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LLB301 REAL PROPERTY LAW
TORRENS SYSTEM AND INDEFEASIBILITY............................................................................3
INDEFEASIBILITY PROBLEM SOLVING...................................................................................................................................3
THE TORRENS SYSTEM – OVERVIEW....................................................................................................................................3
THE ‘OLD SYSTEM’ – CONVEYANCING..................................................................................................................................3
TORRENS SYSTEM................................................................................................................................................................ 4
INDEFEASIBILITY.................................................................................................................................................................. 4
EXCEPTIONS TO INDEFEASIBILITY.......................................................................................9
FRAUD EXCEPTION.............................................................................................................................................................. 9
SECTION 185 EXCEPTIONS SUMMARY...............................................................................................................................12
IN PERSONAM (PERSONAL EQUITY) EXCEPTION................................................................................................................13
SHORT LEASE EXCEPTION..................................................................................................................................................15
EXCEPTION IN FAVOUR OF AN ADVERSE POSSESSOR........................................................................................................16
CARELESS MORTGAGEE EXCEPTION..................................................................................................................................16
EXCEPTIONS IN OVERRIDING STATUTES.............................................................................................................................16
UNREGISTERED INTERESTS................................................................................................................................................18
CAVEATS............................................................................................................................................................................ 18
SETTLEMENT NOTICES....................................................................................................................................................... 23
PRIORITIES INTRO..............................................................................................................................................................25
PRIORITIES BETWEEN MORTGAGEES.................................................................................................................................25
PRIOR REGISTERED INTEREST FOLLOWED BY SUBSEQUENT REGISTERED INTEREST..........................................................25
PRIOR REGISTERED INTEREST FOLLOWED BY SUBSEQUENT EQUITABLE ESTATE................................................................25
PRIOR EQUITABLE ESTATE FOLLOWED BY SUBSEQUENT REGISTERED INTEREST................................................................26
COMPETING EQUITABLE INTERESTS..................................................................................................................................26
PRIORITIES AND CAVEATS..................................................................................................................................................28
VOLUNTEERS..................................................................................................................................................................... 28
ADVERSE POSSESSION......................................................................................................29
OWNERSHIP, POSSESSION AND TITLE................................................................................................................................29
ADVERSE POSSESSOR – GENERAL LAW – MUST APPLY......................................................................................................29
ELEMENTS......................................................................................................................................................................... 29
ESTABLISHING “ADVERSE POSSESSION”.............................................................................................................................29
LIMITATION PERIOD + ACCRUAL PERIOD...........................................................................................................................30
ADVERSE POSSESSION AND TORRENS – text p 375-8........................................................................................................32
CONVEYANCING PROCESS................................................................................................33
SUMMARIES (So far)........................................................................................................36
LEASE COVENANTS SUMMARY..........................................................................................................................................36
LEASE ASSIGNMENT SUMMARY........................................................................................................................................36
TERMINATION SUMMARY.................................................................................................................................................37
NATURE AND CREATION OF LEASES..................................................................................38
LEASES............................................................................................................................................................................... 38
ESSENTIAL REQUIREMENTS FOR A LEASE..........................................................................................................................38
FIXED TERM LEASES........................................................................................................................................................... 40
PERIODIC TENANCY...........................................................................................................................................................41
YEARLY TENANCY...............................................................................................................................................................43
TENANCY AT WILL.............................................................................................................................................................. 44
OTHER FORMS OF TENANCY..............................................................................................................................................45
AGREEMENTS FOR LEASE.................................................................................................46
DUAL CHARACTER OF A LEASE...........................................................................................................................................46
AGREEMENTS FOR LEASE (ALF).........................................................................................................................................46
REGISTRATION OF LEASES.................................................................................................50
PRECONDITIONS TO REGISTER...........................................................................................................................................50
POST REGISTRATION OF LEASE..........................................................................................................................................50
REGISTRATION GENERAL PRINCIPLES................................................................................................................................50
UNREGISTERED LEASES – LONG LEASES.............................................................................................................................51
REGISTRATION – SHORT LEASES........................................................................................................................................52
COVENANTS IN A LEASE...................................................................................................53
COVENANTS.......................................................................................................................................................................53
LESSOR COVENANT – FOR QUIET ENJOYMENT..................................................................................................................54
LESSOR COVENANT – NON-DEROGATION (similar to quiet enjoyment)............................................................................55
LESSEE COVENANT – PAYMENT OF RENT...........................................................................................................................56
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LESSEE COVENANT – REPAIR..............................................................................................................................................57
LESSOR COVENANT – BUSINESS EFFICACY.........................................................................................................................59
COVENANTS IN FAVOUR OF LESSOR..................................................................................................................................60
DEALINGS WITH LEASE.....................................................................................................61
ASSIGNMENT OF THE LEASE..............................................................................................................................................61
REQUIREMENTS FOR A LEGAL ASSIGNMENT OF LEASE.....................................................................................................61
POSITION AFTER LEGAL ASSIGNEMNT...............................................................................................................................61
ENFORCING COVENANTS POST-ASSIGNMENT OF THE LEASE............................................................................................63
LESSOR CONSENT (c).........................................................................................................................................................63
ENFORCING COVENANTS POST-ASSIGNEMNT OF REVERSION...........................................................................................65
TERMINATION OF LEASES.................................................................................................67
HOW A LEASE CAN END.....................................................................................................................................................67
TERMINATING A PERIODIC TENANCY................................................................................................................................69
TERMINATION OF FIXED TERM LEASE................................................................................................................................70
ADDITIONAL REMEDIES FOR BREACH OF LEASE OBLIGATIONS..........................................................................................73
MORTGAGES....................................................................................................................76
NATURE OF MORTGAGES...................................................................................................................................................76
OLD SYSTEM MORTGAGES.................................................................................................................................................76
TORRENS MORTGAGE........................................................................................................................................................ 78
USUAL COVENANTS IN MORTGAGES................................................................................80
GENERALLY........................................................................................................................................................................ 80
CHARIGING CLAUSE – set out in mortgage (clause 12.1)...................................................................................................80
PERSONAL COVENANT TO REPAY PRINCIPAL AND INTEREST – ESSENTIAL.........................................................................80
ACCELLERATION OF REPAYMENT UPON DEFAULT..............................................................................................................80
RIGHTS OF A TORRENS MORTGAGOR...............................................................................82
TO POSSESS LAND..............................................................................................................................................................82
TO POSSESS CERTIFICATE OF TITLE....................................................................................................................................82
TO GRANT SUBSEQUENT MORTGAGES..............................................................................................................................82
TO LEASE THE PROPERTY...................................................................................................................................................82
MORTGAGOR RIGHT TO REDEEM THE MORTGAGE...........................................................................................................82
NO RIGHT TO REPAY BEFORE THE CONTRACTUAL DATE....................................................................................................84
REMEDIES OF A TORRENS MORTGAGEE...........................................................................85
ACTION FOR DEBT ON THE PERSONAL COVENANT TO REPAY............................................................................................85
ENTER INTO POSSESSION..................................................................................................................................................85
APPOINT A RECEIVER......................................................................................................................................................... 85
FORECLOSURE................................................................................................................................................................... 86
EXERCISE POWER OF SALE.................................................................................................................................................86
CAVEATS............................................................................................................................................................................ 91
EASEMENTS.....................................................................................................................93
EASEMENTS....................................................................................................................................................................... 93
CREATION OF EASEMENTS.................................................................................................................................................94
EXTINGUISHING EASEMENTS.............................................................................................................................................95
STATUTORY IMPOSITION OF RIGHT OF USER.....................................................................................................................98
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INDEFEASIBILITY PROBLEM SOLVING
Pursuant to s 184, a registered proprietor takes his or her interest subject to other registered
interests, unless any of the excepfons apply:

fraud excepfon

personal equity (or in personam) excepfon

careless mortgagee excepfon (links to ss 11A or s 11B)
Personal equity examples:
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REAL PROPERTY LAWS NOTES
WEEK 1: INTRO TO LAND
WHAT IS REAL PROPERTY
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Real Property vs Personal Property
Rights in Rem v Rights in Personam
o Rights to land = Rights in Rem
o Rights to personal property (contractual rights) = Rights in Personam
Real property historically
Real property in Queensland today
REAL PROPERTY: SOURCES OF LAW
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Common Law
Equity
Statute:
o Property Law Act 1974 (Qld)
o Land Title Act 1994 (Qld)
o Land Act 1994 (Qld)
INTERESTS IN LAND
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Ownership (Itle)
o Individual
o Co-ownership
Lease
Mortgage
Easement
TITLE SEARCH
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Shows the interest in a land – shows 2 registered owners
Shows there are other interest:
o Easement, Mortgage and Caveat
COMMON TERMS AND PHRASES
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Mortgage
Easement
Fee simple
Life Estate
Freehold
Crown Leasehold
Licence
Lease
Sub-lease
Assignment
Transfer
Contract
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RegistraIon
Torrens Title
Lot
Survey Plan
Co-ownership
Community Title
NaIve Title
Tenure
Estate
Future interest
Equitable interest
Indefeasibility
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WEEK 1: LAND AND INTERFERENC WITH LAND
WHAT IS LAND
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Land includes messuages, tenements and hereditaments, corporeal or incorporeal, of any
tenure or descripIon, and whatever may be the interest in the land
o Acts InterpretaIon Act 1954 (Qld)
o Acts InterpretaIons Act 1901 (Cth)
INTERESTS IN LAND
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Ownership (Itle)
o Individual
o Co-ownership
Lease
Mortgage
Easement
LAND INCLUDES FIXTURES
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Depends on the degree and purpose of annexaIon
o Holland v Hodgson [1872] lR 7 CP328
o Hobson v Gorringe [1897] 1 Ch 182
o Leigh v Taylor [1902] AC 157
o Palumberi v Palumberi (1986) NSW ConvR 55-287
o Park v Lasrado [2005] QSC 211
HOW FAR DOES LAND EXTEND INTO THE AIRSPACE?
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“Whoever’s is the soil, it is theirs all the way to Heaven and all the way to hell” – law in
history
Cuius est solum, eius est usque ad coelum et ad inferos
TREPASS
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Lord Camden L.C.J. in EnIck v Carrington (1765) 19 St Tr 1029, at p 1066:
“By the laws of England, every invasion of private property, be it ever so minute, is a
trespass. No man can set his foot upon my ground without my licence, but he is liable to an
acIon, though the damage be nothing … if the admits the fact, he is bound to shew by way
of jusIhcaIon, that some posiIve law has empowered or excused him.”
BERNSTEIRN OF LEIGH V SKYVIEWS & GENERAL LTD [1978] QB 479
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Person took photos of property from plane. Owner was unhappy and sued that person for
trespass
Court decided that your right to airspace of an owner of land extends to such height as
necessary for the ordinary use and enjoyment of the land.
GRAHAM V K D MORRIS AND SONS [1974] QR R 1
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Crane hanging over another property
Campbell J:
“I am persuaded that the over-hanging crane which, as the plainIi says and I accept, is both
an unsightly feature of her land and a cause of nervousness and apprehension to her,
interferes with that part of the airspace above her land which is requisite for the proper use
and enjoyment of that land.”
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HOW FAR DO RIGHTS EXTEND BELOW THE SURFACE?
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Generally, only what is necessary for reasonable use and enjoyment
o Di Napoli v New Beach Apartments Pty Ltd (2004) ATR 81-728 (NSW case)
o Bocardo SA v Star Energy UK Onshore Ltd [2010] UKSC 35 (UK Case)
In Queensland, the State is the owner of minerals and Gas
Also for most natural resources
SECTION 179 PROPERTY LAW ACT 1974
179 Right to support of land and buildings
For the beneht of all interests in other land which may be adversely aiected by any breach of this
secIon, there shall be alached to any land an obligaIon not to do anything or below it that will
withdraw support from any other land or from any building, structure or erecIon that has been
placed on or below it.
RIGHTS TO MINERALS
6 Meaning of mineral
(1) A mineral is a substance –
a. Normally occurring naturally as part of the earth’s crust; or
b. Dissolved or suspended in water on or within the earth’s crush; or
c. That may be extracted from a substance menIoned in paragraph (a) or (b).
(2) Subject to subsecIon (3), each of the following is a mineral –
SecAon 8 Crown’s property in minerals
RIGHTS TO GAS
Part 4 Property in Petroleum
28 Petroleum the property of the State
(1) This secIon is subject to secIon 28 and chapter 2, part 6, division 3.
(2) All petroleum as follows is, and always has been, the property of the State –
a. Petroleum on the surface of land, if I was produced in the State;
b. Petroleum in a natural underground reservoir in the State, other than petroleum in
the reservoir produced outside the State and injected into the reservoir.
(3) To remove any doubt, it is declared that –
a. A person does not acquire any property in petroleum merely because the person
discovers petroleum in a natural underground reservoir; and
SEE A TREND HERE?
84 Property in protected plants
61 Property in cultural and natural resources
62 RestricAons on taking etc. of cultural and natural resources of protected areas
WEEK 1: TENURE, ESTATES AND LAND CONTROL
DOCTRINE OF TENURE
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Originated in Feudal England
Absolute and Benehcial Ownership resided in the Crown
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Doctrine of Tenure says – land holder does not own the land, the Crown does
Describes the relaIonship that subjects have with the Crown in respect of land
o Crown could rent the land out, military service in return for the land, or use the land
for agriculture
Doctrine of Tenure is about the person occupying the land and the ‘ward’
DOCTRINE OF TENURE IN AUSTRALIA
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On assuming sovereignty over Australia, the ‘whole of the lands of Australia became the
property of the King of England’.
o Williams v AG for NSW (1913) 16 CLR 404, 439.
Unallocated land was ‘waste lands of the Crown’.
‘It is far too late in the day to contemplate an allodial, or other system of land ownership.
Land in Australis which has been granted by the Crown is held on a tenure of some kind and
the Itles acquired under the accepted land law cannot be disturbed.’
o Mabo v Queensland (No 2) 1992 HCA 23 [49] per Brennan J
LAND, TENURE AND SOVEREIGNTY
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‘The Crown was treated as having the radical Itle to all the land in the territory over which
the Crown acquired sovereignty. The radical Itle is a postulate of the doctrine of tenure and
a concomitant of sovereignty. As a sovereignty enjoys supreme legal authority in and over a
territory, the sovereign has power to prescribe what parcels of land and what interests in
those parcels should be enjoyed by others and what parcels of and should be kept as the
sovereign’s benehcial demesne.’
o Mabo v Queensland (No 2) 1002 HCA 23 [50] per Brennan J
CROWN MAY ALLOCATE LAND
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General provisions
o S 30, ConsNtuNon Act 1867 (QLD)
Chapter 2 Land AllocaIon – S 14 Governor in Council may grant land
o Land Act 1994 (QLD)
ESTATES
1) Freehold
a. Fee Simple
b. Life Estate
2) Leasehold
FEE SIMPLE
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‘to grant a fee simple estate in land is to confer the largest interest in land that is known to
the common law, and one which is said to invest in the grantee “the lawful right to exervise
over, upon, and in respect to, the land, every act of ownership which can enter into the
imaginaIon, including the right to commit unlimited waste’
o Commonwealth v New South Wales (1923) 33 CLR 1, 42 (Isaacs J.)
Most urban land in Australia is held as fee simple
Fee simple = ownership of property
Largest estate own to the common law
LAND USE CONTROL THROUGH STATUTE
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Brereton J in Spencer v ACT [2007], [at 24]:
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“the grant of an estate in fee simple, while the largest estate known to law and regarded as
pracIcally equivalent to absolute ownership, does not preclude the subsequent exercise of
legislaIve power in respect of the land.”
See also
o Bone v Mothershaw [2002] QCA 120
o Wilson v Raddatz [2006] QCA 392;
o Glasgow v Hall [2007] QCA 19
Burns v Queensland [2006] QCA 235, [18]
o ‘the sovereign law making power of the Queensland Parliament, [..] included the
power to impose upon Mrs Burns the requirement that she have a development
permit prior to changing the complexion or presentaIon of her land by clearing it.’
o ‘..if this challenge is correct, then there would seem no limit at all that a State
Parliament could impose on the use to which a fee simple land owner put her on his
land. Any such Itle holder could build, clear, or grow what they pleased; which
acIviIes would include growing cannabis, opium poppy, or noxious weeds,
destroying historic buildings, or construcIng buildings of any kind wherever they
pleased.
SECTION 19: PROPERTY LAW ACT
19 Freehold estates capable of creaAon
Aoer the commencement of this Act the following estates of freehold shall be capable of being and,
subject to this Act, of subsisIng in land –
(a) Estate in fee simple;
(b) Estate for life or lives
CREATION OF LIFE ESTATE
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E.g:
o
o
o
My house to Peter for the course of his life, and then to Sarah.
= Peter has a life estate. Sarah has a future interest (fee simple)
Peter has all the rights of the owner – but can not sell the house
Sarah, when she inherits it from Peter, is able to then sell the house if she wishes
CROWN LEASEHOLD
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A diierent form of tenure 70% of Queensland Unique to Australia: fell outside of the
doctrine of tenure (as existed in Britain)
Crown leases were granted to develop the colonies
Can be 20, 30 or even 99 years in length
Special category of leases granted under legislaIon (for example the Land Act 1910, 1962,
and now the Land Act 1994).
The decision of Wik Peoples v Queensland (1996) 187 CLR 1 discussed the nature of Crown
Leases and separated them from common law lease.
WEEK 2: NATIVE TITLE
TENURE
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Originated in Feudal England
Absolute and Benehcial Ownership resided in the Crown
Describes the relaIonship that subjects have with the Crown in respect of Land
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Wastelands = unallocated State land
SOVEREIGNTY AND CONSITUTIONAL POWER TO ALLOCE
“WASTELANDS OF THE CROWN”
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Mabo aqrmed sovereign power resided in Australia
Implicit in this power to pass law and power to allocate land
ConsItuIon > Land Act
Unallocated Land > Allocated Land
Mabo v Queensland (No 2) [1992] HCA 23
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Mabo claimed that Australia was not ‘Terra Nullius’ (Land belonging to no one)
Basis from Mabo’s argument sowed from the QLD Government to annex the islands
Doctrine of tenure should not be applied in full
HC agrees with Mabo
There was a system of laws and customs relaIng to land that should be recognised
NaIve Title rights should be recognised by the common law
Altered the doctrine of tenure
Aqrmed the sovereign power of the Crown (in pracIce the State Governments) to pass laws
to allocated land)
But doesn’t overturn common law – NaIve Itle should sit within the doctrine of tenure
“In discharging its duty to declare the common law of Australia, this Court is not free to adopt rules
that accord with contemporary noNons of jusNce and human rights if their adopNon would fracture
the skeleton of principle which gives the body of our law its shape and internal consistency. Australian
law is not only the historical successor of, but is an organic development from, the law of England.” …
“It is far too late in the day to contemplate an allodial or other system of land ownership. Land in
Australia which has been granted by the Crown is held on a tenure of some kind and the Ntles acquired
under the accepted land law cannot be disturbed.”
- Brennan J
RADICAL TITLE
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McHugh J said in Yarmirr v Northern Territory (2001) 208 CLR 1; (at[212]):
… Radical Atle was the device that the common law adopted to reconcile the theory of
tenure and naAve Atle when the Crown acquired sovereignty of a selled country. It was the
invenIon of 19th-century judges confronted with the reality of indigenous persons
occupying land over which - according to the orthodox common law view - they had no
rights against the Crown. So the judges invented the noIon of a radical Itle burdened with
the rights and interests that indigenous people possessed under their tradiIonal laws and
customs. Radical Itle in a naIve Itle setng serves the same purpose as the hcIon of the
grant of an estate does in the case of the fee simple in England. If the Crown claims Itle to
land, that hcIon requires the Crown to prove its Itle. Historically it did so by an inquest of
oqce or an informaIon of intrusion.
See also Brennan J’s Judgment in Mabo at paragraphs [48]-[51]
Crown can’t just go out and discreIonary grant land, tenure etc without considering this
other form of land rights which may exist
Radical Itle is a lesser form of Itle that the crown has
NATIVE TITLE ACT 1993 (CTH)
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NaIve Title was then passed
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S 223(1), NaIve Title Act – DehniIon of NaIve Title
o Three elements here are important elements to claim NaIve Title
S 223(1)(a) Rights and Interest are possessed under the tradiIonal customs observed, by the
Aboriginal people or Torres Strait Islanders
o ‘Interest’ – whether it be hshing/hunIng or exclusion to land
S 223(b) “have a connecIon with the land or waters”
o Does not include foreshore – can’t be exclusive to NaIve Title Rights
Courts will decide whether it’s exclusive rights or non exclusive rights
EXTINGUISHMENT
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ExInguishment is concept whereby NaIve Title Rights will no longer be recognise by the
common law
ExInguishment is possible by hndings of the HC
ExInguishment or parIal exInguishment of naIve Itle (s 237A)
Freehold
Crown Leasehold – lasts for a very long Ime. There are also restricIons on Crown Leases
o Crown grants land by statutes/legislaIons
Other acIons
o Mining Leases
o Passage of LegislaIon restricIng rights (see Akiba)
Recognised in the Wik’s decision that the granIng of pastoral leases have the eiect of only
parIally exInguishing naIve Itle
Wik Peoples v The State of Queensland & Ors; [1996] HCA 40 (‘Wik’)
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Pastoral Leases granted under the Land Act 1910 (Qld)
o Did Pastoral Lease exInguish NaIve Title Rights? From Mabo Freeholder estate
would exInguish
Court found: Pastoral Leases would not necessarily exInguish NaIve Title Rights because it
did not grant exclusive possession like a freehold estate
o Nor the same kind of leases that you might come across in a residenIal situaIon
(renIng an apartment – given small part of a freehold estate)
Did not confer a right of exclusive possession on the landholders
Therefore NaIve Title rights could conInue
From Mabo:
o “clear and unambiguous words be used before there will be imputed to the
legislature an intent to expropriate or exInguish valuable rights relaIng to property
without fair compensaIon.”
Fejo v Northern Territory (1998) 58 – 195 CLR 96
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Held that a grant of land in fee simple exInguished underlying naIve Itle because the two
sets of rights were inconsistent with each other
= NaIve Title is completely exInguished by the grant of a freehold estate. The rights of a fee
simple are enIrely inconsistent with conInued NT rights
Wherever you see freehold land granted there is a complete exInguishment of NaIve Title
Rights
There is compensaIon within the NaIve Title Act – ‘allure’ – but there must be a right to
negoIate
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Commonwealth v Yarmirr [2001] HCA 56
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ApplicaIon for determinaIon of naIve Itles to seas
Whether public rights to hsh and to navigate and internaIonal right of innocent passage in
territorial sea inconsistent with exclusive naIve Itle right.
Apply for exclusive control in a sea area
o Courts found: not possible as there is public places to hsh and navigate and an
internaIonal right of passage
o Non-exclusive rights from the foreshore to the sea.
o Can claim non-exclusive rights – like to hsh
Western Australia v Ward (2002) 213 CLR 1
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The cases ooen refer to the need for those who contend that naIve Itle has been
exInguished to demonstrate a “clear and plain intenIon” to do so. That expression,
however, must not be misunderstood. The subjecIve thought processes of those whose act
is alleged to have exInguished naIve Itle are irrelevant. As Wik and Fejo reveal, where,
pursuant to statute, be it Commonwealth, State or Territory, there has been a grant of rights
to third parIes, the quesIon is whether the rights are inconsistent with the alleged naIve
Itle rights and interest. That is an objecIve inquiry which requires idenIhcaIon of and
comparison between the two sets of rights. Reference to acIviIes on land or how land has
been used is relevant only to the extent that it focusses alenIon upon the right pursuant to
which the land is used.
Akiba v Commonwealth (2013)
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DeterminaIon included naIve Itle right to access and take for any purpose resources in
naIve Itle areas
o Need a license to hsh
Whether legislaIve regimes inconsistent with conInues existence of naIve Itle right
Whether right to access and take resources in naIve Itle areas parIally exInguished where
resources taken for commercial purposes
“Not only does regulaIon of a naIve Itle right to take resources from land or waters not
sever the connecIon of the peoples concerned with that land or those waters, regulaIon of
the naIve Itle right is not inconsistent with the conInued existence of that right. Indeed, as
was pointed out in Yanner, regulaIng the way in which a right may be exercised presupposes
that the right exists”.
Of course, regulaIon may shade into prohibiIon, and the line between the two may be
diqcult to discern. But the central point made in Yanner, and resected in each of Wik, Fejo,
Yarmirr and Ward, is that a statutory prohibiIon on taking resources from land or waters
without a license does not conclusively establish exInguishment of naIve Itle rights and
interests of the kind found to exist in this case…’ (Hayne, Kiefel and Bell JJ at 64)
RECAP – NATIVE TITLE = SUI GENERIS RIGHTS
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“Because naIve Itle has its origin in tradiIonal laws and customs, and is neither an
insItuIon of the common law nor a form of common law tenure, it is necessary to curb the
tendency (perhaps inevitable and natural) to conduct an inquiry about the existence of
naIve Itle rights and interests in the language of the common law property lawyer”
Gleeson CJ, Gaudron, Gummow and Hayne JJ in Commonwealth v Yarmirr [2001] HCA 56
Only for available to indigenous Australians – must prove connecIon with the Indigenous
Land and custom – Must show that rights has not been/has been exInguished
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Nowadays, if the rights are exInguished, there is compensaIon
RECAP
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Mabo established NaIve Title land rights for Indigenous Australians
NaIve Title operates as a burden on the Crown’s Itle
The Crown did not acquire absolute and benehcial ownership of Australia, but rather, they
acquired radical Itle.
Certain acIons of the government will exInguish NaIve Title rights.
This includes freehold and legislaIon with a clear and plain intenIon.
Crown Leasehold will not necessarily exInguish NT Rights.
Common law that is recognising NT rights – but not the source of law for those rights
o The source of laws for those rights are the tradiIonal law and customs of the
indigenous people
WEEK 3: CO-OWNERSHIP
KEY QUESTIONS
1. What is co-ownership and how is it created?
2. What are the rights and obligaIons between co-owners?
3. How can co-ownership be brought to an end?
WHAT IS CO-OWNERSHIP?
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Tenants in common
Joint tenancy
Basic of co-ownership – ownership of real property where there can be alributed ownership
to 2 or more people (must be at least 2 – can be corporaIons/held in trust) and have to be in
relaIon to the same lot
CO-OWNERSHIP OF WHAT?
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-
Land – Only focus on land for this unit
o Communal property
o Commercial property
Car (personal property)
Shares
Intellectual property rights
TENANTS IN COMMON
-
Tenants in common is whereby the diierent legal enIIes in the lot own a separate disInct
share or fracture in the lot
DisInct ownership shares in the property (not physical share)
Shares need not be equal (e.g. 1/3 plus 2/3)
EnItled to physical possession of whole land
Individual share can be leo by will
JOINT TENANTS
-
No separated shares in the property
As a group they own the enIre property
‘Right to survivorship’ applies – meaning the surviving JT inherit
o If one dies, the other joint tenants automaIcally inherit the ownership
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TENANTS IN COMMON
-
In Tenants in Common – the ability to alienate/sell or part with share
‘Right of survivorship’ – does not apply in Tenants in Common
o AdministraIon of the estate – the separate share will go in accordance to wishes
CREATION OF CO-OWNERSHIP
-
-
Joint Tenants – by express words (e.g. to A and B as ‘joint tenants’)
Tenants in common – by express words (e.g. to A and B as ‘tenants in common in equal
shares’)
o Could be created in a will
PresumpIon:
o Common law = Joint Tenants
 If no express words - JT
o Equity = Tenants in Common
WORDS OF CREATION
-
-
Re Rose [1962]:
o “In equal shares as joint tenants”
 Creates words of confusion as JT cannot have equal shares, they can only
own the property jointly as a group
 Therefore it is a Tenant in Common that is being created
Re Barbour [1967]:
o “Share and share alike as joint tenants”
 ProblemaIc because joint tenants are not meant to share and share alike
 Therefore it is a Tenant in Common
SECTION 35 PROPERTY LAW ACT 1974 (QLD)
-
Default will be tenants in common
35 ConstrucAon of disposiAons of property to 2 or more persons together
(1) A disposiIon of the benehcial interest in any property, whether with or without the legal
interest, to or for 2 or more persons together benehcially shall be construed as made to or
for them as tenants in common, and not as joint tenants.
(2) This secIon does not apply—
a. to persons who by the terms or by the tenor of the disposiIon are executors,
administrators, trustees, or mortgagees, nor in any case where
the disposiIon provides that persons are to take as joint tenants or tenants by
enIreIes; and
b. to a disposiIon for partnership purposes in favour of persons carrying on business in
partnership.
(3) Subject to the provisions of the Partnership Act 1891 , a disposiIon for partnership purposes
of an interest in any property in favour of persons carrying on business in partnership shall,
unless a contrary intenIon appears, be construed as—
a. a disposiIon (if any) of the legal interest to those persons as joint tenants; and
b. a disposiIon (if any) of the benehcial interest to those persons as tenants in
common.
(4) This secIon applies to any disposiIon made aoer the commencement of this Act.
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(5) In this secIon—
"disposiAon" includes a disposiIon which is wholly or partly oral.
LAND TITLE ACT 1994, S 56
56 Registering co-owners
(1) In registering an instrument transferring an interest to co-owners, the registrar must also
register the co-owners as holding their interests as tenants in common or as joint tenants
(2) If the instrument does not show whether co-owners are to hold as tenants in common or as
joint tenants, the registrar must register the co-owners as tenants in common
RECAP
-
Co-ownership refers to 2 or more persons who own the same land at the same Ime
There are only 2 forms of co-ownership: JT and TIC
JT carries the right of survivorship
Common law presumpIons have been displaced by statute (the PLA)
WEEK 3: CO-OWNERSHIP RIGHTS & OBLIGATIONS
KEY QUESTION
1. What is co-ownership and how is it created?
2. What are the rights and obligaAons between co-owners?
3. How can co-ownership be brought to an end?
RIGHT AND OBLIGATIONS
1. AlienaIon (e.g. sale/transfer)
a. AlienaIon is to sell/gio/transfer a share
2. OccupaIon
3. Outgoings
a. Common obligaIon to pay for certain ‘outgoings’ (expenses to keep the property
running)
4. Improvements
a. Improvements to the property
5. OccupaIon Rent
a. Known as OccupaIon fee – which might be able to be claim from one co-owner
against another
ALIENATION
NB see eg right to alienate Hall v Busst (1960) 104 CLR 206
-
-
One of the rights to property is the right to alienate property
If one person decides to alienate the 1/3 share in a Tenant in Common situaIon – then the
person will have the 1/3 share in a Tenant in Common
o If 2 people – and one gives the ½ share to the other, it ends the co-ownership
agreement
If co-owners wanted to get rid of enIre property – all needs to sign
Hall v Busst
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o
Not appropriate to have a contract that restrains one co-owners ability to alienate
their share of the property
OCCUPATION
-
-
Each co-owner is enItled to occupy the whole of the premises
Co-owners can invite strangers onto the property
o Doesn’t need permission from the other co-owner/s
o Thrib v Thrib is authority for this
If one party ‘ousts’ another then they may be liable for occupa,on rent and/or damages
(Case law: Oates v Oates [1949], Thrib v Thrib 1975)
OUSTER
-
-
Wrongfully prevenIng another from using the property
o E.g. words like “Don’t you dare enter anymore” then changing locks
Actual force unnecessary but some express denial needed
o One co-owner applying for court order or wriIng to them formally may be enough
Changing the locks, making life generally unpleasant etc may not be suqcient
OccupaIon rent payable (re Thurgood [1987] OConvR 54-239; Pascoe v Swan)
o If denied entry then occupaIon rent – if leo on own accord, not enItled to
occupaIon rent
See [8.260]
OUTGOINGS
-
-
Insurance premiums and pest control
o No obligaIon to account to another co-owner absent an agreement
SomeImes, however, there is a ‘joint obligaIon’ to insure the property (e.g. under a
mortgage)
o The bank require insurance – joint obligaIon if required under the mortgage
Water and council rates – Joint debts for which co-owners are jointly liable
Relevant cases: Muschinski v Dodds (1985); Leight v Dickeson (1884); Forgeard v Shanahan
(1994)
o Msucihinski v Dodds talks about principle whereby co-owners of property can be
required jointly to be obligated to pay debts (based upon principles of equity) – joint
obligaIon to pay things like council fees etc
 If one party pays more than later on, in favour of that party
IMPROVEMENTS
-
-
Improvements to the property (e.g. painIng/renovaIng)
o If the other person does not help out with improvement, if no agreement there will
be no compensaIon
o However, equity may come in and say they may be enItled for some compensaIon
as one person as exert more energy than the other and it increases the value of the
land – only occurs at terminaIon of co-ownership where accounts is taken
At common law no right to seek compensaIon for improvements or repairs (absent
agreement)
In Equity, may be payable at terminaIon of c-ownership
See case of Brickwood v Young (1905) and [8.240]
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OCCUPATION RENT
-
Also known as occupaIon fee – the amount of money one co-owner is enItled to by virtue
of the fact that they are not in the premises
Payable where:
o One co-owner has been formally ‘ousted’ (Pascoe v Swan)
o One party is claiming compensaIon for improvements and has been in sole
occupaIon (Brickwood v Young)
 In Equity and only on terminaIon of arrangement
 Max equity: ‘must come with clean hands’ – If seek to claim compensaIon
then the other party may oiset that with a claim for occupaIon rent
o Where relaIonship has broken down (Callow v Rupchev)
o See [8.240]
CALLOW V RUPCHEV [2009] NSWCA 148
The basic principle that a tenant in common is not liable to pay an occupaIon rent by virtue merely
of his being in sole occupaIon of the property does not apply in the case where a matrimonial or
similar relaIonship has broken down and one party is, for pracIcal purposes, excluded from the
family home.
-
Callow living with Rupchev in defacto relaIonship
RelaIonship broke down – somewhat volaIle
Dispute on outgoings
QuesIon arose whether occupaIon fee needed to be paid in which one of the parIes was
not in possession of the premise
A former ouster had a reason in this circumstance?
o Not the case, but there may be another category in which OccupaIon Rent may be
payable – ‘RelaIonship has broken down’
Callow v Rupchev
-
“One can describe the breakdown of a domesNc relaNonship as an ouster, but such
relaNonships can break down without adributable fault on the part of either party. To
describe such a breakdown as an actual ouster involves a ecNon and it is beder to recognise
such a breakdown as an independent ground for charging the co-owner who remains with an
occupaNon rent.”
See [8.260]
AMOUNT?
-
Fair market rent for the premises
Must resect the proporIonate interest in the property (e.g. ½)
See the case of Kangas v Tsangaras (1990)
See [8.260]
RECAP
-
Disputes between co-owners can and do arise
Co-owners can invite strangers onto the property
Co-owners have ‘joint debts’ such as water and council rates
Equity may provide relief for improvements carried out by one co-owner (which may be
oiset by an occupaIon fee)
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-
An occupaIon fee may be paid in other circumstances including relaIonship breakdown and
ouster
WEEK 3: CO-OWNERSHIP TERMINATION
KEY QUESTIONS
1. What is co-ownership and how is it created?
2. What are the rights and obligaIons between co-owners?
3. How can co-ownership be brought to an end?
TERMINATION AND SEVERANE
-
-
-
Severance (of joint tenancy):
o AlienaIon - selling
o Mutual agreement – to turn into a tenant in common
o Course of dealing – if no agreement but parIes have made intenIons clear through
incomplete agreement
o RegistraIon of transfer (Land Title Act s 59) – for freehold land
The eiect of severance will be to turn joint tenancy into a tenant in common so there is sIll
a co-ownership arrangement
Death of a joint tenant (right of survivorship)
TerminaIon – end co-ownership all together (
o Can be done by both co-owners
o One can be sole owner of estate and therefore no longer co-ownership
o If co-ownership sold to 2 owners – then a new co-ownership will take place
Transfer of interest(s) to third party or another co-owner
Court Order (Property Law Act 1974, Div 2 Part 5)
o Court appoint a trustee to sell property
COURSE OF DEALING – CORRIN v PATTON (1990)
-
Mrs Palon was terminally ill
IntenIon to sever joint-tenancy to a tenant in common so survivorship will not automaIcally
apply
Executed transfer and declaraIon of trust
o If the document is registered – able to sever joint tenancy
CerIhcate of Itle not obtained (held by Bank)
Transfer not registered
Issue: upon death, who inherited property?
o Course of dealing?
Not enough to unilaterally sever a Joint Tenancy
Mrs Palon did not do all that was necessary to eiect severance.
“The quesIon is then whether Mrs Palon did all that it was necessary for her to do in order
to eiect a transfer. Two obstacles are suggested to compleIon of the gio. First, the
cerIhcate of Itle remained throughout with the mortgagee and Mrs Palon took no steps to
arrange for its producIon for the purposes of registraIon. Secondly, it is not clear whether
or not [the solicitor] held the executed transfer on Mrs Palon's instrucIons or those of Mr
Corin.” per MASON C.J. AND McHUGH J [at 40]
BY REGISTRATION OF TRANSFER (s 59, LAND TITLE ACT 1994) (Qld)
59 Severing Joint Tenancy
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(1) A registered owner of a lot subject to a joint tenancy may unilaterally sever the joint tenancy
by registraIon of a transfer executed by the registered owner.
(2) However, the registrar may register the instrument of transfer only if the registrar is
saAsYed the registered owner has given, or made a reasonable aZempt to give, each other
joint tenant the following—
a. if the instrument is an electronic conveyancing document—wrilen noIce of the
registered owner’s intenIon to sever the joint tenancy under subsecIon (1) ;
b. otherwise—a copy of the instrument.
(3) On registraIon of the instrument of transfer, the registered owner becomes enItled as a
tenant in common with the other registered owners.
(4) If there are more than 2 joint tenants of the lot, the joint tenancy of the other registered
owners is not aiected.
SALE OR PARTITION UDNER THE PLA
-
Division 2, s 37 - 43
Allows 1 or either of the co-owners when having a dispute to apply to the courts under
Division 2 to appoint a trustee, and the trustee will sell the property and divide the proceeds
or parIIon the property
o ParIIon is dividing
PROPERTY LAW ACT 1974
38 Statutory trusts for sale or parAAon of property held in co-ownership
(1) Where any property (other than chalels personal) is held in co-ownership the court may, on
the applicaIon of any 1 or more of the co-owners, and despite any other Act, appoint
trustees of the property and vest the same in such trustees, subject to encumbrances
aiecIng the enIrety, but free from encumbrances aiecIng any undivided shares, to be held
by them on the statutory trust for sale or on the statutory trust for parIIon.
(2) Where the enIrety of the property is vested in trustees or personal representaIves, those
trustees or personal representaIves shall, unless the court otherwise determines, be
appointed trustees on either of such statutory trusts, but subject, in the case of personal
representaIves, to, their rights and powers for the purposes of administraIon.
(3) Where the enIrety of the property is vested at law in co-owners the court may appoint a
trustee corporaIon either alone or with 1 or 2 individuals (whether or not being co-owners),
or 2 or more individuals, not exceeding 4 (whether or not including 1 or more of the coowners), to be trustees of the property on either of such statutory trusts.
(3A) On such appointment under subsecNon (3) , the property shall, subject to the Trusts Act
1973 , secNon 90 , vest in the trustees.
(4) If, on an applicaIon for the appointment of trustees on the statutory trust for sale, any of the
co-owners saIshes the court that parIIon of the property would be more benehcial for the
co-owners interested to the extent of upwards of a moiety in value than sale, the court may,
with the consent of the encumbrancee of the enIrety (if any), appoint trustees of the
property on the statutory trust for parIIon, or as to part of the property on the statutory
trust for sale, and as to part on the statutory trust for parIIon, but a purchaser shall not be
concerned to see or inquire whether any such consent has been given.
(5) When such trustees for parIIon have prepared a scheme of parIIon they shall serve noIce
in wriIng of the scheme on all the co-owners of full age, and any of such co-owners
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dissaIshed with the scheme may, within 1 month aoer service upon the co-owner of such
noIce, apply to the court for a variaIon of the same.
(5AA) If any of the co-owners is a person for whom an administrator has been appointed under
the Guardianship and AdministraNon Act 2000 for the property, the noIce must be served on
the administrator.
(5A) If any of the co-owners is an incapacitated person within the meaning of the Public Trustee
Act 1978 , the noIce must be served on the person charged by law with the management and
care of the incapacitated person’s property, or if there is no person charged, on the public
trustee.
(5B) Where any of the co-owners is a person not of full age or a person who cannot be found or
ascertained, or as to whom it is uncertain whether the person is living or dead, the trustees may
act on behalf of the person, and retain land or other property to represent the person’s share.
(6) In relaIon to the sale or parIIon of property held in co-ownership, the court may alter such
statutory trusts, and the trusts so altered shall be deemed to be the statutory trust in
relaIon to that property.
(6A) Without limiIng the power of the court so to alter the statutory trusts, the court shall,
unless for good reason the court otherwise directs, so alter the statutory trusts as to provide in
the case of the statutory trust for parIIon that—
a. any encumbrance which, prior to the appointment of the trustees, aiected any
undivided share shall conInue to extend and apply to any such share; and
b. any mortgage created for raising equality money shall rank in priority aoer any such
encumbrance.
(7) Where property becomes subject to such statutory trust for sale—
a. in the case of joint tenancy—a sale under the trust shall not of itself eiect a
severance of that tenancy; and
b. in any case—land shall be deemed to be converted upon the appointment of
trustees for sale unless the court otherwise directs.
(8) This secIon applies to property held in co-ownership at the commencement of this Act and
to property which becomes so held aoer such commencement.
(9) This secIon does not apply to property in respect of which a subsisIng contract for sale
(whether made under an order in a suit for parIIon, or by or on behalf of all the co-owners)
is in force at the commencement of this Act, if the contract is completed in due course, nor
to land in respect of which a suit for parIIon is pending at such commencement if a decree
for a parIIon or sale is subsequently made in such suit.
AGREEMENTS BETWEEN CO-OWNERS
-
‘Rights of pre-empIon’ or ‘First Rights of Refusal’
E.g.
o One co-owner cannot sell the property without the agreement of the other
o One co-owner must hrst oier their interest in the property for sale to the other coowner
o One co-owner cannot apply to the court for a sale (under s 38 PLA) within a
parIcular Ime frame
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RE PERMANENT TRUSTEE NOMINEES (CANBERRA) LTD [1989] 1 QD R
314
-
-
Tenants in common land and resort
Agreement:
o “As a separate and severable covenant, the ParIes hereby agree that neither of
them will (except aoer twelve (12) months prior noIce in wriIng to the other of
them) make applicaIon to the Court for the appointment of trustees on statutory
trusts for sale or parIIon pursuant to the provisions of Division 2 of Part V of the
Property Law Act 1974.”
QuesIon to the court was: was the clause valid?
The agreement was
o Not void as ousIng the jurisdicIon of the Court; and
o Not Void as amounIng to a restraint on alienaIon
 Right was sIll there, just required to wait for 12 months
KELLY J
-
-
“The eiect of [the agreement] is not to oust the jurisdicIon of the court but only to provide
for the giving of twelve months prior noIce in wriIng before seeking to have the jurisdicIon
exercised”
“there is nothing in the terms of s.38 itself or indeed in any other provision of the Property
Law Act from which it could properly be inferred that a covenant whereby the parIes agreed
that neither would seek to exercise its statutory right without giving some period of noIce to
the other, even a period as long as twelve months, is prohibited and it is diqcult to see any
public interest in prohibiIng such a covenant.”
CONNOLLY J
-
““For my part I cannot see that cl.6 of the management agreement aiects in the slightest
degree to abrogate the jurisdicIon of the court. It is no more than a mutual promise by both
parIes not to exercise a right of a proprietary character save on twelve months noIce.”
o 12 months considered hne. But consider if it was 65 years? Probably not hne in that
case
HALL V BUSST (1960) 104 CLR 206
“The ground for denying the validity of a contractual restricIon upon alienaIon is that it is a
principle of the law that private property should be fully alienable. …a contractual restricIon upon
the alienaIon of an absolute estate if unqualihed should be considered void and this seems to
accord with modern views of policy”
-
Per Dixon CJ
RECAP
-
Joint tenancies can be severed in one of several ways including mutual agreement,
registraIon of transfer, alienaIon or course of dealing
In the event one co-owner doesn’t wish to sell, a co-owner can apply to the Court for an
order for parIIon or sale
In certain circumstances, agreements between co-owners will be upheld
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
RP who renegs on their obligafon to sell under a contract of sale (who relies on
indefeasibility) does not have a good case – in personam can be invoked to defeat RO
indefeasible ftle

RO grants mortgage in non-registrable form and then denies its existence based on
indefeasibility – in this instance the lender can defeat indefeasibility

In both cases, RO did something personally to create an interest in the land for someone
else. And that someone else can then act on those rights by invoking the in personam
excepfon
THE TORRENS SYSTEM – OVERVIEW
Overview
A system of registrafon of ftle to land – ftle is gain by registrafon, not registrafon of ftle
Title not dependent on predecessors’ ftles – so no need to prove a chain of ftle
Indefeasibility of Rtle – refers to immunity from ajack by adverse claims to the land or interest
Frazer v Walker
However, indefeasibility of ftle is not absolutely indefeasible as it may be defeated or qualiled
Cassegrain v Gerard Cassegrain & Co Pty Ltd
Used in all states of Australia, in New Zealand, England and some states of the United States
There is no old system land leo in Queensland, ACT and NT
See Land Title Act 1994 (Qld)
First introduced in South Australia 1858
Introduced in Qld in Real Property Acts (Qld) 1861 and 1877
Superimposed upon ‘old system’ ftle – read in conjuncfon with PLA and common law
THE ‘OLD SYSTEM’ – CONVEYANCING
Background
Private conveyancing – dependent on the nature of the ftle
Need to prove a ‘chain of ftle’
Nemo dat quod non habet – you cannot give what you do not have
For E to prove they have valid Gtle, must prove valid transfer for all previous individuals. As
this has not occurred, cannot prove valid Gtle
RegistraHon of Deeds
Public register of deeds – registrafon not compulsory
Did not cure any defects in a seller's ftle – validity sfll dependent upon the chain of ftle
Priority according to date of registrafon, not execufon
See PLA ss 241-9 for all above
All registered deeds and other instruments made bona lde and for valuable considerafon take
priority according to the date of registrafon (not execufon)
4
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PLA s 246
TORRENS SYSTEM
General DeKniHons (LTA s 4, Sch 2)
Each parcel of land is called a lot

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INDEFEASIBILITY
Statutory Provisions – ESect of indefeasibility
Upon registrafon, the registered proprietor of an interest in land has good ftle:

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n
t
e
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s
t
i
nt
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el
o
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LTA s 184(2)x
The registered proprietor’s interest can be DEFEATED if the:
a
)e
x
c
e
p
t
i
o
n
si
nL
T
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8
5a
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y
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h
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r
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x
c
e
p
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i
o
na
p
p
l
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e
s
LTA s 184(3)x
CreaHon / RecogniHon of Indefeasibility
A Lot means a separate, disfnct parcel of land on:


t
h
er
e
g
i
s
t
r
a
t
i
o
no
f
as
u
b
d
i
v
i
s
i
o
n
;OR
t
h
er
e
c
o
r
d
i
n
go
f
p
a
r
t
i
c
u
l
a
r
so
f
a
ni
n
s
t
r
u
me
n
t
LTA Sch 2, s 4
Indefeasibility for a lot is created by recording the parfculars of the lot on the freehold register
LTA s 37
Indefeasibility of ftle for a lot is the current parfculars listed in the freehold register – may be
evinced by a cerflcate of ftle
LTA s 38
5
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lOMoARcPSD|3076807
No need for considerafon
LTA s 180
Transfer / creafon of an interest in a lot occurs upon registrafon
LTA s 181
A legal interest is created or transferred upon registrafon
LTA s 182
RegistraHon of Instruments
An instrument is registered by recording in the freehold land register the necessary parfculars
LTA s 173
An instrument is registered when its parfculars are entered on the freehold land register
LTA s 174


