Introduction*and*Native*Title*

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1 The*Doctrine*of*Tenure* Introduction*and*Native*Title* All*of*the*land*ultimately*belongs*to*the*Crown,whogivesit(via'grants')topeople.The sumtotalofrightsassociatedwiththelandcouldthenbedividedamongmanydifferent people.itisamodeofholdinglandwherebyoneperson(thetenant)holdslandfrom anothersubjecttotheperformanceofcertainobligations. NopracticalsignificanceinAustralianlaw butimportantbecause: 1. Theideathatnopersoncan own landbecauseitisheldbythecrownstillapplies [Mabo*v*QLD*(1992)] 2. ThemodernlandlordHtenantrelationshipbearsresemblancetothatofearlydays 3. ThedoctrineoftenureoperateduntilMabo% The*Doctrine*of*Estate* Propertyinterestswhichcametobefragmentedbytime[Western*Australia*v*Ward*(2000)] o Thefullestsetofrightsofenjoymentofland ie,possession o Itallowsthisinteresttoland,thatispossession,tobecarvedoutonatemporal basisallowingforthetransferofthisrighttosomeoneelseinthefuture Twotypesofestates:freeholdandleaseholdinterests Freehold%estates% Fee*simple: GreatestinterestinlandrecognizedbytheCLandistheclosestitcomestorecognising absoluteownership[gumana*v*nt*(2007)] Undermodernlaw,theestatecontinuesindefinitelyregardlessoftheexistenceofheirsand canbefreelydisposedofbyawill[succession*act*(nsw)*ss*3,*4] Ifthereisnowill,theassetsoftheestatearesoldbytheadministratoranddistributedto thenextofkinaccordingtostatute[succession*act*(nsw)*ch*4] Righttoexclude,righttoalienate,biggestbundleofrights Fee*tail: ThishasbeenabolishedinNSW.Feetails,orexistinginterestsassociatedwithit,are convertedtofeesimpleestates.[succession*act*(nsw)*ss*19] Life*estate: Whenaninterestinlandwasgrantedtoapersonforlife Createdbyanexpressgift( tobforthelifeofa )ormorecommonly,bythelifetenant

2 Estatemaybedisposedofbywill,ifthereisnowill,distributedamongthenextofkin Leasehold%estates% Durationiscertainorcapableofbeingrenderedcertain A*lease*for*a*fixed*term*of*years:* Expiresautomaticallyattheendoftheperiod(canbe1dayto999years) A*periodic*tenancy: Doesnotterminateuntilappropriatenoticeisgiven Usually,itwillberegardedaslastingafordefinitetermwithasuperaddedprovisionthatit willcontinueforanothertermofthesameperiodunlessdeterminedbynotice [Commonwealth*Life*(Amalgated*Assurance*Ltd*v*Anderson*(1945)) A*tenancy*at*will: Holderoffeesimpleestateallowsanotherpersontotakepossessionofthelandwithout agreementastodurationoftheoccupancyoranypaymentofrentuntildeterminedby eitherparty,subjecttoa packingup period[landale*v*menzies*(1909)] A*tenancy*at*sufferance: Whereatenanttakespossessionoflandlawfullypursuanttoalease,butcontinues wrongfullyinpossessionafterterminationofthelease o Eg.Whereatenant holdsover afterexpirationofthetermwithoutthelandlord s assentordissent[anderson*v*bowles*(1951)]* The*Common*Law,*Tenure*and*Native*Title* NativetitleisaseparatesourceoflandrightsforIndigenousAustraliansanddiffersfromthe sourceoflawforcommonlawrights[mabo*v*qld*(no*2)*1992*hca] TheCrownholdsaradicaltitletotheterritoryoverwhichsovereigntyisasserted,butdoes notacquireabsolutebeneficialtitletolandunlesstherearenosurvivingnativetitlerights [Mabo*v*QLD*(No*2)*1992*HCA] NativetitleoperatesoutsidethedoctrineoftenureasitislandnotheldbytheCrown [Mabo*v*QLD*(No*2)*1992*HCA]

