 9. Severance If any part of this Covenant is held to be invalid, illegal or unenforceable by a Court having the jurisdiction 10 do so, that part is considered to have been severed from the rest of this Covenant which remains in force unaffected by the holding by the Court or by the severance of that part. 326 Appendix C Sample Queensland Property Search 327 SEARCH HATE ['-', No: 9 Ll746.S Date: 02-Feb-2009 Application Received: 27·.7"n-2009 Your Ref: Location 7/136 Bryants Road. SHAILERPARK. QLD 4128 Dcscnpliun Lot 7 BUP 6268 CUITent O\VneI ChelTle Beverley Abbott Area 930M2 Cnllllpmved Capital Value Rateable Value Nul Applicable S51,667 31 DecOF i\rrears as at Cross Current Levy Balance al 01·Jan·09- 31-:\1ar-09 02··Feb·2009 liO.OO S492,]S 510,00 A water consumplion charge of $55.33 for the billing period 05,·08·0g to 29·10·08 is mcluded in the above Cross CUlTent levy. Discuunt of $20.07 (excluding Fire Levy and Water Consumptiun) has been allowed, For adjustment purposes, it 1S necessary to deduct thIS amount from the ab()ve Gross CUlTent Levy, (Please see ,evc~'se for important infonnationl) ry ADMINISTRATION CENTRE J VVEMBLEY ROAD 'GAN CENTRAL OLD 4114 i80X 3226 LOGAN CITY DC OLD 4114 COUNCIL ENQUIRIES; Ph (07)34123412 Fax: (07) 3412 3444 LOGAN; FOR FAMILIES, LIFESTYLE &c BUSINESS www.logan.qld.gov.au Email: cQuncil@logan.qld.gov.au ABN 21 627 796 435 328 9113746.8 , LOGAN ENTERPRISES METERED WATER: PLE ASE NOTE: In accordance with the Body Corporate & lOmmUnlty Management ACL water consumption will be bli led by way of lot entlliemenl Assessment No: 9113746.8 Meter Number: R0400 7594 28-Jan-2009 29-0cl-2008 Most recent reading: PrevIOus reading: 885 kl 515 kl Water consumption charge for 10.00% share 0[370 kls $1.82 per kl 37 kls ~ $67.34 Thls fom1s pan of the water consumption charge to be raised in the next billing quarter and is additional to the above rale levy, issued on the 141h of January 2009. DEVELOPMENT HEALTH & ENVIRONMENT Development 011 this property is subject to the provisions of Council's Plan ning Scheme, which includes Development Control Plans and Local AI'ea Plans and may be subject to particular requirements of a development permit includ ing, but not limited to, such matters and building envelopes, bu il d ing on steep lots, outstanding headwork's charges etc. Shou ld you wish to obtain more detailed info rm ation r egard ing the above you arc advised to contact Council's Development Assessment Branch on (07) 3412 5269. DEVELOPMENT ASSESSMENT Resi dential 1000 Zone Development COllstraints OLl - ACID SULF ATE SorLS AREA CITY STANDARDS BU1LDING ApPLlCATION INFORI\1ATlON: The following building works appiication/s hasihave been received: APPLICATION DATE PERi\1lT NUMBER CLASS & DESCRIPTION BW!l75211990 Domestic - Multlple Dwelling WATER AND SEWERAGE I NFORMATION: The following plumbing & drainage application/s has/have been recelved: APrLlCATION DATE No t Available PERMIT NU MBER PDI3 16152/200 1 If fU rlher mfOlTnallOn regarding the status of the above buildmg/water & sewerage applicallons, inspections or requlsltions is req uired, details may be obtained from Counci l's City Standmds Branch by lodging the 329 9113746.8 appilcatlOn for signed contract and application fce. Report' form, together wllh a copy of the & Drainage If an I11spectlon IS required to dctennme the status of CX1Stl11g bUlldll1g/structures. plu11lbll1g & d'·31'ldlZC \\urk (ll1clud1l1g SW1J1lJ1lll1g pool and fence compl13nce) on sIte a 'Building/Plumbillg & Drainage inspection Report' is available to cunenl property owners. If a purchaser requires this mf0Il113[]OIl. a teiler of authorny 10 Inspec, the property fi'olll the currc,lt owneriS rCCJlllred. rhen Cll1 appllCall()n ,nus'. be ·ll(:"eci \\ I'll Council's City Standards Branch. Should you \vish to derenmne whether there are any requislllOns or mamtenance defects 