Re
g
i
s
t
e
r
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di
n
s
t
r
u
me
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t
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:
s1
7
5
Re
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r
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o
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sa
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d
:
s1
7
6
Instruments are registered in the order in which they are lodged
LTA s 177
Registered instruments have priority according to when they were lodged – not according to when
they were registered or executed
LTA s 178
Registrafon is required for:











f
e
es
i
mp
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eg
r
a
n
t
e
db
yt
h
eSt
a
t
ed
e
e
do
f
g
r
a
n
t
(
s4
7
)
t
r
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n
s
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e
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o
f
al
o
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o
r
a
ni
n
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e
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t
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nal
o
t
(
s6
0
(
1
)
)
l
e
a
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so
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rp
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r
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t
(
s6
4
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e
s(
s7
2
)
e
a
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me
n
t
s(
s8
2
)
c
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n
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a
t
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l
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n
me
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t
(
s9
7
A)
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n
d
r
e(
s9
7
E)
wr
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t
so
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c
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t
i
o
n(
s1
1
6
)
p
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r
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t
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e
y(
s1
3
3
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b
u
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l
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n
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me
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t
s
t
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me
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t
(
s5
4
A5
4
L
)
t
i
t
l
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na
d
v
e
r
s
ep
o
s
s
e
s
s
o
r
(
s1
0
8
)
Interests which may not be registered:

Be
n
e
fi
c
i
a
l
i
n
t
e
r
e
s
t
su
n
d
e
rat
r
u
s
t
LTA ss 109, 110


h
o
we
v
e
r
ap
e
r
s
o
n
,
wh
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l
d
st
h
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,
c
a
nb
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s
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da
sat
r
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s
t
e
e
:
s
s1
0
91
1
0
Al
i
f
ei
n
t
e
r
e
s
t
o
rr
e
ma
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n
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r
LTA s 55, must be read with PLA s 30(2)

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h
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g
i
s
t
r
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r
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me
n
t
LTA s 97A
Unregistered Interests
6
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lOMoARcPSD|3076807
Unregistered interests are recognised under Torrens
Barry v Heider


F
ACTS:Br
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Chan v Cresdon
CerHKcate of Title
Contains a copy of the parfculars recorded on the Registry
Only issued upon request (potenfally increasing opportunity for fraud)
LTA s 42(1)
Key to dealing with the Registry – must be presented to lodge an instrument
Deferred / Immediate Indefeasibility
Immediate indefeasibility – a registered proprietor immediately obtains an indefeasible ftle, even if
registrafon has been obtained by registrafon of a void or voidable instrument
Frazer v Walker


F
ACTS:Mr
a
n
dMr
sFwe
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er
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mme
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b
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st
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t
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a
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g
i
s
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e
d
,
W’
st
i
t
l
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s
i
n
d
e
f
e
a
s
i
b
l
e
.
I
t
i
st
h
ef
a
c
t
t
h
er
e
g
i
s
t
r
a
t
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o
na
n
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n
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t
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c
hv
e
s
t
s/
d
i
v
e
s
t
st
i
t
l
e
Breskvar v Wall (1971) 126 CLR 376 – strongly recommend reading



F
ACTS:Bwe
r
er
e
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i
s
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e
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e
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r
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7
Downloaded by Mojtaba Dani (mojtaba.dani@gmail.com)
lOMoARcPSD|3076807
Deferred indefeasibility – occurs unfl a valid transfer is registered – a registered proprietor, who has
acquired ftle by registrafon of a void or voidable instrument, would be open to ajack on grounds
that the instrument should be set aside even in the absence of fraud
Gibbs v Messer – never overruled…
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What is Protected by Indefeasibility
Not necessarily all the terms / condifons contained in an instrument – only covenants that touch /
concern the land
Travinto Nominees v VlaSas
PT Limited v Maradona Pty Ltd
 PRI
NCI
PLE:Re
g
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t
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The opRon to purchase contained in a lease is not an incident of the leasehold estate and will not be
protected by indefeasibility
MercanGle Credits Ltd v Shell Co of Australia; Travinto Nominees v VlaSas
Registrafon of a lease protects an opRon to renew the lease as the opfon is part of the lessee's
leasehold estate
MercanGle Credits Ltd v Shell Co of Australia Ltd
Registrafon of a mortgage will protect the mortgagee’s security interest in the land, including a
mortgagee’s right to sell the land in the case of default
Perpetual Trustees Victoria v English
Registrafon of mortgage does not cover personal covenants as they do not delne the estate or
interest (eg a guarantee is not protected)
8
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lOMoARcPSD|3076807
Small v Tomasset
However, where fraud occurs by a co-owner of the land and the registered indefeasible mortgage
does not secure the debt, the mortgagee may be enftled to an equitable mortgage over the interest
– this point is contenfous (text p 320ish)
Perpetual Trustees Victoria v English



F
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Mr
E
RESOL
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Personal covenant to sue is protected and enables the mortgagee to bring proceedings against the
innocent landowner personally to recover the sum secured by the registered mortgage
Hilton v Gray; MercanGle Credits v Shell Co of Australia
Personal covenant not protected where registered under a forged mortgage
Grgic v ANZ
Torrens Examples
Example 1
 Ai
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do
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L
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)
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 Ae
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 Byr
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 Re
s
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Immediate indefeasibility example
 Ai
st
h
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f
al
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t
i
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t
Br
i
s
b
a
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 Bf
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st
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 C,
wh
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f
B’
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b
s
c
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a
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emo
n
e
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 Al
o
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sac
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a
t
a
f
t
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e
c
o
me
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 Cr
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9
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EXCEPTI
ONST
OI
NDEFEASI
BI
LI
TY
More than 1 excepHon can apply at any Hme
FRAUD EXCEPTION
General Principle
Fraud by the current registered proprietor prevents the person sheltering behind the benelts of
indefeasibility
LTA s 184(3)(b)

COMMONEXAMPL
ES:f
o
r
g
e
r
yo
f
ar
e
g
i
s
t
e
r
e
do
wn
e
r
’
ss
i
g
n
a
t
u
r
eo
nt
r
a
n
s
f
e
r
/
mo
r
t
g
a
g
e
;
wh
e
r
eRO
s
i
g
n
a
t
u
r
eo
nt
r
a
n
s
f
e
r
i
sg
e
n
u
i
n
eb
u
t
i
n
d
u
c
e
db
yf
r
a
u
d
u
l
e
n
t
mi
s
r
e
p
r
e
s
e
n
t
a
t
i
o
n
Fraud means actual dishonesty by the person or his / her agent
Bahr v Nicolay (No 2)
The fraud must have a causal euect upon the registered proprietor obtaining his / her interest which
has resulted in loss / deprivafon
Bank of South Australia v Ferguson


F
ACTS:e
mp
l
o
y
e
eo
f
Bp
r
e
p
a
r
e
da“
s
t
a
t
e
me
n
t
o
f
p
o
s
i
t
i
o
n
”
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l
a
t
i
n
gt
ot
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emo
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g
o
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’
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sp
r
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p
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l
,
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n
dv
a
l
u
eo
f
t
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a
n
da
n
dt
h
e
nf
o
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e
dt
h
emo
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g
a
g
o
r
’
ss
i
g
n
a
t
u
r
eo
nt
h
es
t
a
t
e
me
n
t
HELD:wh
i
l
et
h
i
swa
sad
i
s
h
o
n
e
s
t
a
c
t
,
t
h
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s
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me
n
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o
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n
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Ba
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nf
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c
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t
ya
g
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e
e
me
n
t
.F
o
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f
r
a
u
dt
ob
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e
r
a
t
i
v
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,
i
t
mu
s
t
o
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e
r
a
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nt
h
emi
n
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t
h
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s
o
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oh
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v
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n
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o
nb
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a
t
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s
o
n
Fraud against a registered, or previous registered, owner / proprietor
The fraud must be brought home to the registered owner / proprietor of the interest, or to their
agents
Grgic v ANZ Banking Group


F
ACTS:Mr
G,
r
e
g
i
s
t
e
r
e
do
wn
e
r
,
r
e
f
u
s
e
dt
og
u
a
r
a
n
t
e
el
o
a
nt
os
o
n
.So
np
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a
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o
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o
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o
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s
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nf
u
n
d
Assets v Mere Roihi
Care must be taken not to conclude that mere failure to be prudent is evidence of willful blindness or
reckless indiuerence
Young v Hoger (agent example)

F
ACTS:Mr
a
n
dMr
sHo
wn
e
dap
r
o
p
e
r
t
y
.T
h
e
yg
a
v
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r
t
g
a
g
eo
v
e
r
t
h
ep
r
o
p
e
r
t
yt
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e
c
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r
ea$
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e
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e
s
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t
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l
s
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l
dMr
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h
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t
t
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ep
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d
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p
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l
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dt
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Mr
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1
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Downloaded by Mojtaba Dani (mojtaba.dani@gmail.com)
lOMoARcPSD|3076807

b
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s
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d
ef
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f
r
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.
HELD:n
o
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n
gi
nt
h
ec
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n
d
u
c
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t
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d
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s
h
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e
s
t
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h
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h
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t
Mr
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g
n
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t
u
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nt
h
emo
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t
g
a
g
eh
a
db
e
e
nf
o
r
g
e
d
,
a
n
dt
h
a
t
,
h
a
v
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n
gt
h
a
t
s
u
s
p
i
c
i
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n
,
h
ea
b
s
t
a
i
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e
df
r
o
mf
u
r
t
h
e
r
e
n
q
u
i
r
i
e
s
.
Fraud against RP will occur where RP lodges an instrument knowing it has not been properly
executed or knowledge it is a false document
Australian Guarantee CorporaGon v De Jager


F
ACTS:mo
r
t
g
a
g
e
ewa
sn
o
t
a
wa
r
et
h
a
t
t
h
ewi
f
e
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ss
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t
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r
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nt
h
ei
n
s
t
r
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me
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o
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r
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g
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o
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e
r
y
,
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e
mp
l
o
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e
so
f
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h
emo
r
t
g
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e
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r
ea
wa
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et
h
a
t
h
e
r
s
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n
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t
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r
eh
a
dn
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t
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nd
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t
t
e
s
t
e
d
HELD:t
h
ea
c
t
i
o
n
so
f
t
h
ee
mp
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Russo v Bendigo Bank



F
ACTS:Rs
o
n
i
n
l
a
wf
o
r
g
e
dh
e
r
s
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n
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h
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l
i
c
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o
r
f
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h
emo
r
t
g
a
g
e
e
.
HELD:Gs
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e
dn
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t
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s
so
f
Rs
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Fraud supervened a\er registraHon
Fraud within the meaning of the indefeasibility secfons refers to fraud commijed in the act of
acquiring a registered ftle
Bahr v Nicolay (No 2) – facts below
Courts power to correct register
In the case of fraud by the RP or if s 185(1)(c)-(g), (1A) apply (LTA s 187(1)) – the supreme court may
by order direct the registrar to:
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Registrar’s power to correct register
Registrar has power to hold and inquiry to determine whether fraud auecfng the land registry has
been commijed
LTA s 19
The Registrar may correct the Register where:

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Remedy for RP who was deprived of a lot
Claimant enftled to compensafon from the State for deprivafon of the property
LTA s 188(2)
Applies because of:
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LTA s 188(1)x
Compensafon for loss / damage where damage suuered
LTA s 188A
Compensafon to careless mortgagee no available
LTA s 189
On payment of any compensafon, the State is subrogated to the rights of the claimant against any
other person in relafon to the deprivafon, loss or damage – ie state can sue person who commijed
the fraud
LTA s 190
Common types of fraud
Idenfty fraud
Perpetrators





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SECTION 185 EXCEPTIONS SUMMARY
A registered proprietor of a lot does not obtain the benelt of secfon 184 for the following interests
in relafon to the lot …
a
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LTA s 185(1)x
Careless mortgagee excepfon – Invoked where a mortgagee does not take adequate steps to verify
the idenfty of a person signing a mortgage instrument
LTA s 185(1A)
1
3
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IN PERSONAM (PERSONAL EQUITY) EXCEPTION
General Principles
RP does not get benelts of indefeasibility (s 184) as against an equity arising from the act of the RP
LTA s 185(1)(a)
Elements:
a
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The equity may arise before / aoer registrafon
Interest may be either an estate in the land or a personal equity enforceable against the RP
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
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
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The ftle of a purchaser who has nofce of an unregistered interest and purchases on terms indicafng
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Valbirn v Powprop


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F
ACTS:Pwa
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Downloaded by Mojtaba Dani (mojtaba.dani@gmail.com)
lOMoARcPSD|3076807
If an undertaking to honour an unregistered interest is given prior to registrafon, then exhibifng no
intenfon to honour at the fme of registrafon will amount to fraud for fraudulent misrepresentafon
Loke Yew v Port SweSenham Rubber
In personam will not be invoked where there is no equitable / legal cause of acfon
Grgic v ANZ Banking Group


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


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eRP–G.
Knowing receipt of trust property and accessory liability – inconsistency with LTA
To assert in personam excepfon, must not be inconsistent with the LTA – and in parfcular that a RP is
not auected by nofce of an unregistered interest
LTA s 184(2)(a)
As such, where registrafon of an interest consftutes a knowing receipt of trust property, it cannot
defeat an indefeasible ftle where there is no dishonesty / fraud by the RP, because to hold otherwise
would be inconsistent with the LTA
Farah ConstrucGons v Say-Dee
That means the lrst limb in Barns v Addy does not give rise to a personal equity
Barnes v Addy

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However, the second limb in Barns v Addy – party liable if they assist with knowledge in a dishonest
and fraudulent design – may not be precluded
Farah ConstrucGons v Say-Dee
The requisite degree of knowledge to safsfy the second limb in Barns v Addy is:
a
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Baden’s case; Farah ConstrucGons
1
5
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Curial orders / submission to the court’s jurisdicHon
Where a RP obtains registrafon under a court order that is subsequently set aside on appeal, the
appeal court has the power to order the RP to retransfer the property back to the original owner
White v Tomasel


F
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SHORT LEASE EXCEPTION
General Principles
The estate of a RP is subject to the interest of a lessee under a short lease
LTA s 185(1)(b)
The interest of the lessee under s 185(1)(b) does not include:
a
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m
LTA s 185(2)x
Opfons to renew which do not extend the term beyond 3 years from the beginning of the original
term will be protected
LTA s 185(2)(b)
DeKniHons
Short lease means a term for <= 3 years, or from year to year or a shorter period
LTA Sch 2
Term means the period beginning when the lessee is lrst enftled to possession of a lot / part of a lot
under the lease and ending when the lessee is last enftled to possession, even if the lease consists
of 2 or more disconfnuous periods
LTA Sch 2
1
6
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EXCEPTION IN FAVOUR OF AN ADVERSE POSSESSOR
General Principles
The interest of a person who, on applicafon, would be enftled to be registered as owner of the lot
because the person is an adverse possessor
LTA s 185(1)(d)
Adverse possessor is delned as a person:
a
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LTA Sch 2
12 years is the LAA expirafon period – must be in possession of some other person
LAA ss 13, 19(1)
CARELESS MORTGAGEE EXCEPTION
Mortgagee obligafon, prior to lodging a mortgage for registrafon, to take reasonable steps to ensure
that the person who executed the mortgage is the RP
LTA s 11A
Similar obligafon is imposed when transferring a mortgage
LTA s 11B
If ss 11A, 11B obligafon to take reasonable steps to idenffy mortgagor are not complied with,
mortgagee is not enftled to take the benelt of indefeasibility
LTA ss 185(1A)
CBA v Perrin


F
ACTS:Pf
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Where s 185(1A) enlivened, not enftled to claim compensafon for loss either
LTA s 189(1)(ab)
EXCEPTIONS IN OVERRIDING STATUTES
Benelts of indefeasibility may be cut down / overridden by provisions in other statutes – eg:

r
a
t
i
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Land Tax Act 2010 (Qld) s 60

Ov
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sa
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e
do
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Local Government Act 2009 (Qld) s 96

s
t
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s
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gl
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1
7
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Transport Planning and CoodinaGon Act 1994 (Qld) s 25

wh
e
r
ec
o
u
r
t
sh
a
v
et
h
ep
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we
rt
od
e
p
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s/
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n
d
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e
a
s
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b
l
et
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e
Criminal Proceeds ConascaGon Act 2002 (Qld); see also PLA ss 182 – 194

s
t
a
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dc
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t
a
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s
Bankruptcy Act 1966 (Cth) s 58(2)
Determinafon of overriding will not be lightly reached – process:
a
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s
i
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r
wh
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rp
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s
Hillpalm v Heaven’s Door
Note also inconsistency with Commonwealth statutes
Consftufon s 109
1
8
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CAVEATS AND SETTLEMENT NOTICES
UNREGISTERED INTERESTS
Unregistered Interests
Unregistered interests exist under Torrens – recognised as an equitable interest in the land despite a
lack of registrafon
Barry v Heider
Conlrmed in Chan v Cresdon

HCh
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Two types:
a
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Vulnerable – can be exfnguished by:
a
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s
t
Can be protected by lodging a caveat or sejlement nofce
CAVEATS
Caveator = person who has lodged the caveat or in whose favour the caveat has been lodged
LTA Sch 2
Caveatee = person who has an interest in the lot over which the caveat has been lodged, whether
that be as registered proprietor or not
LTA Sch 2
Primary funcHon
A caveat is an instrument that, while it remains in force, prevents the registrafon of an instrument
auecfng the lot over which it is lodged from the fme the caveat is lodged, unless s 124(2) applies
LTA s 124(1)

I
n
c
l
u
d
e
s
:I
n
s
t
r
u
me
n
t
sl
o
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e
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r
i
o
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t
oc
a
v
e
a
t
The prohibifon commenced from the date and fme indorsed by the registrar as the caveat’s date /
fme of lodgment and extends unfl the caveats lapse or terminafon
LTA s 124(1A)
Excepfons to the general rule:
a
)I
n
s
t
r
u
me
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s
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c
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i
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t
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nl
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a
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c
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r
i
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yf
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rp
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Does not apply to a caveat lodged by the registrar (LTA s 124(3))
d
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o
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LTA s 124(2)x
1
9
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The caveator may withdraw the caveat
LTA s 125
Secondary FuncHon
Gives nofce of the existence of an unregistered interest
J & H Just Holdings Pty Ltd v Bank of New South Wales
Clarke v Raymor
Requirements
All caveats must comply with LTA s 121, including:






n
a
meo
f
c
a
v
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t
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n
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me/
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da
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ee
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od
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LTA s 121
There is no requirement to specify in the caveat the quantum of the estate / interest claimed
Leros v Terara
Once caveat is lodged, registrar will give wrijen nofce to each person whose interest / right to
registrafon of an instrument is auected
LTA s 123
WRITTEN AGREEMENT
If caveat menfoned in wrijen agreement, the agreement must be enforceable
PLA ss 11, 59
Who may lodge a caveat
The following persons may lodge a caveat:
a
)“
ap
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r
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r
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h
er
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g
i
s
t
e
r
e
do
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r
o
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t
h
el
o
t
d
) ap
e
r
s
o
nwi
t
ht
h
eb
e
n
e
fi
t
o
f
ac
o
u
r
t
o
r
d
e
r
LTA s 122(1)x
An equitable mortgagee can only lodge a caveat to which s 126 (ie non-lapsing caveat) applies
LTA s 122(2)
Circuit Finance Australia Ltd v Registrar of Titles [2005] QSC 283
A purchaser under an instalment contract for the sale of land may lodge a caveat
PLA s 74
A person claiming an interest in a lot the subject of an applicafon for a ftle by adverse possession
may lodge a caveat
LTA s 104
2
0
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A person claiming an interest in a lot – LTA s 122(1)(a)
“interest in a lot” is delned as:
a
) al
e
g
a
l
o
r
e
q
u
i
t
a
b
l
ee
s
t
a
t
ei
nt
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el
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h
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rp
r
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y
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r
b
) ar
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g
h
t
p
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we
r
o
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v
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l
e
g
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ro
r
i
nr
e
l
a
t
i
o
nt
ot
h
el
a
n
do
ro
t
h
e
rp
r
o
p
e
r
t
y
AIA s 36
Qld Estates Pty Ltd v Collas

L
e
g
a
l
o
r
e
q
u
i
t
a
b
l
ee
s
t
a
t
ei
n
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s
t
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nt
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ec
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r
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ne
s
t
a
t
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r
e
q
u
i
t
a
b
l
ec
l
a
i
m
Note: Mijo Developments Pty Ltd v Royal Agnes Water Pty Ltd

Ac
c
e
p
t
e
da
ne
x
p
a
n
s
i
v
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a
n
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go
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s3
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c
l
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et
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er
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g
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t
t
oar
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c
o
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v
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y
a
n
c
ef
o
l
l
o
wi
n
gf
r
a
u
do
f
t
h
e
r
e
g
i
s
t
e
r
e
do
wn
e
r
–c
o
n
s
t
r
u
c
t
i
v
et
r
u
s
t
i
mp
o
s
e
d
The conferring of a right to lodge a caveat will not generally (without more) give a person a
caveatable interest
Qld Estates v Collas
If an interest is capable of being protected by SP, injuncfon or other equitable relief it will generally
consftute suzcient interest to support a caveat
Re Henderson’s Caveat
Examples of interests capable of supporfng a caveat:











Ap
u
r
c
h
a
s
e
r
’
sl
i
e
n
:
ExPa
r
t
eL
o
r
d
Ac
h
a
r
g
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rl
a
n
d
:
Cl
a
r
k
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mo
r
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fi
t
sd
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fi
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no
f
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mo
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ei
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no
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:
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ac
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s
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q
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:
RePe
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c
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ei
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Ap
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Ab
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fi
c
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d
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r
:
Ha
r
d
ma
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vHa
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ma
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Interests NOT capable of supporfng a caveat:








Co
n
s
e
n
t
(
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r
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)
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(
3
)
Note: this does not prevent a caveat being lodged over the whole of the parcel of the
land where the interest claimed is over the whole of the land
2
1
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Nor does this apply to a proposed lot in a community Gtles scheme undr the Body
Corporate and Community Management Act 1997
Condifonal Contracts
A condifonal contract is a contract of sale which is subject to some condifon or confngency before
the obligafon to complete arises – fee simple will disappear if condifon subsequent not safsled
EG – subject to anance, subject to local government approval etc
Historically – Prior to the fulllment of the condifon by a third party, a vendor would not be ordered
to convey the property and consequently it was concluded that the purchaser did not have a
caveatable interest in land
Re Bosca Land Pty Ltd’s Caveat
Re Dimbury’s Caveat
Re CM Group Pty Ltd’s Caveat
Recently – a purchaser has an equitable interest in the land if he / she is enftled to some form of
equitable relief, such as an injuncfon, to protect that interest
Re Henderson’s Caveat


F
ACTS:c
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P6
9
Kuper v Keywest ConstrucGons

HELD:ap
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a
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ap
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d(
t
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e
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l
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me
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s
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)
Forder v Cemcorp

HELD:ap
e
r
s
o
nh
a
v
i
n
gt
h
eb
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n
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fi
t
o
f
a
no
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op
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p
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dg
r
a
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t
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gt
h
eo
p
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i
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n
A Mere Equity
A mere equity is likely to be a caveatable interest, at least where the facts are such that equity would
be prepared to protect the interest by remedies that auect the land in quesfon
Re Henderson’s Caveat
Lapsing of Caveats
Caveat lodged under s 122(1)(a) will lapse either:

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
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Caveat will not lapse if caveator commences acfon in Sup Ct to establish their interest prior to 3
months or 14 days, as applicable
Caveats are non-lapsing if lodged:
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LTA s 126(1)x
Caveator can withdraw caveat
LTA s 125
Removal of caveat by court order
A caveatee may apply at any fme for an order for removal from the Supreme Court
LTA s 127(1)
Removal extends to a caveat lodged by a purchaser under an instalment contract under PLA s 74
PLA s 74(2)
Caveatee includes a:


Re
g
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t
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f
s
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)
Re Henderson’s Caveat

p
u
r
c
h
a
s
e
r
u
n
d
e
r
c
o
n
t
r
a
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t
o
f
s
a
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f
p
a
r
t
o
f
t
h
el
a
n
d
AB v IJ

p
a
r
t
yt
oamu
l
t
i
p
r
o
p
e
r
t
yc
o
n
t
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t
n
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n
t
e
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s
t
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np
r
o
p
e
r
t
yn
o
t
p
u
r
c
h
a
s
i
n
g
LTA Sch 2
Analogous to an interlocutory injuncfon hearing
Re Burman’s Caveat
The caveator has onus (Re Jorss’ Caveat) of establishing that:
a
)t
h
e
r
ei
sas
e
r
i
o
u
sq
u
e
s
t
i
o
nt
ob
et
r
i
e
d
;
AND
Must show a suicient likelihood of success to jusGfy in the circumstances the
preservaGon of the status quo (ABC v O’Niell) and that it is fairly arguable the
caveator has a caveatable interest (Tendiris)
b
)t
h
eb
a
l
a
n
c
eo
f
c
o
n
v
e
n
i
e
n
c
er
e
q
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st
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t
t
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sq
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ob
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t
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db
yt
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t
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u
e
de
x
i
s
t
e
n
c
eo
f
t
h
e
c
a
v
e
a
t
Assessment of whether the caveat should be maintained to protect the caveator – will the
claim of the caveator be ajected by the removal
Is there hardship to the caveatee?
Can condiGons be imposed to protect the caveator’s interest?
Just because there is a caveatable interest does not mean it will be maintained
2
3
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Re Burman’s Caveat
Undertaking as to damages will ordinarily be required by caveator
Re South Brisbane Motors Pty Ltd’s Caveat
See also Re Clement’s Caveat
A refusal to give an undertaking as to damages will weigh against the party in assessing the balance of
convenience
Lodgment of a second caveat
Generally, a second caveat cannot be lodged on the same or substanfally the same grounds without
leave of the court
LTA s 129
There are two applicafons:
a
)I
n
t
e
r
e
s
t
c
l
a
i
me
dc
a
nb
et
h
es
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meb
u
t
g
r
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n
d
smu
s
t
b
ed
i
ff
e
r
e
n
t
b
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f
i
n
t
e
r
e
s
t
d
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ff
e
r
e
n
t
b
u
t
g
r
o
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n
d
st
h
es
a
met
h
e
ns
e
c
t
i
o
na
p
p
l
i
e
s
Re ADC ProperGes (Qld) Pty Ltd’s Caveat


F
ACTS:c
a
v
e
a
t
o
rc
l
a
i
me
da
ni
n
t
e
r
e
s
t
u
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d
e
r
ac
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t
r
a
c
t
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f
s
a
l
e
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h
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t
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s
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t
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da
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dt
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a
t
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t
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no
f
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n
t
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t
wa
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x
t
e
n
d
e
d
HELD:ami
n
o
r
v
a
r
i
a
t
i
o
ni
nt
h
et
e
r
mso
f
ac
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s
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ha
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x
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s
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no
f
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met
oc
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d
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ec
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In seeking leave of the Supreme Court, the court will consider whether:
a
) wh
e
t
h
e
r
t
h
e
r
ei
sas
e
r
i
o
u
sq
u
e
s
t
i
o
nt
ob
et
r
i
e
da
n
db
a
l
a
n
c
eo
f
c
o
n
v
e
n
i
e
n
c
e
;
AND
b
) wh
e
t
h
e
r
t
h
e
r
ei
ss
a
t
i
s
f
a
c
t
o
r
yr
e
a
s
o
n
sf
o
rl
a
p
s
ea
n
dd
e
l
a
yi
na
c
t
i
o
n
Landlush Pty Ltd v Rutherford
CompensaHon for improper caveat – make sure to apply the law / facts
Lodged with reasonable grounds – A person who lodges or confnues a caveat without reasonable
cause must compensate any person who suuers loss / damages as a result
LTA s 130(1)
Claimant for compensafon must allege and prove:
a
)L
odge
dwi
t
houtr
e
a
s
ona
bl
egr
ounds–a
b
s
e
n
c
eo
f
a
nh
o
n
e
s
t
b
e
l
i
e
f
o
nt
h
ep
a
r
t
o
f
t
h
ec
a
v
e
a
t
o
ro
n
r
e
a
s
o
n
a
b
l
eg
r
o
u
n
d
st
h
a
t
ac
a
v
e
a
t
a
b
l
ei
n
t
e
r
e
s
t
e
x
i
s
t
e
d
;
AND
Just because no caveatable interest does not mean no reasonable grounds: Kuper v
Keywest
reasonable cause must be an honest belief based on reasonable grounds that the
caveator has such an interest: Bedford ProperGes v Surgo
b
)I
mpr
ope
rpur
pos
e–t
h
ec
a
v
e
a
t
wa
sl
o
d
g
e
da
n
dma
i
n
t
a
i
n
e
df
o
ra
ni
mp
r
o
p
e
rp
u
r
p
o
s
e
Farvet v Frost

u
s
e
dc
a
v
e
a
t
t
od
e
l
a
yap
r
o
p
o
s
e
dc
h
i
l
d
c
a
r
ec
e
n
t
r
ewh
i
l
ea
n
o
t
h
e
r
wa
sb
u
i
l
t
a
d
j
o
i
n
i
n
g
Young v Rydalmere Credits

wh
e
r
ec
a
v
e
a
t
a
b
l
ei
n
t
e
r
e
s
t
e
x
i
s
t
sc
o
u
l
ds
t
i
l
l
b
el
o
d
g
e
df
o
r
i
mp
r
o
p
e
r
p
u
r
p
o
s
e
cf Beca Developments v Idameneo

c
o
u
r
t
sh
i
s
t
o
r
i
c
a
l
l
yg
u
a
r
d
e
dt
h
er
i
g
h
t
o
f
ap
e
r
s
o
nt
ol
o
d
g
eac
a
v
e
a
t
,
u
n
l
i
k
et
h
a
t
i
nY
o
u
n
g
Onus – note diuerences:

On
u
st
op
r
o
v
er
e
a
s
o
n
a
b
l
ec
a
u
s
e(
p
r
e
s
u
mp
t
i
o
na
g
a
i
n
s
t
i
t
)o
nt
h
ep
e
r
s
o
nwh
ol
o
d
g
e
d/
c
o
n
t
i
n
u
e
dt
h
e
c
a
v
e
a
t
:L
T
As1
3
0
(
3
)
2
4
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

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mp
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l
i
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n
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2
5
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SETTLEMENT NOTICES
Seclement NoHces
Used by purchasers or mortgagees to maintain priority
Euect of sejlement nofce:




Ha
l
t
sr
e
g
i
s
t
r
a
t
i
o
no
f
i
n
t
e
r
e
s
t
so
v
e
rt
h
el
o
t
Pr
e
s
e
r
v
e
sp
l
a
c
ei
nt
h
eq
u
e
u
e
Gi
v
e
sn
o
t
i
c
eo
f
t
h
ei
n
t
e
r
e
s
t
L
a
s
t
so
n
l
yf
o
r
ama
x
i
mu
mo
f
2mo
n
t
h
s
Does not prevent registrafon of:





I
n
s
t
r
u
me
n
t
ss
p
e
c
i
fi
e
do
r
c
o
n
s
e
n
t
e
dt
o
I
n
s
t
r
u
me
n
t
o
f
t
r
a
n
s
f
e
r
o
f
amo
r
t
g
a
g
e
Ani
n
t
e
r
e
s
t
t
h
a
t
d
o
e
sn
o
t
a
ff
e
c
t
t
h
ei
n
t
e
r
e
s
t
c
l
a
i
me
d
I
n
s
t
r
u
me
n
t
l
o
d
g
e
dp
r
i
o
rt
or
e
g
i
s
t
r
a
t
i
o
n
Ca
v
e
a
t
OperaHon of Seclement NoHces
Who may deposit
Sejlement nofce may be deposited by or for a transferee
LTA s 140
Transferee delned as a purchaser for value or a person enftled to an interest in a lot
LTA s 138
Holts Registrafon
The deposit of a sejlement nofce will prevent registrafon of an instrument auecfng the lot unfl
the nofce lapses or is withdrawn, cancelled or removed
LTA s 141
However, sejlement nofce does not prevent registrafon of:
a
)a
ni
n
s
t
r
u
me
n
t
s
p
e
c
i
fi
e
di
nt
h
es
e
t
t
l
e
me
n
t
n
o
t
i
c
et
owh
i
c
ht
h
en
o
t
i
c
ed
o
e
s
n
’
t
a
p
p
l
y
b
)a
ni
n
s
t
r
u
me
n
t
i
f
t
h
et
r
a
n
s
f
e
r
e
ec
o
n
s
e
n
t
st
oi
t
sr
e
g
i
s
t
r
a
t
i
o
n
c
)a
ni
n
s
t
r
u
me
n
t
t
r
a
n
s
f
e
r
r
i
n
gamo
r
t
g
a
g
ewh
e
r
et
h
emo
r
t
g
a
g
ewa
sr
e
g
i
s
t
e
r
e
db
e
f
o
r
el
o
d
g
me
n
t
o
f
t
h
en
o
t
i
c
e
d
)a
n
o
t
h
e
ri
n
t
e
r
e
s
t
t
h
a
t
,
i
f
r
e
g
i
s
t
e
r
e
d
,
wi
l
l
n
o
t
a
ff
e
c
t
t
h
ei
n
t
e
r
e
s
t
e
)a
ni
n
s
t
r
u
me
n
t
l
o
d
g
e
db
e
f
o
r
et
h
en
o
t
i
c
e
LTA s 141(2)
Preserves a place in the queue
Instruments lodged aoer the sejlement nofce and which are prevented from being registered by
the sejlement nofce are deemed to be lodged aoer the instruments speciled in the sejlement
nofce
LTA s 150
Registrar may withdraw an instrument that has been lodged but prevented from being registered by
a sejlement nofce
LTA s 149
2
6
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Gives nofce
Deposit of a sejlement nofce will give nofce of the interests menfoned in the sejlement nofce to
any person carrying out an appropriate search
DuraHon of Seclement NoHce
May be withdrawn by a transferee
LTA s 142
A sejlement nofce lapses:
a
) 2mo
n
t
h
sa
f
t
e
ri
t
i
sd
e
p
o
s
i
t
e
d
;
o
r
b
) wh
e
na
l
l
i
n
s
t
r
u
me
n
t
sd
i
r
e
c
t
l
yr
e
l
a
t
e
dt
ot
h
et
r
a
n
s
a
c
t
i
o
n
,
a
n
ds
p
e
c
i
fi
e
di
nt
h
es
e
t
t
l
e
me
n
t
n
o
t
i
c
e
,
h
a
v
eb
e
e
n
l
o
d
g
e
d
;
LTA s 143
Sejlement nofce can be removed by court order
LTA s 144
Sejlement nofce can be cancelled by registrar
LTA s 145
A further sejlement nofce cannot be lodged without leave
LTA s 146
Compensafon for improper sejlement nofce – ie must deposit with reasonable cause (similar to s
130)
LTA s 147(1)
Requirements of a seclement noHce
See text p 437 for extensive list.
Seclement NoHces to be Replaced by Priority NoHces
Land and Other Legislafon Amendment Bill 2016





Ame
n
d
st
h
eL
a
n
dTi
t
l
eAc
t
(
s
s
1
3
8
1
4
9
)t
or
e
p
l
a
c
eSe
t
t
l
e
me
n
t
No
t
i
c
e
swi
t
hPr
i
o
r
i
t
yNo
t
i
c
e
s
Pr
i
o
r
i
t
yNo
t
i
c
e
sh
a
v
eamu
c
hwi
d
e
ra
mb
i
t
o
f
o
p
e
r
a
t
i
o
nt
h
a
nSe
t
t
l
e
me
n
t
No
t
i
c
e
s
,
wh
i
c
ho
n
l
yc
o
u
l
db
e
l
o
d
g
e
db
yt
r
a
n
s
f
e
r
e
e
s
Pr
i
o
r
i
t
yNo
t
i
c
e
sma
yb
el
o
d
g
e
db
ya
n
yp
e
r
s
o
n“
wh
oi
s
,
o
rwi
l
l
b
e
,
ap
a
r
t
yt
oa
ni
n
s
t
r
u
me
n
t
”
Un
l
i
k
eac
a
v
e
a
t
,
wh
i
c
hf
r
e
e
z
e
st
h
eRe
g
i
s
t
e
r
,
aPr
i
o
r
i
t
yNo
t
i
c
ewi
l
l
d
e
t
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r
mi
n
ep
r
i
o
r
i
t
ywh
e
r
ea
ni
n
s
t
r
u
me
n
t
t
owh
i
c
hi
t
r
e
f
e
r
si
sl
o
d
g
e
d
APr
i
o
r
i
t
yNo
t
i
c
ewi
l
l
n
o
t
p
r
e
v
e
n
t
t
h
el
o
d
g
e
me
n
t
o
f
ac
a
v
e
a
t
2
7
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PRIORITIES
PRIORITIES INTRO
Unregistered Interests can co-exist alongside registered interests
Barry v Heider
Conlrmed in Chan v Cresdon
See also Butler v Fairclough
Two types of unregistered interests:
a
)t
h
o
s
ec
a
p
a
b
l
eo
f
b
e
i
n
gr
e
g
i
s
t
e
r
e
d
,
wh
i
c
hh
a
v
en
o
t
(
mo
r
t
g
a
g
e
,
e
g
)
b
)t
h
o
s
en
o
t
c
a
p
a
b
l
eo
f
b
e
i
n
gr
e
g
i
s
t
e
r
e
d(
e
q
u
i
t
a
b
l
ef
e
es
i
mp
l
e
,
e
g
)
Can be exfnguished by:
a
)r
e
g
i
s
t
r
a
t
i
o
no
f
al
a
t
e
ri
n
c
o
n
s
i
s
t
e
n
t
i
n
t
e
r
e
s
t
o
r
b
)c
r
e
a
t
i
o
no
f
al
a
t
e
ri
n
c
o
n
s
i
s
t
e
n
t
(
u
n
r
e
g
i
s
t
e
r
e
d
)l
e
g
a
l
/
e
q
u
i
t
a
b
l
ei
n
t
e
r
e
s
t
Can be protected by lodging a caveat
PRIORITIES BETWEEN MORTGAGEES
Power of sale by mortgagee
When a mortgagee exercises a power of sale – Mortgagees are paid out according to priority
a
) fi
r
s
t
l
y
,
p
a
y
me
n
t
o
f
c
o
s
t
s
,
c
h
a
r
g
e
sa
n
de
x
p
e
n
s
e
si
n
c
u
r
r
e
dp
a
i
dt
omo
r
t
g
a
g
e
e
b
) Th
efi
r
s
t
mo
r
t
g
a
g
e
eg
e
t
sp
a
i
do
u
t
i
nf
u
l
l
(
i
f
e
n
o
u
g
h
)
c
)I
f
t
h
e
r
ei
sa
n
yr
e
s
i
d
u
e
,
t
h
es
e
c
o
n
dmo
r
t
g
a
g
e
eg
e
t
sp
a
i
do
u
t
i
nf
u
l
l
,
t
h
e
nt
h
et
h
i
r
d
,
e
t
c
PLA s 88
If an instrument of transfer aoer exercising power of sale is executed by mortgagee, mortgagee’s
interest is exfnguished aoer the sale – goes to transferee free from liability under the mortgage
LTA s 79
PRIOR REGISTERED INTEREST FOLLOWED BY SUBSEQUENT
REGISTERED INTEREST
General Law
Prior legal estate followed by subsequent legal estate
nemo dat quod non habet – you cannot give what you do not have – priority is accorded to the interest created
lrst in fme
Under LTA
An interest is created or transferred upon registrafon
LTA s 182
Priority based on fme registered instruments lodged
LTA s 178
Indefeasibility of registered interests, provided none of the excepfons (fraud / in personam) apply
LTA s 184(1)
2
8
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PRIOR REGISTERED INTEREST FOLLOWED BY SUBSEQUENT
EQUITABLE ESTATE
General Law
The earlier legal interest prevails, unless it should be postponed because of fraud, blameworthy
conduct or an estoppel
see Northern CounGes v Whipp (fraud)
Barry v Heider (estoppel)


F
ACTS:Bwa
sRP
.Si
g
n
e
dt
r
a
n
s
f
e
ro
f
l
a
n
dt
oS.T
r
a
n
s
f
e
r
a
c
k
n
o
wl
e
d
g
e
dt
h
a
t
Sh
a
dp
a
i
df
o
r
t
h
el
a
n
d
.
I
nf
a
c
t
,
Sp
a
i
dn
o
t
h
i
n
g
.St
h
e
nu
s
e
ds
i
g
n
e
dt
r
a
n
s
f
e
r
t
omo
r
t
g
a
g
ep
r
o
p
e
r
t
yt
oH.T
r
a
n
s
f
e
r
a
n
dmo
r
t
g
a
g
e
n
o
t
r
e
g
i
s
t
e
r
e
d
.Bs
u
c
c
e
e
d
e
di
no
b
t
a
i
n
i
n
ga
no
r
d
e
rr
e
s
t
r
a
i
n
i
n
gr
e
g
i
s
t
r
a
t
i
o
no
f
t
h
et
r
a
n
s
f
e
r
a
n
da
d
e
c
l
a
r
a
t
i
o
nt
h
a
t
t
h
et
r
a
n
s
f
e
r
wa
sv
o
i
da
sa
g
a
i
n
s
t
S
HELD:t
h
ee
x
e
c
u
t
e
dt
r
a
n
s
f
e
r
o
p
e
r
a
t
e
da
sar
e
p
r
e
s
e
n
t
a
t
i
o
nt
h
a
t
Sh
a
da
ni
n
t
e
r
e
s
t
i
nt
h
ep
r
o
p
e
r
t
ywh
i
c
h
wa
su
n
e
n
c
u
mb
e
r
e
db
ya
n
yi
n
t
e
r
e
s
t
o
f
Ba
n
dt
h
a
t
a
sHh
a
da
c
t
e
dt
oh
e
r
d
e
t
r
i
me
n
t
o
nt
h
er
e
p
r
e
s
e
n
t
a
t
i
o
n
,
Bwa
se
s
t
o
p
p
e
l
f
r
o
md
e
n
y
i
n
gt
h
er
e
p
r
e
s
e
n
t
a
t
i
o
n
Under the LTA
RP holds indefeasible ftle, subject to indefeasibility excepfons
LTA s 184(1)
Barry v Heider
PRIOR EQUITABLE ESTATE FOLLOWED BY SUBSEQUENT REGISTERED
INTEREST
General Law
A person acquires a legal estate bona lde for value without nofce – take free of prior equitable
interest
Pilcher v Rawlins
If the holder of a later legal estate has actual, construcfve or imputed nofce of a prior equitable
estate, he or she takes subject to that prior equitable estate
Deventer Pty Ltd v BP Australia
RestricRon on construcRve noRce – a purchaser will be deemed to have knowledge of majers that
would be ascertained had the purchaser made such searches and inspecfons as ought reasonably to
have been made
see PLA s 346
Under the LTA
An interest is created in law upon registrafon
LTA s 182
Legal interest are indefeasible and not auected by nofce of an earlier unregistered interest (unlike
above)
LTA s 184(2)(a)
Friedmann v BarreS

me
r
en
o
t
i
c
et
h
a
t
r
e
g
i
s
t
r
a
t
i
o
nwo
u
l
dd
e
f
e
a
t
a
nu
n
r
e
g
i
s
t
e
r
e
di
n
t
e
r
e
s
t
i
sn
o
t
f
r
a
u
d
The above will not apply if the subsequent RP is guilty of fraud, in personam applies or any other
excepfon to s 184
2
9
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LTA ss 184, 185
COMPETING EQUITABLE INTERESTS
General Law + LTA
Resolve by applying general law principles
Breskvar v Wall
Where there is noHce
Where there is nofce of the earlier interest, the holder of the second interest takes that interest
subject to the earlier interest (nofce means actual, construcfve or imputed nofce)
Lapin v Abigail
Pilcher v Rawlins
Rule applies under the general law whether the estate taken by the purchase with nofce is a legal or
equitable interest
MojeS v Dillon
Lodging a caveat and/or sejlement nofce will give construcfve (or actual) nofce of the existence of
the interest (second funcfon)
Lapin v Abigail
JNJ Investments Australia v Sunnyville


F
ACTS:s
e
t
t
l
e
me
n
t
n
o
t
i
c
el
o
d
g
e
db
yp
u
r
c
h
a
s
e
r(
S)
b
e
f
o
r
ei
t
h
a
de
n
t
e
r
e
di
n
t
ot
h
ec
o
n
t
r
a
c
t
t
op
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r
c
h
a
s
e
l
a
n
df
r
o
mt
h
ev
e
n
d
o
r
.Ont
h
ed
a
ys
c
h
e
d
u
l
e
df
o
r
s
e
t
t
l
e
me
n
t
,
t
h
ev
e
n
d
o
r
s
o
l
dt
h
el
a
n
dt
oJt
h
u
sp
r
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v
e
n
t
i
n
g
Sf
r
o
mp
a
y
i
n
gt
h
eb
a
l
a
n
c
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f
t
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ep
u
r
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h
a
s
ep
r
i
c
ea
n
ds
e
t
t
l
i
n
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ec
o
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t
r
a
c
t
.Ja
c
q
u
i
r
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di
t
si
n
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r
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s
t
i
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e
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a
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da
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a
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do
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et
h
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r
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h
a
s
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r
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n
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oap
r
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wi
t
hS,
a
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HELD:a
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Construcfve nofce = knowledge that would have come to a person’s ajenfon had that person made
the inquiries that a reasonably prudent person would have made in the circumstances
see Hunt v Luck

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RestricRon on construcRve noRce – a purchaser will be deemed to have knowledge of majers that
would be ascertained had the purchaser made such searches and inspecfons as ought reasonably to
have been made
see PLA s 346
The knowledge of a solicitor or agent is imputed to the purchaser
PLA s 346(1)(b)
No NoHce
Where there is no nofce of the earlier interest - the rule in Rice v Rice applies:
3
0
Downloaded by Mojtaba Dani (mojtaba.dani@gmail.com)
lOMoARcPSD|3076807


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Relevant factors to determine bejer equity include:



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Rice v Rice
Breskvar v Wall


F
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To determine the bejer equity, regard should be had to all circumstances, including those that arise
aoer equitable interests are acquired / created
Clark v Raymor (Brisbane)


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The fact that an equitable interest is evidenced by an instrument in registrable form does not given
the holder bejer equity
MojeS v Dillon

HELD:n
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Circuit Finance v Wills
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3
1
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
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PRIORITIES AND CAVEATS
Primary funcfon of a caveat – to freeze the Register – prevents the registrafon of instruments
LTA s 124
Secondary funcfon – give nofce of the existence of an unregistered interest
J & H Just Holdings Pty Ltd v Bank of New South Wales
A failure to caveat will not auect compefng priorifes if:
a
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eh
o
l
d
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Lynch v O’Keefe
There is no need for an equitable mortgagee who holds the cerflcate of ftle to lodge a caveat
J & H Just v Bank of New South Wales
Note LTA s 75

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Clark v Raymor (Brisbane) – see above
VOLUNTEERS
Volunteers prior to registraHon
Volunteers take subject to all prior equifes – equity will not assist a volunteer
Volunteer gio complete in equity if the donor has not everything necessary to be done, although
something may remain to be done which can be done by someone else
PLA s 200 – the general rule as to whether a gio of property is complete
Corin v Pajon

