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LAWS2204/6204 Property
Semester One, 2021
TUTORIAL 7
Mary, wishing to provide a home for her son Dyson and his wife Virginia, purchased
a dilapidated house in Glebe, Sydney. The house is on Torrens title land. Mary agreed
with Dyson and Virginia that, if they moved in to the house and renovated it at their
own expense, she would transfer the title to the land to them.
Dyson and Virginia moved into the house and carried out the agreed renovation work.
They asked Mary whether she would now transfer the title to them. Mary said that she
would ‘get her solicitor on to it’, but the transfer never took place. After a time, their
relationship deteriorated and they quarreled incessantly. They decided to begin a trial
separation. Dyson took a temporary work transfer to Perth and Virginia took long
service leave and went to stay with some friends at Byron Bay.
Mary, disappointed at the course of events, and having suddenly lost substantial
funds on a share investment, decided to sell the house. She found a buyer, Shenton,
who inspected the house before agreeing to buy. Shenton asked Mary about the
household and personal possessions in the house. Mary explained that they belonged
to her son and daughter-in-law, who would be moving out shortly. Shenton accepted
this explanation and, apart from a title search which revealed that Mary was the
registered proprietor of the fee simple and there were no registered leases or
encumbrances, made no further enquiries.
Meanwhile Dyson and Virginia reconciled their differences, returned to Sydney, and
became suspicious that Mary would sell the house. Yesterday morning, they lodged
a caveat claiming a right to possession based on a contract with Mary. Coincidentally,
at the same time, the sale from Mary to Shenton was settled. At settlement, Mary gave
Shenton a transfer in registrable form (naming Mary as transferor) and the duplicate
certificate of title for the land.
1. Do Dyson and Virginia have a right to the house which they can enforce
against Shenton?
2. How would your answer to Question 1 differ if the transfer to Shenton had
been registered prior to Dyson and Virginia’s caveat being lodged?