111 respect of any of the SerV1GeS for the property, Councll recommends that you contact COllncJ!"s CIty Standards Brancl1 to 3n3nge an inspcctlOn by Council's Water and Sewerage Control Inspectors. As constructed plans of any water and sewerage serVIces for the property arc also available lrom this branch upon payment of a prescribed fee. For fl.l,ther illformation OH building/water & sewerage matters refer Branch on (07) 3412 5318. Ccmlldl's City St3mJanls The property is located in a declared sewer area. The building over, or interference with, Council's Sewerage System is an Offence under the Water Act :WOO (as amended). Council's recommends that you obtain or view the as-constTllctcd sewer mam details for the property prior to scttlement To obtain 8 copy of this 111follnation please submlt a "Residential Property InformatlOl1 Form - Category C A.pplica(lOn" to Council with the prescribed fee. To view this infoll11utlOn at Council, please contacl the City Standards Brancll on (07) 3412 5318. ThiS properly scarch does not make any representations as to the eXblence Of othCTWISC 01 lill" Cllllciillon of any waler plumbmg, sanitary plumbmg, s8111tary dramage, or stormwatcr Il1s1allatlon ("waler and sewerage servIces') for the subject properly. None blown to CounciL If 11 inspectlOn fer Breaches of By· Laws ete is required such a request should be made in writing dnd accompal11cd by the current inspectlOn J:i:e. LOCAL LAWS: Please be adV1sed that dogs over (8) kilograms are not pennitted to be kept 011 this property. Further be advised that dogs eight (8) kllograms or less may only be kept on th15 property if authorised by cl permiT. The dog must be desexed and kept in accordance with the conditions of the permit. Details of the conchtions and an applicatlOl1 form may be obtumed by contactll1g the Animal & Pest Services Branch on (07) 34125318. A non-refundable appilcation fee applies. ThiS search does not contair; any mf0ll1131ion regardlllg Contammaled Land Please address any enqulI"lcs relating to the Envllonmental Management RegIster or Conlamlll3red Land Reglstcr to the l:.llv:onrncnldl ProtectIOn Agency, Land COl1tamlllallon Umt. PO Box 155. AL13ERT STREET, BRISB.ANE QLD 4002 CITY WORl{~ Infoll1:atioll relating to COU11C1l' s sewerage system, water supply system, or stormwater dramage is avai lable froJ1l Councll's City Works Technical Services Branch upon payment ofa prescribed fee. 330 9113'746,8 FLOOD LcVELS~ Please note that in accordance with Council's Planning Scheme Policy No, 6 (Flood Plain 'Vlanagernent Area) 2006, l~le Flood Plam ;'v13nagemenl Overlay map COL rvIap 2) does not afficct this property }"TB: For propcrtles outside this 8re~L care lYlUS[ be rakcl1 in relation to possible local f1ooci:nf, or r,~lllJ:'Jl overiand floyv fndividuc,J asseSSlnenl should ~e ll1ade in each case. There is no waJTcmty ~lven as lo Lne aCCU,.-3CY of the infoll'"'Jlatiun ShO\V!l and Counc] can1lot sr'.d ShDli not be held rcspunslbie for ar;y ciarnc;g.e WhlC:"h 111:JY occur as a result of i'ulurc tloodjng PROPOSED R~SllI\1PTJONS OR RE»,ALIGMvlENTS: None known (0 CounciL Finance Manager (QllJ?~lalf QLCb.TjsJ~~_~}lierJixe~JJtive QfficcLl 331 Appendix D Screen captures demonstrating the operation of Interest Enquiry 332 Once logged into Interest Enquiry, a map of Western Australia is displayed. The user then types in the relevant street address. 333 The property is then represesnted on a spatial map. 334 The user then selects the ‘Interests’ tab to search for obligations and restrictions. 