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Volunteers a\er registraHon
Benelts of indefeasibility apply whether or not considerafon is given
LTA s 180
ADVERSEPOSSESSI
ON
OWNERSHIP, POSSESSION AND TITLE
Title – The right to maintain or recover possession of land against all other persons
Asher v Whitlock
Possession (‘seisen’) is the root of ftle
Relafvity of ftle – ftle is a relafve concept – Who has the bejer right to possession?
3
2
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Remedies for interference with rights of possession – Ejectment and recovery of possession
Adverse possession – The true owner loses the right to eject a person in possession with the
e|uxion of fme
ADVERSE POSSESSOR – GENERAL LAW – MUST APPLY
General Law
A registered proprietor does not obtain the benelt of s 184 indefeasibility against the interest of an
adverse possessor
LTA s 185(1)(d)
Adverse possessor is delned as a person:
a
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a
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LTA Sch 2
ELEMENTS
a
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Re Johnson
ESTABLISHING “ADVERSE POSSESSION”
ADVERSE POSSESSION
Two elements:
a
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v
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t
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’
McConaghy v Denmark; Mulcahy v Curramore
POSSESSION
What is required is possession which is ‘open, not secret; peaceful, not by force; and adverse, not by
the consent of the true owner’
Mulcahy v Curramore
Two elements:
a
)F
a
c
t
u
a
l
Po
s
s
e
s
s
i
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l
)
b
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n
t
e
n
t
i
o
nt
op
o
s
s
e
s
s
Buckinghamshire County Council v Moran
Factual Possession
Requires that the person in possession exercise a suzcient degree of physical custody and control –
amounfng to single and exclusive possession
Powell v McFarlane
3
3
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J A Pye (Oxford) Ltd v Graham
Need to show that the possessor has been dealing with the land as the occupying owner might be
expected to deal with it, and to the exclusion of all others
Powell v McFarlane
Acts that give rise to a suzcient degree of physical custody and control depend upon the nature of
the land the usual type of use of the land – eg: farm land and residenfal land may require diuerent
means of exercising control
J A Pye (Oxford) Ltd v Graham
IntenHon of possess
Requires an intenfon to exclude the world at large, including the true owner – no need to show an
intenfon to own the property
Powell v McFarlane
If the owner has consented to occupafon – no intenfon to possess
Intenfon to possess is inferred from the facts – owner intenfon is largely irrelevant
Acts of Possession
Entry into possession is not suzcient on its own
LAA s 21; Mulcahy v Curramore
Fencing – good sign of intenfon to possess
Buckinghamshire County Council v Moran

f
e
n
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go
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di
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t
Monash City Council v Melville

c
o
n
s
t
r
u
c
t
i
o
no
f
f
e
n
c
ewi
t
hi
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n
dwa
ss
u
ffic
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e
n
t
Paying rates – can be strong evidence but not conclusive – and not essenfal (can establish without
paying rates)
Re Johnson
Monash CC v Melville
CulRvaRng the land – culfvafng farming land together with fencing has been suzcient
JA Pye (Ocford) v Graham
Camping – from fme to fme and paying rent was insuzcient
Re Johnson
LIMITATION PERIOD + ACCRUAL PERIOD
An acfon shall not be brought by a person to recover land aoer:
a
)t
h
ee
x
p
i
r
a
t
i
o
no
f
1
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e
a
r
s
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ed
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t
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er
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h
t
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a
c
t
i
o
na
c
c
r
u
e
d
LimitaGons of AcGons Act 1974 (Qld) s 13
The ‘true owner’s’ ftle is exfnguished once the limitafon period expires
LAA s 24
The adverse possessor can also apply to become the registered owner of the land
LTA
Commencement of the limitaHon period – Present Interests
3
4
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The right of acfon to recover possession accrues on the date the person:
a
) wa
sd
i
s
p
o
s
s
e
s
s
e
d(
b
ys
o
me
o
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ee
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o
s
s
e
s
s
i
o
n(
b
yv
a
c
a
t
i
n
gt
h
ep
r
o
p
e
r
t
y
)
LAA s 14(1)
The right to recover is deemed not to accrue unless there is someone in possession of the land in
whose favour the limitafon period can run – ie there must be a person in adverse possession
LAA s 19(1)
There is a requirement of conRnuous adverse possession
LAA s 19(2)
Extension of limitaHon period
Disability
Where owner has a disability on the date that the right of acfon accrues, the limitafon period may
be extended 6 years from the date disability ceased of owner dies (whichever lrst)
LAA s 29
A disability means the person is an infant / unsound of mind
LAA s 5(2)

UNSOUNDMI
ND:p
e
r
s
o
ni
s–i
n
v
o
l
u
n
t
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r
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n
d
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r
Me
n
t
a
l
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a
l
t
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t
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f
o
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n
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cd
i
s
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b
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yc
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o
r
i
n
c
u
s
t
o
d
y
In any case, must be brought within 30 years of date the right of acfon accrues
LAA s 29(2)(b)
Unknown idenRty
If the idenfty of the true owner is unknown / not established, the limitafon period if 30 years from the fme
that the adverse possessor takes possession
LTA s 29(2)(b)
Fraud / mistake
Where acfon to recover is based on fraud/mistake, fme runs from when owner discovered/could have
discovered with reasonable diligence
LAA s 38
Gaps in adverse possession
Adverse possession must be confnuous
LAA s 19(2)
If the adverse possessor abandons the land, the limitafon period stops running
Trustees, Executors & Agency v Short
Adverse possessor cannot rely on previous periods of adverse possession – ie where there a gaps in possession
Trustees, Executors & Agency v Short
The test is whether the possessor maintained confnuous possession and an intenfon to possess for the whole
of the 12 years – short breaks (eg holidays) do not prove abandonment
Bligh v MarGn; Nicholas v Andrew
Successive adverse possessors
3
5
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It can be possible to establish the required confnuous possession by a series of occupiers
Asher v Whitlock
As long as there is no break in possession, the succeeding possessor may add to their fme in possession
any periods of possession by preceding occupiers
Mulcahy v Curramore
AcHon under will or intestacy
Where person brings an acfon to recover the land of a deceased person (either under will or intestacy)
and the deceased person was in possession of the land at the fme of their death, the acfon will be
deemed to accrue on the date of death
LAA s 14(2)
However, there must be someone in adverse possession before an acfon accrues
LAA s 19(1)
In the case of fraud – acfon does not commence unfl the plainfu has discovered the fraud or ought with
reasonable diligence to have discovered it
LAA s 38
Commencement of the limitaHon period – Future Interests (eg remainderman /
revesioner)
Generally a future interest holder’s right of acfon accrues on the expiry of the previous interest
LAA s 15(1)
Where the adverse possession began during the previous interest, the limitafon period will expire either:
a
)1
2y
e
a
r
sf
r
o
mt
h
es
t
a
r
t
d
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t
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e
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r
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e
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r
sf
r
o
mt
h
ee
x
p
i
r
yo
f
t
h
ep
r
e
v
i
o
u
se
s
t
a
t
e
,
wh
i
c
h
e
v
e
ri
st
h
el
a
t
e
r
LAA s 15(2)
The creafon of new interests in land by way of assurance (eg transferring life estate) will not auect the
limitafon period
LAA s 15(3)
NOTE – there must be someone in adverse possession before an acfon accrues
LAA s 19(1)
STOPPING THE CLOCK
The limitafon period will stop running when:
a
)T
r
u
eo
wn
e
rr
e
t
a
k
e
sp
o
s
s
e
s
s
i
o
np
e
a
c
e
f
u
l
l
y
b
)T
r
u
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wn
e
rc
o
mme
n
c
e
sa
na
c
t
i
o
nt
or
e
c
l
a
i
mp
o
s
s
e
s
s
i
o
n
c
) Oc
c
u
p
i
e
ra
c
k
n
o
wl
e
d
g
e
st
i
t
l
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f
t
r
u
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wn
e
r(
s3
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)–t
i
mewi
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l
s
t
o
pr
u
n
n
i
n
ga
n
da
c
t
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me
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c
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a
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c
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d
g
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me
n
t
Adverse possession against the Crown is not possible in Queensland
LAA s 6(4)
ADVERSE POSSESSION AND TORRENS – text p 375-8
Registrafon of ftle of adverse possessor:
a
) Ap
p
l
i
c
a
t
i
o
nmu
s
t
b
ei
nr
e
s
p
e
c
t
o
f
t
h
ewh
o
l
eo
f
al
o
t
b
) Ca
n
n
o
t
r
e
g
i
s
t
e
rt
i
t
l
eo
v
e
rp
a
r
t
o
f
al
o
t
3
6
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c
) Noc
l
a
i
ma
g
a
i
n
s
t
t
h
eSt
a
t
eo
r
l
o
c
a
l
g
o
v
e
r
n
me
n
t
d
) En
c
r
o
a
c
h
me
n
t
sd
on
o
t
g
i
v
er
i
s
et
oa
d
v
e
r
s
ep
o
s
s
e
s
s
i
o
n
:
Sh
e
r
r
a
r
dvRe
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i
s
t
r
a
ro
f
T
i
t
l
e
s
LTA ss 98 - 108
Adverse possession as an excepfon to indefeasibility
LTA s 185(1)(d)
CONVEY
ANCI
NGPROCESS
Summary
Conveyancing Process:
1
) Ac
o
n
t
r
a
c
t
o
f
s
a
l
ei
sd
r
a
wnu
p
2
)F
o
r
ma
t
i
o
no
f
c
o
n
t
r
a
c
t
o
f
s
a
l
e
3
) Af
t
e
rf
o
r
ma
t
i
o
n
4
) Se
t
t
l
e
me
n
t
5
)L
o
d
g
e
me
n
t
6
) Re
g
i
s
t
r
a
t
i
o
n
Parfes




Se
l
l
e
r(
v
e
n
d
o
r
)
Bu
y
e
r(
p
u
r
c
h
a
s
e
r
)
Ou
t
g
o
i
n
g(
s
e
l
l
e
r
’
s
)mo
r
t
g
a
g
e
e
I
n
c
o
mi
n
g(
b
u
y
e
r
’
s
)mo
r
t
g
a
g
e
e
A contract of sale is drawn up
REIQ standard form contracts are commonly used
The contract must specify the essenfal terms of the agreement:





Pr
i
c
e
p
a
r
t
i
e
s
i
d
e
n
t
i
f
yo
f
p
r
o
p
e
r
t
y
i
n
c
l
u
s
i
o
n
s
/
e
x
c
l
u
s
i
o
n
s
c
o
mp
l
e
t
i
o
nd
a
t
e
The contract will usually be condifonal upon the purchaser obtaining lnance and being safsled that
there are no exisfng structural defects or defects in ftle the vendor will be unable to remove before
sejlement
Contract will usually specify that fme is of the essence
Contract must be in wrifng and signed to be enforceable
PLA s 59
See also PLA ss 10, 11
To transfer an interest at law requires an instrument in wrifng signed by the transferor
PLA s 10
Wrt creafng interests in land:
a
)c
r
e
a
t
i
o
n/
d
i
s
p
o
s
a
l
o
f
i
n
t
e
r
e
s
t
mu
s
t
b
es
i
g
n
e
db
yt
h
ep
e
r
s
o
nc
r
e
a
t
i
n
g/
c
o
n
v
e
y
i
n
gt
h
es
a
me
3
7
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b
)d
e
c
l
a
r
a
t
i
o
no
f
t
r
u
s
t
mu
s
t
b
ema
n
i
f
e
s
t
e
db
ys
o
mewr
i
t
i
n
gs
i
g
n
e
db
yp
e
r
s
o
nd
e
c
l
a
r
i
n
gt
h
et
r
u
s
t
(
o
rt
h
e
i
r
wi
l
l
)
c
)d
i
s
p
o
s
i
n
ga
ne
q
u
i
t
a
b
l
ei
n
t
e
r
e
s
t
mu
s
t
b
ep
r
o
v
e
db
ywr
i
t
i
n
go
f
t
h
ep
e
r
s
o
nd
i
s
p
o
s
i
n
go
f
i
t
(
o
r
t
h
e
i
ra
g
e
n
t
/
wi
l
l
)
PLA s 11
Upon entering into the contract of sale the purchaser takes an equitable interest in the property,
namely the equitable fee simple
FormaHon of Contract of Sale
Deposit paid, usually to a real estate agent to hold on trust
Upon entering into the contract of sale the purchaser takes an equitable interest in the property,
namely the equitable fee simple, which is a caveatable interest
Re Henderson’s Caveat
A sejlement nofce can be lodged at this point by buyer or mortgagee – reserves a posifon in
registrafon queue
see LTA s 141
Vendor holds the property on trust for the purchaser
Risk – passes to the purchaser, but note:


mo
n
e
yp
a
y
a
b
l
eu
n
d
e
ra
n
yi
n
s
u
r
a
n
c
ep
o
l
i
c
ywr
t
d
a
ma
g
e/
d
e
s
t
r
u
c
t
i
o
nt
ot
h
ev
e
n
d
o
ri
sp
a
y
a
b
l
eu
p
o
n
c
o
mp
l
e
t
i
o
n
,
n
o
t
wh
e
nr
i
s
kp
a
s
s
e
s(
PL
As6
3
)
r
i
g
h
t
t
or
e
s
c
i
n
db
e
f
o
r
ec
o
mp
l
e
t
i
o
n/
t
a
k
i
n
gp
o
s
s
e
s
s
i
o
nf
o
rd
e
s
t
r
u
c
t
i
o
n/
d
a
ma
g
et
od
we
l
l
i
n
gma
k
i
n
gi
t
u
n
fi
t
f
o
rd
we
l
l
i
n
g–u
p
o
nr
e
s
c
i
s
s
i
o
nmo
n
e
yp
a
i
db
yp
u
r
c
h
a
s
e
rwi
l
l
b
er
e
f
u
n
d
e
d(
PL
As6
4
)
Insurance
Should occur at this stage or before the contract is signed
Where a seller has an insurance policy but the buyer does not, the buyer can rely on the seller’s
insurance policy despite no privity of contract
PLA s 63
Right to rescind the contract for destrucfon of or damage to dwelling, making it unlt for dwelling
PLA s 64
A\er FormaHon of the Contract
5-business day cooling ou period aoer contract signed – applies to residenfal property sales (not
aucfon sales or commercial property):
Property OccupaGons Act 2014 (Qld) [formerly PAMDA] ss 166-168
Penalty of 0.25% of the purchase price
Can be waived or shortened
30-60 day period (as set out in the contract) between formafon and sejlement – allows the
purchaser to make:



s
e
a
r
c
h
e
sf
o
r
e
n
c
u
mb
r
a
n
c
e
so
rd
e
f
e
c
t
sa
ff
e
c
t
i
n
gt
i
t
l
et
h
a
t
a
r
en
o
t
me
n
t
i
o
n
e
di
nt
h
ec
o
n
t
r
a
c
t
a
n
d
p
h
y
s
i
c
a
l
i
n
s
p
e
c
t
i
o
n
so
f
t
h
ep
r
o
p
e
r
t
y
a
p
p
l
i
c
a
t
i
o
n
sf
o
r
b
a
n
kl
o
a
n
st
of
u
n
dt
h
ep
u
r
c
h
a
s
ep
r
i
c
e
At some point during this fme, the contract becomes uncondifonal
3
8
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Stamp duty (transfer duty) to be paid on the contract and instrument of transfer prior to sejlement
and lling
The vendor will arrange for the exisfng mortgagee to provide a discharge of mortgage (discharge will
occur at sejlement)
3
9
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Seclement
Just prior to sejlement the purchaser does a lnal ftle search
If unable to conduct ftle search because Titles Ozce is unavailable, fme is no longer of the essence
in the contract
PLA s 70A
At sejlement, the purchase price is paid in exchange for all documents necessary for the purchaser
to obtain a transfer
eg: release of mortgage; transfer and cerGacate of Gtle (if issued)
purchase price might be paid by incoming mortgagee
Vendor has an obligafon under the contract to provide good ftle – if vendor cannot do so the
purchaser should refuse to sejle
There is no vendor’s lien over the property
LTA s 191
Aoer sejlement purchaser has a right to possession
Lodgment
The incoming mortgagee or the transferee will lodge documents
a
) Re
l
e
a
s
eo
f
mo
r
t
g
a
g
e
,
t
r
a
n
s
f
e
ra
n
dn
e
wmo
r
t
g
a
g
e(
i
nt
h
a
t
o
r
d
e
r
)
b
) Ce
r
t
i
fi
c
a
t
eo
f
t
i
t
l
e(
i
f
o
n
eh
a
db
e
e
ni
s
s
u
e
d
)
Posifons in the queue for registrafon will be secured if a sejlement nofce had been lodged
Queensland forms only require Lot and RP informafon for Lot on Plan Descripfon
RegistraHon
Documents are registered in the order in which they are lodged
LTA s 177
The new registered owner obtains an indefeasible ftle upon registrafon
see LTA ss 37, 38, 181, 184 above
4
0
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SUMMARI
ES(
Sof
a
r
)
LEASE COVENANTS SUMMARY
Covenants implied by common law:



Qu
i
e
t
En
j
o
y
me
n
t
(
Au
s
s
i
eT
r
a
v
e
l
l
e
rvMa
r
k
l
e
a
)
No
n
d
e
r
o
g
a
t
i
o
nf
r
o
mg
r
a
n
t
(
Ma
r
t
i
n
sCa
me
r
aCo
r
n
e
rvHo
t
e
l
Ma
y
f
a
i
r
)
o h
a
sl
a
n
db
e
e
nma
d
ema
t
e
r
i
a
l
l
yl
e
s
sfi
t
f
o
rp
u
r
p
o
s
ef
o
rwh
i
c
hi
t
wa
sl
e
t
?(
Ma
r
t
i
n
sCa
me
r
a
;
Al
d
i
n
vL
a
t
i
me
r
)
o i
n
c
r
.
i
ni
n
s
u
r
a
n
c
ei
sn
o
t
an
o
n
d
e
r
o
g
a
t
i
o
nu
n
l
e
s
ss
ob
a
da
st
oma
k
eb
u
s
i
n
e
s
si
mp
o
s
s
i
b
l
e/
p
r
o
h
i
b
i
t
i
v
e(
O’
Ce
d
a
r
)
Do
e
st
h
ec
o
n
d
u
c
t
a
mo
u
n
t
t
oap
r
i
v
a
t
en
u
i
s
a
n
c
ea
si
nAu
s
s
i
eT
r
a
v
e
l
l
e
rvMa
r
k
l
e
a
?L
e
a
s
ei
st
r
e
a
t
e
da
sa
n
o
r
d
i
n
a
r
yc
o
n
t
r
a
c
t
…
Covenants implied by PLA – does not apply where expresscovenant…


Re
p
a
i
r(
PL
As1
0
5
(
1
)
(
b
)
)
o Mu
s
t
b
ek
e
p
t
i
nas
t
a
t
eo
f
r
e
p
a
i
rs
oc
a
nb
eu
s
e
db
yc
l
a
s
so
f
p
e
r
s
o
n
sf
o
rwh
i
c
ht
h
ep
r
e
mi
s
e
s
we
r
eo
c
c
u
p
i
e
df
o
r
,
h
a
v
i
n
gr
e
g
a
r
dt
oa
g
e
,
c
h
a
r
a
c
t
e
ra
n
dl
o
c
a
l
i
t
y(
Pr
o
u
d
f
o
o
t
vHa
r
t
)
o St
a
n
d
a
r
do
f
r
e
p
a
i
rr
e
q
u
i
r
e
di
su
s
u
a
l
l
yme
a
s
u
r
e
df
r
o
mt
h
ec
o
n
d
i
t
i
o
na
t
c
o
mme
n
c
e
me
n
t
o
f
l
e
a
s
e
(
Pr
o
u
d
f
o
o
t
vHa
r
t
)
o I
st
h
e
r
eah
i
g
h
e
r
o
b
l
i
g
a
t
i
o
np
u
r
s
u
a
n
t
t
oa
ne
x
p
r
e
s
sc
o
v
e
n
a
n
t
t
ok
e
e
p‘
i
ng
o
o
da
n
ds
u
b
s
t
a
n
t
i
a
l
’
r
e
p
a
i
d(
L
u
r
c
o
t
t
vWa
k
e
l
y
?
o Re
p
a
i
ri
sr
e
n
e
wa
l
o
rr
e
p
l
a
c
e
me
n
t
o
f
d
e
f
e
c
t
i
v
ep
a
r
t
sn
o
t
s
u
b
s
t
a
n
t
i
a
l
l
yt
h
ewh
o
l
eo
f
t
h
es
u
b
j
e
c
t
ma
t
t
e
r(
L
u
r
c
o
t
t
vWa
k
e
l
y
)
Re
n
t
(
PL
As1
0
5
(
1
)
(
a
)
)
Covenants may also be implied by applicafon of contractual principles


Se
er
e
l
e
v
a
n
t
c
o
n
t
r
a
c
t
p
r
o
v
i
s
i
o
n
s–e
x
p
r
e
s
sc
o
v
e
n
a
n
t
r
e
a
ds
u
b
j
e
c
t
t
oo
v
e
r
r
i
d
i
n
gi
mp
l
i
e
do
b
l
i
g
a
t
i
o
n
s(
q
u
i
e
t
e
n
j
o
y
me
n
t
/
n
o
n
d
e
r
o
g
a
t
i
o
n
)
o No
t
e–i
n
s
u
r
a
n
c
et
or
e
i
mb
u
r
s
ep
r
e
mi
u
msr
e
l
e
v
a
n
t
e
gb
u
s
i
n
e
s
se
ffic
a
c
y
BP Reanery v Shire of HasGngs
LEASE ASSIGNMENT SUMMARY




Co
n
s
e
n
t
o
b
t
a
i
n
e
d
?
T
r
a
n
s
f
e
ro
f
l
e
a
s
e
Pr
i
v
i
t
yo
f
K/
p
r
i
v
i
t
yo
f
e
s
t
a
t
e
?
o Nod
e
e
do
f
c
o
v
e
n
a
n
t
=n
op
r
i
v
i
t
yo
f
K
o I
f
r
e
g
i
s
t
e
r
e
d–L
T
As6
2
(
1
)a
p
p
l
i
e
sa
n
da
l
l
r
i
g
h
t
s
,
p
o
we
r
sa
n
dp
r
i
v
i
l
e
g
e
sa
n
dl
i
a
b
i
l
i
t
i
e
sv
e
s
t
o L
T
As6
2
(
3
)–wi
t
h
o
u
t
l
i
mi
t
i
n
g(
1
)
,
t
h
er
e
g
i
s
t
e
r
e
dt
r
a
n
s
f
e
r
e
eo
f
ar
e
g
i
s
t
e
r
e
dl
e
a
s
ei
sb
o
u
n
db
ya
n
d
l
i
a
b
l
eu
n
d
e
r
t
h
el
e
a
s
et
ot
h
es
a
mee
x
t
e
n
t
a
st
h
eo
r
i
g
i
n
a
l
l
e
a
s
e
Ap
p
l
i
c
a
t
i
o
no
f
L
T
As6
2
o Un
c
e
r
t
a
i
n
t
yi
na
p
p
l
i
c
a
t
i
o
n
o L
T
As6
2o
n
l
yo
p
e
r
a
t
e
st
ot
r
a
n
s
f
e
rc
o
v
e
n
a
n
t
st
h
a
t
t
o
u
c
h/
c
o
n
c
e
r
nt
h
el
a
n
d(
J
o
d
a
wa
yvL
a
n
g
t
o
n
)
 d
o
e
sNOTi
n
c
l
u
d
ep
e
r
s
o
n
a
l
c
o
v
e
n
a
n
t
s–e
gr
e
p
a
y
me
n
t
o
f
s
e
c
u
r
i
t
yd
e
p
o
s
i
t
o BUTs6
2
(
3
)p
u
r
p
o
r
t
st
ob
i
n
dl
e
s
e
eu
p
o
nt
r
a
n
s
f
e
ro
f
l
e
a
s
e‘
t
os
a
mee
x
t
e
n
t
a
so
r
i
g
i
n
a
l
l
e
s
s
e
e
’
o t
h
ee
ff
e
c
t
o
f
s6
2i
st
h
a
t
t
h
et
r
a
n
s
f
e
r
o
f
al
e
a
s
ec
r
e
a
t
e
sp
r
i
v
i
t
yo
f
e
s
t
a
t
ea
n
dKb
e
t
we
e
nl
e
s
s
o
ra
n
d
t
r
a
n
s
f
e
r
e
e(
Ka
r
a
c
o
mi
n
a
k
i
svBi
gCo
u
n
t
r
yDe
v
e
l
o
p
me
n
t
s
)
4
1
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o
T
h
u
s
,
i
f
a
p
p
r
o
a
c
hi
nKa
r
a
c
o
mi
n
a
k
i
si
sf
o
l
l
o
we
dal
e
s
s
e
ewi
l
l
b
el
i
a
b
l
eo
nt
h
ep
e
r
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
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4
2
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lOMoARcPSD|3076807
NATUREANDCREATI
ONOFLEASES
LEASES
A lease is the grant of a right to exclusive possession of land for a lxed or determinate term
Radaich v Smith
A lease is a contract and grants to the lessee an interest in land – commonly used in commercial
se}ngs
Terminology
Reversion – the lessor’s remaining interest in the premises during the currency of the lease
Demise / tenancy / lease – basically a lease, which is either the grant of a right of exclusive
possession for a lxed or determinate term or the document that records that grant
Holding over – occurs when the lessee remains in possession of the premises and pays rent aoer a
lxed term lease has expired
ESSENTIAL REQUIREMENTS FOR A LEASE
Elements
a
) Ag
r
a
n
t
b
yal
e
s
s
o
rt
oal
e
s
s
e
e
b
)o
f
ar
i
g
h
t
t
oe
x
c
l
u
s
i
v
ep
o
s
s
e
s
s
i
o
no
f
l
a
n
d
c
)f
o
rafi
x
e
do
r
d
e
t
e
r
mi
n
a
t
ep
e
r
i
o
do
f
t
i
me(
t
h
a
t
ma
yb
et
e
r
mi
n
a
t
e
de
a
r
l
i
e
ru
p
o
nd
e
f
a
u
l
t
)
d
)t
y
p
i
c
a
l
l
yi
ne
x
c
h
a
n
g
ef
o
rt
h
ep
a
y
me
n
t
o
f
r
e
n
t
a
n
d
/
o
ro
t
h
e
rc
o
n
s
i
d
e
r
a
t
i
o
n(
o
ro
t
h
e
r
wi
s
ee
n
t
e
r
e
di
n
t
ob
y
wa
yo
f
d
e
e
d
)
.
Radiach v Smith; Ashburn Anstalt v Arnold
Exclusive possession
Lessee must be given the legal right of exclusive possession
Radaich v Smith
This includes the right to exclude all others, including the lessor; however this is subject to statute
PLA s 107
A lessor is reserved the right of entry for:
a
)t
oe
n
t
e
r
a
n
dv
i
e
w–mu
s
t
g
i
v
el
e
s
s
e
e2d
a
y
sn
o
t
i
c
eo
f
i
n
t
e
n
t
i
o
nt
ov
i
e
wt
h
es
t
a
t
eo
f
r
e
p
a
i
r
b
)t
oe
n
t
e
r
a
n
dr
e
p
a
i
r
c
)t
oe
n
t
e
r
a
n
dc
a
r
r
yo
u
t
r
e
q
u
i
r
e
me
n
t
so
f
p
u
b
l
i
ca
u
t
h
o
r
i
t
y
,
a
n
dr
e
p
a
i
ru
n
d
e
rt
h
el
e
a
s
e–t
oe
n
s
u
r
e
c
o
mp
l
i
a
n
c
ewi
t
hl
e
g
i
s
l
a
t
i
o
n
d
)t
or
e
e
n
t
e
ra
n
dt
a
k
ep
o
s
s
e
s
s
i
o
n–mu
s
t
b
ei
n1mo
n
t
ha
r
r
e
a
r
s
PLA s 107x
Lessee has right to remove trespassers and to recover possession
Premises must be idenflable
Licences
A licence is (expressly or impliedly) granted to permit a person to use and/or occupy land without a
legal right of exclusive possession
Thomas v Sorrell
4
3
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lOMoARcPSD|3076807
Characterising the arrangement is a majer of substance over form – look for provisions that are
indicia of a lease rather than a licence:

Gr
a
t
ui
t
ousl
i
c
e
nc
e–u
s
u
a
l
l
yl
i
c
e
n
c
eg
r
a
n
t
e
dn
o
t
f
o
rc
o
n
s
i
d
e
r
a
t
i
o
n(
e
gu
s
efi
e
l
df
o
rs
o
f
t
b
a
l
l
)–e
n
t
i
t
l
e
dt
a
r
e
a
s
o
n
a
b
l
ep
e
r
i
o
do
f
t
i
mea
f
t
e
rr
e
v
o
c
a
t
i
o
nt
owi
t
h
d
r
a
w
Robson v HalleS

Cont
r
a
c
t
ua
l
l
i
c
e
nc
e–l
i
c
e
n
c
eg
i
v
e
nf
o
rc
o
n
s
i
d
e
r
a
t
i
o
n(
t
i
c
k
e
t
sf
o
rf
o
o
t
b
a
l
l
g
a
me
)–n
o
t
ap
r
o
p
r
i
e
t
a
r
y
i
n
t
e
r
e
s
t
,
s
oi
t
c
a
nb
er
e
v
o
k
e
de
v
e
ni
f
i
nb
r
e
a
c
ho
f
a
na
g
r
e
e
me
n
t
Cowell v Rosehill Racecourse

L
i
c
e
nc
ec
oupl
e
dwi
t
hi
nt
e
r
e
s
t–p
r
o
p
r
i
e
t
a
r
yi
n
t
e
r
e
s
t
s
oi
r
r
e
v
o
c
a
b
l
e–e
q
u
i
t
a
b
l
er
e
me
d
i
e
swi
l
l
b
e
a
v
a
i
l
a
b
l
e
Cowell v Rosehill Racecourse
Lease
Licence
Lessee has interest in land enforceable
through law of contract (subject to privity
of contract) and in rem (e.g. trespass,
nuisance)
Licensee has a personal right only, enforceable
through law of contract. (i.e. damages). No
interest in land.
Governed by PLA and enforceable against
third parfes (but consider whether subject
to indefeasibility)
Not generally governed by PLA and not
enforceable against third parfes in the absence of
privity of contract with those third parfes
Can be registered to obtain benelt of
indefeasibility
Cannot be registered to obtain benelt of
indefeasibility
Gives lessee right to exclusive possession
Legifmises licensee’s occupafon so that the
licensee is not a trespasser and may give licensee
fact of exclusive possession but not right of
exclusive possession.
TEST – Licence or lease?
A lease will be granted where the agreement evinces the parfes intended to grant a legal right to
exclusive possession for a speciled term – look to substance not form
Radaich v Smith
F
ACTS:Se
n
t
e
r
e
di
n
t
owr
i
t
t
e
na
g
r
e
e
me
n
t
wi
t
hRg
i
v
i
n
gh
e
r
t
h
e“
e
x
c
l
u
s
i
v
er
i
g
h
t
a
n
dl
i
c
e
n
c
e
”
t
oal
o
c
k
u
p
s
h
o
pa
n
dt
oc
a
r
r
yo
nt
h
eb
u
s
i
n
e
s
so
f
ami
l
kb
a
r
f
o
r
5y
e
a
r
s
.Th
ea
g
r
e
e
me
n
t
wa
sc
a
l
l
e
dal
i
c
e
n
c
ea
n
dt
h
e
p
a
r
t
i
e
st
h
el
i
c
e
n
s
o
r
a
n
dl
i
c
e
n
s
e
e
.
 HELD:al
e
a
s
ewa
sc
r
e
a
t
e
d
.T
h
ef
a
c
t
t
h
a
t
t
h
ea
g
r
e
e
me
n
t
wa
sl
a
b
e
l
l
e
dal
i
e
n
c
ewa
sn
o
t
d
e
t
e
r
mi
n
a
t
i
v
e
.
 TEST:Al
e
a
s
ei
sa
ni
n
t
e
r
e
s
t
i
nl
a
n
da
sd
i
s
t
i
n
c
t
f
r
o
map
e
r
s
o
n
a
l
p
e
r
mi
s
s
i
o
nt
oe
n
t
e
r
t
h
el
a
n
da
n
du
s
ei
t
f
o
r
s
o
mes
t
i
p
u
l
a
t
e
dp
u
r
p
o
s
eo
r
p
u
r
p
o
s
e
s
.
T
h
i
si
sd
e
t
e
r
mi
n
e
db
ys
e
e
i
n
gwh
e
t
h
e
r
t
h
eg
r
a
n
t
e
ewa
sg
i
v
e
na
l
e
g
a
l
r
i
g
h
t
o
f
e
x
c
l
u
s
i
v
ep
o
s
s
e
s
s
i
o
no
f
t
h
el
a
n
df
o
r
at
e
r
m

Street v Mounnord


F
ACTS:awr
i
t
t
e
na
g
r
e
e
me
n
t
t
oo
c
c
u
p
yt
wor
o
o
msf
o
r
as
t
i
p
u
l
a
t
e
dwe
e
k
l
yp
a
y
me
n
t
wa
st
e
r
mi
n
a
b
l
eo
n
1
4d
a
y
sn
o
t
i
c
e
.Th
i
sa
g
r
e
e
me
n
t
r
e
f
e
r
r
e
dt
ot
h
ea
r
r
a
n
g
e
me
n
t
a
sal
i
c
e
n
c
ea
n
di
n
c
l
u
d
e
da
ne
x
p
r
e
s
s
a
c
k
n
o
wl
e
d
g
me
n
t
b
yt
h
eo
c
c
u
p
i
e
r
t
h
a
t
n
ol
e
a
s
eo
r
t
e
n
a
n
c
ywa
si
ne
x
i
s
t
e
n
c
eo
r
wa
si
n
t
e
n
d
e
dt
oa
r
i
s
e
.
HELD:i
f
e
x
c
l
u
s
i
v
ep
o
s
s
e
s
s
i
o
no
f
r
e
s
i
d
e
n
t
i
a
l
a
c
c
o
mmo
d
a
t
i
o
nwe
r
eg
r
a
n
t
e
df
o
rat
e
r
m,
t
o
g
e
t
h
e
r
wi
t
ht
h
e
p
e
r
i
o
d
i
cp
a
y
me
n
t
o
f
f
u
l
l
e
c
o
n
o
mi
cr
e
n
t
,
t
h
e
nat
e
n
a
n
c
ywa
sc
r
e
a
t
e
d
4
4
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In determining whether a legal right to exclusive possession has been granted, considerafon should
be given to both the nature of the rights granted and the intenfon of the parfes
Lewis v Bell


F
ACTS:Se
v
e
r
a
l
h
o
r
s
es
t
a
l
l
s
,
h
o
r
s
et
r
a
i
n
i
n
gf
a
c
i
l
i
t
i
e
sa
n
da
c
c
o
mmo
d
a
t
i
o
ng
r
a
n
t
e
dt
ol
i
c
e
n
s
e
et
r
a
i
n
e
r
.
L
i
c
e
n
s
o
r
“
c
o
n
t
r
o
l
st
h
ep
r
e
mi
s
e
s
”
a
n
dh
a
sa
g
r
e
e
dt
oa
l
l
o
wl
i
c
e
n
s
e
e“
t
ou
s
et
h
ep
r
e
mi
s
e
s
”
o
namo
n
t
ht
o
mo
n
t
hb
a
s
i
sf
o
r
amo
n
t
h
l
yf
e
e
.Co
n
d
i
t
i
o
n
s–“
t
or
e
p
a
i
r
d
a
ma
g
ea
n
dk
e
e
pp
r
e
mi
s
e
si
ng
o
o
da
n
ds
a
n
i
t
a
r
y
o
r
d
e
r
”
,
“
t
og
i
v
eu
pp
r
e
mi
s
e
si
ng
o
o
do
r
d
e
r
a
n
dc
o
n
d
i
t
i
o
no
nt
e
r
mi
n
a
t
i
o
n
”
,
a
n
dt
h
el
i
c
e
n
s
o
r
“
ma
ye
n
t
e
r
a
n
d
i
n
s
p
e
c
t
”
HELD:L
i
c
e
n
c
e
.Ex
c
l
u
s
i
v
ep
o
s
s
e
s
s
i
o
ni
st
h
ec
o
r
n
e
r
s
t
o
n
eo
f
al
e
a
s
e
.He
r
et
h
en
a
t
u
r
eo
f
t
h
ea
g
r
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e
me
n
t
d
i
dn
o
t
e
v
i
n
c
ea
ni
n
t
e
n
t
i
o
nt
oc
o
n
f
e
ral
e
g
a
l
r
i
g
h
t
f
o
r
t
h
el
i
c
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n
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et
oc
o
n
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r
o
l
/
e
x
c
l
u
d
eo
t
h
e
r
sf
r
o
mt
h
es
t
a
l
l
–i
et
h
e
yc
o
u
l
d
n
’
t
l
o
c
ki
t
u
p
.
cf KJRR v Commissioner of State Revenue


F
ACTS:t
h
e
r
ewa
sa“
l
i
c
e
n
c
ea
g
r
e
e
me
n
t
”
t
h
a
t
p
e
r
mi
t
t
e
daf
r
a
n
c
h
i
s
e
et
oc
a
r
r
yo
nb
u
s
i
n
e
s
si
np
r
e
mi
s
e
s
l
e
a
s
e
db
yt
h
ef
r
a
n
c
h
i
s
o
r
.Cl
a
u
s
e2
.
2a
n
d2
.
3s
t
a
t
e
dt
h
a
t
t
h
el
i
c
e
n
c
ea
g
r
e
e
me
n
t
wo
u
l
dc
o
n
f
e
r
u
p
o
nt
h
e
l
i
c
e
n
s
e
en
or
i
g
h
t
o
f
e
x
c
l
u
s
i
v
eo
c
c
u
p
a
t
i
o
na
n
dd
i
dn
o
t
c
r
e
a
t
ea
n
yp
r
o
p
r
i
e
t
a
r
yi
n
t
e
r
e
s
t
.
HELD:i
swa
sn
o
t
a
p
p
r
o
p
r
i
a
t
et
oi
g
n
o
r
ec
l
a
u
s
e
s2
.
2a
n
d2
.
3a
n
di
t
st
e
r
mss
h
o
u
l
db
ea
p
p
l
i
e
dt
oc
o
n
fi
r
m
t
h
ed
o
c
u
me
n
t
wa
si
n
d
e
e
dal
i
c
e
n
c
e
.Mu
s
t
b
ec
a
u
t
i
o
u
sn
o
t
t
og
ot
o
of
a
r
i
nd
e
t
e
r
mi
n
i
n
gt
h
el
e
g
a
l
r
i
g
h
t
s
u
n
d
e
r
t
h
ec
o
n
t
r
a
c
t
Licence protecRon / remedies
Cannot protect licence by caveat
Terminafon may give rise to damages through breach of contract
Certainty of term – Fixed or determinate term
A lease must be for a delnite period of fme, which requires certainty in relafon to the:
a
)c
o
mme
n
c
e
me
n
t
d
a
t
e
;a
n
d
b
)t
h
ed
u
r
a
t
i
o
no
f
t
h
et
e
r
m
Say v Smith
Commencement date
A commencement date may be expressed by reference to an event or the happening of a
confngency
South Coast Oils v Look Enterprises

c
o
u
r
t
e
n
f
o
r
c
e
da
na
g
r
e
e
me
n
t
t
og
r
a
n
t
al
e
a
s
ef
o
r
as
p
e
c
i
fi
e
dt
e
r
mf
r
o
m“
t
h
ec
o
mp
l
e
t
i
o
no
f
t
h
es
e
r
v
i
c
e
s
t
a
t
i
o
n
”
.Byt
h
et
i
met
h
el
e
s
s
e
es
o
u
g
h
t
t
oe
n
f
o
r
c
et
h
ea
g
r
e
e
me
n
t
t
h
es
e
r
v
i
c
es
t
a
t
i
o
nwa
sc
o
mp
l
e
t
e
da
n
d
t
h
e
r
e
f
o
r
et
h
ec
o
n
t
i
n
g
e
n
c
yh
a
do
c
c
u
r
r
e
d
Commencement may also be implied based on the date of entry into possession and the payment of
rent
Jopling v Jopling
A lease which does not safsfy this requirement is void and unenforceable
Caboolture Park Shopping Centre v Edelstein
DuraRon
The maximum durafon of a lxed-term lease must be ascertainable at the fme that the lease
commences (can be a period or specify the date of terminafon)
4
5
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Charles Clay v BriGsh Railway Board
It is uncertain if the term of the lease is linked to an external collateral method of measurement
Lace v Chantler

al
e
a
s
ef
o
r
t
h
e“
d
u
r
a
t
i
o
no
f
t
h
ewa
r
”
i
si
n
v
a
l
i
da
st
h
et
e
r
mi
su
n
c
e
r
t
a
i
n
see also PrudenGal Assurance v London Residuary Body


l
e
a
s
et
oc
o
n
t
i
n
u
eu
n
t
i
l
t
h
el
a
n
dwa
sr
e
q
u
i
r
e
db
yt
h
ec
o
u
n
c
i
l
f
o
r
r
o
a
d
wi
d
e
n
i
n
gwa
si
n
v
a
l
i
d
Ho
we
v
e
r
,
al
e
a
s
ef
o
r
5y
e
a
r
swi
t
ht
h
er
i
g
h
t
t
od
e
t
e
r
mi
n
et
h
el
e
a
s
ei
f
t
h
ewa
re
n
d
swo
u
l
db
ec
e
r
t
a
i
n
The term that a lease commenced “on such terms as customarily apply to leases of this kind” are not
uncertain
Flexman v BorbeS


e
x
p
e
r
t
e
v
i
d
e
n
c
ec
o
u
l
db
eg
i
v
e
nt
os
a
t
i
s
f
yt
h
i
si
nc
o
u
r
t
NOT
E–t
h
i
si
sp
o
o
r
d
r
a
f
t
i
n
gp
r
a
c
t
i
c
e
Periodic tenancies – weekly / monthly – are certain because the original term is certain and such
tenancies can be determined at any fme by either party giving the appropriate nofce
PrudenGal Assurance v London Residuary Body
Tenancy at will – no set durafon but can be determined on proper nofce
FIXED TERM LEASES
General
A lease granted for a speciled period of fme and which automafcally terminates on the expiry date
Lace v Chantler
Does not have to be granted for a confnuous period
Smallwood v Sheppards
Lessee need not enter the premises for the lease to take euect
PLA ss 102(1), (2)
Requirements
Lease must have a certain term
a
) Co
mme
n
c
e
me
n
t
d
a
t
e
b
) En
dd
a
t
e
If a lease for > 3 years will only be a legal lease (ie enforceable at law) if:
a
) Co
n
t
a
i
ne
s
s
e
n
t
i
a
l
t
e
r
msa
n
dn
oCPr
e
q
u
i
r
e
dt
ob
ef
u
l
fi
l
l
e
d
Masters v Cameron
I
.
I
I
.
I
I
I
.
I
V
.
b
i
n
d
i
n
gc
o
n
t
r
a
c
t
wh
e
r
ep
a
r
t
i
e
sh
a
v
er
e
a
c
h
e
dfi
n
a
l
i
t
yi
na
r
r
a
n
g
i
n
ga
l
l
t
e
r
msa
n
di
n
t
e
n
dt
ob
e
i
mme
d
i
a
t
e
l
yb
o
u
n
d
,
b
u
t
p
l
a
nt
op
u
t
i
n
t
omo
r
ef
o
r
ma
l
d
o
c
u
me
n
t
b
i
n
d
i
n
gc
o
n
t
r
a
c
t
wh
e
r
ea
l
l
t
e
r
msa
g
r
e
e
d+n
o
t
i
n
t
e
n
t
i
o
nt
od
e
p
a
r
t
,
b
u
t
p
e
r
f
o
r
ma
n
c
ec
o
n
t
i
n
g
e
n
t
o
ne
x
e
c
u
t
i
o
no
f
af
o
r
ma
l
d
o
c
u
me
n
t
NOb
i
n
d
i
n
gc
o
n
t
r
a
c
t
wh
e
r
eb
a
r
g
a
i
nn
o
t
c
o
n
c
l
u
d
e
da
t
a
l
l
,
u
n
l
e
s
so
r
u
n
t
i
l
t
h
e
ye
x
e
c
u
t
eaf
o
r
ma
l
d
o
c
u
me
n
t
b
i
n
d
i
n
gc
o
n
t
r
a
c
t
i
f
p
a
r
t
i
e
sc
o
n
t
e
n
t
t
ob
ei
mme
d
i
a
t
e
l
yb
o
u
n
db
u
t
h
a
v
ea
g
r
e
e
du
p
o
ne
x
p
e
c
t
i
n
gt
o
ma
k
ef
u
r
t
h
e
r
a
me
n
d
me
n
t
s
:
Ba
u
l
k
h
a
mHi
l
l
sPr
i
v
a
t
eHo
s
p
i
t
a
l
vGRSe
c
u
r
i
t
i
e
s
b
) Co
n
t
r
a
c
t
mu
s
t
b
ei
nwr
i
t
i
n
ga
n
ds
i
g
n
e
dt
ob
ee
n
f
o
r
c
e
a
b
l
e
PLA s 11
4
6
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lOMoARcPSD|3076807
c
) Re
g
i
s
t
e
r
e
du
n
d
e
r
L
T
A
Lease for < 3 years is valid without wrifng or registrafon (see podcast 3 and 4)
Lease is only enforceable if all essenfal terms reduced to wrifng and signed by party to be sued.
Lease must not be subject to condifon precedent
PERIODIC TENANCY
General
Periodic tenancy is an automafcally renewing tenancy for the periods agreed or implied by law
(usually weekly, fortnightly, monthly or yearly)
Queens Club v Bignell
At the end of each period, a new period will commence unless the tenancy has been terminated by
nofce
Is a legal interest in land and has the benelt of indefeasibility as a short lease under the Land Title
Act 1994 (Qld)
Requirements
Periodic tenancy need not be in wrifng
PLA s 12
Can be created by express agreement between the parfes – eg month to month or year to year
Where no express agreement, a periodic tenancy can be implied from the terms agreed an all the
surrounding circumstances – payment of rent is one of the most crucial considerafons
Turner v York Motors

p
a
y
me
n
t
o
f
$
8
0
0mo
n
t
h
l
yr
e
n
t
i
na
d
v
a
n
c
ei
se
v
i
d
e
n
c
eo
f
amo
n
t
h
l
yt
e
n
a
n
c
ya
n
dg
i
v
e
sr
i
s
et
oap
r
i
ma
f
a
c
i
ec
a
s
ei
nf
a
v
o
u
r
o
f
amo
n
t
h
l
yt
e
n
u
r
e
Javad v Mohammed Aqil
4
7
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lOMoARcPSD|3076807
YEARLY TENANCY
General
A yearly tenancy confnued from year to year unfl it is determined by either the lessor or lessee by
giving appropriate nofce
CreaHon
Can occur in 5 ways:
1
) Ex
p
r
e
s
sg
r
a
n
t
2
)I
mp
l
i
e
db
ye
n
t
r
yi
n
t
op
o
s
s
e
s
s
i
o
na
n
dp
a
y
me
n
t
o
f
r
e
n
t
c
a
l
c
u
l
a
t
e
do
ny
e
a
r
l
yb
a
s
i
s(
J
a
v
a
dvMo
h
a
mme
d
Aq
i
l
)
3
) Ho
l
d
i
n
go
v
e
r–wh
e
r
el
e
s
s
e
eh
o
l
d
so
v
e
ra
f
t
e
rt
h
ee
x
p
i
r
yo
f
afi
x
e
d
t
e
r
ml
e
a
s
eo
rt
h
et
e
r
mi
n
a
t
i
o
no
f
a
t
e
n
a
n
c
ya
n
dr
e
n
t
i
sp
a
i
db
yr
e
f
e
r
e
n
c
et
oay
e
a
ro
r
p
a
r
t
yo
f
ay
e
a
r(
Mo
o
r
evDi
mo
n
d
)
4
)T
e
r
mst
o
ov
a
g
u
e–(
2
)
a
p
p
l
i
e
s
5
)I
n
f
o
r
ma
l
l
e
a
s
e–(
3
)
a
p
p
l
i
e
s
see Moore v Dimond



