1 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?