335 The user selects the interests that they wish to search 336 If the user wishes to search for all interests, they leave this field blank. Interest Enquiry then simultaneously searches all available data 337 The user is then provided with a printable summary of all restrictions and obligations 338 339 Appendix E Sample Interest Enquiry Report 340 Interest Report Acid Sulfate Soil Risk Interest Type Acid Sulfate Soil Risk Product Custodian Department of Environment and Conservation (DEC) Local Government Authority Shire Of Gingin Area Of Interest Land Parcel Address: L 100 BOONANARRING 6503; Parcel Id: Lot 100 On Plan 47963 31°15'34"S 115°50'00"E Note: Image supplied is for reference only. It is scale dependant and therefore may not show the Interest in relation to properties displayed herein. Always review the content of this report to determine the outcome for your property. Request 80017210 Thu Jun 04, 2009 10:28:55 WST Page 1 of 5 341 Interest Report Acid Sulfate Soil Risk About This Interest Report This Interest Report will provide you with information on whether or not your area of interest is in an area known by DEC to be at risk of being affected by acid sulfate soils (ASS). What is the purpose of the report? This report is provided to assist land developers, environmental scientists, urban planners and infrastructure service providers to determine whether land use proposals will be affected by ASS. What are acid sulfate soils? ASS are naturally occurring soils, sediments and peats that contain sulfides, most commonly pyrite. In an undisturbed, waterlogged state these soils are relatively harmless, but when disturbed and exposed to oxygen through water table drawdown, drainage or excavation, these soils produce sulfuric acid in large quantitites. Other toxic elements such as arsenic, aluminium and heavy metals can be mobilised when acid sulfate soil materials are exposed to air. Typical ASS landscape characteristics ASS in WA frequently occur in low-lying wetlands, estuaries, salt marshes and tidal flats but are not limited to coastal regions. Dominant vegetation in high ASS risk areas - tea tree, paperbark, salt sheoak, flooded gums, samphire, mangroves, saltcouch and swamp tolerant reeds and rushes. Indicators of ASS disturbance in soil - stunted or dead vegetation, acid scalds, iron monosulfides and jarosite. Indicators of ASS in water - crystal clear water, yellow-brown water, iron flocs, blue-green water and milky white water. WARNING - these activities may generate acid in certain areas - major earthworks - large scale excavations for urban developments and canal estates - infrastructure earthworks - digging for roads, railways, sewerage pipes, underground cables and drains - maintenance dredging - boating channels and canal estates - drainage - digging channels to manage waterlogging in agricultural areas Request Number: 80017210 Thu Jun 04, 2009 10:28:55 WST Page 2 of 5 342 Interest Report Acid Sulfate Soil Risk Legislation governing the Interest Acid Sulfate Soil Risk Information supports broad-scale planning and environmental management (not site-specific) in accordance with the Planning and Development Act 2005. Agency Response The area of interest is categorised into the following class or classes of ASS risk. Acid Sulfate Soil Areas Risk Class 2 Note: Where more than one risk level exists at any one location within a site, the high risk level will apply. Areas of land are categorised into two risk classes according to the probability and depth of ASS occurrence and the subsequent risk of disturbing ASS: Risk Class 1 (Red) - ASS occurs within 3m of natural soil surface Risk Class 2 (Orange) - ASS occurs at depths greater than 3m of natural soil surface If your land falls within: Risk Class 1 (high to moderate) - ASS materials are known to exist at depths less than 3m below the natural soil surface. An ASS Self Assessment Form and the preparation of an ASS management plan is automatically required by the WAPC as a condition of approval for planning proposals in high to moderate risk areas. Risk Class 2 (moderate to low) - ASS materials are known to exist at depths greater than 3m below the natural soil surface. If you