F
ACTS:fi
x
e
d
t
e
r
ml
e
a
s
ee
x
p
i
r
e
da
n
dM,
t
h
el
e
s
s
o
r
,
a
n
dD,
t
h
el
e
s
s
e
e
,
r
e
a
c
h
e
da
na
g
r
e
e
me
n
t
f
o
r
a
f
u
r
t
h
e
r
l
e
a
s
ef
o
r
5y
e
a
r
sa
t
ar
e
n
t
o
f
$
1
6
/
wk
.T
h
ea
g
r
e
e
me
n
t
wa
si
nwr
i
t
i
n
gb
u
t
n
of
o
r
ma
l
l
e
a
s
ewa
s
e
x
e
c
u
t
e
d
.I
n
i
t
i
a
l
l
y
,
t
h
el
e
s
s
e
er
e
ma
i
n
e
di
np
o
s
s
e
s
s
i
o
na
n
dp
a
i
dt
h
er
e
n
t
a
sa
g
r
e
e
d
,
b
u
t
h
et
h
e
nv
a
c
a
t
e
d
t
h
ep
r
e
mi
s
e
sd
u
r
i
n
gt
h
ea
d
d
i
t
i
o
n
a
l
5
y
e
a
r
p
e
r
i
o
d
.Th
el
e
s
s
o
rs
u
e
df
o
r
r
e
n
t
o
nt
h
eb
a
s
i
st
h
a
t
t
h
e
r
ewa
sa
y
e
a
r
l
yt
e
n
a
n
c
yi
mp
l
i
e
da
t
l
a
w,
wh
i
c
hh
a
dn
o
t
b
e
e
nv
a
l
i
d
l
yt
e
r
mi
n
a
t
e
db
yt
h
el
e
s
s
e
e
.I
t
wa
sa
r
g
u
e
dt
h
a
t
s
u
c
hat
e
n
a
n
c
ywo
u
l
db
ei
mp
l
i
e
db
yv
i
r
t
u
eo
f
t
h
el
e
s
s
e
eb
e
i
n
gi
np
o
s
s
e
s
s
i
o
na
n
db
yp
a
y
i
n
gr
e
n
t
p
u
r
s
u
a
n
t
t
oa
ni
n
f
o
r
ma
l
a
g
r
e
e
me
n
t
f
o
r
5
y
e
a
r
s
.
HELD:t
h
ec
i
r
c
u
ms
t
a
n
c
e
so
f
t
h
ep
a
r
t
i
e
sa
g
r
e
e
me
n
t
,
t
h
a
t
i
st
h
ei
n
f
o
r
ma
l
a
g
r
e
e
me
n
t
t
og
r
a
n
t
al
e
a
s
ef
o
r
a
f
u
r
t
h
e
r
5y
e
a
r
s
,
t
o
g
e
t
h
e
r
wi
t
ht
h
ep
a
y
me
n
t
a
n
da
c
c
e
p
t
a
n
c
eo
f
r
e
n
t
u
n
d
e
r
t
h
a
t
a
g
r
e
e
me
n
t
,
e
ff
e
c
t
i
v
e
l
y
d
e
s
t
r
o
y
e
da
n
yi
mp
l
i
c
a
t
i
o
nt
h
a
t
t
h
ei
n
t
e
n
t
i
o
no
f
t
h
ep
a
r
t
i
e
swa
st
oc
r
e
a
t
eawe
e
k
l
yt
e
n
a
n
c
yd
e
s
p
i
t
er
e
n
t
b
e
i
n
gp
a
i
do
nawe
e
k
l
yb
a
s
i
s
.
HELD:t
h
ep
a
r
t
i
e
si
n
f
o
r
ma
l
a
g
r
e
e
me
n
t
f
o
r
al
o
n
g
t
e
r
ml
e
a
s
ewa
sd
e
c
i
s
i
v
ea
n
dt
h
ewe
e
k
l
yr
e
n
t
wa
sp
a
r
t
c
o
mp
e
n
s
a
t
i
o
nf
o
rt
h
ee
n
t
i
r
ep
e
r
i
o
d
.I
t
wa
sf
u
r
t
h
e
r
n
o
t
e
dt
h
a
t
t
h
ei
mp
l
i
e
dt
e
n
a
n
c
yf
r
o
my
e
a
r
t
oy
e
a
r
d
i
d
n
o
t
r
e
s
t
o
nt
h
ea
c
t
u
a
l
i
n
t
e
n
t
i
o
no
f
t
h
ep
a
r
t
i
e
st
oc
r
e
a
t
es
u
c
hat
e
n
a
n
c
y
;
i
t
wa
sac
o
n
c
l
u
s
i
o
no
f
l
a
w.T
h
e
y
e
a
r
l
yt
e
n
a
n
c
yt
h
a
t
a
r
i
s
e
si
nt
h
e
s
ec
i
r
c
u
ms
t
a
n
c
e
si
so
n
ei
mp
l
i
e
do
r
i
mp
u
t
e
db
yl
a
w
Statutory Impact – PLA s 129
Where there is no agreement about the tenancies durafon – a yearly tenancy will no longer be
implied by the payment of rent and in its place, a tenancy at will shall be implied which is
determinable with 1 month nofce
PLA s 129(1)
This secfon has no applicafon where a weekly or monthly tenancy is implied
Burnham v Carroll Musgrove (weekly)
Turner v York Motors Pty Ltd (yearly)
This secfon does not apply to yearly tenancies expressly created
Brisbane City Council v Council Club


F
ACTS:t
h
el
e
s
s
e
eh
a
de
n
t
e
r
e
di
n
t
op
o
s
s
e
s
s
i
o
np
e
n
d
i
n
gfi
n
a
l
n
e
g
o
t
i
a
t
i
o
no
f
t
h
el
e
a
s
ewh
i
c
hwa
sn
e
v
e
r
c
o
n
c
l
u
d
e
d
.L
e
s
s
e
ep
a
i
da
na
n
n
u
a
l
r
e
n
t
o
n
c
eay
e
a
r
a
n
dt
h
i
sc
o
n
t
i
n
u
e
df
o
r
9y
e
a
r
s
.
HELD:L
e
s
s
e
e
swe
r
ei
np
o
s
s
e
s
s
i
o
np
u
r
s
u
a
n
t
t
oay
e
a
r
l
yt
e
n
a
n
c
ya
r
i
s
i
n
gb
yi
mp
l
i
c
a
t
i
o
no
f
l
a
wa
n
dwh
i
c
h
wa
sc
o
n
v
e
r
t
e
dt
oat
e
n
a
n
c
ya
t
wi
l
l
b
yPL
As1
2
9
.T
h
el
e
s
s
e
ea
r
g
u
e
dt
h
a
t
t
h
e
ywe
r
ei
np
o
s
s
e
s
s
i
o
nu
n
d
e
r
a
ni
mp
l
i
e
dy
e
a
r
l
yt
e
n
a
n
c
ywh
i
c
hwa
so
u
t
s
i
d
ePL
As1
2
9s
c
o
p
e
.T
h
i
swa
sr
e
j
e
c
t
e
d–t
h
ef
a
c
t
t
h
a
t
i
t
ma
y
b
ep
o
s
s
i
b
l
et
oi
n
f
e
r
f
r
o
mt
h
ee
v
i
d
e
n
c
ea
na
g
r
e
e
me
n
t
b
e
t
we
e
nt
h
ep
a
r
t
i
e
st
oc
r
e
a
t
eay
e
a
r
l
yt
e
n
a
n
c
yd
i
d
4
8
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lOMoARcPSD|3076807

n
o
t
d
i
s
p
l
a
c
et
h
ec
o
mmo
nl
a
wp
r
e
s
u
mp
t
i
o
na
r
i
s
i
n
gf
r
o
mp
a
y
me
n
t
o
f
r
e
n
t
wh
i
c
ha
t
t
r
a
c
t
e
dt
h
eo
p
e
r
a
t
i
o
no
f
PL
As1
2
9
.
NOTE:c
o
u
r
t
sa
r
emo
r
ei
n
c
l
i
n
e
dt
ofi
n
dt
h
a
t
t
h
ey
e
a
r
l
yt
e
n
a
n
c
ya
r
i
s
e
sb
yi
mp
l
i
c
a
t
i
o
no
f
l
a
w.Ass
u
c
h
,
wh
e
r
et
h
ep
a
y
me
n
t
o
f
ay
e
a
r
l
yr
e
n
t
i
st
h
es
o
l
es
u
b
s
t
a
n
t
i
v
ef
a
c
t
o
r
r
e
l
i
e
du
p
o
nt
or
e
a
c
ht
h
ec
o
n
c
l
u
s
i
o
nt
h
a
t
t
h
e
r
ei
say
e
a
r
l
yt
e
n
a
n
c
y
,
t
h
e
nt
h
er
e
l
a
t
i
o
n
s
h
i
pi
sl
i
k
e
l
yt
ob
ec
o
n
s
i
d
e
r
e
da
sa
r
i
s
i
n
gb
yi
mp
l
i
c
a
t
i
o
no
f
l
a
w
r
a
t
h
e
r
t
h
a
ni
mp
l
i
e
da
g
r
e
e
me
n
t
a
n
d
,
t
h
e
r
e
f
o
r
e
,
wi
l
l
f
a
l
l
wi
t
h
i
ns1
2
9s
c
o
p
e
The term “there is no agreement as to durafon” has been held to mean that there is no agreement
which is euecfve at law
Dockrill v Cavanagh
As such, if there is a lxed-term lease exceeding 3 years, if parfes entered into an ineuecfve (at law)
agreement, and the lessee enters into possession and pays rent pursuant to the informal lease, PLA s
129 may apply
TerminaHon
Determinable with 6-months’ nofce expiring at the end of a completed year (ie before 30 June if 31
December end of lease)
PLA s 135(1)
This above nofce will apply unless otherwise agreed
PLA s 130
TENANCY AT WILL
General
Arises where lessee is in possession of the premises with the owner’s consent but without a formal
lease
CreaHon
May be created by agreement but usually implied either:
a
)a
sar
e
s
u
l
t
o
f
l
e
s
s
e
eh
o
l
d
i
n
go
v
e
r
a
f
t
e
rt
h
ee
n
do
f
afi
x
e
dt
e
r
ml
e
a
s
e
;
o
r
b
) wh
e
r
eap
a
r
t
ye
n
t
e
r
si
n
t
op
o
s
s
e
s
s
i
o
no
f
p
r
e
mi
s
e
sp
e
n
d
i
n
gac
o
n
c
l
u
d
e
da
g
r
e
e
me
n
t
b
e
i
n
gfi
n
a
l
i
s
e
d
Once rent is paid, then generally at common law a yearly or other periodic tenancy will be implied
Turner v York Motors


F
ACTS:l
e
s
s
e
ee
n
t
e
r
e
di
n
t
op
o
s
s
e
s
s
i
o
no
f
t
h
ep
r
e
mi
s
e
swh
i
l
ed
i
s
c
u
s
s
i
o
n
si
nr
e
l
a
t
i
o
nt
ot
h
et
e
r
mso
f
a
fi
x
e
d
t
e
r
ml
e
a
s
ec
o
n
t
i
n
u
e
d
.Ne
g
o
t
i
a
t
i
o
n
sf
a
i
l
e
d
,
s
on
of
o
r
ma
l
l
e
a
s
es
i
g
n
e
d
.L
e
s
s
e
ewa
si
np
o
s
s
e
s
s
i
o
n
a
n
dr
e
n
t
p
a
i
dwe
e
k
l
y
,
b
u
t
l
a
t
e
r
r
e
n
t
p
a
i
dmo
n
t
h
l
y
.Ov
e
r
ay
e
a
r
l
a
t
e
r
t
h
el
e
s
s
o
r
a
c
c
e
p
t
e
da
ni
n
c
r
e
a
s
e
d
mo
n
t
h
l
yr
e
n
t
a
l
i
nr
e
t
u
r
nf
o
r
l
e
s
s
e
eo
c
c
u
p
y
i
n
gl
a
r
g
e
r
a
r
e
a
.Pr
o
p
e
r
t
ys
o
l
dt
op
l
a
i
n
t
i
ffa
n
dt
h
el
e
s
s
e
e
r
e
ma
i
n
e
di
np
o
s
s
e
s
s
i
o
n
.Pl
a
i
n
t
i
ffc
l
a
i
me
dl
e
s
s
e
eo
c
c
u
p
i
e
da
sal
e
s
s
e
ea
t
wi
l
l
a
n
dg
a
v
eo
n
emo
n
t
h
n
o
t
i
c
e
.
HELD:i
n
i
t
i
a
l
l
yat
e
n
a
n
c
ya
t
wi
l
l
wa
sc
r
e
a
t
e
dwh
e
nt
h
el
e
s
s
e
ewe
n
t
i
n
t
op
o
s
s
e
s
s
i
o
nwh
i
l
ed
i
s
c
u
s
s
i
o
n
s
we
r
ec
o
n
t
i
n
u
i
n
g
.Ho
we
v
e
r
,
a
sr
e
n
t
wa
sp
a
i
dc
o
n
t
i
n
u
o
u
s
l
ya
n
dr
e
g
u
l
a
r
l
yo
namo
n
t
h
l
yb
a
s
i
samo
n
t
h
l
y
p
e
r
i
o
d
i
ct
e
n
a
n
c
ya
r
o
s
e
.Th
u
s
,
t
h
en
o
t
i
c
ewa
si
n
a
d
e
q
u
a
t
e
.
Note PLA s 129 if yearly…
4
9
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Requirements / TerminaHon
No certainty of term is required because this is a personal relafonship, not a right in rem (and
therefore also not assignable)
Either party may determine this type of tenancy at any fme – however, reasonable nofce must be
given
PLA s 137
What consftutes reasonable nofce will depend on the circumstances of the individual case
PLA s 137(2)

r
e
a
s
o
n
a
b
l
ep
e
r
i
o
do
f
n
o
t
i
c
ewi
l
l
i
nmo
s
t
c
a
s
e
si
n
v
o
l
v
eami
n
i
mu
mo
f
1mo
n
t
h
Bond University Ltd v Limgold Pty Ltd

QCAe
n
d
o
r
s
e
da3
y
e
a
r
n
o
t
i
c
ep
e
r
i
o
dt
ot
e
r
mi
n
a
t
et
h
et
e
n
a
n
c
ya
t
wi
l
l
–Bo
n
du
n
i
v
e
r
s
i
t
yh
a
dl
o
n
g
t
e
r
m
c
o
mmi
t
me
n
t
st
os
t
u
d
e
n
t
su
n
d
e
r
t
a
k
i
n
gs
t
u
d
i
e
so
v
e
r
an
u
mb
e
r
o
f
y
e
a
r
sa
n
dt
h
ed
i
ffic
u
l
t
yi
ns
o
u
r
c
i
n
g
a
l
t
e
r
n
a
t
i
v
ef
a
c
i
l
i
t
i
e
sme
a
n
t
t
h
a
t
3y
e
a
r
swa
sr
e
a
s
o
n
a
b
l
ei
nt
h
ec
i
r
c
u
ms
t
a
n
c
e
s
OTHER FORMS OF TENANCY
Tenancy at suSerance
Where lessee enters into possession of premises lawfully but remains in possession aoer right to
occupy ends without the assent/dissent of lessor
Cannot be expressly created
If the lessor objects, the occupafon will most likely be a trespass – acfon for recovery by lessor can
be insftuted without nofce
Doe d Bennet v Turner
Liable to pay compensafon for use and occupafon (cf rent as lessee does not technically pay rent)
which amounts to the equivalent of a fair market value for rent
Bayley v Bradley
No certainty of term is required – not strictly a lease – can be ejected at any fme without nofce
Tenancy by estoppel
Not covered in this course
5
0
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AGREEMENTSF
ORLEASE
DUAL CHARACTER OF A LEASE
Dual Impact
A lease is:
a
) apr
opr
i
e
t
a
r
yi
nt
e
r
e
s
ti
nl
a
n
d
b
)a
l
s
oac
ont
r
a
c
t
Impact
Lease must comply with requirements for a valid contract and rules for creafon of an interest in land
PLA s 11
The lessee has both contractual and proprietary rights (eg. free enjoyment of interest in land)
Terminafon of a lease requires:

c
o
mp
l
i
a
n
c
ewi
t
hc
o
n
t
r
a
c
t
l
a
w–i
emu
s
t
i
d
e
n
t
i
f
yb
r
e
a
c
h/
r
e
p
u
d
i
a
t
i
o
n

PL
As1
2
4r
e
q
u
i
r
e
me
n
t
s
:
a
)L
a
n
d
l
o
r
dmu
s
t
g
i
v
en
o
t
i
c
es
p
e
c
i
f
y
i
n
gt
h
ep
a
r
t
i
c
u
l
a
rb
r
e
a
c
h
;
b
)I
f
c
a
p
a
b
l
eo
f
r
e
me
d
y
,
r
q
u
i
r
e
i
n
gt
h
el
e
s
s
e
et
or
e
me
d
yt
h
eb
r
e
a
c
h
c
)i
nt
h
ec
a
s
et
h
el
e
s
s
o
r
c
l
a
i
msc
o
mp
e
n
s
a
t
i
o
nf
o
rt
h
eb
r
e
a
c
h
,
r
e
q
u
i
r
i
n
gt
h
el
e
s
s
e
et
op
a
yt
h
e
s
a
me
d
)I
f
l
e
s
s
e
ef
a
i
l
swi
t
h
i
nar
e
a
s
o
n
a
b
l
et
i
met
or
e
me
d
yt
h
eb
r
e
a
c
h/
p
a
yc
o
mp
e
n
s
a
t
i
o
n
,
l
e
s
s
o
rma
y
r
e
t
a
k
ep
o
s
s
e
s
s
i
o
n
AGREEMENTS FOR LEASE (ALF)
General
AFL allows parfes to agree all essenfal terms and binds parfes to a lease so that lessee can ltout
premises or enter possession prior to formal lease documents being executed
Contractual requirements:



Ag
r
e
e
me
n
t
Co
n
s
i
d
e
r
a
t
i
o
n
Ce
r
t
a
i
n
t
y–c
l
e
a
ra
n
du
n
a
mb
i
g
u
o
u
s
,
c
o
n
t
i
n
g
e
n
c
i
e
sa
r
ef
u
l
fi
l
l
e
d
PLA requirements:


I
f
g
r
a
n
t
o
f
i
n
t
e
r
e
s
t
–mu
s
t
b
es
i
g
n
e
db
yp
e
r
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o
nc
r
e
a
t
i
n
go
r
c
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n
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e
y
i
n
gt
h
ei
n
t
e
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t
:
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1
I
f
NOg
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t
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s
t
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es
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e
db
yt
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ep
a
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t
yt
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h
a
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g
e
d
:
s5
9
WriHng requirements – CreaHon of legal interest
A lease for more than 3 years must be in wrifng and signed by the lessor to create a legal interest in
land
PLA ss 10, 11(1)(a)

NOT
E:I
t
a
l
s
on
e
e
d
st
ob
er
e
g
i
s
t
e
r
e
d…(
d
i
s
c
u
s
s
e
di
np
o
d
c
a
s
t
4
)
Wrifng requirements will include names of parfes, subject majer of the agreement, all essenfal
terms, rent, commencement date, use
5
1
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lOMoARcPSD|3076807
PLA ss 11 or 59
A lease for a term not exceeding 3 years (including opfon periods) can be created as a legal interest
in land by parol if the tenant enters into possession (does not apply if tenant not in exclusive
possession)
PLA s 12(2)

t
h
i
si
n
c
l
u
d
e
sp
e
r
i
o
d
i
ct
e
n
a
n
c
i
e
sf
o
r
<3y
e
a
r
s
.
I
t
d
o
e
sn
o
t
ma
t
t
e
r
h
o
wl
o
n
gt
h
et
e
n
a
n
c
yh
a
sl
a
s
t
e
d
The above does not apply if the tenant does not have exclusive possession
WriHng requirements – Enforcement of a lease
An acfon being brought to enforce an agreement for lease is prohibited unless the agreement is
evidenced in wrifng signed by the lessor or a lawfully authorised agent
PLA s 59
HOWEVER doctrine of part performance is an excepfon to the requirements for wrifng
PLA s 6(d)
worth incorporafng commercial remedies notes????
To establish part performance – the party seeking performance of the agreement must show:
a
)t
h
ea
c
t
swe
r
ed
o
n
eb
yt
h
ep
a
r
t
ys
e
e
k
i
n
gp
e
r
f
o
r
ma
n
c
e
;
b
)t
h
ea
c
t
sr
e
l
i
e
du
p
o
na
sp
a
r
t
p
e
r
f
o
r
ma
n
c
emu
s
t
b
eu
n
e
q
u
i
v
o
c
a
l
l
ya
n
di
nt
h
e
i
ro
wnn
a
t
u
r
er
e
f
e
r
a
b
l
et
o
s
o
mes
u
c
ha
g
r
e
e
me
n
t
a
st
h
a
t
a
l
l
e
g
e
d(
Ma
d
d
i
s
o
nvAl
d
e
r
s
o
n
;
Re
g
e
n
t
vMi
l
l
e
t
)
c
)t
h
ea
g
r
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e
me
n
t
wa
sc
o
n
c
l
u
d
e
d(
Go
b
b
l
e
r
svSt
e
v
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n
s
)
d
)t
h
et
e
r
mso
f
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h
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g
r
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me
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t
c
o
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l
db
ep
r
o
v
e
nb
yo
r
a
l
e
v
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d
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n
c
e
;AND
e
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h
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o
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r
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t
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sc
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p
a
b
l
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f
s
p
e
c
i
fi
cp
e
r
f
o
r
ma
n
c
e
Regent v MilleS
Entry into possession and payment of rent are classic acts of party performance establishing an
equitable lease
Cooney v Burns
One Stop LighGng (Queensland) v Lifestyle Property Developments


F
ACTS:l
e
s
s
e
ea
r
g
u
e
dc
e
r
t
a
i
na
c
t
sc
o
n
s
t
i
t
u
t
e
dp
a
r
t
p
e
r
f
o
r
ma
n
c
ei
nc
r
e
a
t
i
o
no
f
ac
o
mme
r
c
i
a
l
l
e
a
s
ef
o
r
a
l
i
g
h
t
i
n
gs
h
o
p
.Ac
t
s
:
p
a
y
me
n
t
o
f
ad
e
p
o
s
i
t
f
o
r
1mo
n
t
hr
e
n
t
,
i
n
s
t
r
u
c
t
i
o
n
sg
i
v
e
nf
o
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t
h
ema
n
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f
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c
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f
s
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t
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o
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c
a
t
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st
h
a
t
e
n
s
u
e
db
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t
we
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nl
e
s
s
e
e
’
sa
n
dl
e
s
s
o
r
s
o
l
i
c
i
t
o
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s
HELD:n
o
t
p
a
r
t
p
e
r
f
o
r
ma
n
c
e
.Pa
y
me
n
t
o
f
d
e
p
o
s
i
t
wa
sma
d
et
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e
n
t
a
n
dn
o
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t
h
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t
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n
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s
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e
na
sa
ni
n
t
e
r
n
a
l
a
r
r
a
n
g
e
me
n
t
Entry into possession itself may be suzcient
Regent v MilleS
DiSerences between lease and AFL
Lease = the registered instrument (form for registrafon)
AFL = the agreement to grant the lease (form of a contract)
BUT – unfl a lease is registered, it can operate as an agreement for a lease
1
) Ana
g
r
e
e
me
n
t
f
o
rl
e
a
s
ema
yb
ee
n
f
o
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c
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a
b
l
ei
ne
q
u
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t
ya
sal
e
a
s
eb
e
t
we
e
nt
h
ep
a
r
t
i
e
st
ot
h
ea
g
r
e
e
me
n
t
Walsh v Lonsdale; Chan v Cresdon Pty Ltd
2
)I
f
s
p
e
c
i
fi
ce
n
f
o
r
c
e
me
n
t
i
ne
q
u
i
t
yn
o
t
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v
a
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l
a
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e
,
l
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s
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l
l
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r
,
i
f
i
np
o
s
s
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s
s
i
o
na
n
dp
a
y
sr
e
n
t
,
a
l
e
a
s
eu
n
d
e
rs1
2
9PL
A(
t
e
n
a
n
c
ya
t
wi
l
l
)
5
2
Downloaded by Mojtaba Dani (mojtaba.dani@gmail.com)
lOMoARcPSD|3076807
3
) Ana
g
r
e
e
me
n
t
f
o
rl
e
a
s
ed
o
e
sn
o
t
b
i
n
dt
h
i
r
dp
a
r
t
i
e
st
or
e
c
o
g
n
i
s
et
h
er
i
g
h
t
so
f
t
h
el
e
s
s
e
e–t
h
a
t
i
sb
e
c
a
u
s
e
t
h
e
r
ei
sn
op
r
o
p
e
r
t
yr
i
g
h
t
c
r
e
a
t
e
da
t
l
a
wu
n
t
i
l
r
e
g
i
s
t
e
r
e
d(
f
o
rmo
r
ed
e
t
a
i
l
r
e
f
e
rt
op
o
d
c
a
s
t
4
)
Enforcement of AFL
Enforceable if:
a
) Co
n
t
r
a
c
t
i
si
nwr
i
t
i
n
ga
n
da
p
p
r
o
p
r
i
a
t
e
l
ys
i
g
n
e
d(
PL
As
s1
1
,
5
9
)
b
)L
e
t
t
e
r
o
f
i
n
t
e
n
t
mu
s
t
e
v
i
d
e
n
c
et
h
ee
x
i
s
t
e
n
c
eo
f
a
na
g
r
e
e
me
n
t
(
T
i
v
e
r
t
o
nEs
t
a
t
e
svWe
a
r
we
l
l
;
Du
ffv
Bl
i
n
c
o
)
Where the agreement is to grant an interest in land (eg grant of lease) – apply PLA s 11 – grant only
needs to be signed by grantor
Tiverton Estates
Where agreement is AFL and NOT a grant of an interest – apply PLA s 59 – which requires suzcient
wrifng and signed by party to be charged
Tiverton Estates
ESect in equity of a lease void at law
In equity a promise or an agreement for a lease is regarded as an equitable lease – considered an
“agreement for a lease”
Walsh v Lonsdale


F
ACTS:t
h
ep
a
r
t
i
e
se
n
t
e
r
e
di
n
t
oa7y
e
a
r
wr
i
t
t
e
na
g
r
e
e
me
n
t
wi
t
h
o
u
t
f
o
r
ma
l
i
s
i
n
gal
e
g
a
l
l
e
a
s
e(
d
i
dn
o
t
s
i
g
nd
e
e
du
n
d
e
r
s
e
a
l
)
.Wr
i
t
t
e
na
g
r
e
e
me
n
t
p
r
o
v
i
d
e
df
o
r
r
e
n
t
t
ob
ep
a
i
di
na
d
v
a
n
c
e
.T
h
el
e
s
s
e
ee
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t
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r
e
d
i
n
t
op
o
s
s
e
s
s
i
o
na
n
dp
a
i
dr
e
n
t
q
u
a
r
t
e
r
l
y
,
b
u
t
n
o
t
i
na
d
v
a
n
c
e
.T
h
el
e
s
s
o
r
d
e
ma
n
d
e
dp
a
y
me
n
t
o
f
t
h
er
e
n
t
i
n
a
d
v
a
n
c
ea
n
d
,
wh
e
nt
h
i
sd
i
dn
o
t
h
a
p
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e
n
,
l
e
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dd
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s
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e
s
s
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o
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d
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sf
o
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o
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ne
q
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t
a
b
l
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e
me
d
y
,
a
n
da
sn
of
o
r
ma
l
l
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a
s
eh
a
db
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e
ns
i
g
n
e
d
,
t
h
el
e
s
s
e
ewa
si
np
o
s
s
e
s
s
i
o
nu
n
d
e
r
ay
e
a
r
l
yt
e
n
a
n
c
y
,
wh
e
r
e
b
yr
e
n
t
wa
sn
o
t
p
a
y
a
b
l
ei
na
d
v
a
n
c
e
.
HELD:l
e
s
s
e
el
i
a
b
l
ef
o
r
r
e
n
t
f
o
r
wh
i
c
ht
h
ec
o
mmo
nl
a
wr
e
me
d
yd
i
s
t
r
e
s
sc
o
u
l
db
el
e
v
i
e
d
.Th
i
sc
a
me
a
b
o
u
t
t
h
r
o
u
g
ht
h
ec
o
u
r
t
d
e
a
l
i
n
gwi
t
ht
h
ema
t
t
e
r
a
si
f
af
o
r
ma
l
l
e
a
s
eh
a
db
e
e
ng
r
a
n
t
e
db
e
c
a
u
s
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f
t
h
e
a
v
a
i
l
a
b
i
l
i
t
yo
f
t
h
er
e
me
d
yo
f
s
p
e
c
i
fi
cp
e
r
f
o
r
ma
n
c
e
.
Chan v Cresdon Pty Ltd


F
ACTS:5y
e
a
r
l
e
a
s
ei
nwh
i
c
hg
u
a
r
a
n
t
o
r
a
g
r
e
e
dt
og
u
a
r
a
n
t
e
et
h
ep
e
r
f
o
r
ma
n
c
eo
f
t
h
el
e
s
s
e
e
’
s
o
b
l
i
g
a
t
i
o
n
s“
u
n
d
e
r
t
h
i
sl
e
a
s
e
”
.L
e
a
s
ei
nr
e
g
i
s
t
r
a
b
l
ef
o
r
ma
t
t
a
c
h
e
dt
oAFLb
u
t
n
o
t
r
e
g
i
s
t
e
r
e
d
.L
e
s
s
e
e
e
n
t
e
r
e
di
n
t
op
o
s
s
e
s
s
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o
na
n
dp
a
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dr
e
n
t
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e
s
s
e
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n
t
i
n
t
od
e
f
a
u
l
t
a
n
dl
e
s
s
o
r
s
u
e
dt
h
eg
u
a
r
a
n
t
o
r
HELD:g
u
a
r
a
n
t
o
r
n
o
t
l
i
a
b
l
e–o
n
l
yg
u
a
r
a
n
t
e
e
do
b
l
i
g
a
t
i
o
n
su
n
d
e
r
al
e
g
a
l
(
i
er
e
g
i
s
t
e
r
e
d
)
l
e
a
s
e
.En
t
r
yi
n
t
o
p
o
s
s
e
s
s
i
o
na
n
dp
a
y
me
n
t
o
f
r
e
n
t
c
r
e
a
t
e
day
e
a
r
l
yt
e
n
a
n
c
ya
t
c
o
mmo
nl
a
w(
t
h
e
nPL
As1
2
9
(
1
)
a
p
p
l
i
e
s
)
.
Th
eo
b
l
i
g
a
t
i
o
nt
op
a
yr
e
n
t
u
n
d
e
r
t
h
ec
o
mmo
nl
a
wt
e
n
a
n
c
ywa
sn
o
t
a
no
b
l
i
g
a
t
i
o
n“
u
n
d
e
r
t
h
i
sl
e
a
s
e
”
a
st
h
e
t
e
n
a
n
c
ya
t
wi
l
l
n
e
e
d
st
ob
ed
i
s
t
i
n
g
u
i
s
h
e
df
r
o
mt
h
eu
n
r
e
g
i
s
t
e
r
e
dl
e
a
s
e
An unregistered lease is not invalid merely because it is unregistered
LTA s 71
Ashton v Hunt


F
ACTS:wa
sa
r
g
u
e
dt
h
a
t
s7
1h
a
st
h
ee
ff
e
c
t
t
h
a
t
a
nu
n
r
e
g
i
s
t
e
r
e
dl
o
n
gt
e
r
ml
e
a
s
ei
sav
a
l
i
dl
e
g
a
l
l
e
a
s
e
HELD:n
o–t
h
ed
o
c
u
me
n
t
i
t
s
e
l
f
i
sn
o
t
v
o
i
db
u
t
r
a
t
h
e
r
:
1
)
wi
l
l
b
e
c
o
mev
a
l
i
df
o
r
a
l
l
p
u
r
p
o
s
e
so
n
c
e
r
e
g
i
s
t
e
r
e
d
;
2
)
i
sas
o
u
r
c
eo
f
e
q
u
i
t
a
b
l
er
i
g
h
t
s(
e
gt
h
er
i
g
h
t
t
os
p
e
c
i
fi
cp
e
r
f
o
r
ma
n
c
eo
f
t
h
ee
q
u
i
t
a
b
l
el
e
a
s
e
)
;
3
)
c
a
nb
er
e
f
e
r
r
e
dt
oi
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5
3
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see Masters v Cameron
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Contractual rights
Where a lease (or AFL) is evidenced by some wrifng and fullls PLA s 59 requirements it may be valid
as a legal contract or as an AFL – if breached, an acfon may be brought for damages in relafon to the
breach
Leitz Leeholme Stud v Robinson

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In other words, the contractual posifon retains a separate idenfty from the tenancy at will which
may be implied by law (under PLA s 129)
Leitz Leeholme Stuf v Robinson
TerminaRon must be euecfve under both contract law and property law to avoid liability
Leitz Leeholme Stuf v Robinson
5
4
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REGI
STRATI
ONOFLEASES
PRECONDITIONS TO REGISTER
The lease must:
a
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a
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x
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LTA s 65
The lease must also be in the appropriate form
LTA s 10
If the premises cannot be suzciently idenfled by descripfon, the lease must include a lease sketch plan that
safsles the registrar’s standards or (if required by the Registrar) a plan of survey idenffying that part of the lot
LTA s 65(2)
If the lease is for a term of more than 10 years (including opfons) and is not a lease of all or part of a building,
the lease will require planning approval as a subdivision under the Sustainable Planning Act 2009
Condifons of a lease lodged at the Land Titles Ozce are in an ajached Form 20 Schedule
Note applicafon of LTA ss 181, 182…
ExisHng mortgage
If there is a mortgage over the land – the mortgagee must consent to the lease for it to be valid against the
mortgagee (otherwise mortgage will have right to recover possession against lessee)
Pigot’s Case
LTA s 66
POST REGISTRATION OF LEASE
A lease can be amended (Form 13 Amendment) but limits apply – including the amendment must not:
a
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LTA s 67(1)-(2)
If lessor under a registered lease lawfully re-enters and takes possession, the lessor may lodge a request with
the registrar
LTA s 68(1)
Registrar must be nofled where a lease is surrendered
LTA s 69
REGISTRATION GENERAL PRINCIPLES
A lease for > 3 years must be registered to be euecfve at law
A lease for < 3 years is euecfve at law without registrafon
LTA s 185(1)(b)
Euect of registrafon – registered lease or short lease is binding on owner of the land and any later registered
interest
LTA ss 184, 185
5
5
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Long-term leases
A long term lease is a lease for more than 3 years
A lease is subject to same rules as other interests in land – ie unfl registrafon a lease is not euecfve to pass an
estate or interest in the land at law
LTA ss 181, 182
A general view that by execufng a lease intended to operate as a lease at law, the lessor is under an obligafon
to register, or procure the registrafon of, the lease
Laurinda Pty Ltd v Capalaba Park Shopping Centre Pty Ltd
UNREGISTERED LEASES – LONG LEASES
DiSerent legal status of unregistered lease > 3 years
1
) CL–v
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2
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Common law + Possession – (1)+(2)
Unregistered tenancy not void, so lease ? 3 years not registered will not be void
LTA s 71
Once tenant enters into possession, a tenancy at will will take euect
Once rent paid – yearly / monthly tenancy will be implied
Moore v Dimond
However, this yearly tenancy will be converted into a tenancy at will, which can be terminated by
giving 1 month nofce
PLA s 129(1)
Any condifons inconsistent with LTA and PLA may sfll be enforceable in equity
PLA s 129 – (3)
“No agreement as to durafon”  no express agreement which is euecfve to create a legal lease for
the agreed period
Dockrill v Cavanagh
Applies where:


Wa
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t
o
f
f
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ma
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d
Equity – (4)
The lease will generally take euect as an equitable lease between the parfes if it is capable of
specilc performance (discrefonary remedy):


t
r
e
a
t
e
df
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ra
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dr
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s
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rt
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a
s
e(
t
og
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ei
t
l
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a
l
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ff
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c
t
)
Defeated by subsequent registered interest in absence of fraud or in personam excepfon
5
6
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LTA ss 184, 185
Valbirn v Powprop
Land Title Act
Not invalid merely because it is unregistered
LTA s 71
Legal interest only created upon registrafon:
LTA ss 181, 182
The lease does not have the benelt of indefeasibility as against subsequent registered interests
LTA s 184
Contract
The lease is sfll a contract between the lessor and lessee
NaGonal Carriers Ltd v Panalpina (Northern) Ltd
Capable of specilc performance
Regent v Millet
Capable of being breached with contractual rights enforceable to obtain contract remedies
Capable of part performance in equity to overcome lack of formalifes
Regent v MilleS
PLA s 6(d)
REGISTRATION – SHORT LEASES
General
Short lease means a term for <= 3 years, or from year to year or a shorter period
LTA Sch 2
Term means the period beginning when the lessee is lrst enftled to possession of a lot / part of a lot under the
lease and ending when the lessee is last enftled to possession, even if the lease consists of 2 or more
disconfnuous periods
LTA Sch 2
The estate of a RP is subject to the interest of a lessee under a short lease
LTA s 185(1)(b)
If lrst lease is registered and includes menfon of an opfon, then the opfon takes the benelt of indefeasibility
Re Eastdorp No 2
Wallace McCrimmon Weir
However, the interest of the lessee under s 185(1)(b) does not include:
c
) ar
i
g
h
t
t
oa
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q
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r
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LTA s 185(2)x
ExisHng Mortgage
Registered mortgagee not bound by later registered lease unless consent given
LTA s 66
Registered mortgagee is bound by earlier registered leases
LTA s 66
If no consent to lease, mortgagee can sell the property without regard to the interest of the lessee
5
7
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Pigot’s Case
5
8
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COVENANTSI
NAL
EASE
COVENANTS
DeKniHon
A covenant is an agreement or promise made in a deed – used to describe any obligafon in the lease
Leahy v Canavan
Summary
Covenants implied by common law:


Qu
i
e
t
En
j
o
y
me
n
t
(
Au
s
s
i
eT
r
a
v
e
l
l
e
rvMa
r
k
l
e
a
)
No
n
d
e
r
o
g
a
t
i
o
nf
r
o
mg
r
a
n
t
(
Ma
r
t
i
n
sCa
me
r
aCo
r
n
e
rvHo
t
e
l
Ma
y
f
a
i
r
)
Covenants implied by PLA


Re
p
a
i
r(
PL
As1
0
5
(
1
)
(
b
)
)
Re
n
t
(
PL
As1
0
5
(
1
)
(
a
)
)
Covenants may also be implied by applicafon of contractual principles – eg business ezcacy
BP Reanery v Shire of HasGngs
Contract
Subject to contract law principles re essenfal terms and repudiafon
Usual Covenants Implied at law
Imposed on lessor:




*
Qu
i
e
t
e
n
j
o
y
me
n
t
*
No
n
d
e
r
o
g
a
t
i
o
nf
r
o
mg
r
a
n
t
Pe
r
mi
t
l
e
s
s
e
et
or
e
mo
v
ei
t
sc
h
a
t
t
e
l
sa
f
t
e
rt
e
r
mi
n
a
t
i
o
n
Pe
r
mi
t
t
h
el
e
s
s
e
et
og
oo
n
t
ot
h
ep
r
e
mi
s
e
sa
n
dt
a
k
ee
mb
l
e
me
n
t
sa
f
t
e
rt
h
el
e
a
s
ei
st
e
r
mi
n
a
t
e
d
Imposed on lessee:




*
Pa
y
me
n
t
o
f
r
e
n
t
*
T
ok
e
e
pi
ng
o
o
da
n
dt
e
n
a
n
t
a
b
l
er
e
p
a
i
r
L
e
s
s
o
r
’
sr
e
a
s
o
n
a
b
l
er
i
g
h
t
o
f
e
n
t
r
y
Us
ep
r
e
mi
s
e
si
nat
e
n
a
n
t
l
i
k
ema
n
n
e
r
These are implied in all leases, subject to express covenants and overriding legislafon:



n
o
t
t
oc
o
mmi
t
v
o
l
u
n
t
a
r
ywa
s
t
e(
l
i
a
b
l
ei
nd
a
ma
g
e
sf
o
rd
o
i
n
gs
o
)
:
PL
As1
0
4
Wh
e
r
et
e
n
a
n
t
f
o
r
y
e
a
r
s–p
a
yd
o
u
b
l
er
e
n
t
f
o
r
h
o
l
d
i
n
go
v
e
ro
f
t
h
ep
r
o
p
e
r
t
y
:
PL
As1
3
8
Wh
e
r
el
e
s
s
e
ed
o
e
sn
o
t
y
i
e
l
du
pp
o
s
s
e
s
s
i
o
na
f
t
e
rn
o
t
i
c
eo
f
i
n
t
e
n
t
i
o
nt
oq
u
i
t
–p
a
yd
o
u
b
l
er
e
n
t
:
PL
As1
3
9
5
9
Downloaded by Mojtaba Dani (mojtaba.dani@gmail.com)
lOMoARcPSD|3076807
LESSOR COVENANT – FOR QUIET ENJOYMENT
General Rules
Implied where no express term in the lease
Budd-ScoS v Daniell
Aussie Traveller Pty Ltd v Marklea
Subject to any reservafons (eg right to enter and euect repairs), the lessor or those claiming under
the lessor (e.g. the lessor’s other tenants in the building) will not substanfally interfere with the
lessee or the lessee’s possession of the premises
Quiet = peaceful and free from disturbance (cf acousfcally quiet)
Hudson v Cripps
Conduct may occur on or ou the premises
MarGns Camera Corner v Hotel Mayfair
Right of tenant is not dependent on payment of rent
Contractual terms – this covenant is usually considered an intermediate term
Koompahtoo
Test
Breach will occur where lawful enjoyment of the leased land is substanfally interfered with by the
acts of the lessor or those claiming under the lessor – direct physical interference is not essenfal
Kenny v Preen


HELD:d
i
r
e
c
t
p
h
y
s
i
c
a
l
i
n
t
e
r
f
e
r
e
n
c
ewa
sp
r
e
s
e
n
t
i
nt
h
ef
o
r
mo
f
t
h
el
e
s
s
o
r
’
sk
n
o
c
k
i
n
go
nt
h
el
e
s
s
e
e
’
sd
o
o
r
,
s
h
o
u
t
i
n
gt
h
r
e
a
t
sa
t
t
h
el
e
s
s
e
e
,
a
n
dd
e
l
i
b
e
r
a
t
ea
n
dp
e
r
s
i
s
t
e
n
t
a
t
t
e
mp
t
st
of
o
r
c
et
h
el
e
s
s
e
eo
u
t
o
f
p
o
s
s
e
s
s
i
o
nb
yi
n
t
i
mi
d
a
t
i
n
gme
a
n
s
HELD:l
e
s
s
o
r
i
nb
r
e
a
c
ho
f
t
h
ec
o
v
e
n
a
n
t
f
o
r
q
u
i
e
t
p
o
s
i
t
i
o
n
.Wh
i
l
et
h
ec
o
u
r
t
f
o
u
n
da
c
t
u
a
l
p
h
y
s
i
c
a
l
i
n
t
e
r
f
e
r
e
n
c
ewi
t
ht
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ee
n
j
o
y
me
n
t
o
f
t
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er
e
p
mi
s
e
s
,
t
h
e
yi
n
d
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c
a
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dt
h
a
t
ab
r
e
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ho
f
t
h
ec
o
v
e
n
a
n
t
c
o
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l
do
c
c
u
r
a
l
t
h
o
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g
ht
h
e
r
eh
a
db
e
e
nn
o
t
d
i
r
e
c
t
p
h
y
s
i
c
a
l
i
n
t
e
r
f
e
r
e
n
c
ewi
t
ht
h
el
e
s
s
e
e
’
sp
o
s
s
e
s
s
i
o
na
n
de
n
j
o
y
me
n
t
Southwark London Borough Council v Baxter

Re
g
u
l
a
re
x
c
e
s
s
i
v
en
o
i
s
ewi
t
h
o
u
t
d
i
r
e
c
t
p
h
y
s
i
c
a
l
i
n
t
e
r
f
e
r
e
n
c
ewa
sc
a
p
a
b
l
eo
f
a
mo
u
n
t
i
n
gt
oab
r
e
a
c
h
MarGns Camera Corner v Hotel Mayfair


F
ACTS:f
a
i
l
e
dt
ok
e
e
pd
r
a
i
np
i
p
e
sc
l
e
a
r
,
wh
e
r
ed
a
ma
g
ewa
sc
a
u
s
e
dt
ot
h
el
e
s
s
e
e
’
sg
o
o
d
sb
yt
h
e
o
v
e
r
fl
o
wo
f
wa
t
e
r
f
r
o
mb
l
o
c
k
e
dd
r
a
i
np
i
p
e
s(
wh
i
c
hwe
r
eo
np
a
r
t
o
f
t
h
ep
r
e
mi
s
e
st
h
a
t
h
a
db
e
e
nr
e
t
a
i
n
e
d
b
yt
h
el
e
s
s
o
r
)
s
e
e
p
i
n
gi
n
t
ot
h
el
e
a
s
e
dp
r
e
mi
s
e
s
HELD:b
r
e
a
c
ho
f
q
u
i
e
t
e
n
j
o
y
me
n
t
a
swe
l
l
a
sb
r
e
a
c
ho
f
n
o
n
d
e
r
o
g
a
t
i
o
n
Q of fact – does not require the lease be pracfcally frustrated
Aussie Traveller v Marklea


F
ACTS:al
e
s
s
e
ec
a
u
s
e
dd
i
s
r
u
p
t
i
o
n(
b
yn
o
i
s
ea
n
ds
a
wd
u
s
t
)t
oan
e
i
g
h
b
o
u
r
i
n
gl
e
s
s
e
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f
t
h
es
a
me
l
e
s
s
o
r
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h
el
e
a
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t
h
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ff
e
n
d
i
n
gl
e
s
s
e
ec
o
n
t
a
i
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e
dt
h
es
t
a
n
d
a
r
dc
l
a
u
s
er
e
q
u
i
r
i
n
gt
h
el
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s
s
e
en
o
t
t
o
c
a
u
s
ean
u
i
s
a
n
c
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t
n
e
i
g
h
b
o
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r
s
.Th
el
e
s
s
o
rh
a
dn
o
t
s
o
u
g
h
t
t
oe
n
f
o
r
c
et
h
a
t
c
o
v
e
n
a
n
t
.
HELD:l
e
s
s
o
r
wi
l
l
b
el
i
a
b
l
ef
o
r
a
c
t
so
f
n
u
i
s
a
n
c
ec
o
mmi
t
t
e
db
yap
e
r
s
o
nc
l
a
i
mi
n
gt
h
r
o
u
g
hh
e
r
o
r
h
i
m,
e
v
e
nt
h
o
u
g
ht
h
o
s
ea
c
t
swe
r
en
o
t
a
u
t
h
o
r
i
s
e
d/
e
n
c
o
u
r
a
g
e
db
yt
h
el
e
s
s
o
r
,
i
f
t
h
el
e
s
s
o
r
wa
si
nap
o
s
i
t
i
o
nt
o
c
o
r
r
e
c
t
o
r
t
e
r
mi
n
a
t
et
h
eu
n
l
a
wf
u
l
c
o
n
d
u
c
t
b
ya
c
t
i
v
ei
n
t
e
r
v
e
n
t
i
o
n
cf Fanigun v Woolworths

F
ACTS:L
e
s
s
ea
l
l
o
we
dc
u
s
t
o
me
r
st
oq
u
e
u
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na
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a
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e
me
n
t
a
r
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aa
t
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e
dt
ot
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el
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a
s
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a
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s
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da
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s
a
n
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et
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g
h
b
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r
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r
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ean
u
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n
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et
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b
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go
wn
e
r
s
6
0
Downloaded by Mojtaba Dani (mojtaba.dani@gmail.com)
lOMoARcPSD|3076807