intend to dewater or drain your site, you will need to carry out further investigations as specified in DEC's ASS guidelines. These are available at www.dec.wa.gov.au/ass along with other information to help in the identification and investigation of ASS in WA. Request Number: 80017210 Thu Jun 04, 2009 10:28:56 WST Page 3 of 5 343 Interest Report Acid Sulfate Soil Risk Relevant Guidelines DEC has published guidelines to help with the assessment, management and remediation of acid sulfate soil landscapes in Western Australia. - Treatment and management of soils and water in acid sulfate soil landscapes, January 2009 (draft) - Identification and investigation of acid sulfate soils and acidic landscapes, May 2009 These guidelines and a series of fact sheets are available at www.dec.wa.gov.au/ass Investigating further Investigating ASS sites is often a complex process requiring the assistance of a suitably qualified environmental professional. Advice on how to engage a qualified consultant can be found at www.dec.wa.gov.au/contaminatedsites ASS Hotline - 1300 762 982 www.dec.wa.gov.au/ass Disclaimer This Interest Report has been prepared by Department of Environment and Conservation (DEC). While DEC makes every effort to ensure the accuracy, currency and reliability of this information at the time it was prepared, circumstances may have changed since the information was originally provided. Users must exercise their own skill and care when interpreting the information contained within this Interest Report and, where applicable, obtain independent professional advice appropriate to their circumstances. In no event will DEC, its agents or employees be held responsible for any loss or damage arising from any use of or reliance on this information. Additionally, this Interest Report must not be reproduced or supplied to third parties except in full and unabridged form. Request Number: 80017210 Thu Jun 04, 2009 10:28:56 WST Page 4 of 5 344 Acknowledgement Interest Enquiry delivers information compiled from a range of government agency sources using SLIP Enabler – A revolutionary way to use and share Government spatial information in Western Australia. Only information approved by the relevant data Custodian is included in an Interest Report. If your enquiry is about the system, please call Landgate's customer service team on (08) 9273 7333. If your enquiry is about an Interest, please refer to the Custodian's contact details included in this Interest Report. For details about SLIP Enabler go to www.walis.wa.gov.au/SLIP or email SLIPEnabler@landgate.wa.gov.au DISCLAIMER The information contained in this document ("Information") may be derived from several sources. While this Information is provided in good faith, this does not mean that it is accurate, complete or suitable for your purpose. Information from third parties is provided for convenience only, without any endorsement by Landgate. If you use the Information you must verify it with your own professional advisers or the relevant Government agency sources. Landgate disclaims liability for any use of or reliance on the Information, to the extent permitted by law. 345 Appendix F Sample Western Australian Title Search 346 REGISTER NUMBER 53IP2374 DUPLICATE EDITION WESTERN AUSTRALIA 1 RECORD OF CERTIFICATE OF TITLE VOLUME 1338 FOLIO 383 UNDER THE TRANSFER OF LAND ACT 1893 The person described in the first schedule is the registered proprietor of an estate in fee simple in the land described below subject to the reservations, conditions and depth limit contained in the original grant (if a grant issued) and to the limitations, interests, encumbrances and notifications shown in the second schedule. REGISTRAR OF TITLES LAND DESCRIPTION: LOT 53 ON PLAN 2374 REGISTERED PROPRIETOR: (FIRST SCHEDULE) PETER PATRICK VERNON HAMISH ORMOND CHRISTINE ANN ORMOND BOTH OF 48 WAVERLEY STREET, SHENTON PARK AS JOINT TENANTS (T 1388004) REGISTERED 19 FEBRUARY 2003 LIMITATIONS, INTERESTS, ENCUMBRANCES AND NOTIFICATIONS: (SECOND SCHEDULE) 1. 