HELD:l
e
s
s
o
r
NOTl
i
a
b
l
e
.
c
fAUSSI
E:h
e
r
et
h
el
e
s
s
o
r
c
o
u
l
dn
o
t
h
a
v
ep
u
r
s
u
e
dt
h
el
e
s
s
e
ei
nr
e
l
a
t
i
o
nt
oab
r
e
a
c
ho
f
t
h
a
t
c
o
v
e
n
a
n
t
u
n
t
i
l
t
h
ei
s
s
u
eo
f
wh
e
t
h
e
r
t
h
ee
a
s
e
me
n
t
wa
sb
r
e
a
c
h
e
db
yt
h
eq
u
e
u
i
n
gwa
sr
e
s
o
l
v
e
db
yc
o
u
r
t
a
c
t
i
o
n
.
Ab
i
l
i
t
yt
oe
n
f
o
r
c
ea
n
yn
o
t
i
c
et
or
e
me
d
yab
r
e
a
c
hwo
u
l
dh
a
v
ed
e
p
e
n
d
e
do
nt
h
er
e
s
o
l
u
t
i
o
no
f
t
h
a
t
i
s
s
u
e
(
NOT
E:
a
c
t
i
o
nwa
sn
o
t
b
a
s
e
dh
e
r
eo
nb
r
e
a
c
ho
f
q
u
i
e
t
e
n
j
o
y
me
n
t
o
r
d
e
r
o
g
a
t
i
o
nf
r
o
mg
r
a
n
t
…)
However, covenant is not a guarantee the lessee will be protected from EVERY temporary
disturbance of possession
Kenny v Preen
May be dizcult to lnd a breach when the majers complained of worsen the situafon of the lessee
lijle from that applying at the date of the grant
Brynes v Jokona
Examples
Examples of breach:







r
e
mo
v
a
l
o
f
wi
n
d
o
wsb
yl
e
s
s
o
r
t
of
o
r
c
et
h
el
e
s
s
e
eo
u
t
:L
a
v
e
n
d
e
rvBe
t
t
s
c
u
t
t
i
n
gc
e
n
t
r
a
l
s
e
r
v
i
c
e
si
n
c
l
u
d
i
n
gc
u
t
t
i
n
go
fffi
r
es
p
r
i
n
k
l
e
rs
y
s
t
e
ms(
Ko
h
u
avT
a
i
Pi
n
g
)o
rs
u
p
p
l
i
e
so
f
g
a
s
a
n
de
l
e
c
t
r
i
c
i
t
y(
Pe
r
e
r
avVa
n
d
i
y
a
r
)
wr
o
n
g
f
u
l
l
ye
v
i
c
t
i
n
gal
e
s
s
e
eo
r
t
h
r
o
wi
n
gt
h
el
e
s
s
e
e
’
sp
r
o
p
e
r
t
yi
n
t
ot
h
es
t
r
e
e
t
:Mu
s
u
me
c
i
vWi
n
a
d
e
l
l
ma
k
i
n
ga
l
t
e
r
a
t
i
o
n
st
oa
na
d
j
a
c
e
n
t
p
r
o
p
e
r
t
yt
h
a
t
wo
u
l
do
b
s
t
r
u
c
t
al
e
s
s
e
e
’
sp
o
t
e
n
t
i
a
l
c
u
s
t
o
me
r
s
:JC
Be
r
n
d
t
vWa
l
s
h
i
n
t
i
mi
d
a
t
i
n
g
,
t
h
r
e
a
t
e
n
i
n
go
ra
b
u
s
i
n
gt
h
el
e
s
s
e
e
:Ke
n
n
yvPr
e
e
n
f
a
i
l
i
n
gt
ok
e
e
pd
r
a
i
np
i
p
e
sc
l
e
a
r
,
wh
e
r
ed
a
ma
g
e
swa
sc
a
u
s
e
dt
ot
h
el
e
s
s
e
e
’
sg
o
o
d
sb
yt
h
eo
v
e
r
fl
o
wo
f
wa
t
e
rf
r
o
mb
l
o
c
k
e
dd
r
a
i
np
i
p
e
ss
e
e
p
i
n
gi
n
t
ot
h
el
e
a
s
e
dp
r
e
mi
s
e
s
:Ma
r
t
i
n
sCa
me
r
aCo
r
n
e
rvHo
t
e
l
Ma
y
f
a
i
r
Ex
c
e
s
s
i
v
en
o
i
s
e
:By
r
n
e
svJ
o
k
o
n
a
Consequence / damages
Breach of the covenant for quiet enjoyment enftled the lessee to recover damages from the lessor
and/or in an appropriate case, an injuncfon to restrain further breaches
Damages being awarded on contract principles
Mira v Aylmer Square Investments
Punifve / exemplary damages not awarded for breach of contract
Kenny v Preen
If suzciently serious may enftle terminafon
Byrnes v Jokona
Covenant non-applicaHon
Covenant does not apply where lease is granted for a purpose prohibited under planning laws or if
the premises are not suited for the permijed use (T has obligafon to invesfgate whether premises
are lt for purpose for which they are to be used)
City of Subiaco v Heytesbury ProperGes
Covenant does not apply to exisfng interferences
Southwark London Borough Council v Baxter

HELD:Ho
Le
x
c
l
u
d
e
dl
e
s
s
o
r
l
i
a
b
i
l
i
t
yf
o
r
n
o
i
s
ef
r
o
mo
t
h
e
rl
e
s
s
e
e
si
nt
h
eb
u
i
l
d
i
n
gwh
i
l
ei
n
v
o
l
v
e
di
nt
h
e
o
r
d
i
n
a
r
yu
s
eo
f
t
h
e
i
r
p
r
e
mi
s
e
s
.T
h
i
se
x
c
l
u
s
i
o
nwa
so
nt
h
eb
a
s
i
st
h
a
t
t
h
en
o
i
s
ewa
sc
o
n
s
e
q
u
e
n
t
u
p
o
n
6
1
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lOMoARcPSD|3076807
s
t
r
u
c
t
u
r
a
l
d
e
f
e
c
t
si
n
h
e
r
e
n
t
i
nt
h
ed
e
mi
s
e
dp
r
e
mi
s
e
swh
e
nl
e
t
a
n
dr
e
s
u
l
t
e
df
r
o
ma
c
t
i
v
i
t
i
e
swi
t
h
i
nt
h
e
p
a
r
t
i
e
sc
o
n
t
e
mp
l
a
t
i
o
n
LESSOR COVENANT – NON-DEROGATION (similar to quiet
enjoyment)
General Rules
Subject to any reservafons, the lessor must not act (or permit others to act) so as to make the
premises materially less lt for the permijed use
Palmer v Fletcher
Implied to give business ezcacy to lease – the use of the property by the lessee would be very
dizcult or impossible without the implicafon of this term
Karaggianis v Malltown Pty Ltd
Usually relevant where the lessor retains control of a property that adjoins the premises
Test / examples
Breach occurs where either the lessor’s acfvifes, or acfvifes on land under the lessor’s control,
make the leased premises unlt, inappropriate or signilcantly less suitable for the express purpose
for which the premises was leased
Aldin v LaGmer Clark


F
ACTS:L
e
a
s
eo
f
p
r
e
mi
s
e
si
n
c
l
u
d
e
da
ne
x
p
r
e
s
st
e
r
mt
h
a
t
t
h
el
e
s
s
e
ewo
u
l
dc
a
r
r
yo
nt
h
eb
u
s
i
n
e
s
so
f
a
t
i
mb
e
r
me
r
c
h
a
n
t
.L
e
s
s
o
r
’
ss
u
c
c
e
s
s
o
r
i
nt
i
t
l
eo
r
g
a
n
i
s
e
dwo
r
k
so
na
d
j
a
c
e
n
t
l
a
n
dwh
i
c
hs
e
r
i
o
u
s
l
yd
e
p
l
e
t
e
d
t
h
ea
i
r
s
u
p
p
l
yt
ot
h
ed
r
y
i
n
gs
h
e
d
su
s
e
di
nt
h
et
i
mb
e
r
b
u
s
i
n
e
s
s
.
HELD:s
i
g
n
i
fi
c
a
n
t
i
n
t
e
r
f
e
r
e
n
c
ewi
t
ht
h
ed
r
y
i
n
gp
r
o
c
e
s
s
,
wh
i
c
hwa
san
e
c
e
s
s
a
r
yi
n
c
i
d
e
n
t
o
f
t
h
eb
u
s
i
n
e
s
s
o
f
at
i
mb
e
rme
r
c
h
a
n
t
Harmer v Jumbil (Nigeria) Tin Areas


F
ACTS:L
e
s
s
o
r
wh
ol
e
a
s
e
dp
r
e
mi
s
e
sf
o
r
t
h
es
t
o
r
a
g
eo
f
e
x
p
l
o
s
i
v
e
sk
n
e
wt
h
a
t
i
f
b
u
i
l
d
i
n
g
swe
r
ee
r
e
c
t
e
d
wi
t
h
i
nac
e
r
t
a
i
nr
a
d
i
u
st
h
el
e
s
s
e
e
’
sl
i
c
e
n
c
et
os
t
o
r
ee
x
p
l
o
s
i
v
e
swo
u
l
db
er
e
v
o
k
e
d
.L
e
s
s
o
r
l
a
t
e
r
l
e
a
s
e
d
a
d
j
a
c
e
n
t
p
r
o
p
e
r
t
yt
oa
n
o
t
h
e
rl
e
s
s
e
ewh
oc
o
n
s
t
r
u
c
t
e
db
u
i
l
d
i
n
g
swi
t
h
i
nt
h
ep
r
o
h
i
b
i
t
e
dr
a
d
i
u
s
HELD:Br
e
a
c
ho
f
c
o
v
e
n
a
n
t
f
o
r
n
o
n
d
e
r
o
g
a
t
i
o
n
Karaggianis v Malltown Pty Ltd


F
ACTS:L
e
s
s
o
r
s
t
o
p
p
e
dt
h
eo
p
e
r
a
t
i
o
no
f
e
s
c
a
l
a
t
o
r
sa
n
dr
e
d
u
c
e
dt
h
el
i
f
t
s
e
r
v
i
c
et
ou
p
p
e
r
l
e
v
e
l
o
f
a
b
u
i
l
d
i
n
gwh
i
c
hwa
sl
e
a
s
e
df
o
r
u
s
ea
sar
e
s
t
a
u
r
a
n
t
HELD:Br
e
a
c
ho
f
c
o
v
e
n
a
n
t
f
o
r
n
o
n
d
e
r
o
g
a
t
i
o
n–l
a
n
d
l
o
r
dl
i
a
b
l
et
ot
e
n
a
n
t
Insurance – increases unlikely to amount to derogafon from the grant unless the cost would be so
high as to make the lease impossible or prohibifve, not merely more expensive
O’Cedar v Slough Trading


F
ACTS:t
e
n
a
n
t
p
a
i
dap
o
r
t
i
o
no
f
r
e
n
t
a
sc
o
n
t
r
i
b
u
t
i
o
nt
o
wa
r
d
si
n
s
u
r
a
n
c
ep
o
l
i
c
y
.L
a
n
d
l
o
r
dl
a
t
e
r
l
e
t
a
n
e
i
g
h
b
o
u
r
i
n
gt
e
n
a
n
c
yt
oa
n
o
t
h
e
r
t
e
n
a
n
t
wh
i
c
hma
d
ei
t
i
mp
o
s
s
i
b
l
et
oma
i
n
t
a
i
ni
n
s
u
r
a
n
c
e
.
HELD:b
e
c
a
u
s
el
a
n
d
l
o
r
du
n
d
e
r
t
a
k
i
n
gb
u
s
i
n
e
s
si
nb
u
s
i
n
e
s
s
l
i
k
ema
n
n
e
r
,
t
h
ef
a
c
t
t
h
a
t
i
t
i
n
c
r
e
a
s
e
dt
h
e
i
n
s
u
r
a
n
c
ep
r
e
mi
u
mswa
s
n
’
t
ab
r
e
a
c
ho
f
t
h
i
sc
o
v
e
n
a
n
t
The premises must be so auected by the lessor’s acfons that the premises are not reasonably lr for
the speciled use
Vasile v Perpetual Trustees WA
6
2
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Economic compeffon is not enough to establish derogafon from the grant
Port v Griith
Possible for one acfon – eg harassment or infmidafon by lessor – to consftute breach of both
covenant of quiet enjoyment and covenant of non-derogafon
Markham v Paget
Overriding QuesRon – is always whether the euect of the acts in quesfon is such as to disturb or
interfere with the lessee’s occupafon irrespecfve of the place where those acts originated
Aussie Traveller Pty Ltd v Marklea MUST READ pp 10-12


F
ACTS:mu
l
t
i
t
e
n
a
n
t
e
db
u
i
l
d
i
n
g
.L
e
s
s
e
e1s
o
l
dc
a
n
v
a
sg
o
o
d
sa
n
dL
e
s
s
e
e2d
i
dwo
o
d
wo
r
k(
t
i
mb
e
r
s
t
a
i
r
c
a
s
e
s
)
.L
e
s
s
e
e1c
o
mp
l
a
i
n
e
dt
ol
e
s
s
o
r
t
h
a
t
c
a
n
v
a
sg
o
o
d
sd
a
ma
g
e
db
ys
a
wd
u
s
t
b
l
o
wni
n
t
o
p
r
e
mi
s
e
ss
ol
e
s
s
e
e1u
n
a
b
l
et
oc
a
r
r
yo
nb
u
s
i
n
e
s
sa
sc
a
n
v
a
sp
r
o
d
u
c
t
swe
r
es
o
i
l
e
da
n
ds
t
a
i
n
e
d
.Al
s
o
n
o
i
s
ef
r
o
mwo
o
d
wo
r
kc
o
n
d
u
c
t
e
de
v
e
r
ys
e
c
o
n
dd
a
yma
d
eo
r
d
i
n
a
r
ys
p
e
e
c
hi
n
a
u
d
i
b
l
e
HELD:l
e
s
s
o
r
l
i
a
b
l
ef
o
r
a
c
t
so
f
n
u
i
s
a
n
c
ec
o
mmi
t
t
e
db
yc
o
mmo
nl
e
s
s
e
e
s
.L
e
s
s
e
e1a
wa
r
d
e
dd
a
ma
g
e
s
f
o
r
b
r
e
a
c
ho
f
c
o
v
e
n
a
n
t
.L
e
s
s
o
r
l
i
a
b
l
ef
o
r
a
c
t
so
f
n
u
i
s
a
n
c
ec
o
mmi
t
t
e
db
yap
e
r
s
o
nc
l
a
i
mi
n
gt
h
r
o
u
g
ht
h
e
l
e
s
s
o
r
,
e
v
e
ni
f
t
h
ea
c
t
swe
r
en
o
t
a
u
t
h
o
r
i
s
e
do
r
e
n
c
o
u
r
a
g
e
db
yt
h
el
e
s
s
o
r
,
i
f
t
h
el
e
s
s
o
r
wa
si
nap
o
s
i
t
i
o
nt
o
c
o
r
r
e
c
t
o
r
t
e
r
mi
n
a
t
et
h
eu
n
l
a
wf
u
l
c
o
n
d
u
c
t
b
ya
c
t
i
v
ei
n
t
e
r
v
e
n
t
i
o
n(
e
ge
n
f
o
r
c
i
n
gt
h
a
t
l
e
a
s
e
)
LESSEE COVENANT – PAYMENT OF RENT
Express agreement
Express clauses normally deal with:
a
)q
u
a
n
t
u
m
b
)p
a
y
me
n
t
d
a
t
e
s
c
)p
a
y
me
n
t
me
t
h
o
d
s
;
a
n
d
d
)r
e
v
i
e
ws
Where there is no express clause, PLA s 105 applies – ie parfes can contract out
Statutory OperaHon
Lessee covenanted to pay rent to the lessor for the period agreed to at the beginning of the lease (ie
1 year lease), unless there has been some destrucfon / damage making the premises unlt to live in
PLA s 105(1)(a)
May not be an essenfal term unless expressed to be so
Shevill v Builders Licensing Board


F
ACTS:T
e
n
a
n
t
f
a
i
l
e
dt
op
a
yr
e
n
t
.L
a
n
d
l
o
r
dt
e
r
mi
n
a
t
e
df
o
r
ab
r
e
a
c
ho
f
t
h
el
e
a
s
e–u
s
e
dc
o
n
t
r
a
c
t
u
a
l
r
i
g
h
t
t
h
a
t
a
l
l
t
e
r
msa
r
ee
s
s
e
n
t
i
a
l
i
nt
h
ec
o
n
t
r
a
c
t
HELD:b
r
e
a
c
ho
f
c
o
v
e
n
a
n
t
wa
sn
o
t
ab
r
e
a
c
ho
f
a
ne
s
s
e
n
t
i
a
l
t
e
r
m–t
h
u
s
,
s
u
b
s
t
a
n
t
i
a
l
d
a
ma
g
e
swe
r
en
o
t
r
e
c
o
v
e
r
a
b
l
e
cf Gumland Property Holdings v Dujy Bros Fruit Market


F
ACTS:F
a
i
l
u
r
et
op
a
yr
e
n
t
wa
saf
a
i
l
u
r
et
op
e
r
f
o
r
ma
ne
s
s
e
n
t
i
a
l
t
e
r
m.T
h
i
sl
e
a
s
ed
i
dn
o
t
h
a
v
eac
l
a
u
s
e
t
h
a
t
s
a
i
da
l
l
t
e
r
mse
s
s
e
n
t
i
a
l
.Ho
we
v
e
r
,
i
t
d
i
dh
a
v
ea
na
n
t
i
s
h
e
v
i
l
l
ec
l
a
u
s
e(
wh
i
c
hp
r
o
v
i
d
e
df
o
r
c
e
r
t
a
i
n
t
e
r
mst
ob
ee
s
s
e
n
t
i
a
l
wi
t
h
i
nt
h
ec
o
n
t
r
a
c
t
,
i
n
c
l
u
d
i
n
gp
a
y
me
n
t
o
f
r
e
n
t
)
HELD:d
e
s
p
i
t
et
h
et
e
r
m,
t
h
ec
o
v
e
n
a
n
t
t
op
a
yr
e
n
t
wa
se
s
s
e
n
t
i
a
l
a
n
dd
i
d
n
’
t
h
a
v
et
oh
a
v
er
e
g
a
r
dt
ot
h
e
a
n
t
i
s
h
e
v
i
l
l
t
e
r
mi
t
s
e
l
f
LESSEE COVENANT – REPAIR
6
3
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lOMoARcPSD|3076807
GENERAL RULES
Usually an express covenant
Implied that lessee keep / yield up the premises in good and tenantable repair having regard to the
condifon at commencement, unless the parfes agree otherwise (ie contract out)
PLA s 105(1)(b)
Excepfon to damage caused by:





fi
r
e
fl
o
o
d
l
i
g
h
t
n
i
n
g
s
t
o
r
ma
n
dt
e
mp
e
s
t
a
n
dr
e
a
s
o
n
a
b
l
ewe
a
r
a
n
dt
e
a
r
PLA s 105(1)(b)
Good and tenantable repair
Premises must be kept in a state of repair so that it can be used safely by the class of persons for
which the premises were occupied for, having regard to age, character and locality
Proudfoot v Hart
Obligafon is to maintain, not improve, the premises
Proudfoot v Hart
If this is not done – and damage is caused – lessee must make good the damage that resulted from
the lessee breach
Proudfoot v Hart
ConRnuing obligaRon – a fresh cause of acfon for breach arises from date to day
Granada Theatres Ltd
Repair – is the renewal or replacement of defecfve parts that are not substanfally the whole of the
subject majer (as opposed to renewal, which is the reconstrucfon of substanfally the whole of the
subject majer) – majer of degree
LurcoS v Wakely & Wheeler


F
ACTS:No
t
i
c
es
e
r
v
i
c
e
db
yl
o
c
a
l
c
o
u
n
c
i
l
t
or
e
p
l
a
c
ef
r
o
n
t
e
x
t
e
r
n
a
l
wa
l
l
t
h
a
t
wa
si
nd
a
n
g
e
r
o
u
sc
o
n
d
i
t
i
o
n
.
Ho
u
s
ewa
so
l
d
.Co
n
d
i
t
i
o
no
f
wa
l
l
c
a
u
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i
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me
CondiHon at commencement
Need not improve state of repair beyond that which applied at commencement
May even require lessee to remove lxtures at the end of the term
Wincant v South Australia
Inherent structural / design defects
Inherent defect is a defect in the fundamental and original design or construcfon
Doctrine of inherent defect unclear as to appropriate conclusions
6
4
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A building contains an inherent defect if it is of a kind that by its own inherent nature it will in the
course of fme fall into a parfcular condifon – no obligafon imposed on lessee to remove inherent
defect (only required to maintain state of repair)
Graham v The Markets Hotel Pty Ltd

HELD:t
h
e
r
ei
sn
od
o
c
t
r
i
n
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f
i
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sc
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yr
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cf Ravensep properGes Ltd v Davstone


F
ACTS:ac
o
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e
t
eb
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d
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.
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r
Reasonable wear and tear excepHon
Reasonable wear and tear means the reasonable use of the house by the tenant and the ordinary
operafon of natural forces
Haskell v Marlow
cf LurcoS v Wakeley

r
e
p
a
i
r
c
o
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n
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n
Onus on lessee to prove this excepfon
Haskell v Marlow
Excepfon does not exclude lessee from liability for repairing all consequenfal deteriorafon
Haskell v Marlow

EXAMPLE:i
f
t
i
l
ef
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l
l
o
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r
Eg – excepfon applies to exterior paintwork, but lessee may be required to repaint where
consequenfal damage to fmber •ows from the deteriorafon
Bunyip Buildings v Gestetner
DAMAGES FOR BREACH
Common law – diminufon in value or cost of pu}ng into repair
Conquest v Ebbets (diminufon in value)
Joyner v Weeks (cost of repair)
PLA s 112 imposes a limitafon on damages whether repair covenant is express or implied (other
than those in residenfal tenancy agreements):
a
)n
o
t
t
oe
x
c
e
e
dd
i
mi
n
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t
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mi
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st
ob
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e
mo
l
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e
do
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b
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t
a
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l
l
ya
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t
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e
d(
a
f
t
e
r
t
e
n
a
n
t
l
e
a
v
e
s
)
PLA s 112(1)
6
5
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Provision does not apply when the D breach has created the need for the structural alterafons to be
made
Graham v The Markets Hotels
LESSOR COVENANT – BUSINESS EFFICACY
Covenants may be implied under general contractual principles
Liverpool City Council v Irwin
The court can imply a term as a majer of fact for the purpose of ‘business ezcacy’ – in other words
to make the contract workable in business.
The Moorcock

Implied term that D would take reasonable care to ensure river bed was in a condifon not to
damage vessel
A term may be implied if:
a
)i
t
mu
s
t
b
er
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t
BP Reanery (Westernport) v Shire of HasGngs
Liverpool City Council v Irwin


F
ACTS:Lwa
sl
e
s
s
o
r
o
f
ah
i
g
h
r
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mp
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Covenants have been implied in the following circumstances:

t
h
a
t
t
h
el
e
s
s
o
rk
e
e
pt
h
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r
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r
BarreS v Lounova

t
h
a
t
t
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s
s
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ro
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t
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u
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l
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g
Karaggianis v Malltown

t
h
a
t
al
e
s
s
e
ei
se
n
t
i
t
l
e
dt
oas
u
p
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f
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c
t
r
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c
i
t
y
Jenkins v Levinson
However, covenant implicafon may not extend to registered leases – HC suggested should avoid use
of extrinsic evidence of what was in the minds of the parfes to an easement
Wesnield Management v Perpetual Trustee Company
COVENANTS IN FAVOUR OF LESSOR
Unless otherwise agreed, a lessor is implied to have the following powers:
a
)T
oe
n
t
e
r
a
n
dv
i
e
w
b
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oe
n
t
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r
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r–p
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dn
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dt
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sf
a
i
l
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dt
od
os
o
6
6
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c
)T
oe
n
t
e
r
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s
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i
o
n
PLA s 107x
DEALI
NGSWI
THLEASE
ASSIGNMENT OF THE LEASE
ESecHng an assignment
Assignment of lessee’s interest to another person
Assignment at law must comply with PLA
PLA s 199
Assignment may require the lessor’s consent
Assignment without a deed of consent signed by lessor, assignor and assignee only creates privity of
estate
DisHnguish a sublease
A sublease is:
a
) al
e
a
s
eo
f
a
l
l
o
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p
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r
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h
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e
a
s
et
e
r
m
Lonsdale Street v Carra
If the sublease is granted for a term that equals or exceeds the remainder of the lease term, it will be
an assignment of the lessee’s interest
Milmo v Carreras
If there is a sublease:





p
r
i
v
i
t
yo
f
e
s
t
a
t
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Pr
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t
e
db
e
t
we
e
ns
u
b
l
e
s
s
o
ra
n
ds
u
b
l
e
s
s
e
e
n
op
r
i
v
i
t
yo
f
c
o
n
t
r
a
c
t
b
e
t
we
e
nl
e
s
s
o
ra
n
ds
u
b
l
e
s
s
e
e
Lessor can bring head lease to an end and sublease will fall
Pennell v Payne
REQUIREMENTS FOR A LEGAL ASSIGNMENT OF LEASE
Requirements
1
) As
s
i
g
n
o
r
a
n
da
s
s
i
g
n
e
emu
s
t
a
g
r
e
et
oa
na
b
s
o
l
u
t
ea
s
s
i
g
n
me
n
t
i
nwr
i
t
i
n
g
PLA ss 11, 199
2
) No
t
i
c
et
ot
h
el
e
s
s
o
ro
f
t
h
ea
s
s
i
g
n
me
n
t
PLA s 199
6
7
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3
) Co
n
s
e
n
t
o
f
t
h
el
e
s
s
o
r
ma
yb
er
e
q
u
i
r
e
d(
ma
yb
eac
o
n
d
i
t
i
o
no
f
t
h
el
e
a
s
e
)
4
)L
e
g
a
l
e
s
t
a
t
ed
o
e
sn
o
t
p
a
s
st
oa
s
s
i
g
n
e
eu
n
t
i
l
t
r
a
n
s
f
e
r
o
f
l
e
a
s
er
e
g
i
s
t
e
r
e
d
LTA s 62
Licencing
Licensing of an area is not an assignment as a license is not a possessory right
Lam Kee Ying v Lam Shes Tong
POSITION AFTER LEGAL ASSIGNEMNT
Privity of contract
The terms of the lease are enforceable between the original lessor and the original lessee – liability
not auected by assignment
Auriol v Mills
If an assignee breaches the contract, the original lessee will be in breach even though they were not
in occupafon
Ahern v L A Wilkinson
For assignor to escape liability, there must be express agreement to discharge obligafons – this is not
implied merely from the fact of an assignment
Baynton v Morgan
Privity of estate
Privity of estate created between lessor and assignee because the assignor is transferring an estate in
the land to assignee – causing lessor-lessee relafonship to cease exisfng (replaced with new lessorassignee relafonship)
When privity of estate is created between lessor / assignee, the assignee will be bound by those
covenants that touch and concern the land
Austerberry v Corp of Oldham
Covenants that touch and concern the land
Covenants which touch and concern the land will be ones that auect the nature, quality or mode of
use of the land and is not merely collateral to that use
P&A Swip Investments v Combined English Stores
Condifons to be applied:
a
) Do
e
st
h
ec
o
v
e
n
a
n
t
b
e
n
e
fi
t
o
n
l
yt
h
ep
e
r
s
o
nwi
t
ht
h
er
e
v
e
r
s
i
o
n
a
r
yi
n
t
e
r
e
s
t
a
t
a
n
yt
i
me
,
a
n
di
f
s
e
p
a
r
a
t
e
d
f
r
o
mt
h
er
e
v
e
r
s
i
o
nc
e
a
s
et
ob
eo
f
b
e
n
e
fi
t
t
ot
h
ep
e
r
s
o
nwh
oh
a
st
h
eb
e
n
e
fi
t
o
f
t
h
ec
o
v
e
n
a
n
t
?
b
) Do
e
st
h
ec
o
v
e
n
a
n
t
a
ff
e
c
t
t
h
en
a
t
u
r
e
,
q
u
a
l
i
t
y
,
mo
d
eo
f
u
s
eo
rv
a
l
u
eo
f
t
h
el
a
n
d
?
c
)I
st
h
ec
o
v
e
n
a
n
t
n
o
t
e
x
p
r
e
s
s
e
dt
ob
ep
e
r
s
o
n
a
l
?
d
) Th
ep
a
y
me
n
t
o
f
mo
n
e
ywi
l
l
n
o
t
p
r
e
v
e
n
t
ac
o
v
e
n
a
n
t
f
r
o
mt
o
u
c
h
i
n
ga
n
dc
o
n
c
e
r
n
i
n
gt
h
el
a
n
di
f
t
h
eo
t
h
e
r
c
o
n
d
i
t
i
o
n
sa
r
es
a
t
i
s
fi
e
da
n
dt
h
ec
o
v
e
n
a
n
t
i
sc
o
n
n
e
c
t
e
dwi
t
hs
o
me
t
h
i
n
gt
ob
ed
o
n
eo
n
,
t
oo
ri
nr
e
l
a
t
i
o
nt
o
t
h
el
a
n
d
P&A Swip Investments v Combined English Stores Group
Covenants “relafng to the land” can be enforced as deemed to be made by and on behalf of the
covenantor / covenantee and their successors in ftle, unless contrary intenfon expressed
PLA s 53
6
8
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Examples of covenants which touch / concern the land on the part of the lessee include:





t
op
a
yr
e
n
t
(
Pa
r
k
e
rvWe
b
b
)
t
or
e
p
a
i
r
(
Wi
l
l
i
a
msvEa
r
l
e
)
t
oi
n
s
u
r
ea
g
a
i
n
s
t
fi
r
e(
Ve
r
n
o
nvSmi
t
h
)
t
ou
s
et
h
ep
r
e
mi
s
e
sa
sap
r
i
v
a
t
ed
we
l
l
i
n
go
n
l
y(
Wi
l
k
i
n
s
o
nvRo
g
e
r
s
)
n
o
t
t
oa
s
s
i
g
nt
h
el
e
a
s
ewi
t
h
o
u
t
t
h
el
e
s
s
o
rc
o
n
s
e
n
t
(
Go
l
d
s
t
e
i
nvSa
u
n
d
e
r
s
)
Covenants on the part of the lessor that touch / concern the land:





c
o
v
e
n
a
n
t
t
or
e
n
e
wt
h
el
e
a
s
e(
Mu
l
l
e
rvT
r
a
ff
o
r
d
)
n
o
t
t
ob
u
i
l
do
nt
h
ea
d
j
o
i
n
i
n
gl
a
n
d(
Ri
c
k
e
t
t
svEn
fi
e
l
dCh
u
r
c
h
wa
r
d
e
n
s
)
t
os
u
p
p
l
yt
h
ep
r
e
mi
s
e
swi
t
hwa
t
e
r(
J
o
u
r
d
a
i
nvWi
l
s
o
n
)
t
or
e
s
e
r
v
eac
a
r
p
a
r
k(
Hu
r
l
fi
t
evCo
l
e
sMy
e
r
)
L
e
s
s
o
r
’
sr
i
g
h
t
t
os
u
ef
o
ra
r
r
e
a
r
s
,
t
or
e
e
n
t
e
r
a
n
df
o
r
f
e
i
t
t
h
el
e
a
s
ea
n
dt
os
u
ef
o
rl
o
s
so
f
b
a
r
g
a
i
nd
a
ma
g
e
s
(
Gu
ml
a
n
d
)
o T
hi
swi
l
l
pa
s
swi
t
hl
a
ndunde
rPLAs1
1
7–none
e
df
ora
s
s
i
gnme
nt(
a
ut
oma
t
i
c
)
Personal covenants:


F
i
r
s
t
r
i
g
h
t
o
f
r
e
f
u
s
a
l
Op
t
i
o
nt
op
u
r
c
h
a
s
ef
r
e
e
h
o
l
d
,
b
u
t
n
o
t
ePL
As5
3(
a
b
o
v
e
)
PosiHon a\er assignment
See above
If lessor consent to assignment, there will be a deed of consent signed by all 3 parfes
Aoer assignment – lessee remains liable to lessor for breaches by assignor and assignee unless
express release
If only privity of estate – lessor can only sue lessee on covenants that touch and concern the land –
same for lessee against lessor
Lessee 1 enftled to indemnity from lessee 2 for breaches of covenant that touches and concerns the
land
ENFORCING COVENANTS POST-ASSIGNMENT OF THE LEASE
Lessor enforcement against lessee
If no deed of consent (only prifvity of estate) – lessor can enforce covenants that touch and concern
land – note PLA s 62
If a deed of consent (privity of contract and estate) – all covenants are enforceable aoer a legal
assignment occurs.
Lessee enforcement against lessor
If a deed of consent (privity of estate and contract) – all covenants including personal covenants
If no deed of consent (privity of estate) and provided transfer of lease is registered covenants that
touch and concern land – note PLA s 62
PLA s 62 – Must apply
On registrafon of lease – all rights, powers, privileges and liabilifes transfer to lessee
PLA s 62(1)
6
9
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Registered lessee bound to same extent as original lessee
PLA s 62(3)
BUT PLA s 62 uncertain in applicafon – only operates to transfer the covenants that touch and
concern the lessor’s estate in the land and NOT personal covenants
Jodaway v Langton (leases)
Queensland Premier Freehold Mines v French
Euect of PLA s 62 is that the transfer of a lease creates privity of estate and privity of K between
lessor and the transferee of the lease
Karacominakis v Big Country Developments

HELD:c
o
mb
i
n
a
t
i
o
no
f
(
1
)
a
n
d(
3
)
r
e
s
u
l
t
e
di
nc
r
e
a
t
i
o
no
f
p
r
i
v
i
t
yo
f
e
s
t
a
t
ea
n
dp
o
s
s
i
b
l
yc
o
n
t
r
a
c
t
a
s
b
e
t
we
e
nl
a
n
d
l
o
r
da
n
dn
e
wt
e
n
a
n
t
a
f
t
e
r
r
e
g
i
s
t
r
a
t
i
o
no
f
t
h
et
r
a
n
s
f
e
r
The euect of s 62 is not expressly restricted to creafng privity of K for so long as the transferee is RP
– transferee will remain liable of CL obligafons
Murphy v Harris

t
r
a
n
s
f
e
r
e
eo
f
al
e
a
s
ea
r
g
u
e
dt
h
ee
q
u
i
v
a
l
e
n
t
o
f
s6
2o
f
PL
Ah
a
dr
e
l
i
e
v
e
dh
i
mo
f
h
i
sCLo
b
l
i
g
a
t
i
o
nt
o
i
n
d
e
mn
i
f
yt
h
el
e
s
s
e
ea
g
a
i
n
s
t
t
h
el
e
s
s
e
e
’
sl
i
a
b
i
l
i
t
yt
ot
h
el
e
s
s
o
r
f
o
r
t
h
et
r
a
n
s
f
e
r
e
e
’
sb
r
e
a
c
ho
f
c
o
v
e
n
a
n
t
,
o
n
t
h
eg
r
o
u
n
dt
h
a
t
t
h
ep
r
o
v
i
s
i
o
nf
r
e
e
dt
h
el
e
s
s
e
ef
r
o
ma
l
l
f
u
r
t
h
e
r
l
i
a
b
i
l
i
t
y
.
T
h
ea
r
g
u
me
n
t
r
e
j
e
c
t
e
d
ConRnuing breaches – arguable new assignee may be liable if not recfled
LESSOR CONSENT (c)
Lease silent as to assignments / other parHng with possession
In absence of contractual requirement, tenant interest in lease is assignable because it is regarded as
property and not personal rights
Lease prohibiHng assignment of the lessee’s interest in all cases
Covenant against assignment only will not prohibit an assignment
Church v Brown
Lessor may waive the benelt of the absolute covenant and permit an assignment
PLA s 119
PLA s 121 DOES NOT apply here
Bocardo SA v S&M Hotels
Lease perminng assignment of lessee interest only if lessor gives its prior consent
Lessor’s consent to a proposed assignment or underle}ng is no to be unreasonably refused
PLA s 121(1)(a)(i)
Unless there is an express provision to the contrary, the lessor cannot demand a lne or premium as
the price for giving consent
PLA s 121(1)(b)
Failure of lessee to seek consent is a breach of covenant for which the lease may be forfeited even
where there are no reasonable grounds on which consent could be withheld
Barrow v Isaacs
PLA s 121 cannot be contracted out of
7
0
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Avoid by se}ng out criteria to be safsled by the assignee, rather than an obligafon to obtain
consent
What is unreasonable?
Q of fact – onus on lessee
InternaGonal Drilling Fluids
Strict test – consider whether refusal relates to:
a
)c
h
a
r
a
c
t
e
ro
f
p
r
o
p
o
s
e
da
s
s
i
g
n
e
e–t
h
e
i
rfi
n
a
n
c
i
a
l
s
t
a
n
d
i
n
g
,
a
b
i
l
i
t
yt
oc
o
n
d
u
c
t
b
u
s
i
n
e
s
so
np
r
e
mi
s
e
so
r
p
r
o
p
o
s
e
du
s
e(
Ho
u
l
d
e
rvGi
b
b
s
)
;OR
b
) wh
e
t
h
e
r
t
h
er
e
f
u
s
a
l
i
sf
o
r
ac
o
l
l
a
t
e
r
a
l
p
u
r
p
o
s
e(
e
gt
or
a
i
s
er
e
n
t
o
rf
o
r
c
eas
u
r
r
e
n
d
e
r
)(
J
AMc
Be
a
t
h
No
mi
n
e
e
s
)
Houlder v Gibbs
cf Pimms v Tallow Chandlers

LI
BERALTEST:al
e
s
s
o
r
’
sp
r
o
p
e
r
t
yi
n
t
e
r
e
s
t
sc
a
nb
eal
e
g
i
t
i
ma
t
ec
o
n
s
i
d
e
r
a
t
i
o
nf
o
r
al
e
s
s
o
r
i
nd
e
c
i
d
i
n
g
wh
e
t
h
e
r
o
r
n
o
t
t
oc
o
n
s
e
n
t
t
oa
na
s
s
i
g
n
me
n
t
/
s
u
b
l
e
a
s
e
Second category is unreasonable
Houlder v Gibbs
JA McBeath Nominees v Jenkins Development (alterior moGve)


F
ACTS:l
e
s
s
e
es
o
u
g
h
t
c
o
n
s
e
n
t
b
ul
e
s
s
o
r
r
e
f
u
s
e
do
nb
a
s
i
sa
s
s
i
g
n
e
ec
o
u
l
dn
o
t
o
p
e
r
a
t
eb
u
s
i
n
e
s
s
s
u
c
c
e
s
s
f
u
l
l
y
.L
e
s
s
o
rs
u
b
s
e
q
u
e
n
t
l
yo
ff
e
r
e
dn
e
wl
e
a
s
et
op
r
o
p
o
s
e
da
s
s
i
g
n
e
eo
nt
e
r
msmo
r
ef
a
v
o
u
r
a
b
l
et
o
l
e
s
s
e
e
.
HELD:u
n
r
e
a
s
o
n
a
b
l
e–l
e
s
s
o
r
r
e
f
u
s
a
l
t
oc
o
n
s
e
n
t
t
oa
na
s
s
i
g
n
me
n
t
o
f
al
e
a
s
eu
n
r
e
a
s
o
n
a
b
l
ea
st
h
el
e
s
s
o
r
h
a
da
t
t
e
mp
t
e
dt
oo
b
t
a
i
nap
e
r
s
o
n
a
l
p
e
c
u
n
i
a
r
yg
a
i
nb
yo
ff
e
r
i
n
gt
h
ep
r
o
p
o
s
e
da
s
s
i
g
n
e
ean
e
wl
e
a
s
ea
t
a
mu
c
hh
i
g
h
e
r
r
e
n
t
wh
i
c
hwa
sv
i
e
we
da
sac
o
l
l
a
t
e
r
a
l
p
u
r
p
o
s
e
Boss v Hamilton Island Enterprises


F
ACTS:At
t
e
mp
t
b
yl
e
s
s
o
r
t
or
e
f
u
s
et
oc
o
n
s
e
n
t
t
oa
na
s
s
i
g
n
me
n
t
o
f
al
e
a
s
eo
nHa
mi
l
t
o
nI
s
l
a
n
du
n
l
e
s
s
t
h
el
e
s
s
e
eu
n
d
e
r
t
o
o
kt
ob
eb
o
u
n
db
ys
p
e
c
i
fi
e
da
d
d
i
t
i
o
n
a
l
e
n
v
i
r
o
n
me
n
t
a
l
r
e
g
u
l
a
t
i
o
n
si
n
c
l
u
d
i
n
gc
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so
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ec
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o
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n
r
e
a
s
o
n
a
b
l
eu
n
d
e
r
PL
As1
2
1–t
h
e
s
er
e
q
u
i
r
e
me
n
t
swo
u
l
dh
a
v
eh
a
dap
o
t
e
n
t
i
a
l
l
ys
i
g
n
i
fi
c
a
n
t
i
mp
a
c
t
u
p
o
nwh
a
t
c
o
u
l
db
ed
o
n
ewi
t
ht
h
el
a
n
da
n
do
nt
h
el
e
s
s
e
e
’
se
n
t
i
t
l
e
me
n
t
t
oq
u
i
e
t
p
o
s
s
e
s
s
i
o
na
n
d
d
i
dn
o
t
r
e
fl
e
c
t
i
nt
h
el
e
a
s
ec
o
v
e
n
a
n
t
swh
e
ni
t
wa
sc
r
e
a
t
e
d
Lessor enftled to a reasonable fme to make a decision and to seek appropriate informafon regarding
proposed assignee so as to ground a reasonable decision
Daventry Holdings v Bacalakis Hotels
A clause sfpulafng the circumstances in which the lessor’s refusal should not be deemed unreasonable
will not be euecfve
Daventry Holdings v Bacalakis Hotels Pty Ltd
If unreasonable refusal – lessee can assign lease validly (lessee must establish unreasonable refusal)
Daventry Holdings v Baralakis Hotels
Unreasonable refusal will not sound in damages against lessor
Skiwing v Trust Company
If reasonable refusal – and lessee assigns – breach of covenant – but assignment will sfll vest in assignee
Ladies Sanctuary v ParamaSa Property
7
1
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Lessor will be enftled to forfeit the lease with the consequence that the assignee estate / interest would
be lost
Mussart v Blight
Nofce of breach required to be served on a lessee prior to forfeiture should be served on the assignee,
not the original lessee, as the assignee now holds the leasehold interest
PLA s 124
If lessor accepts rent from assignee, may be deemed to have waived the breach and loses the right to
forfeit
Property & Bloodstock v Emerton
Lease permits the assignment of the lessee’s interest on certain condiHons
If lessee fulllls condifons, then lessee will be able to assign without consent…
REASONS
If applicafon refused without reasons – not necessary to give reasons
Secured Income Real Estate v St MarGns Investments
ENFORCING COVENANTS POST-ASSIGNEMNT OF REVERSION
General
Assignment of the reversion occurs when the freehold is purchased or transferred subject to the lease
Common law
Covenants not enforceable by new owner unless a deed of covenant
CHANGED – under statute
Upon transfer of land the assignee gets the beneKt (not burden under s 118) of ‘rent and all covenants that
touch and concern the land’
PLA s 117

Ass
uc
h,
c
a
ns
uef
ort
her
e
nt
a
st
hebe
ne
fitof
t
hec
o
v
e
na
ntt
opa
yr
e
ntt
ouc
he
sa
ndc
onc
e
r
nst
hel
a
nd
The following go with the reversionary estate in the land:




r
e
n
t
r
e
s
e
r
v
e
db
yal
e
a
s
e
t
h
eb
e
n
e
fi
t
o
f
e
v
e
r
yl
e
s
s
e
e
’
sc
o
v
e
n
a
n
t
t
o
u
c
h
i
n
ga
n
dc
o
n
c
e
r
n
i
n
gt
h
el
a
n
d
e
v
e
r
yc
o
n
d
i
t
i
o
no
f
r
e
e
n
t
r
y
;
AND
o
t
h
e
r
c
o
n
d
i
t
i
o
nc
o
n
t
a
i
n
e
di
nt
h
el
e
a
s
e
PLA s 117(1)
The right to enforce the lessee’s covenants which touch and concern the land pass with the reversion to the assignee, so
the assignee can sue in respect of a breach of such obligafon whether it occurred before / aoer assignment
PLA s 117(2)
Under s 117 PLA can sue lessee for arrears of rent
An assignee of the reversion is bound to perform those lessor’s covenants which touch and concern the land
PLA s 118
NOTE – personal covenants not ajected, incl. liability to return security deposits / bonds or insurance premiums
Lessor not liable for prior breaches of assignor
Does not allow lessor to sue on personal covenants – “in relafon to the lot” limits it to covenants that touch and concern
land
Jodaway Pty Ltd v Langton
A guarantee can be treated as a covenant that touches and concerns the land if it guarantees the performance of covenants
that do touch and concern the land under PLA s 117
7
2
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Simmons v Lee
Gumland
NB: So may be able to sue guarantor for breaches of a lease, rather than the lessee
May be able to sue on a novated covenant to repay
Hua Chiao Commercial Bank v Chiuapue Industries
Post registraRon
Post registrafon – new lessor has all rights, powers, privileges and liabilifes in relafon to the lot
LTA s 62
TERMI
NATI
ONOFLEASES
HOW A LEASE CAN END
ExpiraHon of Hme
A lxed term lease automafcally ends on the last day of the term
Where lease has expired, lessor may recover possession in a summary way through magistrates
Court
PLA ss 140-152
NoHce to quit (periodic tenancy only)
See below
Note applicafon of s 129
Surrender
Lessee gives up interest in land and lessor accepts that interest, so merger occurs (immediately
under common law, but now only by registrafon of relevant form)
By agreement – requires Form 8 Surrender and consent of each registered mortgagee and registered
sublessee – interest vests in lessor upon registrafon
LTA s 69
Must also be in wrifng and signed by the person making the surrender
PLA ss 10(1)(a), 11(1)(a)
By operaRon of law – occurs when the parfes demonstrate an intenfon to treat the lease as
terminated and it would be inequitable to treat the lease as confnuing on food – based on estoppel
– eg:
a
)l
e
s
s
o
r/
l
e
s
s
e
ea
g
r
e
et
h
el
e
a
s
ei
st
oe
x
t
e
n
dt
oal
a
r
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e
ra
r
e
a–o
r
i
g
i
n
a
l
l
e
a
s
es
u
r
r
e
n
d
e
r
e
da
n
da
g
r
e
e
me
n
t
wi
l
l
g
i
v
er
i
s
et
oan
e
wl
e
a
s
e
b
)a
g
r
e
e
me
n
t
t
oe
x
t
e
n
dt
h
et
e
r
m
c
)g
r
a
n
t
o
f
n
e
wl
e
a
s
et
ot
h
i
r
dp
a
r
t
yd
u
r
i
n
gt
h
et
e
r
mo
f
t
h
eo
l
dl
e
a
s
ea
n
dl
e
s
s
e
ea
g
r
e
e
st
og
i
v
eu
p
p
o
s
s
e
s
s
i
o
n
d
)l
e
s
s
e
ea
b
a
n
d
o
n
st
h
ep
r
e
mi
s
e
sa
n
dt
h
ec
o
n
d
u
c
t
i
sa
c
c
e
p
t
e
db
yt
h
el
e
s
s
o
r–me
r
ea
b
a
n
d
o
n
me
n
t
wi
t
h
o
u
t
r
e
t
a
k
i
n
gp
o
s
s
e
s
s
i
o
ni
sn
o
t
s
u
ffic
i
e
n
t
(
An
d
r
e
wsvHo
g
a
n
)
Euect – discharge parfes of all future obligafons, including obligafon to pay rent
Buchanan v Byrnes
7
3
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Surrender of head lease – head lessor becomes enftled to the reversion expectant on the sublease
and the sublessee is able to enforce the sublease and have the terms of the sublease enforced
against it
PLA s 115
Merger
Where one party becomes both lessor and lessee (in the same capacity) the lease covenants are
exfnguished
Requires registrafon of a Form 14 General Request before takes euect
Cooper v FCT
FrustraHon
Relevant where premises are fully destroyed, not where the premises or part of the premises are
merely unusable
GP – Doctrine of frustrafon in principle will apply to leases, however, the circumstances must be
highly unusual – eg must completely destroy the property
NaGonal Carriers v Panalpina (Northern) Ltd