1388005 MORTGAGE TO QANTAS STAFF CREDIT UNION LTD REGISTERED 19.2.2003. Warning: A current search of the sketch of the land should be obtained where detail of position, dimensions or area of the lot is required. * Any entries prcceded by an asterisk may not appear on the current edition of the duplicate certificate of title. Lot as described in the land description may be a lot or location. ---------------------------------------------------END OF CERTIFICATE OF TITLE-------------------------------------------------STATEMENTS: The statements set out below are not intended to be nor should they be relied on as substitutes for inspection of the land and the relevant documents or for local government, legal, surveying or other professional advice. SKETCH OF LAND: PREVIOUS TITLE: PROPERTY STREET ADDRESS: LOCAL GOVERNMENT AREA: 1338-383 (53/P2374). 831-29. 48 WAVERLEY ST, SHENTON PARK. CITY OF SUBIACO. NDGATE COpy OF ORIGINAL NOT TO SCALE Fri May 8 10: 16:55 2009 JOB 32178737 347 .. . r-------------------------------------------------------------------------------~-------------------- PILAN 2374 KEIGHTLEY 12-98 /;233 3 /2-33 /2-~"" 37 38 36 -.~. 20-12 79 112 113 :ll 453": 45!n: 'l>~~~1 /2U ~_5~7 ~1-33 -~ DEDICATED '-b. -"'-~~ E 3 ~..c. 4 /2.33 /Hj9- Gaz'12-10-8l.-R:- ~ f"~ '1l>. '" a) 2 1,53m 1,53JJ': eo - <:> E: 34 -5 ~~. ~ ~ ~ 35 I ~ 34 5 ~-------'3""""'4-5=--6---I ~ 1 - - - - - - -- 6 ~ 33 t.3 I (f) \)\t-c~_ ~- obl.1.1 3",-5" "'e: 9 ~ 34-b~ "'3 10 ~ ~ 31f-6 11 31 M M N ~~ ~ -0 'J 28 6 "'E 107 t-.. C> 0 co .~ ~ 85 ---j----g.. 86 "'E: 1----~3~J..--'=2.-"<~-----I- ~ ~ J ~ 49 ~--------- 27 * ~~ 51 1-------------1 ~ ~ '" E 3 6 Z 2712 PLAN C/T ')24 . - NOW TH 2000 177 Ul 103 q: APPROVED ~ ~ (f) 0 0::: U 102 === =0 -u (f) '4~3~4~-6~4__~@1------------~ 25 1--__ 15 ~ SDI ~ 31".- ~ f----::----.=-------~ "'E:~ .. q'" ;:: ~~I!';; ~p.. 34-66 ~ d;g ~'f ~ 16 "'~ ' 23 .34-~ 0 91 ~ 0 <'l E d-'9~ ~ ~ 453m ea ~ -rv =w -~ - 700 w "lE ~ ---0 f01 --_._--- j 24 11.24 102£. 375--108 105 104 ~ - 89 ~ INDEX Z' ~ I~ ~~r SCALE 1:125~I COR. 494 -190 FB_ 0 o 64 ---------4 r PERTH StJB. LOTS 304, 305 & PT OF 306. 106 q; "lE 87' ~ 2: 1 26 W 0::: ,SO r--: 108 I ~ ~- ~ ~i 68 ~ ~ ------~~ 47 g r~-------- 48 ~ ~ 1-----~3,~~6=;2Dri~--~~~----------~ 13 <:> ~ 1 c-, 12 w ~ 30 84 <D f------------1 29 ~ _ ~ ~ i£) ~ ~---~~¥7 _ &~;z---4 >ill er: 3P 4 109 Ul 83 146 u <.:> 82 45 a: /cP 71 ----- r 44 32 3Jp-!i~'t,b 170 N ~ 3".-56 -.: 81 ~ 111 ~~ s;? ~J 99 -~ --- 350\ ",0 ~ ~I ~ 93 COMPIItFO~. 348 /2-113 ,,~~£z N'1ld 1233 t2-3~oS;> 2012 oNSLOW oft... .> "- ::: '"~ ~ 94 ,:,,~. 2 /:.53m 95 I FH_ t..r;O/2 /2-3.3 1233 ~ ~ 96 ROAD 97 - \-:'.--: - _,t 98 ~..9 ~ 2-33 ) ~ 1-3?' \ e Appendix G Sample Land Information Memorandum 349 Franklin DISTRICT COUNCIL Name Address Address Address land information memorandum LlM (\jUr0Eli::R100730 FRANKLlN DISTRICT COUNCIL· 82 MANUKAU ROAD, PUKEKOHE, 2340· PRIVATE BAG 5, PUKEKOHE· DX EP77018 TELEPHONE: 09 237 1300 • FAX: 09 237 1301 • E-MAIL: fdc_lnfo@franklin.govt.nz. WEBSITE: wwwJranklin.govt.nz 350 19 August 2009 Thank you for your application for a Land Infonnation Memorandum for the following property. Property Address Legal Description Area 14.4227 ha Valuation Number This Land Infonnation Memorandum (LlM) has been prepared for the applicant in accordance with section 44A of the Local Government Officiallnfonnation and Meeting Act 1987 (Act), the LlM includes information: • Which must be included pursuant to section 44A of the Act; • Not required by the Act but which Council considers to be relevant; • Which is considered accurate and reliable. This LlM does not include other information: • Held by Council that is not required to be included; • Relating to the land which