F
ACTS:Wa
r
e
h
o
u
s
el
e
t
f
o
r
1
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e
a
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r
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a
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e
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r
u
s
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r
a
t
e
d
HELD:n
o
t
f
r
u
s
t
r
a
t
e
d–i
n
t
e
r
r
u
p
t
i
o
nt
oa
c
c
e
s
swa
so
n
l
yt
e
mp
o
r
a
r
y
.Al
e
a
s
ei
sag
r
a
n
t
o
f
a
ni
n
t
e
r
e
s
t
i
n
l
a
n
dwh
i
c
hr
e
ma
i
n
sd
e
s
p
i
t
et
h
ef
r
u
s
t
r
a
t
i
n
ge
v
e
n
t
Lessee is sfll liable to pay rent but check for terminafon and abatement clause in relafon to damage
and destrucfon (eg •ood / lre)
see PLA s 105
Forfeiture a\er terminaHon for breach
At common law, breach of essenfal term gives rise to right to terminate, while breach of nonessenfal term gives rise to acfon in damages (not terminafon), unless:
a
)l
e
a
s
ee
x
p
r
e
s
s
l
yp
r
o
v
i
d
e
sf
o
rar
i
g
h
t
o
f
r
e
e
n
t
r
ya
n
df
o
r
f
e
i
t
u
r
ei
nt
h
ee
v
e
n
t
o
f
ab
r
e
a
c
ho
f
c
o
v
e
n
a
n
t
;OR
b
)r
i
g
h
t
t
or
e
e
n
t
e
r
a
n
dt
a
k
ep
o
s
s
e
s
s
i
o
ni
sp
r
o
v
d
e
df
o
rb
ys
t
a
t
u
t
e
Progressive Mailing House v Tabali
Under statute (in absence of express clause / agreement), forfeiture allowed where:


r
e
n
t
i
si
na
r
r
e
a
r
sf
o
r
t
h
es
p
a
c
eo
f
o
n
emo
n
t
h
,
e
v
e
nt
h
o
u
g
hn
of
o
r
ma
l
d
e
ma
n
df
o
rr
e
n
t
h
a
sb
e
e
nma
d
e
;
OR
d
e
f
a
u
l
t
i
sma
de
i
nt
h
ef
u
l
fi
l
me
n
t
o
f
a
n
yc
o
v
e
n
a
n
t
,
o
b
l
i
g
a
t
i
o
n
,
c
o
n
d
i
t
i
o
no
rs
t
i
p
u
l
a
t
i
o
n
PLA s 107(d)
RepudiaHon
Repudiatory conduct is required and the other party must communicate that they accept the
repudiafon of the lease
7
4
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TERMINATING A PERIODIC TENANCY
Requirements
Unless the parfes otherwise agree a nofce terminafng a weekly, monthly, yearly or other periodic
tenancy must:
a
)s
a
t
i
s
f
yPL
As1
3
1r
e
q
u
i
r
e
me
n
t
so
f
f
o
r
m–n
o
t
i
c
es
i
g
n
e
db
yl
e
s
s
o
r
,
i
d
e
n
t
i
f
y
i
n
gp
r
e
mi
s
e
sa
n
ds
t
a
t
i
n
gt
h
e
d
a
t
eo
f
t
e
r
mi
n
a
t
i
o
na
n
dd
a
t
eo
f
e
x
p
i
r
yo
f
p
e
r
i
o
do
f
t
e
n
a
n
c
y
Form 8 – noGce to tenancy
Form 9 – noGce to landlord
b
)b
eg
i
v
e
ni
nt
h
ema
n
n
e
rp
r
e
s
c
r
i
b
e
db
yPL
As1
3
2
;a
n
d
c
)b
eg
i
v
e
nf
o
rt
h
ep
e
r
i
o
do
f
t
i
mes
p
e
c
i
fi
e
di
nPL
Aa
st
h
ec
a
s
ema
yb
e–s
e
eb
e
l
o
w:
PLA s 130
If no rent has been accepted, then terminafon can take place immediately upon registrafon
LTA s 184
NoHce
Nofce must be served
Time Limits
GP – terminate on the last day of the period of the tenancy next following the giving of the nofce
PLA s 136
Weekly – 1 week nofce to the euecfve last day
PLA s 133
Monthly – A nofce to terminate a monthly tenancy shall be given on or before the last day of 1
month of the tenancy to be euecfve on the last day of the following month of the tenancy
PLA s 134
Yearly – on or before last day of 6 months nofce to last day
PLA s 135
Tenancy at will – PLA s 129 – terminate at any fme on 30 days nofce
PLA s 129
Tenancy at will – terminate on reasonable nofce – depends on circumstances including:




t
h
en
a
t
u
r
eo
f
t
h
et
e
n
a
n
c
y
t
h
ec
i
r
c
u
ms
t
a
n
c
e
ss
u
r
r
o
u
n
d
i
n
gt
h
ec
r
e
a
t
i
o
no
f
t
h
et
e
n
a
n
c
y
t
h
et
e
r
ms(
i
f
a
n
y
)o
f
t
h
et
e
n
a
n
c
y
,
a
n
d
a
n
yp
r
o
p
e
r
i
mp
l
i
c
a
t
i
o
n
sf
r
o
mt
h
ea
g
r
e
e
me
n
t
(
i
f
a
n
y
)
o
f
t
h
ep
a
r
t
i
e
swi
t
hr
e
s
p
e
c
t
t
ot
h
et
e
n
a
n
c
y
PLA s 137
DefecHve noHce
If a nofce is defecfve (e.g. it requires the lessee to vacate before a date set out above), the nofce is
invalid and a new nofce needs to be served
Any ajempt to terminate the tenancy where nofce invalid will be a repudiafon
Relief against forfeiture is not available
7
5
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TERMINATION OF FIXED TERM LEASE
LESSOR STEPS TO FORFEIT AND RE-ENTER FOR BREACH
Breach by lessee
At common law, and usually found as an express term in the contract, lessor may terminate and retake possession:
a
)b
r
e
a
c
ho
f
a
ne
s
s
e
n
t
i
a
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e
r
m(
Pr
o
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evT
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b
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e
s
s
e
n
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i
a
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t
e
r
mwh
e
r
et
h
el
e
a
s
ee
x
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r
e
s
s
l
yp
r
o
v
i
d
e
sf
o
rar
i
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h
t
o
f
r
e
e
n
t
r
y(
Wh
a
l
l
v
Bu
l
ma
n
)
c
)r
e
p
u
d
i
a
t
i
o
n–l
e
s
s
e
ea
b
a
n
d
o
n
sp
r
o
p
e
r
t
y(
a
l
t
h
o
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g
hd
i
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u
l
t
t
op
r
o
v
e–s
e
ePL
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2
4n
o
t
i
c
e
)
Breach may not occur unfl expiry of a parfcular fme – eg rent must be paid 14 days aoer due date…
Under statute, lessor may terminate and re-take possession whenever:
a
)r
e
n
t
i
si
na
r
r
e
a
r
s>1mo
n
t
h
,
e
v
e
nt
h
o
u
g
hn
of
o
r
ma
l
d
e
ma
n
dh
a
sb
e
e
nma
d
e
;o
r
b
)d
e
f
a
u
l
t
i
sma
d
ei
nf
u
l
fi
l
me
n
t
o
f
a
n
yc
o
v
e
n
a
n
t
,
o
b
l
i
g
a
t
i
o
n
,
c
o
n
d
i
t
i
o
no
rs
t
i
p
u
l
a
t
i
o
n
,
wh
e
t
h
e
re
x
p
r
e
s
s
e
do
r
i
mp
l
i
e
di
nt
h
el
e
a
s
e
PLA s 107(d)
Lessor elecHon / waiver
Lessor must elect to either waive the breach or to forfeit the lease
MaShews v Smallwood
Waiver will occur if the lessor does “some unequivocal act recognising the confnued existence of the
lease” – only applies to the parfcular breach in Q (not confnuing breaches)
PLA s 119
MaShews v Smallwood

L
e
s
s
o
r
k
n
e
wo
f
l
e
s
s
e
eb
r
e
a
c
hb
u
t
a
c
c
e
p
t
e
dr
e
n
t
f
a
l
l
i
n
gd
u
ea
f
t
e
r
t
h
eb
r
e
a
c
ho
c
c
u
r
r
e
d
Examples of waiver:




a
c
c
e
p
t
a
n
c
eo
f
r
e
n
t
o
na“
wi
t
h
o
u
t
p
r
e
j
u
d
i
c
e
”b
a
s
i
swh
e
r
er
e
n
t
wa
sa
c
c
e
p
t
e
dwi
t
hf
u
l
l
k
n
o
wl
e
d
g
eo
f
a
b
r
e
a
c
h(
Se
g
a
l
Se
c
u
r
i
t
i
e
s
)
l
e
s
s
o
re
q
u
i
v
o
c
a
l
d
e
ma
n
df
o
rp
o
s
s
e
s
s
i
o
ns
u
b
s
e
q
u
e
n
t
t
ob
r
e
a
c
h(
Mo
o
r
evUl
l
c
o
a
t
s
)
i
n
s
t
i
t
u
t
i
n
ga
na
c
t
i
o
nn
t
or
e
c
o
v
e
rr
e
n
t
wh
i
c
hh
a
sa
c
c
r
u
e
ds
u
b
s
e
q
u
e
n
t
t
ob
r
e
a
c
h
g
r
a
n
t
i
n
gan
e
wl
e
a
s
et
ol
e
s
s
e
e(
Wa
r
dvDa
y
)
NoHce – under PLA s 124
SP – Right of re-entry or forfeiture is not enforceable by acfon or otherwise unless nofce of breach
is served on lessee:
a
)s
p
e
c
i
f
y
i
n
gp
a
r
t
i
c
u
l
a
r
b
r
e
a
c
hc
o
mp
l
a
i
n
e
do
f
b
)r
e
q
u
i
r
i
n
gl
e
s
s
e
et
or
e
me
d
yt
h
eb
r
e
a
c
h(
p
r
o
v
i
d
e
di
t
i
sc
a
p
a
b
l
eo
f
b
e
i
n
gr
e
me
d
i
e
d
)
c
)r
e
q
u
i
r
i
n
gl
e
s
s
e
et
op
a
yt
h
el
e
s
s
o
r
mo
n
e
t
a
r
yc
o
mp
e
n
s
a
t
i
o
nf
o
rt
h
eb
r
e
a
c
h(
p
r
o
v
i
d
e
dl
e
s
s
o
ri
ss
e
e
k
i
n
g
c
o
mp
e
n
s
a
t
i
o
n
)
PLA s 124(1)x
see, eg, Gerraty v McGavin

s
t
a
t
i
n
gt
h
a
t
t
h
el
e
s
s
e
eh
a
s“
n
o
t
k
e
p
t
t
h
ep
r
e
mi
s
e
si
nag
o
o
ds
t
a
t
eo
f
r
e
p
a
i
r
”
i
sn
o
t
s
p
e
c
i
fi
ce
n
o
u
g
h
Unless you are holding over aoer expiry of lxed term, not enftled to the benelt of PLA s 124
Grepo v Jam-Cal Bundaberg Ltd
7
6
Downloaded by Mojtaba Dani (mojtaba.dani@gmail.com)
lOMoARcPSD|3076807


F
ACTS:t
e
n
a
n
t
i
nh
o
l
d
i
n
go
v
e
r
,
o
n
ei
s
s
u
ewa
st
h
a
t
t
e
n
a
n
t
a
r
g
u
e
dg
i
v
i
n
gan
o
t
i
c
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f
i
n
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e
n
t
i
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nt
oe
x
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c
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s
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p
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nc
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t
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da
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me
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t
f
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l
e
a
s
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,
a
n
da
sar
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s
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l
t
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h
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n
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dt
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e
kr
e
l
i
e
f
f
r
o
mf
o
r
f
e
i
t
u
r
e
HELD:u
n
l
e
s
sy
o
ua
r
eh
o
l
d
i
n
go
v
e
r
a
f
t
e
r
e
x
p
i
r
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afi
x
e
dt
e
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m,
n
o
t
e
n
t
i
t
l
e
dt
ob
e
n
e
fi
t
o
f
s1
2
4
Parfes cannot contract out of these provisions
PLA s 124(9)
Nofce must be in approved form – Form 7 – cannot delete the lrst note in any circumstances
PLA s 124(8)
Ex parte Taylor

fi
r
s
t
n
o
t
ei
st
h
a
t
“
T
h
el
e
s
s
o
r
wi
l
l
b
ee
n
t
i
t
l
e
dt
or
e
e
n
t
e
r
o
r
f
o
r
f
e
i
t
t
h
el
e
a
s
ei
nt
h
ee
v
e
n
t
o
f
t
h
el
e
s
s
e
ef
a
i
l
i
n
g
t
oc
o
mp
l
ywi
t
ht
h
i
sn
o
t
i
c
ewi
t
h
i
nar
e
a
s
o
n
a
b
l
et
i
me–s
e
es
e
c
t
i
o
n1
2
4o
f
t
h
ePL
A”
cf Suga v Trust Co of Australia

f
a
i
l
u
r
et
oi
n
c
l
u
d
et
h
e“
Ad
d
i
t
i
o
n
a
l
n
o
t
e
”
wa
sn
o
t
f
a
t
a
l
Breach for CONSENT – courts view remedying the breach as making good the breach as to the
future, and not necessarily making the breach as though it never happened
Giacomi v Nashving Pty Ltd
NB: breach for consent can be remedied by now obtaining it
CoA – If lessee fails to remedy within a reasonable fme aoer service of the nofce (usually 14 days),
lessor can forfeit the lease
PLA s 124(1)
Service of noRce – unless contrary intenfon in lease, service of a nofce under s 124 will be euecfve
if it is served in a manner provided for in PLA s 347
PLA s 347
Applies where lessor exercises a CONTRACTUAL right in lease to re-enter for breach (will apply in the
case of repudiafon where a breach of a term of the lease amounts to the repudiafon)
Wood Factory v Kiritos


F
ACTS:t
e
n
a
n
t
mo
v
e
da
l
l
f
e
a
t
u
r
e
sf
r
o
mp
r
e
mi
s
e
s
.Al
l
o
we
dp
r
o
p
e
r
t
yt
of
a
l
l
i
n
t
od
i
s
r
e
p
a
i
r
.
HELD:c
o
n
s
t
i
t
u
t
e
dr
e
p
u
d
i
a
t
i
o
n
.Al
s
oo
t
h
e
r
b
r
e
a
c
h
e
si
n
c
l
u
d
e
dr
e
p
a
i
rc
o
v
e
n
a
n
t
.T
e
r
mi
n
a
t
i
o
nv
a
l
i
d–
n
o
t
i
c
et
ob
eg
i
v
e
n
.
Apriaden v Seacrest


F
ACTS:d
e
l
i
b
e
r
a
t
e
l
ywi
t
h
h
e
l
dr
e
n
t
u
n
t
i
l
l
a
n
d
l
o
r
dd
e
a
l
t
wi
t
hc
o
n
c
e
r
n
sr
e
l
a
t
i
n
gt
op
r
e
mi
s
e
s
.
HELD:r
e
p
u
d
i
a
t
i
o
na
t
c
o
mmo
nl
a
w.Al
s
oa
mo
u
n
t
st
of
a
i
l
u
r
et
op
a
yr
e
n
t
.T
h
u
s
,
mu
s
t
s
e
r
v
ePL
As1
2
4
n
o
t
i
c
et
ot
e
r
mi
n
a
t
e
ExcepRons:
a
)a
n
yl
e
a
s
e/
t
e
n
a
n
c
yf
o
r
<
=1y
e
a
r
b
)a
n
yt
e
n
a
n
c
yo
f
ah
o
u
s
el
e
t
a
sad
we
l
l
i
n
gh
o
u
s
e
PLA s 124(6)(a)
Demand for possession
If breaches in nofce (Form 7) not remedied – lessor can unequivocally demand possession
Physical re-entry not necessary – can be a demand for possession
Ex parte Whelan
There must be no waiver for the demand to be euecfve
Acceptance of rent aoer service of PLA s 124 nofce is not a waiver of breaches in nofce:

b
r
e
a
c
h
e
so
f
o
t
h
e
r
c
o
v
e
n
a
n
t
s–e
gr
e
p
a
i
r–n
o
t
a
c
c
e
p
t
e
d
7
7
Downloaded by Mojtaba Dani (mojtaba.dani@gmail.com)
lOMoARcPSD|3076807

p
a
r
t
p
a
y
me
n
t
o
f
r
e
n
t
u
n
d
e
rn
o
t
i
c
eo
r
r
e
n
t
f
o
ro
t
h
e
rp
e
r
i
o
d
si
sn
o
t
awa
i
v
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r
,
p
r
o
v
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dl
a
n
d
l
o
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a
sma
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t
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t
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c
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n
t
i
sn
o
t
awa
i
v
e
ro
f
t
h
e
i
rr
i
g
h
t
s
Steps




Re
e
n
t
e
r
L
e
s
s
o
rt
h
e
nh
a
st
h
er
i
g
h
t
t
or
e
e
n
t
e
rt
h
ep
r
e
mi
s
e
sa
n
dc
h
a
n
g
el
o
c
k
se
t
c
.Us
es
e
l
f
h
e
l
p(
mu
s
t
n
o
t
u
s
e
mo
r
ef
o
r
c
et
h
a
ni
sr
e
a
s
o
n
a
b
l
yn
e
c
e
s
s
a
r
y
:
Cr
i
mi
n
a
l
Co
d
es7
0
)o
rr
e
e
n
t
e
rb
ywa
yo
f
wr
i
t
(
UCPRr9
)
L
e
s
s
e
eb
e
c
o
me
sat
r
e
s
p
a
s
s
e
r
L
o
d
g
eF
o
r
m1
4Ge
n
e
r
a
l
Re
q
u
e
s
t
t
or
e
c
o
r
dd
e
t
e
r
mi
n
a
t
i
o
no
f
l
e
a
s
ea
n
df
o
r
f
e
i
t
l
e
a
s
ea
tl
a
w
RegistraHon of determinaHon of the lease
Aoer lawfully re-entering and taking possession under the lease, the lessor may lodge a Form 14
General Request to register that re-entry. The Form 7 Nofce to Remedy Breach will be ajached to
the Form 14 General Request
The lessee’s legal interest will end on the registrafon of the Form 14 General Request
RELIEF AGAINST FORFEITURE
Leases
SP – May apply for a court to grant relief
PLA s 124(3)
The lessee may apply to the court (in its inherent jurisdicfon) to be relieved of the consequences of
forfeiture of their interest as lessee:
a
) Ap
p
l
i
e
swh
e
r
el
e
s
s
o
r
i
ss
e
e
k
i
n
gt
oe
n
f
o
r
c
er
i
g
h
t
o
f
r
e
e
n
t
r
yo
rf
o
r
f
e
i
t
u
r
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rh
a
sr
e
e
n
t
e
r
e
d
b
) Th
el
e
s
s
e
ema
ya
p
p
l
yt
ot
h
ec
o
u
r
t
f
o
rr
e
l
i
e
f
(
s
e
p
a
r
a
t
ea
p
p
l
i
c
a
t
i
o
nORi
nr
e
s
p
o
n
s
et
ol
e
s
s
o
ra
c
t
i
o
nf
o
r
e
j
e
c
t
me
n
t
)
c
) Th
ec
o
u
r
t
wi
l
l
h
a
v
er
e
g
a
r
dt
ot
h
ep
r
o
c
e
e
d
i
n
g
s
,
c
i
r
c
u
ms
t
a
n
c
e
sa
n
dt
h
ep
a
r
t
i
e
s
’
c
o
n
d
u
c
t
u
n
d
e
rs
1
2
4
(
1
)
[
e
.
g
.
F
o
r
m7No
t
i
c
e
]
d
) Th
ec
o
u
r
t
ma
yg
r
a
n
t
o
rr
e
f
u
s
er
e
l
i
e
f
i
ni
t
sd
i
s
c
r
e
t
i
o
n
e
) Th
ec
o
u
r
t
ma
yg
r
a
n
t
r
e
l
i
e
f
o
na
n
yt
e
r
msi
t
t
h
i
n
k
sfi
t
i
nt
h
ec
i
r
c
u
ms
t
a
n
c
e
sa
st
o
:
a
.c
o
s
t
s
b
.e
x
p
e
n
s
e
s
c
.d
a
ma
g
e
s
d
.c
o
mp
e
n
s
a
t
i
o
n
e
.p
e
n
a
l
t
yo
r
f
. o
t
h
e
r
wi
s
e
,
i
n
c
l
u
d
i
n
gg
r
a
n
t
i
n
ga
ni
n
j
u
n
c
t
i
o
nt
or
e
s
t
r
a
i
na
n
yl
i
k
eb
r
e
a
c
hi
nt
h
ef
u
t
u
r
e
PLA s 124(2)
NOTE – does not apply where valid terminafon for repudiafon
Court considerafons:






l
e
s
s
e
e
’
sc
o
n
d
u
c
t
a
n
dwh
e
t
h
e
ri
t
wa
swi
l
f
u
l
n
a
t
u
r
ea
n
dg
r
a
v
i
t
yo
f
b
r
e
a
c
h
r
e
l
a
t
i
o
nb
e
t
we
e
nb
r
e
a
c
ha
n
dv
a
l
u
eo
f
p
r
o
p
e
r
t
y(
d
o
e
st
h
ed
i
s
p
r
o
p
o
r
t
i
o
nb
e
t
we
e
nt
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x
p
e
n
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i
t
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r
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e
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i
r
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t
or
e
me
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yt
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r
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c
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ev
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l
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p
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s
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r
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i
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l
i
h
o
o
do
f
b
r
e
a
c
h
e
si
nt
h
ef
u
t
u
r
e
CONSI
DER–u
n
c
o
n
s
c
i
o
n
a
b
i
l
i
t
y
…
7
8
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lOMoARcPSD|3076807
Central Estates(Belgravia) v Woolgar
Shiloh Spinners Ltd v Harding; Pioneer Gravels
World By Nite v Michael


F
ACTS:d
e
f
a
u
l
t
i
np
a
y
me
n
t
o
f
r
e
n
t
f
o
r
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o8mo
n
t
h
so
f
l
e
a
s
e
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o
r
m7n
o
t
i
c
es
e
r
v
e
d
.Ev
i
d
e
n
c
et
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t
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s
s
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t
i
l
l
s
o
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n
t
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u
l
dme
e
t
r
e
n
t
a
l
o
b
l
i
g
a
t
i
o
n
sa
n
di
nf
u
t
u
r
e
,
a
n
df
o
r
f
e
i
t
u
r
eo
f
l
e
a
s
ewo
u
l
dme
a
nl
o
s
so
f
b
u
s
i
n
e
s
sp
r
e
mi
s
e
s
HELD:r
e
l
i
e
f
a
g
a
i
n
s
t
f
o
r
f
e
i
t
u
r
eg
r
a
n
t
e
d
.T
e
s
t
i
so
n
eo
f
u
n
c
o
n
s
c
i
o
n
a
b
i
l
i
t
y
.I
st
h
e
r
ear
e
a
s
o
n
a
b
l
e
l
i
k
e
l
i
h
o
o
dt
h
a
t
t
h
er
e
n
t
wi
l
l
n
o
t
b
ep
a
i
di
nt
h
ef
u
t
u
r
e
?Ha
v
ei
n
t
e
r
e
s
t
so
f
t
h
i
r
dp
a
r
t
i
e
si
n
t
e
r
v
e
n
e
d
?Re
s
o
r
t
t
os
t
r
i
c
t
l
e
g
a
l
r
i
g
h
t
o
f
r
e
e
n
t
r
ywo
u
l
db
eu
n
c
o
n
s
c
i
o
n
a
b
l
eh
e
r
e
Court can grant relief in equity even aoer lessor has obtained judgment and has re-entered by taking
physical possession not pursuant to a court order
PLA s 124(7)
Can apply for relief even aoer Form 14 General Request to record determinafon has been registered
Secfon 124 does not apply to certain leases or tenancies
see PLA s 124(6)(a) excepfons above
Applying for relief will not be construed as an admission by the lessee that a Form 7 has been served
by the lessor or that any breach has occurred, or that any right of or cause for re-entry or forfeiture
has accrued or arisen and the court is not required to make any lndings in relafon to these issues
when granfng relief
PLA s 124(3)
Non-payment of rent
Lessor’s right to re-enter and forfeit is security for payment of rent
Shiloh Spinners Ltd v Harding
If arrears of rent and costs are paid, court will generally grant relief where just an equitable to do so,
unless an excepfon applies
Kyriacou v Manakis
Excepfons:





L
e
s
s
e
ei
si
nr
e
c
e
i
v
e
r
s
h
i
p/
b
a
n
k
r
u
p
t
(
Di
r
e
c
t
F
o
o
dSu
p
p
l
i
e
s
)
Pa
t
t
e
r
n/
h
i
s
t
o
r
yo
f
n
o
n
p
a
y
me
n
t
o
f
r
e
n
t
o
rc
o
n
s
i
s
t
e
n
t
d
e
l
a
y
s(
J
a
mF
a
c
t
o
r
svSu
n
n
yPa
r
a
d
i
s
e
)
Pr
e
mi
s
e
sa
r
eb
e
i
n
gu
s
e
df
o
ri
l
l
e
g
a
l
o
ri
mmo
r
a
l
p
u
r
p
o
s
e(
Ho
s
s
ma
nvF
i
n
e
b
e
r
g
)
Th
i
r
dp
a
r
t
i
e
sh
a
v
eb
e
e
ng
i
v
e
np
o
s
s
e
s
s
i
o
no
f
t
h
ep
r
e
mi
s
e
sa
n
dr
e
l
i
e
f
wi
l
l
i
n
j
u
r
et
h
e
m(
St
a
n
h
o
p
ev
Ha
wo
r
t
h
)
L
e
s
s
e
ec
a
n
n
o
t
p
a
yf
u
t
u
r
er
e
n
t
(
Wi
l
k
i
n
s
o
n
)
Court may impose condifons on any relief such as payment of the lessor’s costs and methods for
future rent payment
Suga v Trust Co
Other Covenants
Relief generally granted if:




L
e
s
s
e
er
e
me
d
i
e
sb
r
e
a
c
h(
i
f
p
o
s
s
i
b
l
e
)
a
n
dp
a
y
sl
e
s
s
o
r
’
sc
o
s
t
s(
Ea
r
l
o
f
Ba
t
h
u
r
s
t
)
L
e
s
s
e
ei
swi
l
l
i
n
ga
n
da
b
l
et
of
u
l
fi
l
f
u
t
u
r
eo
b
l
i
g
a
t
i
o
n
s(
Ea
r
l
o
f
Ba
t
h
u
r
s
t
)
L
e
s
s
o
rh
a
sn
o
t
s
u
ff
e
r
e
dl
o
s
s(
Pi
o
n
e
e
rGr
a
v
e
l
s
)
Br
e
a
c
hi
smi
n
o
ra
n
de
a
s
i
l
yr
e
c
t
i
fi
e
d(
Pl
a
t
t
vOn
g
)
see Central Estates v Woolgar (No 2)
7
9
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

F
ACTS:L
e
s
s
e
ec
o
n
v
i
c
t
e
do
f
‘
k
e
e
p
i
n
gab
r
o
t
h
e
l
’
i
nt
h
ep
r
e
mi
s
e
s
.T
h
el
e
s
s
o
r
wa
se
n
t
i
t
l
e
dt
of
o
r
f
e
i
t
t
h
e
l
e
a
s
ea
st
h
i
sa
c
t
i
v
i
t
yc
o
n
s
t
i
t
u
t
e
dab
r
e
a
c
ho
f
c
o
v
e
n
a
n
t
(
r
e
q
u
i
r
e
dl
e
s
s
e
et
oc
o
mp
l
ywi
t
ht
h
el
a
w,
wh
i
c
hi
t
h
a
dn
o
t
)
HELD:b
r
e
a
c
hwh
i
c
hwa
sn
o
t
c
a
p
a
b
l
eo
f
r
e
me
d
ya
g
a
i
n
s
t
f
o
r
f
e
i
t
u
r
e–o
u
t
s
i
d
es1
2
4
.T
h
e‘
s
t
i
g
ma
’
a
n
d
t
a
i
n
t
c
a
s
t
o
nt
h
ep
r
e
mi
s
e
sb
ys
u
c
ha
c
t
i
v
i
t
i
e
sc
a
no
n
l
yb
er
e
mo
v
e
db
ye
n
s
u
r
i
n
gt
h
a
t
t
h
ep
e
r
s
o
n
s
r
e
s
p
o
n
s
i
b
l
ea
r
en
ol
o
n
g
e
r
a
s
s
o
c
i
a
t
e
dwi
t
ht
h
ep
r
e
mi
s
e
s–i
t
ma
yb
es
o
met
i
meb
e
f
o
r
et
h
ep
r
o
p
e
r
t
ys
t
o
p
s
b
e
i
n
gv
i
e
we
da
sa‘
h
o
u
s
eo
f
i
l
l
f
a
me
’
Clean hands are necessary
Rose v Spicer
Statutory enftlement to relief from forfeiture does not extend to the loss of an opfon to purchase
land even when the person granted that opfon is the lessee
Melacare InternaGonal v Daley Investments
ADDITIONAL REMEDIES FOR BREACH OF LEASE OBLIGATIONS
TerminaHon
Upon terminafon, the lessor can:
a
)r
e
t
a
k
ep
o
s
s
e
s
s
i
o
n
;a
n
d
b
)s
u
ef
o
r
d
a
ma
g
e
sf
o
rb
r
e
a
c
ho
f
e
s
s
e
n
t
i
a
l
t
e
r
mo
rr
e
p
u
d
i
a
t
i
o
n
Damages
Subject to same contract principles – obligafon on lessor to mifgate loss by re-le}ng
Wood Factory
If bargain damages lessor is enftled to arrears of rent and rent to end of term – less rent received
from a new tenant
Gumland Property Holdings Pty Ltd v Dujy Fruit Market (Campbelltown) Pty Ltd
Bargain damages – only available if breach of essenfal term or repudiafon
Shevill v The Builder’s Licensing Board


F
ACTS:l
e
s
s
e
ewa
si
na
r
r
e
a
r
so
f
r
e
n
t
a
n
dwa
sr
e
p
e
a
t
e
d
l
yl
a
t
ei
nma
k
i
n
gr
e
n
t
a
l
p
a
y
me
n
t
s
.L
e
s
s
o
r
r
e
e
n
t
e
r
e
da
n
de
x
e
r
c
i
s
e
di
t
sr
i
g
h
t
t
of
o
r
f
e
i
t
t
h
el
e
a
s
e
.L
e
s
s
o
r
a
l
s
oc
l
a
i
me
dp
r
o
s
p
e
c
t
i
v
ed
a
ma
g
e
sf
o
r
t
h
en
e
t
l
o
s
so
f
r
e
n
t
f
o
r
t
h
eu
n
e
x
p
i
r
e
dt
e
r
mo
f
t
h
el
e
a
s
e
.
HELD:c
o
v
e
n
a
n
t
t
op
a
yr
e
n
t
,
wh
e
nr
e
a
dwi
t
ht
h
ef
o
r
f
e
i
t
u
r
ec
l
a
u
s
e
,
wa
sn
o
t
a
ne
s
s
e
n
t
i
a
l
t
e
r
m.No
e
x
p
r
e
s
s
e
dr
i
g
h
t
t
ol
o
s
so
f
b
a
r
g
a
i
nd
a
ma
g
e
si
f
f
o
r
f
e
i
t
e
dl
e
a
s
eu
n
d
e
r
t
e
r
mi
n
a
t
i
o
nc
l
a
u
s
ef
o
r
f
a
i
l
u
r
et
op
a
y
r
e
n
t
.Nor
e
p
u
d
i
a
t
i
o
na
sl
e
s
s
e
eh
a
dn
o
t
a
b
a
n
d
o
n
e
dt
h
ep
r
e
mi
s
e
sa
n
di
t
se
ff
o
r
t
st
op
a
yr
e
n
t
e
v
i
n
c
e
da
n
i
n
t
e
n
t
i
o
nt
of
u
l
fi
l
t
h
ec
o
n
t
r
a
c
t
cf Progressive Mailing House v Tabali (below)
Contractual remedies – conduct in refusing to pay rent (without basis), together with other breaches
(damaging premieses, suble}ng part of premises without consent and breaching a planning
scheme), was either repudiafon or fundamental breach and lessor enftled to terminate and sue for
damages
Progressive Mailing House v Tabali


F
ACTS:l
e
s
s
e
e4mo
n
t
h
si
na
r
r
e
a
r
a
n
db
r
e
a
c
h
e
dn
o
n
mo
n
e
t
a
r
yc
o
v
e
n
a
n
t
s
.Cl
a
i
me
dn
or
e
n
t
p
a
y
a
b
l
e
u
n
t
i
l
l
e
s
s
o
r
c
a
r
r
i
e
do
u
t
wo
r
k
s
.
HELD:e
i
t
h
e
r
ar
e
p
u
d
i
a
t
i
o
no
f
t
h
el
e
a
s
e
,
o
r
af
u
n
d
a
me
n
t
a
l
b
r
e
a
c
ho
f
t
h
el
e
a
s
e
.Wh
i
l
ev
i
e
we
di
ni
s
o
l
a
t
i
o
n
t
h
eb
r
e
a
c
h
e
swe
r
en
e
i
t
h
e
r
r
e
p
u
d
i
a
t
i
o
n/
f
u
n
d
a
me
n
t
a
l
b
r
e
a
c
h
,
v
i
e
we
dt
o
g
e
t
h
e
r
t
h
e
yd
i
d
.T
h
u
s
,
d
a
ma
g
e
s
a
v
a
i
l
a
b
l
e
.
Wood Factory v Kiritos
8
0
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

F
ACTS:l
e
s
s
e
eb
r
e
a
c
h
e
si
n
c
l
u
d
ev
a
c
a
t
i
n
gp
r
e
mi
s
e
sp
r
i
o
r
t
oe
x
p
i
r
yo
f
t
h
el
e
a
s
et
e
r
ma
n
dr
e
l
o
c
a
t
i
n
gt
o
a
d
j
o
i
n
i
n
gp
r
e
mi
s
e
,
f
a
i
l
i
n
gt
ok
e
e
pl
e
a
s
e
dp
r
e
mi
s
e
so
p
e
nf
o
r
b
u
s
i
n
e
s
sd
u
r
i
n
gn
o
r
ma
l
b
u
s
i
n
e
s
sh
o
u
r
s
,
a
l
l
o
wi
n
ga
ne
mp
l
o
y
e
et
ol
i
v
ei
nt
h
ep
r
e
e
mi
e
s
,
f
a
i
l
i
n
gt
op
a
yr
e
n
t
HELD:l
e
s
s
e
eb
r
e
a
c
ho
f
c
o
v
e
n
a
n
t
sc
o
n
s
t
i
t
u
t
e
daf
u
n
d
a
me
n
t
a
l
b
r
e
a
c
ho
r
ar
e
p
u
d
i
a
t
i
o
no
f
t
h
el
e
a
s
e
.Th
e
r
e
l
e
t
t
i
n
go
f
t
h
ep
r
e
mi
s
e
sc
o
n
s
t
i
t
u
t
e
dt
h
el
e
s
s
o
r
’
sa
c
c
e
p
t
a
n
c
eo
f
t
h
er
e
p
u
d
i
a
t
i
o
n
AlternaRve – don’t terminate but claim damages for breach – place party in same posifon as if
contract performed
Robinson v Harman
Failure to repair / deliver up – no damages for breach of covenant exceed the amount by which the
value of the reversion in the premises is diminished owing to the breach
PLA s 112(1)
And no damages can be awarded for breach of covenant to leave premises in repair at the
terminafon of a lease if repairs would be made valueless because the premises are to be demolished
/ structurally altered shortly aoer terminafon
PLA s 112(1)
Lessor right to set-oS
Self help by lessee for lessor’s breach – set ou rent or expense against damages payable by lessor
(e.g. for failure to repair)
Knockholt Pty Ltd v Graj


F
ACTS:L
e
s
s
e
ei
na
r
r
e
a
r
so
f
r
e
n
t
.L
e
s
s
o
ri
nb
r
e
a
c
ho
f
r
e
p
a
i
r
c
o
v
e
n
a
n
t
.Re
p
a
i
r
wa
se
s
s
e
n
t
i
a
l
.L
e
s
s
e
e
u
n
d
e
r
t
o
o
kr
e
p
a
i
r
sa
t
l
e
s
s
e
ee
x
p
e
n
s
ea
n
ds
e
t
o
ffc
o
s
t
a
g
a
i
n
s
t
a
r
r
e
a
r
s
HELD:l
e
s
s
e
ea
c
t
e
dc
o
r
r
e
c
t
l
y
But beware of covenants that state that the lessee does not have a right of set ou! Clear words are
required
Re Partnership Paciac SecuriGes
Lessee must noffy lessor of the need for repair before a common law right of set-ou for such a
breach will arise
BriGsh Anzani v InternaGonal Marine
 HEL
D:t
h
el
e
s
s
o
’
so
b
l
i
g
a
t
i
o
n
sc
o
n
s
i
d
e
r
e
dh
a
v
eu
s
u
a
l
l
yb
u
t
n
o
t
i
n
v
a
r
i
a
b
l
yb
e
e
no
b
l
i
g
a
t
i
o
n
st
o
r
e
p
a
i
r
.Th
e
r
ei
sn
or
e
a
s
o
ni
np
r
i
n
c
i
p
l
ewh
yt
h
es
a
mer
u
l
e
ss
h
o
u
l
dn
o
t
b
ea
p
p
l
i
e
dt
or
e
c
o
u
p
l
e
s
s
e
ee
x
p
e
n
d
i
t
u
r
ea
g
a
i
n
s
t
o
t
h
e
rmo
n
e
y
sp
a
y
a
b
l
et
ot
h
el
e
s
s
o
r
s
,
s
u
c
ha
so
b
l
i
g
a
t
i
o
n
st
or
e
p
a
y
o
u
t
g
o
i
n
g
s
8
1
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lOMoARcPSD|3076807
MORT
GAGES
NATURE OF MORTGAGES
Nature
A mortgage is a type of security – it is given by the landowner to the security holder to secure:


t
h
er
e
p
a
y
me
n
t
o
f
mo
n
e
yo
r
t
h
ep
e
r
f
o
r
ma
n
c
eo
f
a
no
b
l
i
g
a
t
i
o
n
It is also a contract of loan containing various covenants
The Rights of the Mortgagee
(
1
)Th
ep
e
r
s
o
n
a
l
c
o
v
e
n
a
n
t
–ap
r
o
mi
s
eb
yt
h
emo
r
t
g
a
g
o
rt
or
e
p
a
yt
h
emo
n
e
yl
e
n
t
b
yt
h
e
(
2
)Th
es
e
c
u
r
e
dp
r
o
p
e
r
t
y–t
h
ep
e
r
s
o
n
a
l
c
o
v
e
n
a
n
t
d
o
e
sn
o
t
g
i
v
et
h
emo
r
t
g
a
g
e
er
i
g
h
t
so
v
e
rt
h
ed
e
b
t
o
r
’
s
p
r
o
p
e
r
t
y
.
T
oo
b
t
a
i
nr
i
g
h
t
sa
g
a
i
n
s
t
t
h
ep
r
o
p
e
r
t
y
,
as
e
c
u
r
i
t
ymu
s
t
b
eg
i
v
e
n
Terminology





Mor
t
ga
ge
:
amo
r
t
g
a
g
ei
saf
o
r
mo
f
s
e
c
u
r
i
t
yf
o
rt
h
ep
a
y
me
n
t
o
f
ad
e
b
t
o
rt
h
ep
e
r
f
o
r
ma
n
c
eo
f
s
o
meo
t
h
e
r
o
b
l
i
g
a
t
i
o
n
.
Mor
t
ga
gor
:
Th
emo
r
t
g
a
g
o
r
i
st
h
ep
a
r
t
ywh
og
r
a
n
t
st
h
es
e
c
u
r
i
t
y
.
Wh
e
r
emo
n
e
yi
sl
e
n
t
,
t
h
ep
e
r
s
o
nwh
oi
s
t
h
eb
o
r
r
o
we
rg
r
a
n
t
st
h
emo
r
t
g
a
g
ea
n
di
sk
n
o
wna
st
h
emo
r
t
g
a
g
o
r(
t
h
ed
e
b
t
o
r
)
Mor
t
ga
ge
e
:
Th
emo
r
t
g
a
g
e
ei
st
h
ep
a
r
t
ywh
oa
c
c
e
p
t
st
h
es
e
c
u
r
i
t
y
.
Wh
e
r
emo
n
e
yi
sl
e
n
t
,
t
h
ep
e
r
s
o
nwh
o
i
st
h
el
e
n
d
e
ra
c
c
e
p
t
st
h
emo
r
t
g
a
g
ea
n
di
sk
n
o
wna
st
h
emo
r
t
g
a
g
e
e
(
t
h
ec
r
e
d
i
t
o
r
)
T
o
r
r
e
nsl
a
nd:
L
a
n
ds
u
b
j
e
c
t
t
ot
h
eT
o
r
r
e
n
ss
y
s
t
e
mo
f
r
e
g
i
s
t
e
r
e
dl
a
n
d
Ol
dSy
s
t
e
ml
a
nd:
L
a
n
ds
u
b
j
e
c
t
t
og
e
n
e
r
a
l
l
a
wo
ro
l
ds
y
s
t
e
mt
e
n
u
r
ep
r
i
o
rt
oT
o
r
r
e
n
s
’
s
y
s
t
e
m
PLA sch 6; see also LTA sch 2
Secured vs Unsecured debts
Benelts to creditor – secured creditors get priority in payment over unsecured creditors upon the
sale of any secured asset (or in the bankruptcy or liquidafon of the debtor)
Mortgage v Sale
A court will look to the substance of the agreement to determine whether it is a mortgage or sale
Gurankel v Bentley


F
ACTS:wh
e
t
h
e
rat
r
a
n
s
a
c
t
i
o
ni
nwh
i
c
hDb
e
c
a
mep
r
o
p
r
i
e
t
o
r
o
f
l
a
n
d
,
p
r
e
v
i
o
u
s
l
yo
wn
e
db
yt
h
eP
,
wa
s
e
n
t
e
r
e
di
n
t
of
o
r
t
h
ep
u
r
p
o
s
eo
f
s
e
c
u
r
i
n
gad
e
b
t
–mo
n
e
y
sl
e
n
t
b
yD.Th
a
t
i
s
,
wh
e
t
h
e
r
t
h
el
a
n
dwa
s
s
e
c
u
r
i
t
ywi
t
hPh
a
v
i
n
ge
q
u
i
t
yo
f
r
e
d
e
mp
t
i
o
n
.
Al
t
e
r
n
a
t
i
v
e
,
Ps
o
l
dt
oDu
p
o
nt
e
r
mst
h
a
t
h
ewo
u
l
dh
a
v
ea
n
o
p
t
i
o
nt
or
e
p
u
r
c
h
a
s
eu
p
o
nc
e
r
t
a
i
nc
o
n
d
i
t
i
o
n
s
HELD:t
r
a
n
s
a
c
t
i
o
nwa
st
h
eb
a
r
g
a
i
na
se
x
p
r
e
s
s
e
d
Re George Ingleaeld

i
f
v
e
n
d
o
r
n
o
t
e
n
t
i
t
l
e
dt
og
e
t
b
a
c
kt
h
es
u
b
j
e
c
t
ma
t
t
e
r
o
f
t
h
et
r
a
n
s
a
c
t
i
o
nb
yr
e
t
u
r
n
i
n
gt
h
emo
n
e
y
,
t
h
e
ni
t
i
sa
s
a
l
e
.
I
nt
h
ec
a
s
eo
f
amo
r
t
g
a
g
e/
c
h
a
r
g
e
,
t
h
emo
r
t
g
a
g
ei
se
n
t
i
t
l
e
du
n
t
i
l
f
o
r
e
c
l
o
s
u
r
et
og
e
t
b
a
c
kt
h
es
u
b
j
e
c
t
ma
t
t
e
r
b
yr
e
t
u
r
n
i
n
gt
h
emo
n
e
y
8
2
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lOMoARcPSD|3076807
OLD SYSTEM MORTGAGES
General
Land law – A mortgage of general land law takes euect by way of a conveyance / transfer to the
mortgagee of the mortgagor’s legal ftle in the land and a promise to reconvey to the mortgagor on
repayment
Torrens – charge over land, so no re-conveyance
LTA s 74
A charge over land may be transferred
Abigail v Lapin
How do they work?
Steps:
a
) Th
emo
r
t
g
a
g
o
rc
o
n
v
e
y
si
t
sl
e
g
a
l
t
i
t
l
ei
nt
h
el
a
n
dt
ot
h
emo
r
t
g
a
g
e
eb
ywa
yo
f
s
e
c
u
r
i
t
yu
p
o
nl
o
a
nb
e
i
n
g
ma
d
et
omo
r
t
g
a
g
o
r
.
b
) Th
emo
r
t
g
a
g
e
eb
e
c
o
me
st
h
el
e
g
a
l
o
wn
e
ro
f
t
h
el
a
n
d
,
s
u
b
j
e
c
t
t
ot
h
er
i
g
h
t
o
f
t
h
emo
r
t
g
a
g
o
rt
or
e
c
e
i
v
ea
r
e
c
o
n
v
e
y
a
n
c
eo
f
t
h
el
a
n
du
p
o
nr
e
p
a
y
me
n
t
o
f
t
h
ewh
o
l
eo
f
t
h
el
o
a
n
.
c
) Mo
r
t
g
a
g
o
r
r
e
t
a
i
n
sa
ne
q
u
i
t
a
b
l
er
i
g
h
t
t
or
e
c
o
n
v
e
y
a
n
c
ec
a
l
l
e
dt
h
emo
r
t
g
a
g
o
r
’
se
qui
t
yofr
e
de
mpt
i
on
d
)I
f
t
h
eb
o
r
r
o
we
r
/
mo
r
t
g
a
g
o
rr
e
p
a
y
st
h
emo
n
e
y
sa
sr
e
q
u
i
r
e
db
yt
h
el
o
a
na
g
r
e
e
me
n
t
(
o
nt
i
me
)t
h
e
b
o
r
r
o
we
r
/
mo
r
t
g
a
g
o
r
i
se
n
t
i
t
l
e
dt
oh
a
v
et
h
el
e
g
a
l
t
i
t
l
er
e
c
o
n
v
e
y
e
dt
ot
h
e
mb
yt
h
emo
r
t
g
a
g
e
e
u
n
c
o
n
d
i
t
i
o
n
a
l
l
y
.
Th
i
si
st
h
ec
a
l
l
e
dl
e
g
a
l
r
i
ghtt
or
e
de
e
m
Equitable right to redeem
May be available where the mortgagor has lost its legal right to redeem because the ouer to repay
has been late:


At
l
a
w–mo
r
t
g
a
g
e
ec
o
u
l
dr
e
f
u
s
et
or
e
c
o
n
v
e
ya
n
d“
f
o
r
e
c
l
o
s
e
”t
h
ei
n
t
e
r
e
s
t
o
f
t
h
emo
r
t
g
a
g
o
r(
r
e
t
a
i
nl
e
g
a
l
t
i
t
l
e
)
I
ne
q
ui
t
y–t
i
met
or
e
p
a
ywa
sn
o
t
s
e
e
na
se
s
s
e
n
c
eo
f
a
g
r
e
e
me
n
t
–e
q
u
i
t
yg
a
v
emo
r
t
g
a
g
o
r“
a
r
e
a
s
o
n
a
b
l
et
i
me
”
b
e
y
o
n
dt
h
er
e
p
a
y
me
n
t
d
a
t
et
or
e
p
a
y(
o
f
t
e
na
n
o
t
h
e
r
6mo
n
t
h
s
)
Euects:


At
r
u
emo
r
t
g
a
g
ei
sn
e
v
e
ra
c
t
u
a
l
l
yi
n
t
e
n
d
e
dt
ob
eat
r
a
n
s
f
e
ro
f
t
h
emo
r
t
g
a
g
o
r
'
si
n
t
e
r
e
s
t
i
nt
h
ep
r
o
p
e
r
t
yt
o
t
h
emo
r
t
g
a
g
e
ea
b
s
o
l
u
t
e
l
y(
l
i
k
eas
a
l
e
)
F
a
i
l
u
r
et
or
e
p
a
ya
f
t
e
rt
h
e“
r
e
a
s
o
n
a
b
l
et
i
me“
h
a
de
l
a
p
s
e
dwo
u
l
da
l
l
o
wt
h
emo
r
t
g
a
g
e
et
o“
f
o
r
e
c
l
o
s
e
”t
h
e
i
n
t
e
r
e
s
t
o
f
t
h
emo
r
t
g
a
g
o
ra
n
db
e
c
o
met
h
ea
b
s
o
l
u
t
eo
wn
e
ro
f
t
h
el
a
n
d
Terms:



L
e
g
a
l
Ri
ghtt
or
e
de
e
m–t
h
ec
o
n
t
r
a
c
t
u
a
l
r
i
g
h
t
o
f
t
h
emo
r
t
g
a
g
o
rt
or
e
p
a
yt
h
ed
e
b
t
o
nt
h
ed
a
t
efi
x
e
db
y
t
h
ec
o
n
t
r
a
c
t
o
f
mo
r
t
g
a
g
ea
n
dt
or
e
q
u
i
r
et
h
emo
r
t
g
a
g
e
et
or
e
c
o
n
v
e
yt
h
el
a
n
d
Equi
t
a
bl
er
i
ghtt
or
e
de
e
m–t
h
er
i
g
h
t
o
f
t
h
emo
r
t
g
a
g
o
rt
or
e
p
a
yt
h
ed
e
b
t
e
v
e
na
f
t
e
rt
h
ec
o
n
t
r
a
c
t
u
a
l
d
a
t
e
h
a
sp
a
s
s
e
da
n
dt
oo
b
t
a
i
nar
e
c
o
n
v
e
y
a
n
c
eo
f
t
h
el
a
n
d
Equi
t
yofr
e
de
mpt
i
on–a
r
i
s
e
so
n
c
emo
r
t
g
a
g
ei
sg
i
v
e
n–t
h
i
si
sa
ne
q
u
i
t
a
b
l
ei
n
t
e
r
e
s
t
i
nt
h
el
a
n
d
,
c
o
n
s
i
s
t
i
n
go
f
a
l
l
t
h
emo
r
t
g
a
g
o
r
’
sr
i
g
h
t
si
nt
h
ep
r
o
p
e
r
t
y
,
i
n
c
l
u
d
i
n
gt
h
ee
q
u
i
t
a
b
l
er
i
g
h
t
t
or
e
d
e
e
m
8
3
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lOMoARcPSD|3076807
Foreclosure (example lease clause 8.1(c))
Remedy of foreclosure enables the mortgagee to take benelcial ftle to the mortgaged property in
full safsfacfon of the mortgaged debt
Heath v Pugh
Mortgagee applies to the Court for an order that the mortgagor could no longer exercise its
equitable right to redeem:




u
t
i
l
i
s
e
dwh
e
r
emo
r
t
g
a
g
ed
e
b
t
e
x
c
e
e
d
sv
a
l
u
eo
f
s
e
c
u
r
i
t
y
t
r
a
n
s
f
e
r
i
n
t
omo
r
t
g
a
g
e
e
’
sn
a
mea
b
s
o
l
u
t
e
l
y
f
r
e
ea
n
dc
l
e
a
r
o
f
t
h
emo
r
t
g
a
g
o
r
’
si
n
t
e
r
e
s
t
a
n
yo
u
t
s
t
a
n
d
i
n
ga
r
r
e
a
r
so
f
t
h
emo
r
t
g
a
g
ed
e
b
t
n
o
t
r
e
c
o
v
e
r
a
b
l
e–p
e
r
s
o
n
a
l
c
o
v
e
n
a
n
t
si
nt
h
emo
r
t
g
a
g
e
e
x
t
i
n
g
u
i
s
h
e
d(
Cf
e
x
e
r
c
i
s
eo
f
p
o
we
r
o
f
s
a
l
e
)
LTA s 78(2)(c) (applicafon to the court)
Fink v Robertson (exfnguishment of personal covenant)
TORRENS MORTGAGE
Nature – a CHARGE
Mortgage includes a charge on a lot … for securing money or money’s worth
LTA s 4, sch 2
A registered mortgage operates as a charge on the land for the debt / liability secured
LTA s 74
Mortgagor’s obligafons and mortgagee rights contained in the instrument of mortgage
see LTA ss 181, 182, 184 etc
Mortgagee has the right to sell the mortgaged property and to apply the proceeds to the payment of
the debt
RegistraHon
Registrafon requires:
a
)p
r
e
s
c
r
i
b
e
df
o
r
m(
F
o
r
m2
)
:
s7
3
b
)v
a
l
i
de
x
e
c
u
t
i
o
n(
wi
t
n
e
s
s
e
ds
i
g
n
a
t
u
r
eo
rmo
r
t
g
a
g
o
r(
a
n
dmo
r
t
g
a
g
e
eo
rs
o
l
i
c
i
t
o
r
)
:
s7
3
c
)r
e
g
i
s
t
e
r
e
db
yt
h
er
e
g
i
s
t
r
a
r
r
e
c
o
r
d
i
n
gt
h
ep
a
r
t
i
c
u
l
a
r
s
:
s
s1
7
3
,
1
7
4
d
)r
e
g
i
s
t
r
a
t
i
o
nc
r
e
a
t
e
sal
e
g
a
l
mo
r
t
g
a
g
e
:
s
s1
8
1
,
1
8
2
LTA ss above
Priority of mortgage takes euect from date of lodgement of the instrument
LTA s 178
NOTE – for an instrument to be registered it must be in the appropriate form and comply with
complefng the form, including valid execufon
LTA s 10(1)
A charge over land may be transferred
Abigail v Lapin
Indefeasibility
Mortgagee has benelts of indefeasibility
LTA s 184, 185
8
4
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CONSIDER – fraud / in personam…
If indefeasibility can be set aside for fraud / in personam, an exercise of power of sale may be vifated
LTA ss 184, 185
Fraud – court must be safsled that cogent evidence existed of the fraud allegafon before it will
grant an injuncfon
Inglis v Cth Trading
Clarke v Japan Machines (Astralia)
However, careless mortgagee excepfon – no indefeasibility if it does not take “reasonable steps” to
verify the idenfty of the mortgagor:
a
)L
T
As
1
8
5
(
1
A)+s
1
1
A(
o
r1
1
Bi
f
t
r
a
n
s
f
e
ro
f
mo
r
t
g
a
g
e
)
b
)L
T
As
1
1
A(
3
)
‘
r
e
a
s
o
n
a
b
l
es
t
e
p
s
’
–1
0
0p
o
i
n
t
s
c
) No
t
eL
T
As1
8
8–c
o
mp
e
n
s
a
t
i
o
np
r
o
v
i
s
i
o
nf
o
rp
a
r
t
i
e
sd
e
p
r
i
v
e
do
f
t
h
eb
e
n
e
fi
t
so
f
i
n
d
e
f
e
a
s
i
b
i
l
i
t
yi
nc
e
r
t
a
i
n
c
i
r
c
u
ms
t
a
n
c
e
s
d
) No
t
e
:
L
T
As
1
8
9
(
1
)
(
a
b)
–c
a
r
e
l
e
s
smo
r
t
g
a
g
e
ei
sn
o
t
e
n
t
i
t
l
e
dt
oc
o
mp
e
n
s
a
t
i
o
n
Equitable mortgage of a legal interest in land
Created in a range of situafons:
a
) Ani
n
f
o
r
ma
l
c
h
a
r
g
eo
v
e
r
l
a
n
d–e
gal
e
t
t
e
rwi
t
hs
u
ffic
i
e
n
t
i
n
f
o
r
ma
t
i
o
nt
os
a
t
i
s
f
yt
h
eSt
a
t
u
t
eo
f
F
r
a
u
d
s
p
r
o
v
i
s
i
o
n
sa
n
ds
i
g
n
e
db
yt
h
emo
r
t
g
a
g
o
ro
rt
h
e
i
rl
a
wf
u
l
l
ya
u
t
h
o
r
i
s
e
da
g
e
n
t
PLA s 10
b
) Me
mo
r
a
n
d
u
mi
nwr
i
t
i
n
ge
v
i
d
e
n
c
i
n
ga
na
g
r
e
e
me
n
t
PLA ss 11, 59
c
) Mo
r
t
g
a
g
ei
nr
e
g
i
s
t
r
a
b
l
ef
o
r
m(
F
o
r
m2
)b
e
f
o
r
er
e
g
i
s
t
r
a
t
i
o
n
d
) De
p
o
s
i
t
o
f
t
i
t
l
ed
e
e
d(
p
a
r
t
p
e
r
f
o
r
ma
n
c
e
)–r
e
q
u
i
r
e
s
:
1
)d
e
p
o
s
i
t
o
f
c
e
r
t
i
fi
c
a
t
eo
f
t
i
t
l
ewi
t
hc
r
e
d
i
t
o
r
;
AND2
)
wi
t
hi
n
t
e
n
t
i
o
nt
oc
r
e
a
t
eac
h
a
r
g
e
:
Ru
s
s
e
l
l
vRu
s
s
e
l
l
Trust of land
A trust of land need only be proven in wrifng – considerafon not required
see PLA s 11(1)
Bahr v Nicolay
8
5
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USUALCOVENANTSI
NMORT
GAGES
GENERALLY
Covenants may be express or implied and can be:
(
1
)Ex
p
r
e
s
s
l
ys
e
t
o
u
t
i
nt
h
emo
r
t
g
a
g
e(
s
e
ee
x
a
mp
l
eo
nBBs
i
t
e
)
(
2
)I
mp
l
i
e
db
yt
h
ePL
A(
s
u
b
j
e
c
t
t
ot
h
ee
x
p
r
e
s
st
e
r
msi
namo
r
t
g
a
g
ei
n
s
t
r
u
me
n
t
)
see PLA s 78 covenants to:


r
e
p
a
yp
r
i
n
c
i
p
a
l
a
n
di
n
t
e
r
e
s
t
a
sa
g
r
e
e
d(
s7
8
(
1
)
(
a
)
)
ma
i
n
t
a
i
nt
h
eb
u
i
l
d
i
n
g
se
t
c
.
o
nt
h
emo
r
t
g
a
g
e
dl
a
n
d(
s7
8
(
1
)
(
b
)
)

a
l
l
o
wmo
r
t
g
a
g
e
et
oe
n
t
e
r
a
n
di
n
s
p
e
c
t
s
e
ea
l
s
op
o
we
r
o
f
s
a
l
e
:
PL
As
s8
3
,
8
4
(
3
)I
mp
l
i
e
db
yL
T
As7
8(
s
u
b
j
e
c
t
t
omo
r
t
g
a
g
e
)–u
p
o
nd
e
f
a
u
l
to
f
t
h
emo
r
t
g
a
g
o
r


t
a
k
ep
o
s
s
e
s
s
i
o
no
f
t
h
emo
r
t
g
a
g
e
dl
o
t
e
n
t
e
ri
n
t
op
o
s
s
e
s
s
i
o
no
f
t
h
emo
r
t
g
a
g
e
dl
o
t
b
yr
e
c
e
i
v
i
n
gr
e
n
t
sa
n
dp
r
o
fi
t
s

t
a
k
ep
r
o
c
e
e
d
i
n
g
st
od
os
oo
r
f
o
r
e
c
l
o
s
et
h
emo
r
t
g
a
g
o
r
’
sr
i
g
h
t
t
or
e
d
e
e
m
(
4
)I
n
c
o
r
p
o
r
a
t
e
db
yt
h
er
e
g
i
s
t
r
a
t
i
o
no
f
as
t
a
n
d
a
r
dt
e
r
msd
o
c
u
me
n
t
:
L
T
As
s1
6
8
,
1
6
9
(
5
)Se
t
o
u
t
i
nas
e
p
a
r
a
t
ei
n
s
t
r
u
me
n
t
a
n
di
n
c
o
r
p
o
r
a
t
e
di
n
t
ot
h
emo
r
t
g
a
g
eb
ye
x
p
r
e
s
sp
r
o
v
i
s
i
o
n
:
L
T
As1
7
1
(
1
)
CHARIGING CLAUSE – set out in mortgage (clause 12.1)
A covenant charging the land with repayment “the mortgagor charges the estate or interest in the
land with repayment or payment to the mortgagee of $...”
It is:





ac
o
v
e
n
a
n
t
b
yt
h
emo
r
t
g
a
g
o
r
c
h
a
r
g
i
n
gt
h
emo
r
t
g
a
g
o
r
'
si
n
t
e
r
e
s
t
i
nt
h
el
a
n
d
i
na
c
c
o
r
d
a
n
c
ewi
t
hs
p
e
c
i
fi
ct
e
r
ms
i
no
r
d
e
rt
os
u
p
p
o
r
t
ap
r
o
mi
s
eb
yt
h
emo
r
t
g
a
g
o
rt
or
e
p
a
yc
e
r
t
a
i
nmo
n
e
y
o
rp
e
r
f
o
r
mc
e
r
t
a
i
nn
o
mi
n
a
t
e
do
b
l
i
g
a
t
i
o
n
s
PLA s 78
PERSONAL COVENANT TO REPAY PRINCIPAL AND INTEREST –
ESSENTIAL
Usually express in the mortgage or implied by the PLA
PLA s 78(1)(a)
Does not apply if the contrary intenfon expressed in the mortgage
PLA s 78(3)
Mortgage once registered takes euect as deed
LTA s 176
Deed creates speciality obligafon – release of charge from land does not destroy personal covenants
to repay – any outstanding amount may be claimed for 12 years from “date upon which right to
receive money accrued”
LAA s 26(1)
8
6
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ACCELLERATION OF REPAYMENT UPON DEFAULT
Upon default, many mortgages states that whole of money owing becomes immediately repayable
Mortgagor may be enftled to relief against payment of the accelerated sum upon making good the
default (ie tendering payment of the overdue instalment before mortgagee sells property)
PLA s 95
Court may make order upon such condifons as it thinks lt in making order for relief
PLA s 95(2)
Mortgagor has a right to tender the amount of instalment owing to the mortgagee (and any
reasonable expense) to relieve the consequence of the default
PLA s 95(2)(a)
If mortgagee does not accept payment or has commenced proceedings to enforce mortgage –
mortgagor may apply for relief
PLA s 95(3)
If successful:


Pr
o
c
e
e
d
i
n
g
sa
g
a
i
n
s
t
t
h
ea
p
p
l
i
c
a
n
t
s
t
a
y
e
d
De
f
a
u
l
t
e
x
p
u
n
g
e
d
Defaults OTHER THAN payment of instalments
Where there has been a default other than or in addifon to the default to pay instalment, then a
court may be more inclined to NOT grant relief
8
7
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RI
GHTSOFAT
ORRENSMORT
GAGOR
TO POSSESS LAND
Mortgagor is legal owner and enftled to possession of it, except in the case of default
Subject to terms of mortgage, mortgagee under a registered mortgage may take possession of the
mortgaged lot – either by actual physical possession or by receiving rent / prolts (construcfve
possession)
LTA s 78
TO POSSESS CERTIFICATE OF TITLE
If lot subject lot a registered mortgage, the consent of the mortgagee is required before the owner of
land can apply for a cerflcate of ftle
LTA s 42(2)
TO GRANT SUBSEQUENT MORTGAGES
Mortgagor has statutory right to create a subsequent mortgage – subsequent mortgage cannot:
a
)b
eab
r
e
a
c
ho
f
t
h
emo
r
t
g
a
g
e
b
)b
eg
r
o
u
n
d
sf
o
r
ap
e
n
a
l
t
yo
r
f
o
r
f
e
i
t
u
r
e
;
OR
c
)t
r
i
g
g
e
r
a
na
c
c
e
l
e
r
a
t
i
o
nc
l
a
u
s
e
PLA s 80(4)x
Mortgagor can request lrst mortgagee in wrifng to produce cerflcate of ftle, paying costs
PLA s 80(2)
If mortgagee refuses to produce cerflcate of ftle, applicafon can be made to Supreme Court
requiring the lrst mortgagee to show cause
PLA s 80(2A)
TO LEASE THE PROPERTY
A lease (short or long term) executed aoer registrafon of a mortgage is valid against the mortgagee
only if the mortgagee consents to it before its registrafon:


I
n
c
l
u
d
e
sr
e
g
i
s
t
e
r
e
da
n
du
n
r
e
g
i
s
t
e
r
e
dl
e
a
s
e
s
Us
u
a
l
f
o
rl
e
a
s
ee
x
e
c
u
t
e
ds
u
b
s
e
q
u
e
n
t
t
or
e
g
i
s
t
e
r
e
dmo
r
t
g
a
g
et
os
e
e
kc
o
n
s
e
n
t
o
f
mo
r
t
g
a
g
e
e
LTA s 66
Note applicafon of s 184 for unregistered interests PRIOR TO REGISTRATION
MORTGAGOR RIGHT TO REDEEM THE MORTGAGE
Clogging the equity of redempHon
Equity will not permit a clog on the equity of redempfon:


Onf
u
l
fi
l
l
i
n
gi
t
so
b
l
i
g
a
t
i
o
n
st
or
e
p
a
yi
nf
u
l
l
u
n
d
e
rt
h
emo
r
t
g
a
g
e
,
t
h
emo
r
t
g
a
g
o
rh
a
st
h
er
i
g
h
t
t
oar
e
l
e
a
s
eo
f
t
h
emo
r
t
g
a
g
e
Ap
r
o
v
i
s
i
o
nwh
i
c
h
,
i
na
n
ywa
y
,
p
r
e
v
e
n
t
st
h
emo
r
t
g
a
g
o
rf
r
o
mr
e
d
e
e
mi
n
gt
h
ep
r
o
p
e
r
t
ya
f
t
e
ri
t
h
a
s
d
i
s
c
h
a
r
g
e
di
t
so
b
l
i
g
a
t
i
o
n
ss
e
c
u
r
e
db
yt
h
emo
r
t
g
a
g
ei
sVOI
Da
n
da
c
c
o
r
d
i
n
g
l
yu
n
e
n
f
o
r
c
e
a
b
l
e
Once a mortgage, always a mortgage:
8
8
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

Amo
r
t
g
a
g
ei
same
c
h
a
n
i
s
mt
oe
n
a
b
l
el
e
n
d
e
r
st
ol
e
n
dmo
n
e
ywi
t
ht
h
ek
n
o
wl
e
d
g
et
h
a
t
r
e
p
a
y
me
n
t
i
s
a
s
s
u
r
e
db
yt
h
es
e
c
u
r
i
t
yo
ff
e
r
e
db
yt
h
emo
r
t
g
a
g
o
r
I
t
i
sNOTame
c
h
a
n
i
s
mt
oe
n
a
b
l
eal
e
n
d
e
rt
og
e
t
t
i
t
l
et
ot
h
es
e
c
u
r
e
dp
r
o
p
e
r
t
yo
rs
o
meo
t
h
e
rs
o
r
t
o
f
c
o
l
l
a
t
e
r
a
l
b
e
n
e
fi
t
Default
A failure to pay by the speciled date will result in default
The rule of equity is that the mortgagor cannot redeem without nofce – which is 6 months
Smith v Smith

RATI
ONALE:t
og
i
v
emo
r
t
g
a
g
e
ea
no
p
p
o
r
t
u
n
i
t
yt
ofi
n
da
n
o
t
h
e
r
i
n
v
e
s
t
me
n
t
This rule is in•exible and is the law of Queensland
Hyde Management Services v FAI Insurances
General Principle
Step 1 – look at construcfon of mortgage – see Hyde Below
Any provision or sfpulafon in a mortgage which has the euect of logging or fejering the equity of
redempfon is void in equity and unenforceable
Noakes & Co Ltd v Rice
3 devices used to fejer equity of redempfon:
a
) Th
eo
p
t
i
o
nt
op
u
r
c
h
a
s
e
b
) Po
s
t
p
o
n
i
n
gt
h
er
i
g
h
t
t
or
e
d
e
e
m
c
) Co
l
l
a
t
e
r
a
l
a
d
v
a
n
t
a
g
e
OpHon to purchase
An opfon granted to the mortgagee to purchase the mortgaged property is void
Look to substance – is it a true mortgage (or one transacfon)?
Sun North Developments v Dale


F
ACTS:L
e
n
d
e
r
h
a
dfi
x
e
dc
h
a
r
g
eo
v
e
r
s
h
a
r
e
s&o
p
t
i
o
nt
ob
u
ya
t
$
2
Mt
os
e
c
u
r
el
o
a
no
f
$
5
0
0
k
.Va
l
u
eo
f
t
h
es
h
a
r
e
swa
sa
p
p
r
o
x
i
ma
t
e
l
y$
5
M.Bo
r
r
o
we
r
d
e
f
a
u
l
t
e
d
.L
e
n
d
e
r
p
u
r
p
o
r
t
e
dt
oe
x
e
r
c
i
s
eo
p
t
i
o
n
HELD:o
p
t
i
o
nv
o
i
da
sf
e
t
t
e
ro
ne
q
u
i
t
yo
f
r
e
d
e
mp
t
i
o
n
.Op
t
i
o
nt
op
u
r
c
h
a
s
ei
n
t
e
g
r
a
l
t
omo
r
t
g
a
g
e–i
n
s
u
b
s
t
a
n
c
ei
t
wa
so
n
et
r
a
n
s
a
c
t
i
o
n
.T
h
eo
p
t
i
o
nf
o
r
me
dp
a
r
t
o
f
a
n
dwa
si
ns
u
b
s
t
a
n
c
es
e
c
u
r
i
t
yf
o
r
a
mo
r
t
g
a
g
et
r
a
n
s
a
c
t
i
o
n
.
Samuel v Jarrah Timber and Wood Pavind Corp

r
e
g
r
e
t
wa
se
x
p
r
e
s
s
e
dt
h
a
t
t
h
er
u
l
eo
p
e
r
a
t
e
dt
op
r
e
v
e
n
t
t
h
ee
n
f
o
r
c
e
me
n
t
o
f
ab
a
r
g
a
i
nt
h
a
t
h
a
db
e
e
n
e
n
t
e
r
e
di
n
t
ob
e
t
we
e
nt
wop
a
r
t
i
e
so
f
e
q
u
a
l
s
t
a
n
d
i
n
ga
n
dd
e
a
l
i
n
ga
t
a
r
m’
sl
e
n
g
t
h
If it is not a sale – it there is no mortgage – then no principles relafng to a clog on equity will be
relevant
Wesnield Holdings v ACT TV
Postponing the right to redeem
A provision which merely postpones the right to redeem is not void unless it renders the right to
redeem illusory, not able to be exercised in a meaningful way or is oppressive or unconscionable
Knightsbridge Estates Trust v Byrne
8
9
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lOMoARcPSD|3076807



F
ACTS:mo
r
t
g
a
g
ep
r
o
v
i
d
e
dt
h
a
t
p
r
i
n
c
i
p
a
l
a
n
di
n
t
e
r
e
s
t
r
e
p
a
y
a
b
l
eb
y8
0h
a
l
f
y
e
a
r
l
yi
n
s
t
a
l
me
n
t
s(
4
0
y
e
a
r
s
)
.
L
o
wi
n
t
e
r
e
s
t
r
a
t
e
,
b
u
t
mo
r
t
g
a
g
o
r
c
o
u
l
dn
o
t
r
e
p
a
ye
a
r
l
y
.Mo
r
t
g
a
g
o
r
s
o
u
g
h
t
d
e
c
l
a
r
a
t
i
o
nt
h
a
t
t
h
e
y
we
r
ee
n
t
i
t
l
e
dt
or
e
d
e
e
ma
t
a
n
yt
i
meo
n6mo
n
t
h
sn
o
t
i
c
e
.
HELD:NOTVOI
D–i
t
d
i
dn
o
t
p
o
s
t
p
o
n
et
h
er
i
g
h
t
t
or
e
d
e
e
m.Po
s
t
p
o
n
e
me
n
t
c
a
nb
ef
o
r
MOREt
h
a
na
r
e
a
s
o
n
a
b
l
ep
e
r
i
o
do
f
t
i
me
.
MODERNAPPLI
CATI
ON:p
r
o
b
a
b
l
yo
p
p
r
e
s
s
i
v
ea
n
du
n
c
o
n
s
c
i
o
n
a
b
l
eg
i
v
e
nt
h
a
t
c
a
p
i
t
a
l
i
smo
r
er
e
a
d
i
l
y
a
v
a
i
l
a
b
l
e
cf Farclough v Swan Brewery Co Ltd


F
ACTS:L
e
a
s
e
h
o
l
dp
r
o
p
e
r
t
y
.Mo
r
t
g
a
g
ec
o
u
l
db
er
e
d
e
e
me
do
n
l
y6we
e
k
sb
e
f
o
r
ee
x
p
i
r
yo
f
t
h
e1
7y
e
a
r
s
l
e
f
t
o
nt
h
el
e
a
s
e
.L
o
a
nc
o
u
l
dn
o
t
b
er
e
p
a
i
de
x
c
e
p
t
b
ymo
n
t
h
l
yi
n
s
t
a
l
me
n
t
s
.
HELD:VOI
Da
sac
l
o
go
nt
h
ee
q
u
i
t
yo
f
r
e
d
e
mp
t
i
o
n–t
h
e
yma
d
et
h
emo
r
t
g
a
g
o
r
’
sr
i
g
h
t
t
og
e
t
t
h
e
p
r
o
p
e
r
t
yb
a
c
ki
l
l
u
s
o
r
y
.Mo
r
t
g
a
g
o
r
wo
u
l
do
n
l
yb
ee
n
t
i
t
l
e
dt
oar
e
c
o
n
v
e
y
a
n
c
eo
f
t
h
ep
r
o
p
e
r
t
ywh
e
nt
h
e
l
e
a
s
ewa
sa
l
l
b
u
t
d
u
et
oe
x
p
i
r
e
Collateral Advantage
A collateral advantage is a benelt •owing to the mortgagee as part of the transacfon – will be valid
(even in a mortgage that confnues beyond redempfon) provided:
a
)n
o
t
u
n
f
a
i
ra
n
du
n
c
o
n
s
c
i
o
n
a
b
l
e
;
o
r
b
)n
o
t
i
nt
h
en
a
t
u
r
eo
f
ap
e
n
a
l
t
yc
l
o
g
g
i
n
gt
h
ee
q
u
i
t
yo
f
r
e
d
e
mp
t
i
o
n
;
o
r
c
)n
o
t
i
n
c
o
n
s
i
s
t
e
n
t
wi
t
ho
r
r
e
p
u
g
n
a
n
t
t
ot
h
ec
o
n
t
r
a
c
t
u
a
l
o
re
q
u
i
t
a
b
l
er
i
g
h
t
t
or
e
d
e
e
m
Kreglinger v New Patagonia Meat & Cold Storage
NB CompeGGon and Consumer Act 2010 – many of these are not void due to compeffon
issues
Whether collateral advantage is clog on equity of redempRon
A collateral advantage designed to end with repayment of debt will not be void unless it is harsh /
unconscionable
Biggs v HoddinoS


F
ACTS:mo
r
t
g
a
g
o
r
g
r
a
n
t
e
dmo
r
t
g
a
g
eo
v
e
rh
i
sh
o
t
e
l
t
ob
r
e
we
r
yc
o
mp
a
n
y
.Mo
r
t
g
a
g
ec
o
u
l
dn
o
t
b
e
r
e
d
e
e
me
df
o
r
5y
e
a
r
s
.T
e
r
m–mo
r
t
g
a
g
o
r
mu
s
t
b
u
yb
e
e
r
/
s
t
o
u
t
sf
r
o
mt
h
emo
r
t
g
a
g
e
ea
n
ds
e
l
l
o
n
l
yt
h
e
b
r
e
we
r
’
sb
e
e
r
sa
n
ds
t
o
u
t
sf
r
o
mp
r
e
mi
s
e
s
HELD:NOTVOI
Da
sc
l
o
go
ne
q
u
i
t
yb
e
c
a
u
s
et
h
er
i
g
h
t
t
or
e
d
e
e
mwa
sn
o
t
a
ff
e
c
t
e
db
yt
h
es
t
i
p
u
l
a
t
i
o
n
A collateral advantage which is designed to confnue to operate aoer repayment will not be void if in
reality it is a separate and independent transacfon from the mortgage
Kreglinger v New Patagonia Meat and Cold Storage


F
ACTS:Mo
r
t
g
a
g
e
e(
wo
o
l
b
r
o
k
e
r
)
l
e
n
t
mo
n
e
yt
omo
r
t
g
a
g
o
r
(
me
a
t
c
o
mp
a
n
y
)
f
o
r
5y
e
a
r
s
,
r
e
p
a
y
a
b
l
eo
n1
mo
n
t
hn
o
t
i
c
e
.T
e
r
mt
h
a
t
mo
r
t
g
a
g
o
r
n
o
t
t
os
e
l
l
s
h
e
e
ps
k
i
nt
oa
n
y
o
n
eb
u
t
mo
r
t
g
a
g
e
ep
r
o
v
i
d
e
dmo
r
t
g
a
g
e
e
wi
l
l
i
n
gt
op
a
yb
e
s
t
ma
r
k
e
t
p
r
i
c
e
.Mo
r
t
g
a
g
o
rr
e
p
a
i
de
a
r
l
y
.Mo
r
t
g
a
g
e
es
t
i
l
l
wa
n
t
e
dt
ob
u
yt
oe
n
do
f
5y
e
a
r
s
HELD:NOTVOI
D–e
ff
e
c
t
i
v
e
l
yt
woa
g
r
e
e
me
n
t
s
:
1
)
l
o
a
na
g
r
e
e
me
n
t
;
2
)
a
g
r
e
e
me
n
t
t
ob
u
ys
h
e
e
ps
k
i
n
sa
t
ma
r
k
e
t
p
r
i
c
e
A collateral advantage which is part of the mortgage transacfon and which is designed to confnue
aoer repayment will be void
Bradley v CarriS
NO RIGHT TO REPAY BEFORE THE CONTRACTUAL DATE
9
0
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Where the agreement between the parfes speciles that the principal and other moneys owing must
be repaid on a speciKc date:


Mo
r
t
g
a
g
o
r–h
a
sn
or
i
g
h
t
a
t
c
o
mmo
nl
a
wo
ri
ne
q
u
i
t
yt
or
e
p
a
yb
e
f
o
r
et
h
a
t
d
a
t
e
Mo
r
t
g
a
g
e
e–h
a
sn
or
i
g
h
t
t
od
e
ma
n
de
a
r
l
yr
e
p
a
y
me
n
t
Hyde Management Services v FAI Insurance Ltd


F
ACTS:l
e
n
d
e
r
c
o
v
e
n
a
n
t
e
da
n
da
g
r
e
e
dwi
t
hb
o
r
r
o
we
rt
h
a
t
i
t
wo
u
l
dl
e
n
d$
3
0
0
ko
nt
e
r
msa
n
dc
o
n
d
i
t
i
o
n
s
i
nad
e
e
d
.Cl
a
u
s
e2
(
a
)
:
t
h
eb
o
r
r
o
we
r
c
o
v
e
n
a
n
t
e
dt
or
e
p
a
yt
h
ep
r
i
n
c
i
p
l
es
u
ma
ss
h
a
l
l
t
h
e
nr
e
ma
i
n
o
u
t
s
t
a
n
d
i
n
go
n2
5No
v
e
mb
e
r
1
9
8
1(
fi
x
e
dt
e
r
ma
n
dn
op
r
i
n
c
i
p
l
et
ob
er
e
p
a
i
df
o
r
4y
e
a
r
s
)
.Bo
r
r
o
we
r
a
l
s
o
c
o
v
e
n
a
n
t
e
dt
op
a
yi
n
t
e
r
e
s
t
a
t
2
0
%,
r
e
d
u
c
i
b
l
et
o1
6
%u
p
o
np
r
o
mp
t
p
a
y
me
n
t
.
HELD:t
h
ewo
r
d‘
o
n
’
me
a
n
t
ONs
ob
o
r
r
o
we
rc
o
u
l
dn
o
t
r
e
p
a
yp
r
i
n
c
i
p
l
eb
e
f
o
r
ed
a
t
en
o
mi
n
a
t
e
d
.
If before the date for repayment the mortgagor tenders the principle, the mortgagee not obliged to
accept the money or re-convey the security
Brown v Cole
Most mortgages only require repayment by a speciled date – can ouer to redeem early
If opfon to redeem early – may be subject to some Compensafon being paid to mortgagee for
foregone interest
9
1
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REMEDI
ESOFAT
ORRENSMORT
GAGEE
ACTION FOR DEBT ON THE PERSONAL COVENANT TO REPAY
Personal covenant to repay principal and interest is either express or implied under the PLA
see PLA s 78(1)(a)
Personal remedy against the mortgagor, not against mortgaged property
Morgagee can exercise its rights against the property (power of sale) and if debt not fully repaid by
the sale proceeds, then sue the mortgagor on personal covenants
Right available for 12 years aoer money became payable
LAA s 26
ENTER INTO POSSESSION
Arises either expressly or impliedly under the LTA in the case of default
LTA s 78(2)(b)
See cl 8.1(b) in example mortgage
Entry into possession occurs by taking actual possession or receiving rents and prolts from the
mortgaged property
Mortgagee can exercise power of sale without formal entry into possession (most commonly the
case)
Why mortgagees enter into possession



t
or
e
c
e
i
v
er
e
n
t
sa
n
dp
r
o
fi
t
s
;
t
oe
j
e
c
t
mo
r
t
g
a
g
o
r
i
f
v
a
c
a
n
t
p
o
s
s
e
s
s
i
o
nn
o
t
g
i
v
e
nf
o
rs
a
l
e
t
op
r
o
t
e
c
t
p
r
o
p
e
r
t
ywh
e
r
er
e
p
a
i
r
sn
e
e
d
e
d/
wa
s
t
ei
st
h
r
e
a
t
e
n
e
d(
We
s
t
e
r
nBa
n
kvSc
h
i
n
d
l
e
r
)
What dizculfes can the mortgagee face?



d
u
t
yt
oa
c
c
o
u
n
t
t
ot
h
emo
r
t
g
a
g
o
r
(
Na
t
i
o
n
a
l
Ba
n
ko
f
Au
s
t
r
a
l
a
s
i
avUn
i
t
e
d
)
;
l
i
a
b
l
ef
o
rd
a
ma
g
et
ot
h
ep
r
o
p
e
r
t
yd
u
et
on
e
g
l
i
g
e
n
c
e(
T
a
n
n
o
c
kvNo
r
t
hQu
e
e
n
s
l
a
n
dSe
c
u
r
i
t
i
e
s
)
ma
yb
el
i
a
b
l
ef
o
rc
e
r
t
a
i
no
u
t
g
o
i
n
g
s(
r
a
t
e
s/
l
e
v
i
e
s
)
Procedure
Can enter into possession without court acfon where they will not disturb the peace (ie forcibly do
it)
LTA s 78(2)(a)
APPOINT A RECEIVER
Arises either expressly or impliedly under the PLA
PLA s 83(1)(c)
See cl 9 in example mortgage
Mortgagor may appoint a receiver of the income / rents of mortgaged property if default occurs
Receiver is agent of mortgagor – mortgagor liable for receiver acts unless instrument of mortgage
provides otherwise
PLA s 92(2)
Receiver to apply money in the following order:
9
2
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a
)d
i
s
c
h
a
r
g
eo
f
r
e
n
t
s
,
r
a
t
e
s
,
t
a
x
e
sa
n
do
t
h
e
ro
u
t
g
o
i
n
g
sf
o
rt
h
ep
r
o
p
e
r
t
y
b
)p
a
y
me
n
t
o
f
a
n
n
u
a
l
s
u
ms/
o
t
h
e
r
p
a
y
me
n
t
swh
i
c
hh
a
v
ep
r
i
o
r
i
t
yt
ot
h
emo
r
t
g
a
g
e
et
h
a
t
a
p
p
o
i
n
t
e
dt
h
e
r
e
c
e
i
v
e
r
c
)p
a
y
me
n
t
o
f
r
e
c
e
i
v
e
r
’
sc
o
mmi
s
s
i
o
na
n
di
n
s
u
r
a
n
c
ep
r
e
mi
u
ms
,
a
n
dc
o
s
t
o
f
a
n
yn
e
c
e
s
s
a
r
ya
n
dp
r
o
p
e
r
r
e
p
a
i
r
s
d
)p
a
y
me
n
t
o
f
a
ni
n
t
e
r
e
s
t
d
u
eo
nt
h
emo
r
t
g
a
g
ed
e
b
t
e
)d
i
s
c
h
a
r
g
eo
f
t
h
ep
r
i
n
c
i
p
a
l
i
f
s
od
i
r
e
c
t
e
db
yt
h
emo
r
t
g
a
g
e
e
PLA s 92(8)
FORECLOSURE
Power to foreclose retained in Torrens legislafon:
LTA s 78(2)(c)(ii)
Remedy of foreclosure enables the mortgagee to take benelcial ftle to the mortgaged property in
full safsfacfon of the mortgaged debt
Heath v Pugh
Mortgagee applies to the Court for an order that the mortgagor could no longer exercise its
equitable right to redeem:




u
t
i
l
i
s
e
dwh
e
r
emo
r
t
g
a
g
ed
e
b
t
e
x
c
e
e
d
sv
a
l
u
eo
f
s
e
c
u
r
i
t
y
t
r
a
n
s
f
e
r
i
n
t
omo
r
t
g
a
g
e
e
’
sn
a
mea
b
s
o
l
u
t
e
l
y
f
r
e
ea
n
dc
l
e
a
r
o
f
t
h
emo
r
t
g
a
g
o
r
’
si
n
t
e
r
e
s
t
a
n
yo
u
t
s
t
a
n
d
i
n
ga
r
r
e
a
r
so
f
t
h
emo
r
t
g
a
g
ed
e
b
t
n
o
t
r
e
c
o
v
e
r
a
b
l
e–p
e
r
s
o
n
a
l
c
o
v
e
n
a
n
t
si
nt
h
emo
r
t
g
a
g
e
e
x
t
i
n
g
u
i
s
h
e
d(
Cf
e
x
e
r
c
i
s
eo
f
p
o
we
r
o
f
s
a
l
e
)
LTA s 78(2)(c) (applicafon to the court)
Fink v Robertson (exfnguishment of personal covenant)
Procedure
Procedure for foreclosure:
a
) De
f
a
u
l
t
b
yt
h
emo
r
t
g
a
g
o
r
b
) Mo
r
t
g
a
g
e
ea
p
p
l
i
c
a
t
i
o
nt
oc
o
u
r
t
:
s7
8
(
2
)
(
c
)L
T
A
c
) Or
d
e
rn
i
s
i
(
i
f
mo
r
t
g
a
g
e
es
u
c
c
e
s
s
f
u
l
)
d
) Ac
c
o
u
n
t
t
a
k
e
n
e
) Mo
r
t
g
a
g
o
r
g
i
v
e
nr
e
a
s
o
n
a
b
l
et
i
met
op
a
y(
6
mt
h
s
?
)
f
) Or
d
e
ra
b
s
o
l
u
t
ef
o
rf
o
r
e
c
l
o
s
u
r
e
g
) Ve
s
t
i
n
go
r
d
e
r
r
e
g
i
s
t
e
r
e
d
h
) Mo
r
t
g
a
g
e
er
e
g
i
s
t
e
r
e
da
so
wn
e
rf
r
e
eo
f
mo
r
t
g
a
g
ea
n
df
r
e
eo
f
t
h
ei
n
t
e
r
e
s
t
o
f
mo
r
t
g
a
g
o
r
.
ESects
Euects of foreclosure:





Mo
r
t
g
a
g
e
e–b
e
c
o
me
st
h
er
e
g
i
s
t
e
r
e
do
wn
e
ro
f
t
h
es
e
c
u
r
e
dp
r
o
p
e
r
t
y
Mo
r
t
g
a
g
o
r–L
o
s
e
st
h
er
i
g
h
t
t
or
e
d
e
e
m
Mo
r
t
g
a
g
ea
sac
h
a
r
g
eo
v
e
rt
h
el
a
n
d–r
e
l
e
a
s
e
d
De
b
t
–e
x
t
i
n
g
u
i
s
h
e
d
Pe
r
s
o
n
a
l
c
o
v
e
n
a
n
t
si
nmo
r
t
g
a
g
e–e
x
t
i
n
g
u
i
s
h
e
d
9
3
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EXERCISE POWER OF SALE
Amount owed
Most commonly used remedy to recover outstanding principal and interest
Mortgagor owes the diuerence between the loan amount and the sale price (can be posifve /
negafve)
If proceeds > loan amount aoer costs, outstanding distributed to other mortgagee or mortgagor
PLA s 88
Source of the power of sale
Either:


i
nt
h
emo
r
t
g
a
g
ed
o
c
u
me
n
t
i
t
s
e
l
f
Cl
a
u
s
e8
.
1
(
a
)o
r
i
mp
l
i
e
du
n
d
e
rPL
As8
3
(
1
)
(
a
)
Enftled to spend money on the sale
PLA s 83(2)
PLA s 83 relates to mortgages of Torrens land
LTA s 78(1)
PLA s 83 relates also to mortgages of land under LTA
LTA s 83(5)
Pre-condiHons
Mortgagee cannot exercise power of sale unless:
a
) De
f
a
u
l
t
b
yt
h
emo
r
t
g
a
g
o
r
b
) Ap
p
r
o
p
r
i
a
t
en
o
t
i
c
es
e
r
v
e
d(
i
nF
o
r
m4PL
A)
c
) De
f
a
u
l
t
c
o
n
t
i
n
u
e
sf
o
r3
0d
a
y
s
PLA s 84(1)
Pre-condifons apply irrespecfve of a contrary intenfon
PLA s 84(3)
If no nofce provision in mortgage, must deliver in personally to mortgagor or by any other ways set
out in PLA
PLA s 347(1)
Must follow PLA s 84 exactly:



Us
eo
f
t
h
ea
p
p
r
o
v
e
df
o
r
m4i
sn
o
t
ma
n
d
a
t
o
r
yPL
As8
4
(
2
)(
a
d
v
i
s
a
b
l
e
)
No
t
i
c
emu
s
t
b
ei
nwr
i
t
i
n
g
,
s
i
g
n
e
db
y
/
o
nb
e
h
a
l
f
o
f
t
h
emo
r
t
g
a
g
e
e
,
s
p
e
c
i
f
yt
h
ed
e
f
a
u
l
t
a
n
dr
e
q
u
i
r
ei
t
t
ob
e
r
e
c
t
i
fi
e
d
De
f
a
u
l
t
mu
s
t
c
o
n
t
i
n
u
ef
o
r3
0c
l
e
a
rd
a
y
sf
r
o
ms
e
r
v
i
c
e(
NOTt
h
ed
a
t
eo
f
t
h
en
o
t
i
c
e
)(
Ha
l
l
vHa
l
l
)
Errors in PLA s 84 noHce
Nofce may be rendered invalid if it contains errors which substanfally mislead the mortgagor
So consider:
a
)i
st
h
ee
r
r
o
r
s
u
b
s
t
a
n
t
i
a
l
?
b
) Wo
u
l
dt
h
emo
r
t
g
a
g
o
r
h
a
v
eb
e
e
nmi
s
l
e
db
yt
h
ee
r
r
o
r
?
9
4
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lOMoARcPSD|3076807
The nofce is to enable the recipient to understand with reasonable certainty what is required to be
done
Clarke v Japan Machines (Aust) Pty Ltd
Errors in PLA s 84 noRces
a
) No
t
n
e
c
e
s
s
a
r
i
l
yi
n
v
a
l
i
db
e
c
a
u
s
et
h
ewr
o
n
ga
mo
u
n
t
i
sd
e
ma
n
d
e
d
b
) Co
n
s
i
d
e
r
t
h
eq
u
a
n
t
u
mo
f
t
h
ee
r
r
o
r
c
) Co
n
s
i
d
e
r
a
l
s
ot
h
ef
o
r
mo
f
t
h
en
o
t
i
c
e
:
Di
di
t
g
i
v
et
h
emo
r
t
g
a
g
o
rar
e
a
s
o
n
a
b
l
eo
p
p
o
r
t
u
n
i
t
yt
od
owh
a
t
i
t
i
s
o
b
l
i
g
e
dt
od
o
?
Clarke v Japan Machines Australia Pty Ltd
Court will look to the extent of the error-is the nofce misleading in advising what the
mortgagor has to pay to prevent the sale?
d
) Amo
r
t
g
a
g
e
ema
yb
ep
r
e
v
e
n
t
e
df
r
o
me
x
e
r
c
i
s
i
n
gp
o
we
ro
f
s
a
l
eu
n
d
e
ra
ni
n
v
a
l
i
dn
o
t
i
c
e
.
e
) Pu
r
c
h
a
s
e
rf
r
o
mmo
r
t
g
a
g
e
en
o
t
b
o
u
n
dt
oe
n
q
u
i
r
ei
n
t
ov
a
l
i
d
i
t
yo
f
n
o
t
i
c
eo
rp
r
o
c
e
s
se
gp
r
o
p
e
rs
e
r
v
i
c
eo
n
mo
r
t
g
a
g
o
r-c
a
na
s
s
u
mea
l
l
i
no
r
d
e
r(
s8
7PL
A)
Not an in personam excepfon to indefeasibility
see LTA s 185(1)(a)
Mortgagee duty of care (subsumes duty to act in good faith)
Mortgagee must take reasonable care to ensure that the property is sold at market value
PLA s 85(1)
PLA s 85(1A) – use for prescribed mortgages
Test – objecfve test – more onerous duty to take reasonable care to obtain what has variously been
described as the ‘best possible price’ or the ‘best price reasonably available’ or the ‘true market
value’
CAGA v Nixon

Se
t
t
l
e
d–t
e
s
t
h
i
g
h
e
r
t
h
a
ns
i
mp
l
yn
o
t
a
c
t
i
n
gr
e
c
k
l
e
s
s
l
yi
ns
a
c
r
i
fi
c
i
n
gmo
r
t
g
a
g
o
r
i
n
t
e
r
e
s
t
s–r
e
q
u
i
r
e
me
n
t
i
s
h
i
g
h
e
r
:
Ma
s
o
nJ
General law duty – to act in good faith and not wilfully and recklessly sacrilce the interests of the
mortgagor and take reasonable care to obtain the best possible price
Both these dufes have been subsumed under s 85 and the remedy for breach is limited to damages
Cameron v Brisbane Fleet Sales Pty Ltd
To discharge duty, generally have to:




a
d
v
e
r
t
i
s
ea
d
e
q
u
a
t
e
l
y
d
i
s
c
l
o
s
ea
l
l
r
e
l
e
v
a
n
t
f
a
c
t
s
ma
i
n
t
a
i
np
r
o
p
e
r
t
yb
yu
n
d
e
r
t
a
k
i
n
gr
e
a
s
o
n
a
b
l
er
e
p
a
i
r
su
n
t
i
l
s
a
l
e
s
c
h
e
d
u
l
i
n
ga
u
c
t
i
o
nf
o
r
a
p
p
r
o
p
r
i
a
t
et
i
me
ANZ v Bandadilly

HELD:b
r
e
a
c
ho
f
d
u
t
ya
smo
r
t
g
a
g
e
ef
a
i
l
e
dt
of
o
l
l
o
wu
po
np
r
o
s
p
e
c
t
sa
n
da
u
c
t
i
o
ns
c
h
e
d
u
l
e
da
t
a
n
i
n
a
p
p
r
o
p
r
i
a
t
et
i
me(
2d
a
y
sb
e
f
o
r
eCh
r
i
s
t
ma
s
)
,
a
n
dh
a
dn
o
t
b
e
e
na
d
e
q
u
a
t
e
l
ya
d
v
e
r
t
i
s
e
d
ResidenRal mortgage sales – prescribed mortgage
Prescribed mortgage is residenfal
PLR s 3 (yes regulafons…)
9
5
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A same overall duty as in s 85(1) but with parfcular requirements to discharge duty:
a
)a
d
e
q
u
a
t
e
l
ya
d
v
e
r
t
i
s
es
a
l
e
b
)o
b
t
a
i
nr
e
l
i
a
b
l
ee
v
i
d
e
n
c
eo
f
p
r
o
p
e
r
t
y
’
sv
a
l
u
e
c
) ma
i
n
t
a
i
np
r
o
p
e
r
t
yb
yu
n
d
e
r
t
a
k
i
n
ga
n
yr
e
a
s
o
n
a
b
l
er
e
p
a
i
r
su
n
t
i
l
s
a
l
e
d
)s
e
l
l
p
r
o
p
e
r
t
ya
t
a
u
c
t
i
o
ni
f
a
t
a
l
l
p
o
s
s
i
b
l
e
PLA s 85(1A)
Mortgagee duty to adverRse adequately
Necessary to adverfse a reasonable fme prior to sale in a place where adverfsement likely to be
seen by maximum number of potenfal buyers
McKean v Maloney


F
ACTS:p
r
o
p
e
r
t
yi
nPr
o
s
e
r
p
i
n
e
,
a
g
e
n
t
a
n
dmo
s
t
a
d
v
e
r
t
i
s
i
n
gi
nMa
c
k
a
y
.V
a
l
u
a
t
i
o
n=$
6
2
k
.Sa
l
ep
r
i
c
e=
$
5
0
k
.Ma
r
k
e
t
v
a
l
u
e=$
6
0
k
HELD:b
r
e
a
c
h
Mortgagee duty to properly cx reserve price
Mortgagee must take reasonable care in lxing reserve – obliged to consider who of valuafon reports
Cameron v Brisbane Fleet Sales Pty Ltd

Un
d
e
r
s
.
8
5
(
1
)
,
amo
r
t
g
a
g
e
ee
x
e
r
c
i
s
i
n
gi
t
sp
o
we
ro
f
s
a
l
eb
ywa
yo
f
a
u
c
t
i
o
nwa
sr
e
q
u
i
r
e
dt
ot
a
k
e
r
e
a
s
o
n
a
b
l
ec
a
r
ei
nfi
x
i
n
gt
h
er
e
s
e
r
v
e
.
I
t
sd
u
t
ywe
n
t
b
e
y
o
n
ds
i
mp
l
yc
o
mmi
s
s
i
o
n
i
n
gar
e
p
o
r
t
f
r
o
ma
ne
x
p
e
r
t
v
a
l
u
e
r
a
n
da
c
t
i
n
gu
p
o
ni
t
.
I
t
wa
so
b
l
i
g
e
dt
oc
o
n
s
i
d
e
r
t
h
ewh
o
l
er
e
p
o
r
t
,
t
os
e
e
kc
l
a
r
i
fi
c
a
t
i
o
na
sn
e
c
e
s
s
a
r
y
a
n
dn
o
t
t
oa
d
o
p
t
t
h
ev
a
l
u
a
t
i
o
ni
nt
h
ea
b
s
e
n
c
eo
f
ar
e
a
s
o
n
e
dc
a
s
ei
ns
u
p
p
o
r
t
o
f
i
t
Mortgagee has to commit fraud or collusion to be in breach
Southern Goldaelds Ltd v General Credits


s
t
F
ACTS:1
mo
r
t
g
a
g
e
ewa
so
we
d$
3
0
0
k
.Se
c
o
n
dmo
r
t
g
a
g
e
eo
we
d$
3
5
0
k
.Va
l
u
a
t
i
o
n
so
f
$
7
1
5
ka
n
d
$
7
3
0
k
.Sa
l
ep
r
i
c
eo
f
$
3
6
0
k
HELD:a
b
s
e
n
c
ef
r
a
u
do
r
c
o
l
l
u
s
i
o
n
,
fi
x
i
n
gt
h
er
e
s
e
r
v
eh
a
sn
oe
ff
e
c
t
o
nt
h
ea
mo
u
n
t
p
o
t
e
n
t
i
a
l
b
u
y
e
r
swi
l
l
b
i
d
.T
h
ea
u
c
t
i
o
nmu
s
t
b
ep
r
o
p
e
r
l
yc
o
n
d
u
c
t
e
d
,
a
n
di
nt
h
i
sc
a
s
ei
t
wa
sa
n
d$
3
6
0
kwa
st
h
eb
e
s
t
p
r
i
c
eo
n
t
h
ed
a
t
ed
e
s
p
i
t
ev
a
l
u
a
t
i
o
n
s
Duty to ensure independent bargain (good faith)
Sale must be made independently and bona lde (not be made in bad faith)
ANZ v Bandadilly Pastoral Co


s
t
F
ACTS:1
mo
r
t
g
a
g
e
e(
H)s
o
l
dt
op
r
i
v
a
t
ec
o
mp
a
n
y(
B)
.Bo
t
hc
o
mp
a
n
i
e
so
wn
e
d/
c
o
n
t
r
o
l
l
e
db
ys
a
me
p
e
o
p
l
e
.Own
e
r
ss
e
t
t
h
er
e
s
e
r
v
ea
n
da
st
h
ed
i
r
e
c
t
o
r
so
f
t
h
ep
u
r
c
h
a
s
e
r
,
k
n
e
wt
h
er
e
s
e
r
v
e
.T
h
e
ya
l
s
o
k
n
e
wt
h
ep
r
i
c
et
h
a
t
t
h
ep
u
r
c
h
a
s
e
r(
t
h
e
i
r
c
o
mp
a
n
y
)
wa
sp
r
e
p
a
r
e
dt
op
a
ya
n
dwe
r
et
h
eo
n
l
yt
r
u
eb
i
d
d
e
r
sa
t
t
h
ea
u
c
t
i
o
n
.
HELD:n
oe
v
i
d
e
n
c
et
os
u
p
p
o
r
t
afi
n
d
i
n
gt
h
a
t
t
h
e
r
ewa
sa
ni
n
d
e
p
e
n
d
e
n
t
b
a
r
g
a
i
na
n
do
r
d
e
r
e
dt
h
es
a
l
eb
e
s
e
t
a
s
i
d
e
.Al
s
oHEL
Dt
h
a
t
mo
r
t
g
a
g
e
ea
n
dp
u
r
c
h
a
s
e
r
f
a
i
l
e
dt
od
i
s
c
h
a
r
g
eo
n
u
so
f
p
r
o
v
i
n
gt
h
a
t
s
a
l
ewa
s
b
o
n
afi
d
e
Problems in ANZ v Bangadilly:





r
d
Ch
o
i
c
eo
f
a
u
c
t
i
o
nd
a
t
e(
2
3
De
c
e
mb
e
r
)
Br
e
a
d
t
ho
f
a
d
v
e
r
t
i
s
i
n
g(
n
ol
o
c
a
l
;
l
i
mi
t
e
dt
oSy
d
n
e
ya
n
dMe
l
b
o
u
r
n
e
)
L
e
n
g
t
ho
f
t
i
mef
o
ra
d
v
e
r
t
i
s
i
n
g(
v
e
r
ys
h
o
r
t
)
Se
c
o
n
dmo
r
t
g
a
g
e
en
o
t
i
n
f
o
r
me
d
Re
s
e
r
v
ep
r
i
c
e(
Ha
l
c
o
*s
e
t
r
e
s
e
r
v
eo
f
$
2
5
00
0
0&Ba
n
g
a
d
i
l
l
y
*d
e
c
i
d
e
dt
ob
i
d$
2
6
50
0
0
)
9
6
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lOMoARcPSD|3076807

Sa
l
et
oac
l
o
s
ea
s
s
o
c
i
a
t
e
Consider:



Wa
st
h
eb
u
y
e
ra
wa
r
eo
f
t
h
er
e
l
a
t
i
o
n
s
h
i
pb
e
t
we
e
ns
e
l
l
e
ra
n
dmo
r
t
g
a
g
o
r
?
I
f
t
h
ed
i
ff
e
r
e
n
c
ei
nv
a
l
u
a
t
i
o
na
n
dc
o
n
t
r
a
c
t
p
r
i
c
es
u
ffic
i
e
n
t
l
yg
r
e
a
t
t
oi
n
f
e
rab
r
e
a
c
ho
f
d
u
t
yo
nt
h
ep
a
r
t
o
f
t
h
emo
r
t
g
a
g
e
e
?
Wa
st
h
e
r
ea
n
ye
v
i
d
e
n
c
eo
f
c
o
l
l
u
s
i
o
nt
oi
n
f
e
rt
r
a
n
s
a
c
t
i
o
nt
a
i
n
t
e
d
?
?
Mortgagee can NEVER sell to itself
ANZ v Bandadilly
Fraud establishes a lack of good faith
Latec Investments v Hotel Terrigal
Damages for breach of mortgagee duty
Aoer sale, mortgagor (or guarantor) may get damages from mortgagee where
a
) mo
r
t
g
a
g
e
ef
a
i
l
s“
t
ot
a
k
er
e
a
s
o
n
a
b
l
ec
a
r
e“
t
h
a
t
p
r
o
p
e
r
t
yi
sn
o
t
s
o
l
da
t“
ma
r
k
e
t
v
a
l
u
e
”a
n
d
,
a
sar
e
s
u
l
t
,
b
)t
h
ep
r
o
p
e
r
t
yi
ss
o
l
da
t
a
nu
n
d
e
r
v
a
l
u
e
PLA s 85(3)
Damages amounts to the diuerence between market value as established by the evidence and the
contract price for which the mortgagee sold
MORTGAGOR RIGHTS ON POWER OF SALE
Sale Process
a
) De
f
a
u
l
t
b
) PL
As8
4n
o
t
i
c
es
e
r
v
e
d
,
wa
i
t
3
0d
a
y
sb
u
t
b
r
e
a
c
hn
o
t
r
e
me
d
i
e
d
c
) Pr
o
p
e
r
t
ys
o
l
d(
b
ya
u
c
t
i
o
no
r
p
r
i
v
a
t
es
a
l
e
)a
f
t
e
rv
a
l
u
a
t
i
o
n
d
) En
f
o
r
c
e
a
b
l
ec
o
n
t
r
a
c
t
e
n
t
e
r
e
db
e
t
we
e
nmo
r
t
g
a
g
e
ea
n
db
u
y
e
r
e
) Se
t
t
l
e
me
n
t
u
s
u
a
l
l
y3
0–9
0d
a
y
s(
d
e
c
l
a
r
a
t
i
o
nt
h
a
t
d
e
f
a
u
l
t
c
o
n
t
i
n
u
e
du
pu
n
t
i
l
s
e
t
t
l
e
me
n
t
a
n
dt
h
a
t
F
o
r
m4
No
t
i
c
ep
r
o
p
e
r
l
ys
e
r
v
e
do
nmo
r
t
g
a
g
o
r
)
f
) Se
t
t
l
e
me
n
t
e
x
c
h
a
n
g
eo
f
mo
n
e
yf
o
rt
i
t
l
e
,
t
r
a
n
s
f
e
rs
u
p
p
o
r
t
i
n
gd
o
c
u
me
n
t
st
ob
el
o
d
g
e
di
nT
i
t
l
e
sOffic
eb
y
b
u
y
e
r
g
) Re
g
i
s
t
r
a
t
i
o
n
Before contract of sale
GP – mortgagor may seek an injuncfon (inherent SC jurisdicfon) restraining exercise of the power of
sale if a vifafng factor is evident
However, mortgagor may have to pay money into the court
Inglis v Commonwealth Trading Bank of Australia
Where amount owing by mortgagor has not been paid, court will not generally interfere to deprive
the mortgagee of the benelt of its security unless an ‘equivalent safeguard’ is provided to the
mortgagee
Relief from payment into court
Where a mortgagor seeks an injuncfon, it is not unreasonable to require the mortgagor to pay into
court the amount demanded by the mortgagee or otherwise to provide an equivalent safeguard as a
prerequisite of an injuncfon
9
7
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Court looks at all the relevant facts to determine what amount, if any, should be paid into Court to do
complete jusfce between the parfes
Clarke v Japan Machines (Australia) Pty Ltd

HELD:mo
r
t
g
a
g
o
r
h
a
ds
u
ffic
i
e
n
t
o
t
h
e
r
s
e
c
u
r
i
t
y(
a
l
r
e
a
d
yr
e
p
o
s
s
e
s
s
e
dg
o
o
d
s
)
f
o
r
t
h
emo
r
t
g
a
g
ed
e
b
t
a
n
d
p
a
y
me
n
t
i
n
t
oc
o
u
r
t
n
o
t
r
e
q
u
i
r
e
dt
oo
b
t
a
i
ni
n
j
u
n
c
t
i
o
n
ExcepRons
Court may exercise its discrefon and restrain the sale without payment into court where the
mortgagor establishes an issue based on:
a
) Th
ev
a
l
i
d
i
t
yo
f
t
h
emo
r
t
g
a
g
ei
t
s
e
l
f
e
gf
r
a
u
d
,
u
n
d
u
ei
n
fl
u
e
n
c
e
,
mi
s
l
e
a
d
i
n
g
/
d
e
c
e
p
t
i
v
ec
o
n
d
u
c
t
;
o
r
b
) Th
ep
r
e
s
e
n
t
a
v
a
i
l
a
b
i
l
i
t
yo
f
t
h
ep
o
we
r
o
f
s
a
l
ep
e
r
h
a
p
sb
e
c
a
u
s
e
:
a
.t
h
ea
l
l
e
g
e
db
r
e
a
c
ho
f
c
o
v
e
n
a
n
t
wh
i
c
hi
sr
e
l
i
e
du
p
o
nb
yt
h
emo
r
t
g
a
g
e
ei
sc
h
a
l
l
e
n
g
e
d
;
o
r
b
.t
h
eo
c
c
u
r
r
e
n
c
eo
f
s
o
meo
t
h
e
rp
r
e
c
o
n
d
i
t
i
o
nt
ot
h
ea
r
i
s
i
n
go
f
t
h
ep
o
we
ro
f
s
a
l
eh
a
sn
o
t
b
e
e
nme
t
A\er contract (power of sale exercised), but before seclement
Mortgagor may seek:
a
)d
a
ma
g
e
s–a
r
i
s
e
sf
o
r
b
r
e
a
c
ho
f
PL
As8
5
b
)o
r
d
e
r
t
or
e
s
t
r
a
i
nc
o
mp
l
e
t
i
o
n–mu
s
t
a
mo
u
n
t
t
of
r
a
u
d
Damages
The mortgagee is under a duty to take reasonable care to ensure the property is sold at market value
PLA s 85(1)
If the mortgagee breaches this duty, the mortgagor can seek damages and the sale to the purchaser
can sfll stand
PLA s 85(3)
No injuncfon will be granted where there has been negligent exercise of power of sale –
appropriate remedy is damages under PLA s 85
McKean v Maloney
Order to restrain compleRon
Likely to be restrained if the mortgagee has acted fraudulently or in reckless disregard of the
mortgagor’s interest
Forsyth v Blundell



F
ACT
S:mo
r
t
g
a
g
e
ee
x
e
r
c
i
s
e
dp
o
we
ro
f
s
a
l
e
,
s
e
l
l
i
n
gt
oSh
e
l
l
f
o
r
$
1
2
0
k
.Mo
r
t
g
a
g
e
ek
n
e
wa
t
t
h
et
i
met
h
a
t
a
n
o
t
h
e
ro
i
l
c
o
mp
a
n
ywi
l
l
i
n
gt
op
a
y$
1
5
0
k
.Sh
e
l
l
h
a
dn
on
o
t
i
c
eo
f
i
mp
r
o
p
r
i
e
t
ya
t
t
h
et
i
meo
f
s
a
l
e
.
Mo
r
t
g
a
g
o
r
c
o
mme
n
c
e
dp
r
o
c
e
e
d
i
n
g
ss
e
e
k
i
n
ga
ni
n
j
u
n
c
t
i
o
nt
or
e
s
t
r
a
i
nc
o
mp
l
e
t
i
o
no
f
t
h
ec
o
n
t
r
a
c
t
a
f
t
e
r
c
o
n
t
r
a
c
t
e
n
t
e
r
e
di
n
t
o
,
b
u
t
b
e
f
o
r
ec
o
mp
l
e
t
i
o
n
HELD:i
n
j
u
n
c
t
i
o
nr
e
s
t
r
a
i
n
i
n
gc
o
mp
l
e
t
i
o
ng
r
a
n
t
e
d
.Mo
r
t
g
a
g
e
ea
c
t
e
dwi
t
hc
a
l
c
ul
a
t
e
di
ndi
ffe
r
e
nc
et
ot
h
e
mo
r
t
g
a
g
o
r
;
r
e
c
k
l
e
s
s
l
ys
a
c
r
i
fic
e
dmor
t
ga
gor
’
si
nt
e
r
e
s
t
.T
h
e
r
ewa
sl
a
c
ko
f
goodf
a
i
t
hb
yt
h
e
mo
r
t
g
a
g
e
e
NB:i
nQl
dt
o
d
a
y
,
t
h
a
t
i
n
j
u
n
c
t
i
o
nwo
u
l
dn
o
t
l
i
e–a
na
c
t
i
o
nf
o
r
d
a
ma
g
e
swo
u
l
db
ea
d
mi
t
t
e
d
Includes lack of good faith in the process
Forsyth v Blundell
9
8
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A\er seclement (power of sale exercised), but before registraHon
Where mortgagee has acted in bad faith / fraudulently:

Wh
e
r
ep
u
r
c
h
a
s
e
r
h
a
sn
on
o
t
i
c
eo
f
mo
r
t
g
a
g
e
ec
o
n
d
u
c
t
u
pt
oa
n
di
n
c
l
u
d
i
n
gs
e
t
t
l
e
me
n
t
–c
o
u
r
t
wi
l
l
n
o
t
s
e
t
s
a
l
ea
s
i
d
e
,
s
omo
r
t
g
a
g
o
rma
yg
e
t
d
a
ma
g
e
si
f
l
o
s
sp
r
o
v
e
n
McKean v Maloney

Wh
e
r
ep
u
r
c
h
a
s
e
r
h
a
sn
on
o
t
i
c
ewh
e
ne
n
t
e
r
i
n
gc
o
n
t
r
a
c
t
b
u
t
fi
n
do
u
t
b
e
f
o
r
es
e
t
t
l
e
me
n
t
–c
o
u
r
t
n
o
w
u
n
l
i
k
e
l
yi
nQl
dt
oo
r
d
e
r
t
h
a
t
s
a
l
eb
es
e
t
a
s
i
d
e
,
s
omo
s
t
l
i
k
e
l
yd
a
ma
g
e
s
cf Forstyth v Blundell pre PLA s 85

Wh
e
r
ep
u
r
c
h
a
s
e
r
e
ff
e
c
t
i
v
e
l
yi
n
v
o
l
v
e
da
sap
a
r
t
yt
ot
h
ef
r
a
u
d/
b
a
df
a
i
t
h–c
o
u
r
t
wi
l
l
a
l
mo
s
t
c
e
r
t
a
i
n
l
yo
r
d
e
r
t
h
a
t
t
h
es
a
l
eb
es
e
t
a
s
i
d
e
ANZ Banking Group v Bangadilly
A\er registraHon (power of sale exercised)
Buyer in usual circumstances has indefeasibility subject to fraud or in personam excepfons
Collusive buyer’s ftle would be auected and buyer would not gain indefeasible ftle –in personam
excepfon would upset indefeasibility – sale to mortgagee would be set aside and mortgagor’s ftle
subject to mortgage restored
CAVEATS
Power of sale being exercised by mortgagee
Consider – was the relafonship between the mortgagee and buyer such that the mortgagor could sustain
anon-lapsing caveat to set aside contract on equitable grounds based upon conduct?
LTA s 126(1)(a)
This likely requires collusion
Re McKean’s Caveat
Post registraHon
Registrafon confers indefeasible ftle (PLA s 184) subject to in personam excepfon
PLA s 185(1)(a)
Mortgagee has benelts of indefeasibility
LTA s 184, 185
CONSIDER – fraud / in personam…
If indefeasibility can be set aside for fraud / in personam, an exercise of power of sale may be vifated
LTA ss 184, 185
Fraud – court must be safsled that cogent evidence existed of the fraud allegafon before it will grant an
injuncfon
Inglis v Cth Trading
Clarke v Japan Machines (Astralia)
Caveatable interest – Consider whether a mortgagor (or ex-mortgagor) can “claim and interest in the lot” and
would be able to lodge a caveat to protect such an interest
LTA s 122(1)(a)
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MERE EQUITY
May arise to support a caveat where there has been fraudulent conduct on the part of the buyer /
mortgagee
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EASEMENTS
EASEMENTS
General
A right over the land of another person granted for a specilc purpose
Creates an interest in land but is not an estate in land:


Mu
s
t
b
ec
r
e
a
t
e
di
nwr
i
t
i
n
g–s
e
ePL
As
s1
0
,
1
1
,
5
9
I
f
u
n
r
e
g
i
s
t
e
r
e
d
,
i
t
i
sa
ne
q
u
i
t
a
b
l
ei
n
t
e
r
e
s
t
c
a
p
a
b
l
eo
f
s
u
p
p
o
r
t
i
n
gac
a
v
e
a
t
The person who gives the easement is the “grantor” (the servient tenant)and the person who
benelts from it is the “grantee”(the dominant tenant)
It is a proprietary interest, not personal, and will confnue for the benelt of successors in ftle to the
land beneljed (the dominant tenants)
The land burdened by the easement (the servient tenement) remains in the ownership of the grantor
of the easement subject to the rights of the grantee to exercise the rights granted by the easement
Easements can be posifve and negafve:


Apos
i
t
i
v
ee
a
s
e
me
ntg
i
v
e
st
h
eg
r
a
n
t
e
ear
i
g
h
t
t
od
os
o
me
t
h
i
n
g–e
gt
og
a
i
na
c
c
e
s
st
h
r
o
u
g
har
i
g
h
t
o
f
wa
y
Ane
ga
t
i
v
ee
a
s
e
me
nt
ma
yg
i
v
ear
i
g
h
t
t
os
o
meb
e
n
e
fi
t
wi
t
h
o
u
t
t
h
en
e
i
g
h
b
o
u
ro
b
s
t
r
u
c
t
i
n
gi
t
–e
gl
i
g
h
t
o
r
a
i
r(
ar
i
g
h
t
n
o
t
t
oh
a
v
et
h
en
e
i
g
h
b
o
u
rab
u
i
l
d
i
n
gc
o
n
s
t
r
u
c
t
e
dc
l
o
s
et
ot
h
eb
o
u
n
d
a
r
y
)
EssenHal CharacterisHcs
There are 4 essenfal characterisfcs from Re Ellenborough Park:
a
)T
he
r
emus
t
beadomi
na
nt
a
nds
e
r
v
i
e
ntt
e
ne
me
nt
A dominant area may be small and benelts thus may be limited
R v Registrar of Titles; Ex parte Waddington
There must be a benelt conferred on the dominant tenement’s land, otherwise it is a mere
licence
Rangeley v Midland Railway
Hanbury v Jenkins
 g
r
a
n
t
e
er
i
g
h
t
t
oc
r
o
s
sg
r
a
n
t
o
r
’
sl
a
n
di
no
r
d
e
r
t
oe
x
e
r
c
i
s
et
h
er
i
g
h
t
t
ofi
s
hs
u
ffic
i
e
n
t
b) Ane
a
s
e
me
ntmus
ta
c
c
ommoda
t
et
hedomi
na
ntt
e
ne
me
nt
–mu
s
t
b
ef
o
rt
h
eb
e
n
e
fi
t
o
f
d
o
mi
n
a
n
t
t
e
n
e
me
n
t
Riley v Pentla
Clos Farming Estates (see below)
This is subject to excepfon of easement “in gross” – ie not ajached to or used with other
land but only for “public uflity providers” (drainage, gas or electricity providers, public right
of way, infrastructure corridore)
LTA ss 81A, 89
c
)T
hedomi
na
nta
nds
e
r
v
i
e
ntowne
r
smus
tbedi
ffe
r
e
ntp
e
r
s
ons–s
u
b
j
e
c
t
t
ob
e
l
o
w
Registrafon may sfll occur even if the lot beneljed and burdened have same RO or the
owner of the lot beneljed holds an interest in the burdened lot
LTA s 86
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If the same person becomes the RO of the lot beneljed and the lot burdened, easement is
exfnguished only if the RO asks the registrar to exfnguish the easement
LTA s 87
d) T
hee
a
s
e
me
ntmus
tbec
a
pa
bl
eoff
or
mi
ngt
hes
ubj
e
c
t
ma
t
t
e
rofagr
a
nt–e
gl
i
g
h
t
,
a
i
r
,
d
r
a
i
n
a
g
e
,
n
o
i
s
e
,
BUTNOTav
i
e
wo
r
r
i
g
h
t
t
op
r
o
t
e
c
t
i
o
nb
yan
e
i
g
h
b
o
u
rf
r
o
mt
h
ee
ff
e
c
t
so
f
we
a
t
h
e
r
Must be suzciently delnite to be capable of (a) forming the subject majer of the grant AND
(b) must not give grantee exclusive use over servient tenement
Re Ellenborough Park
Consider:
a
)p
r
o
p
o
r
t
i
o
n
a
l
i
t
y–b
e
t
we
e
ns
e
r
v
i
e
n
t
t
e
n
e
me
n
t
a
n
dt
h
a
t
wh
i
c
ht
h
ee
x
c
l
u
s
i
v
er
i
g
h
t
i
sg
i
v
e
n
b
)e
x
t
e
n
t
o
f
e
x
c
l
u
s
i
v
i
t
yc
l
a
i
me
d
c
) wh
e
t
h
e
r
t
h
ee
a
s
e
me
n
t
a
r
o
s
eb
yp
r
e
s
c
r
i
p
t
i
o
no
rb
ye
x
p
r
e
s
sg
r
a
n
t
;
a
n
d
d
)t
h
ep
r
a
c
t
i
c
a
l
i
t
i
e
s
Weigall v Toman (see below)
Re Ellenborough Park
 F
ACTS:
 HELD:a
na
b
i
l
i
t
yt
ou
s
et
h
es
e
r
v
i
e
n
t
t
e
n
e
me
n
t
f
o
r
ap
l
e
a
s
u
r
eg
r
o
u
n
do
r
g
a
r
d
e
ni
sc
a
p
a
b
l
eo
f
b
e
i
n
gt
h
e
s
u
b
j
e
c
t
ma
t
t
e
r
o
f
a
ne
a
s
e
me
n
t
.T
h
er
i
g
h
t
o
f
r
e
c
r
e
a
t
i
o
nd
i
dn
o
t
a
mo
u
n
t
t
oaj
o
i
n
t
o
c
c
u
p
a
t
i
o
nwi
t
ht
h
e
p
r
o
p
r
i
e
t
o
r
s
 SUM:
Clos Farming Estates Pty Ltd v Easton
 F
ACTS:av
i
n
e
y
a
r
da
n
df
a
r
mc
o
mp
r
i
s
i
n
g8
0r
e
s
i
d
e
n
t
i
a
l
l
o
t
s
,
t
h
es
e
r
v
i
e
n
t
t
e
n
e
me
n
t
s
,
p
r
o
v
i
d
e
de
a
s
e
me
n
t
s
t
ot
h
ed
o
mi
n
a
n
t
t
e
n
e
me
n
t
t
h
a
t
wa
sas
ma
l
l
p
a
r
c
e
l
o
f
n
e
i
g
h
b
o
u
r
i
n
gl
a
n
d
.T
h
e
s
ee
a
s
e
me
n
t
swe
r
eg
r
a
n
t
e
d
f
o
r
t
h
ep
u
r
p
o
s
eo
f
p
e
r
mi
t
t
i
n
gt
h
es
e
r
v
i
e
n
t
t
e
n
e
me
n
t
st
ob
eu
s
e
df
o
r
v
i
t
i
c
u
l
t
u
r
ea
n
dc
r
o
pf
a
r
mi
n
g
.Th
e
p
r
o
c
e
e
d
so
f
t
h
a
t
a
c
t
i
v
i
t
ywe
r
et
ob
ed
i
s
t
r
i
b
u
t
e
dt
ot
h
eo
wn
e
r
so
f
t
h
es
e
r
v
i
e
n
t
t
e
n
e
me
n
t
s
.Wh
e
nt
h
e
s
c
h
e
mer
a
na
t
al
o
s
st
h
ev
a
l
i
d
i
t
yo
f
e
a
s
e
me
n
t
sb
r
o
u
g
h
t
i
n
t
oq
u
e
s
t
i
o
n
 HELD:e
a
s
e
me
n
t
sd
i
dn
o
t
a
c
c
o
mmo
d
a
t
et
h
ed
o
mi
n
a
n
t
t
e
n
e
me
n
t
a
st
h
e
r
ewa
sn
or
e
a
l
a
n
di
n
t
e
l
l
i
g
i
b
l
e
c
o
n
n
e
c
t
i
o
nb
e
t
we
e
nt
h
ee
a
s
e
me
n
t
r
i
g
h
t
sa
n
dt
h
eo
r
d
i
n
a
r
yu
s
eo
f
t
h
ed
o
mi
n
a
n
t
t
e
n
e
me
n
t
o
r
a
n
y
a
d
v
a
n
t
a
g
eo
r
e
n
h
a
n
c
e
me
n
t
 SUM:t
h
ee
a
s
e
me
n
t
si
ne
ff
e
c
t
s
t
e
r
i
l
i
s
e
dt
h
eu
s
eo
f
t
h
es
e
r
v
i
e
n
t
l
a
n
da
n
dma
d
ei
t
i
mp
o
s
s
i
b
l
ef
o
r
s
e
r
v
i
e
n
t
t
e
n
e
me
n
t
st
oh
a
v
ea
n
yr
i
g
h
t
si
nt
h
el
a
n
di
t
s
e
l
f
…
How does an easement dider from other interests in land? (useful for element (d) above)
A lease gives exclusive possession of the land to which it is subject and is an estate in the land
An easement gives limited rights to uflise the land burdened for a sfpulated purpose and /or a
specilc fme – eg a right to access property between certain hours in a speciled manner
Weigall v Toman
F
ACTS:e
a
s
e
me
n
t
c
o
n
f
e
r
r
e
do
nRPo
f
d
o
mi
n
a
n
t
t
e
n
e
me
n
t
t
h
er
i
g
h
t
t
oe
x
c
l
u
s
i
v
eu
s
eo
f
t
h
el
a
r
g
e
r
o
f
t
wo
g
a
r
a
g
e
so
ns
e
r
v
i
e
n
t
t
e
n
e
me
n
t
.
Th
i
swa
ss
u
b
j
e
c
t
t
ot
h
er
i
g
h
t
o
f
RPo
f
s
e
r
v
i
e
n
t
t
e
n
e
me
n
t
t
oh
a
v
ee
x
c
l
u
s
i
v
e
u
s
eo
f
t
h
eo
t
h
e
rg
a
r
a
g
e
.I
SSUE:
h
o
wmu
c
ho
f
s
e
r
v
i
e
n
t
t
e
n
e
me
n
t
d
o
e
se
a
s
e
me
n
t
o
c
c
u
p
y
?
 HELD:o
n
l
yas
ma
l
l
p
r
o
p
o
r
t
i
o
ni
na
r
e
ao
f
s
e
r
v
i
e
n
t
t
e
n
e
me
n
t
,
s
owi
t
h
i
np
r
o
p
o
r
t
i
o
n
a
l
i
t
yi
t
wa
ss
u
ffic
i
e
n
t
t
o
b
ea
ne
a
s
e
me
n
t

A disproporfonate easement may sfll be valid where the right is not exclusive over the greater part
of the dominant tenement
Registrar General v JEA Holdings
A prolt a prendre confers a right to take something from another’s land – eg fmber, soil
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CREATION OF EASEMENTS
Express Grant
Must be created in wrifng:
a
) wr
i
t
t
e
nme
mo
r
a
n
d
u
m(
i
na
p
p
r
o
p
r
i
a
t
ef
o
r
m–F
o
r
m9
)
b
)s
i
g
n
e
db
yg
r
a
n
t
o
r
PLA s 11 (see also ss 10, 59)
Must be registered to create an easement at law
LTA s 181
An easement may be created only by registering an instrument of easement – must state:
a
)n
a
t
u
r
eo
f
t
h
ee
a
s
e
me
n
t
b
)i
t
st
e
r
ms
c
)t
h
el
a
n
dt
ob
eb
e
n
e
fi
t
t
e
da
n
db
u
r
d
e
n
e
db
yt
h
ee
a
s
e
me
n
t
(
e
x
c
e
p
t
wh
e
n“
p
u
b
l
i
cu
t
i
l
i
t
y
”
)
LTA ss 82(1), (3)
Registrar must record parfculars of easement on both lots beneljed and burdened by easement
LTA s 85A
ParRal easement – a plan or survey designafng the easement must also be registered where the
easement is over part of a lot – it should also be signed by the RO of both the lot burdened /
beneljed by easement
LTA s 83
Summary:


Ea
s
e
me
n
t
c
a
nonl
ybec
r
e
a
t
e
di
nr
e
g
i
s
t
e
r
e
dl
a
n
db
yr
e
g
i
s
t
e
r
i
n
ga
ni
n
s
t
r
u
me
n
t
i
nF
o
r
m9u
n
d
e
rt
h
eL
T
A
(
s
s8
2
(
1
)
c
o
n
t
a
i
n
i
n
gc
e
r
t
a
i
ni
n
f
o
r
ma
t
i
o
n–p
l
a
no
f
e
a
s
e
me
n
t
:
s8
2
(
3
)
)
Do
e
se
x
c
e
p
t
i
o
nu
n
d
e
rPL
As1
8
1i
mp
o
s
i
t
i
o
no
f
s
t
a
t
u
t
o
r
yr
i
g
h
t
o
f
u
s
e
rb
yc
o
u
r
t
a
p
p
l
y
?
Common types of easements created
Easement of right of way – gives rights to dominant tenant (grantee) to pass and repass over land
subject to easement usually with vehicle – does not give right to park on easement
S & M Ceramics Pty Ltd v Kin
Right to park vehicles
Moncriej v Jamieson
Easement not to obstruct light or air eg by construcfon on confguous land (negafve easement)
Underpinning easement – HOWEVER, statutory obligafon to not withdraw support from land or
buildings
PLA s 179
Implied easements
No implied easements in Queensland – no right of way or prescripfve easement capable of creafon
since 1 December 1975
PLA s 198A
Only excepfon is permi}ng body corporate to enter any lot to carry out work; implied easements
for services over lots
Body Corporate and Community Management Act 1997 (Qld) ss 67-9
1
0
3
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EXTINGUISHING EASEMENTS
Summary
Exfnguishment can occur by:
a
)e
x
p
r
e
s
ss
u
r
r
e
n
d
e
rb
yg
r
a
n
t
e
ea
n
da
c
c
e
p
t
a
n
c
eb
yg
r
a
n
t
o
r
b
)b
yme
r
g
e
r
o
f
e
s
t
a
t
e
so
r
g
r
a
n
t
e
ea
n
dg
r
a
n
t
o
r(
u
n
i
t
yo
f
o
wn
e
r
s
h
i
p
)
c
)b
yo
r
d
e
ro
f
t
h
eSCu
n
d
e
rPL
As1
8
1
By release or surrender (a + b)
Owner of the dominant may release the easement by deed
If registered, it may be wholly or partly surrendered by registering an instrument of surrender
If RO becomes RO of both lots, easement is exfnguished only if the RO asks register to exfnguish
easement
LTA ss 87, 88
Pursuant to PLA s 181 – SC order
Requires proof that:
a
)e
a
s
e
me
n
t
h
a
sb
e
c
o
meo
b
s
o
l
e
t
ed
u
et
oc
h
a
n
g
e
si
nn
e
i
g
h
b
o
u
r
h
o
o
d
b
)o
r
d
e
ri
sn
o
t
c
o
n
t
r
a
r
yt
op
u
b
l
i
ci
n
t
e
r
e
s
t
c
)e
a
s
e
me
n
t
h
a
sb
e
e
na
b
a
n
d
o
n
e
db
yg
r
a
n
t
e
e
d
) Pr
o
p
o
s
e
de
x
t
i
n
g
u
i
s
h
me
n
t
wi
l
l
n
o
t
s
u
b
s
t
a
n
t
i
a
l
l
yi
n
j
u
r
ee
i
t
h
e
rg
r
a
n
t
o
r/
g
r
a
n
t
e
e
PLA s 181(1)x
Easement become obsolete
Change in user of any land having the benelt of the easement or in character of neighborhood…
easement ought to be deemed obsolete
Re Rollwell Australia
F
ACTS:Ea
s
e
me
n
t
n
o
t
u
s
e
ds
i
n
c
e1
9
6
4a
n
dp
a
r
t
sc
o
v
e
r
e
di
nh
e
a
v
yv
e
g
e
t
a
t
i
o
nwi
t
hd
e
e
pwa
t
e
r
d
r
a
i
ni
n
l
e
n
g
t
h
.
I
en
o
t
u
s
a
b
l
e
.Nor
e
a
l
e
v
i
d
e
n
c
ewh
yg
r
a
n
t
e
di
nfi
r
s
t
p
l
a
c
ee
x
c
e
p
t
t
og
i
v
ea
c
c
e
s
st
owa
t
e
r
p
u
mp
wh
i
c
hwa
sn
ol
o
n
g
e
r
n
e
c
e
s
s
a
r
yb
e
c
a
u
s
eo
f
t
h
ea
d
v
e
n
t
o
f
r
e
t
i
c
u
l
a
t
e
dt
o
wnwa
t
e
r
 HELD:e
a
s
e
me
n
t
wa
so
b
s
o
l
e
t
ea
n
do
r
d
e
r
e
di
t
t
ob
ee
x
t
i
n
g
u
i
s
h
e
d

Averano v Mduzi
F
ACTS:Do
mi
n
a
n
t
a
n
ds
e
r
v
i
e
n
t
t
e
n
e
me
n
t
sn
e
i
g
h
b
o
u
r
so
wn
i
n
ga
d
j
a
c
e
n
t
b
l
o
c
k
s–h
a
de
a
s
e
me
n
t
s
r
u
n
n
i
n
ga
c
r
o
s
se
a
c
ho
t
h
e
r
’
sl
a
n
d
.Dr
i
v
e
wa
yr
a
nd
o
wnmi
d
d
l
e
.Be
n
e
fi
t
a
n
db
u
r
d
e
ne
a
s
e
me
n
t
so
nb
o
t
h
b
l
o
c
k
s
.On
en
e
i
g
h
b
o
u
r
wa
n
t
e
dt
op
l
a
c
ef
e
n
c
ed
o
wnd
r
i
v
e
wa
ya
n
do
t
h
e
r
p
a
r
t
ys
o
u
g
h
t
i
n
j
u
n
c
t
i
o
nt
o
r
e
s
t
r
a
i
nt
h
i
s
.Pa
r
t
ywi
s
h
i
n
gt
of
e
n
c
ea
p
p
l
i
e
df
o
r
e
x
t
i
n
g
u
i
s
h
me
n
t
 HELD:a
p
p
l
i
e
ds1
8
1–f
o
u
n
dn
e
i
g
h
b
o
r
h
o
o
dd
i
s
p
u
t
es
on
oe
x
t
i
n
g
u
i
s
h
me
n
t
.F
o
u
n
dt
h
e
r
ewa
sn
o
e
v
i
d
e
n
c
et
h
a
t
t
h
eo
b
j
e
c
t
o
f
e
a
s
e
me
n
t
c
o
u
l
ds
t
i
l
l
n
o
t
b
er
e
a
c
h
e
do
r
t
h
a
t
e
a
s
e
me
n
t
wa
so
b
s
o
l
e
t
e
.
I
no
t
h
e
r
wo
r
d
s
,
c
o
u
r
t
l
o
o
k
e
da
t
r
i
g
h
t
su
n
d
e
r
e
a
s
e
me
n
t
a
n
df
o
u
n
dc
a
s
ef
o
r
e
x
t
i
n
g
u
i
s
h
me
n
t
b
a
s
e
do
nPL
As1
8
1
c
r
i
t
e
r
i
awa
sfl
i
ms
y

Not contrary to public interest
1
0
4
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Confnued existence of the easement would:



i
mp
e
d
es
o
mer
e
a
s
o
n
a
b
l
eu
s
e
ro
f
t
h
es
e
r
v
i
e
n
t
t
e
n
e
me
n
t
;
a
n
d
d
o
e
sn
o
t
s
e
c
u
r
et
ot
h
ep
e
r
s
o
n
sb
e
n
e
fi
t
t
e
da
n
yb
e
n
e
fi
t
so
f
a
n
yp
r
a
c
t
i
c
a
l
o
rs
u
b
s
t
a
n
t
i
a
l
v
a
l
u
e
;
o
r
i
sc
o
n
t
r
a
r
yt
op
u
b
l
i
ci
n
t
e
r
e
s
t
Re Eucalypt Group
F
ACTS:e
a
s
e
me
n
t
c
r
e
a
t
e
di
n1
9
2
4g
i
v
i
n
ga
c
c
e
s
st
ob
e
a
c
h
f
r
o
n
t
p
r
o
p
e
r
t
i
e
swh
i
c
hr
a
nb
e
t
we
e
nb
a
c
k
f
e
n
c
ea
n
db
e
a
c
hi
t
s
e
l
f
.Du
et
oe
r
o
s
i
o
n
,
2
/
3o
f
e
a
s
e
me
n
t
a
r
e
au
n
u
s
a
b
l
e
.Co
u
l
dn
o
t
b
eu
s
e
df
o
rp
u
r
p
o
s
e
f
o
r
wh
i
c
hi
t
wa
sf
o
r
me
d
.Ho
we
v
e
r
,
e
a
s
e
me
n
t
d
i
dh
a
v
es
o
mev
a
l
u
e–(
l
o
o
ka
t
(
1
)
(
b
)
(
i
)
)
–a
l
t
h
o
u
g
hn
ou
s
e
a
sr
i
g
h
t
o
f
wa
y
,
i
t
wa
sv
a
l
u
a
b
l
eb
e
c
a
u
s
ei
t
d
i
dp
r
o
t
e
c
t
t
h
ev
i
e
wo
f
t
h
eb
e
a
c
h
f
r
o
n
t
o
wn
e
r
sf
r
o
mb
e
i
n
g
o
b
s
t
r
u
c
t
e
d
 HELD:e
x
t
i
n
g
u
i
s
h
me
n
t
r
e
f
u
s
e
d–we
n
t
b
e
y
o
n
dp
a
r
t
i
c
u
l
a
r
b
e
n
e
fi
t
a
n
dt
o
o
kwi
d
e
rv
i
e
wa
n
ds
a
i
dt
h
a
t
u
p
o
n
p
r
o
p
e
r
c
o
n
s
t
r
u
c
t
i
o
no
f
t
h
es
e
c
t
i
o
n
,
t
h
eb
e
n
e
fi
t
o
f
ar
i
g
h
t
o
f
wa
yd
o
e
sn
o
t
c
o
n
s
t
i
t
u
t
et
h
ewh
o
l
er
a
n
g
eo
f
t
h
e
b
e
n
e
fi
t
s
,
l
i
k
et
h
eb
e
n
e
fi
t
o
f
t
h
ev
i
e
wwh
i
c
hi
sc
o
l
l
a
t
e
r
a
l
/
i
n
c
i
d
e
n
t
a
l
t
oc
o
n
t
i
n
u
a
t
i
o
no
f
t
h
ee
a
s
e
me
n
t
.
Mo
n
e
t
a
r
yc
o
mp
e
n
s
a
t
i
o
nf
o
r
t
h
el
o
s
so
f
v
i
e
wsi
f
e
x
t
i
n
g
u
i
s
h
me
n
t
g
r
a
n
t
e
dwa
si
n
s
u
ffic
i
e
n
t

Easement has been abandoned
Persons enftled to the easement … have by their acts or omissions may reasonably have considered
to have abandoned or waived the benelt of the easement
Treweeke v 36 Wolseley Road Pty Ltd
 F
ACTS:Ea
s
e
me
n
t
r
e
g
i
s
t
e
r
e
di
n1
9
2
7
.Ea
s
e
me
n
t
wa
sar
i
g
h
t
o
f
wa
y
,
h
a
db
e
e
ni
mp
a
s
s
a
b
l
eb
yr
e
a
s
o
no
f
v
e
r
t
i
c
a
l
r
i
c
kf
a
c
e
sa
n
d
,
s
i
n
c
e1
9
2
8
,
b
e
c
a
u
s
eo
f
a
ni
mp
e
n
e
t
r
a
b
l
eb
a
mb
o
op
l
a
n
t
a
t
i
o
n
.I
n1
9
5
6–o
wn
e
ro
f
s
e
r
v
i
e
n
t
t
e
n
e
me
n
t
i
n
s
t
a
l
l
e
das
wi
mmi
n
gp
o
o
l
a
c
r
o
s
st
h
er
i
g
h
t
o
f
wa
y
;
i
n1
9
5
8s
h
ee
r
e
c
t
e
dan
e
wf
e
n
c
e
a
c
r
o
s
st
h
ewa
y
.Ac
h
a
i
nwi
r
ef
e
n
c
ewh
i
c
hh
a
db
e
e
ne
r
e
c
t
e
di
n1
9
3
3a
n
dr
e
n
e
we
di
n1
9
6
7a
l
s
oc
r
o
s
s
e
d
t
h
ewa
y
.At
n
ot
i
meh
a
dt
h
eo
wn
e
r
so
r
o
c
c
u
p
i
e
r
so
f
t
h
ed
o
mi
n
a
n
t
t
e
n
e
me
n
t
u
s
e
dt
h
ee
n
t
i
r
er
i
g
h
t
o
f
wa
y
.
I
n1
9
6
7a
no
c
c
u
p
i
e
ro
f
t
h
ed
o
mi
n
a
n
t
t
e
n
e
me
n
t
o
b
t
a
i
n
e
das
u
r
v
e
ya
sar
e
s
u
l
t
o
f
wh
i
c
ht
h
eo
c
c
u
p
i
e
r
so
f
t
h
el
o
t
d
i
s
c
o
v
e
r
e
dt
h
ee
x
i
s
t
e
n
c
eo
f
t
h
er
i
g
h
t
o
f
wa
y
.
 HELD:t
h
en
o
n
u
s
e
r
o
f
t
h
er
i
g
h
t
o
f
wa
ya
n
dt
h
eo
t
h
e
r
a
c
t
sa
n
do
mi
s
s
i
o
n
so
f
t
h
eo
wn
e
r
so
f
t
h
ed
o
mi
n
a
n
t
t
e
n
e
me
n
t
d
i
dn
o
t
r
e
q
u
i
r
et
h
ei
n
f
e
r
e
n
c
eo
f
a
b
a
n
d
o
n
me
n
t
o
f
t
h
er
i
g
h
t
o
f
wa
y
Court may also give euect to an agreement to release an easement against a subsequent RP of the
dominant land who was not a party to the agreement
Pieper v Edwards
No substanRal injury
Requires that the proposed modilcafon / exfnguishment will not substanfally injure the persons
enftled to the easement, or to the benelt of the restricfon
Substanfal injury determined according to:
a
) ma
t
t
e
r
sa
ff
e
c
t
i
n
gmo
n
e
t
a
r
yv
a
l
u
eo
f
t
h
el
a
n
d
b
) wh
e
t
h
e
r
o
wn
e
rwi
l
l
b
ed
e
p
r
i
v
e
do
f
p
r
a
c
t
i
c
a
l
b
e
n
e
fi
t
s
c
)v
a
l
u
et
ot
h
eo
wn
e
ro
f
t
h
o
s
eb
e
n
e
fi
t
s
Guth v Robinson
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STATUTORY IMPOSITION OF RIGHT OF USER
The Supreme Court may on applicafon impose a statutory right of user over land
PLA s 180
Statutory right of user delned very widely – includes any right of, or in the nature of, a right of way
over, or access to, or of entry upon land, and any right to carry and place any uflity…
PLA s 180(7)
Court will require applicant to pay just compensafon
PLA ss 180(4)(a), (b)
The court must be safsled that:
a
)I
t
i
sc
o
n
s
i
s
t
e
n
t
wi
t
hp
u
b
l
i
ci
n
t
e
r
e
s
t
b
)r
e
a
s
o
n
a
b
l
yn
e
c
e
s
s
a
r
yi
nt
h
ei
n
t
e
r
e
s
t
o
f
t
h
ee
ff
e
c
t
i
v
eu
s
ei
nar
e
a
s
o
n
a
b
l
ema
n
n
e
ro
f
a
n
yl
a
n
d
c
)t
h
eo
wn
e
r
o
f
t
h
es
e
r
v
i
e
n
t
l
a
n
dc
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PLA s 180(3)
Public interest (a)
Do not need to show in public interest; merely that it is not inconsistent with it (eg planning scheme)
Re Seaforth Land Sales Pty Ltd
Reasonably necessary (b)
It does not have to be shown there is no euecfve use unless imposed, nor does it need to be shown
the owner plans to use in a parfcular way; it is merely reasonably necessary in the interests of one
euecfve use in a reasonable manner of the land, but one does not have to show the land is useless
without imposifon of the easement
GriSner v Hadley
F
ACTS:a
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
Adequate compensaRon (c)
Based on market value of loss / disadvantage cause; not the benelt / uplio in value
Ex parte Edward Street ProperGes


F
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d
Unreasonable refusal (d)
Obligafon to negofate with respondent with a view to making a reasonable ouer
Paciac Coast Investments v Cowlinshaw
1
0
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

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Naylor v Pierce


F
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p
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1
0
7
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