is unknown to the council. The property has not been inspected by the Council for the purpose of preparation of this LlM. The information furnished is based on information contained in existing records relating to the property. No council inspection of the property has been undertaken in preparing this LlM. Council records may not show illegal or unauthorized building or works on the land. We recommend that applicants make arrangements to view any plans that are available. The applicant is solely responsible for: • Personally inspecting the property; and • Ensuring that the land or any building(s) on the land is suitable for a particular purpose; and • Obtaining a certificate of title, this may also contain obligations relating to the land; and • Obtaining other information relating to the land. The applicant is advised to contact the appropriate regional council to obtain any information it may hold. This Land Infonnation Memorandum is valid as at the date of issue only. This Land Infonnation Memorandum is issued by: Franklin District Council, 82 Manukau Road, Private Bag 5, Pukekohe. Phone (09) 2371300. Signed for and on behalf of Council: Name: tfJW;JJt Position: Date of Issue: Date Fee Paid 17 Aug 2009 Receipt No 2010 Receipt Amount $550.00 351 Special Site Features Council has identified in its records that the land is subject to or has the potential for: Inundation Refer attached File Note dated 12103/2002 I Hazardous Contaminants I None Known I Erosion I None Known I Alluvion I None Known I Avulsion I I None Known I Falling Debris I None Known I Subsidence I None Known I Slippage I None Known I Certified Fill I None Known Uncertified Fill I Other Further Reports Available through Council Records I Refer attached Landuse Consent Application dated 16/0112008 I None Known Yes D No Reference: Any hazard noted on the land has been done so in accordance with the requirements of section 44(a) of the Local Government Official Information and Meetings Act 1987. The notation refers to the actual existence, or the potential for, a particular hazard that may, in some cases, be limited to a localised area on the land. Please review all supporting documentation carefully. For further clarification, please contact the writer of the supporting infonmation supplied with the Land Information Memorandum or a suitably qualified independent consultant. Please note: Your Regional Council holds infonmation regarding land use activities which appear on the Hazardous Activities and Industries List (HAIL) compiled by the Ministry for the Environment. The activities and industries identified on the list are those that are more likely to use or store hazardous substances and therefore there is a greater probability of site contamination occurring where these activities have been carried out. Please contact your Regional Council to confirm whether any information regarding HAIL activities is held for this property. 352 Rates/District Water/ District Sewer The information provided on rateslfinancial details in this report may not reflect the current details of the legal description/valuation on your application form. This may be due to the property being under subdivision or that the information has not yet been provided or updated for the current valuation and improvements for this financial year. You are also advised to check with the Regional Council below for rating infomnation for this property .. . ' ..•. ." Please Note: Rates, Rateable Valuation Details and Water Rates relate to a valuation number. This may be linked to other properties, or a parent property. For this Land Information Memorandum, the valuation number is linked Valuation Number . Rates . . ". .. .... ..... ' .... Regional Counci.1 . ...... Rateable Valuation Details . . .. ' . Water Rates . I Water Supplier District Sewer Owing $657.52 Land Value $600,000 Value Improvements $360,000 Capital Value $960,000 Infonnalion applies to Franklin District Council systems only. Water rates may be outstanding on this property as meter readings are completed every six months . •• I I '. >' .•. ' $1,972.57 Waikato Regional Council .... .. Current Annual District Rates .... Metered Water NO Connected NO Available NO Owing $ I Not known Connected NO Available NO 353 Building permits/Consenfs,.C()deCoq1pliai1c~>~~hiH~~t~~······ Type L,i> ..• Description Status Add to Dwelling Issued 03/10/1955 Permit 830 Add to Dwelling Issued 20/12/1962 Permit 106841 Haybarn Issued 16/01/1964 Permit 1252 I Certifier Date Issued Council records for building permitslconsents may not reflect the situation on site as Council records will not show nonconsented building work. Please note that if there are buildings on this land that were erected prior to 1953, the Council records may not indicate if they had a building permit or not. Furthermore, a final inspection was not required where building permits were issued before 1 January 1993. I WeatherTighfHomes .'. I None Known IOther' None Known Premises Re Type Licence Status None Known Li uorLicences Type Premises Status Licence No Date Issued None Known Enforcement E.nforcement, Abatement.·Notices;:·R~(···~.i.siti9n§,XQl"de..sl·NQtic:es;tl)~Re~tifY;i Property ID Notice Type Comments Date Issued None Known 354 Resource Management Plann ing Consents/Resource C6nsentsnC(jmpll~nc~eertifi~ates . •., . . . . . . . ', . . . . . . . . /. Reference No. Consent Type Status Additional Notes Date Issued S02174 Subdivision 224(c) Completed Boundary Relocation 25/10/2006 L08028 Landuse Application Received Earthworks & Construct & Operate 4 Broiler Sheds 07/03/2008 Copy of Consent Attached I Yes 0 No D • Historical planning consents may have lapsed. Applicants are advised to verify the currency of planning consents with Council staff. • If Resource Consent has been granted on this property it does not infer that the conditions of the consent have been met Applicants are advised to verify the status of a planning consent with Council staff. District Plan Status Council has an operative District Plan. Subject to Plan Change I Structure Plan Area IGrowth Areas Subject to the provisions of Plan Change No. 14 to the Operative Franklin District Plan. Portions of the Plan Change may be subject to appeal. If you require further information regarding the above, please contact the Council or visit our website to obtain copies of the relevant document District Plan This property is zoned I Rural Designations There are no further restrictions applicable other than those bulk and location requirements for the zone applying to the land. Other District Plan Provisions None Known Other Classifications By Statutory Organisations None Known Information Concerning Caveat, Bond, Encumbrance, Consent Notice,Covenant None Known 355 Services .pursuant Information. Relati~g~()th.!l' . ~.• 2004"":,, i"~p'e...r.t•. Y. •.;.•;. •.N. . • (). ."':'"'''' •·.. ~ i..f. •i. •e.;.d •. •. . . • .•b. •.•.y.•.> . •·. •. .• •a.·.••...•• .•;. •.~.• .• .Y .:.:; •. ~...••.•. e.• .• .•t.•w .•:" .•·.• .•o.•:..•..•.·.f.•.•k.):: . .• . •. .• ll . . .• •. •t....... .•.;.i. .I•:.......: .i. t. :. .Y •. •.:.~.O .• . i;.•·.p......... •·. •l. .•e ..• ·.• .f.·.•••.a .•!. .•.•t.•. i•r. . •.·.i.•.•.•.•.•)~~f?;; . to. the BUlldm'g Act 5.. •••••• i;" . ?.• j .•.•.•.•.•.•. .••.•• Yes No 0' Franklin District Council sewer o o Franklin District Council storm water D Franklin District Council water Franklin District Council road access Vector Gas Pipeline State Highway access Electricity Special drainage District - Aka AkaJOtaua o o o 0' 0' o 0' 0' o 0' o o Passing through lover Property Private Drainage D NZ Steel Slurry Pipeline o o o Watercare Services Water Pipeline D Council Sewer Council Stormwater Transpower High Voltage Transmission Line Vector High Pressure Gas Pipeline o o I Other 356 Property Plans A copy of Legal is attached. Plan Attachments . The information shown on the attached site plan highlights the property and may include stormwaler, sewerage and water reticulation and gas. Plans attached are of property described on your D No I Yes application form 0' I Additional Notes 357 Appendix H Administrative Advice Codes 358 Administrative Advice Types [52-2000] A list of the administrative advices which at present are entered in the Automated Titles System is set out below. The list is referenced under the entry which appears on a printed title search: • 101B NOTICE (Water Allocation Notice under the Water Act 2000), see ¶[52-0060] – WAN • ACCESS RIGHT (Access Right under the Sugar Industry Acts), see ¶[52-0160] – SAR • APPT ADMIN (Appointment of Administrator Notification under the Guardianship and Administration Act 2000), see ¶[52-0070] – APA • CAPB NOTICE (Change of Capabilities Notice under the Land Act 1994), see ¶[520260] – CCN • COAST PROT (Notice under the Coastal Protection and Management Act 1995), see ¶[52-0180 to 52-0200] – CPN • COMPLIANCE (Compliance Notice under the Vegetation Management Act 1999), see ¶[52-0215] – COM • CONF PROFITS (Order under the Criminal Proceeds Confiscation Act 2002/Pecuniary Penalty Order), see ¶[52-0030] – CPR • CONTAM LAND (Notice of contaminated land under the Environmental Protection Act 1994), see ¶[52-0130] – CLN • HERITAGE SITE (Site registered under the Queensland Heritage Act 1992), see ¶[52-0150] – HRS • LAND & WATER (Land and Water Management Plan under the Water Act 2000), see ¶[52-0225] – WMP • NAT CONS ORD (Agreement under the Nature Conservation Act 1992), see ¶[520140] – NCO • NOTC INT RES (Notice of Intention to Resume under the Acquisition of Land Act 1967), see ¶[52-0100] – NIR • NOTICE (Caveatee’s Notice under the Land Title Act 1994), see ¶[52-0020] – NOT Updated: 6 April 2009 52–12 359 Part 52–Administrative Advices (Queensland) Department of Environment and Resource Management Land Title Practice Manual • NTCE OF ACTN (Lodgement of Notice of Action under Land Title Act 1994), see ¶[52-0010] – NOA • OWNER BUILDR (Owner Builder Permit under the Queensland Building Services Authority Act 1991), see ¶[52-0120] – OBN • REM ACT NOT (Remedial Action Notice under the Land Act 1994), see ¶[52-0250] – RAN • RESTR ORDER (Restraining Order under the Drugs Misuse Act 1986), see ¶[520040] – RSO • RIV IMP NOT (Notice under the River Improvement Trust Act 1940), see ¶[52-0110] – RIT • RT NOTING (Registrar of Titles Noting under the Land Title Act 1994), see ¶[520050] and ¶[52-0055] – Registrar of Titles Noting under the Land Title Act 1994 and Offence under the Foreign Ownership of Land Register Act 1988 – RTN • SETTLMNT NTC (Settlement Notice under the Land Title Act 1994), see ¶[52-0080] – STN • TRAM EASE (Access Right under the Sugar Industry Acts), see ¶[52-0160] – STE • VEG NOTICE (Vegetation Management Notice the Vegetation Management Act 1999), see ¶[52-0210] – VMN • VOL ENV AGR (Voluntary Environmental Agreement under the State Development and Public Works Act 1971), see ¶[52-0270] – VEA • WATER ADVICE (Water Act Advice under the Water Act 2000), see ¶[52-0220], ¶[52-0225], ¶[52-0230], ¶[52-0240] – Notice of Referrable Dam, Notice of Land and Water Management Plan, Notice of Private Water Supply Agreement, Notice of Distribution Operations Licence – WAA • WATER NOTICE (Water Licence Notice under the Water Act 2000), see ¶[52-0235] – WLN • WET TROPICS (Notice under the Wet Tropics World Heritage Protection and Management Act 1993), see ¶[52-0170] – WTN Note – Enquiries relating to an administrative advice should be directed to the relevant authority or department administering the legislation or issuing the notice. 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