3 Righttouseandenjoy Keyconceptsoflandlaw Thetermpropertydoesnotnecessarilymeanfull,exclusiveorbeneficialownership itisa bundleofrightsand referstoadegreeofpowerthatisrecognisedinlawaspower permissiblyexercisedoverthething [YannervEaton(1999)] Righttoalienate Assignabilityisnotinallcircumstancesanessentialcharacteristicofarightofproperty.By statutesomeformsofpropertyareexpressedtobeinalienable. [RvToohey;Exparte MenelingStationPtyLtd(1982)asperMasonJ] Righttoexclude Privatepropertyrightsentailsarighttoexcludeothers againstthegeneralpublicandeven thestate Publicpropertyrightsarerightsequallysharedwithothermembersofthepubliclandor goods o Eg.Righttofishandnavigateintheopensea[BlundellvCatterall(1821)] Publicrightsaredistinguishedfrompublicownership,wherethelatteriswhentheState ownsassetsonbehalfofthepublicsoastoregulatetheirforapublicbenefit thereareno publicrightsinrelationtotheseassets Possession Possessionofland,createsaninterestinthepossessorenforceableagainstthewholeworld, exceptsomeonewithasuperiorrightofpossession(theycanraisethejustertiidefence) [Seeeg.AshervWhitlock(1865)] AdversePossession AdversepossessionallowsanonHtitleholderwhooccupiessomeoneelse slandforaperiod oftime,totakefullpossessionofthatlandagainstthewholeworld[ashervwhitlock (1865)] WhenAisdispossessedbyB,A srighttosuebforpossessionisextinguishedbystatuteafter aspecifiedperiod.bhasarightagainstthewholeword.[limitationsact1969(nsw)s63u 68A]

4 Issue:howlongmustthenonHtitleholderoccupythelandfor? Thelimitationperiodforactionstorecoverlandis12yearsforprivateland[LimitationsAct 1969(NSW)s27(2)] ThelimitationperiodforactionstorecoverlandagainsttheCrownis30years[Limitations Act1969(NSW)s27(1)] Issue:fromwhendoesthelimitationperiodcommence? Thelimitationperiodgenerallycommencesfromthetimetherelevantcauseofactionhas accruedtotheperson[limitationsact1969(nsw)s38(3)] o Eg.IfAabandonsland,andafter10years,Btakespossession,A srighttobringan actionaccruesfromwhenbtakestheland Ifapersonhasbeendispossessedordiscontinuedofhispossession,thentherightofaction isdeemedtoaccrueonthedateofthedispossessionordiscontinuance[limitationsact 1969(NSW)s28] Ifanactionisbroughtincasestorecoverlandfromadeceasedotherthanbywill,theright ofactionisdeemedtoaccruefromthepersonsdeath[limitationsact1969(nsw)s29] PropertyvContract Propertyrightsarerightsenforceableagainstotherpersons,whereascontractrightsare rightsenforceableagainstaparticularperson Thetwosetsoflegalrelationshipscanexistalongsideoneanother Property(right(v(Licenses( Licences,evenifcreatedbycontract,donotgiverisetoaproprietaryrightasitisnota substantial concentrationofpower overthethinginquestion[kingvdavidallen&sons, BillpostingLtd(1916)] Alicenceariseswhenpermissionisgivenbyonepersontoanothertodoanactonthe licensor slandwhichwouldotherwiseconstituteatrespass[thomasvsorrell(1673)] Issue:canalicencebeenforcedagainstthirdparties? ( Anagreement(betweenalicensorandlicensee)doesnotgivethelicenseeaninterestin land(in(rem)whichwouldbeenforceableagainstanyone(liketheothercompany),but merelycreatedapersonalobligation(in(personam)onthepartofthelicensor[kingvdavid Allen&Sons,BillpostingLtd(1916)]

5 Relationship(between(property(and(contract( Contractsforthesaleoflandtobeinwriting[ConveyancingActs54A] Instrumentsrequiredtobeinwriting[ConveyancingAct1919(NSW)s23C] S23C%(1)%(a)( Requiresthata creation or disposition (assignment)ofan interestinland mustbe reducedtowriting(bythepersonoragent)attimeofcreation/disposition Interestinland =legal+equitableinterestsinland[adamsonvhayes] Exceptionstothisaredispositionsoflandbywill,resulting,impliedorconstructivetrusts [ConveyancingActs23C(2)] Ifitisnotreducedtowritingattimeofdisposition,theassignmentisvoid S%23C(1)(b)( Doesnotrequirethetrustoflandtobecreatedinwriting Onlya declarationoftrust mustbemanifested,andprovedinwriting onlytheproofthat adeclarationhasbeenmadeneedstobeinwritingandthedeclarationcanbeoral[brynes vkendle] o Anexceptiontothisruleisifadeclarationoftrustdisposesofasubsistingequitable interest needstobeinwriting[greyvirc] Ifthetrustiscreatedorally,itisunenforceableuntilitisputintowriting Likepart(a),thissectionalsocreatesanequitableinterestinland howevertheformality requirementinthissectionisseenasanexception[departmentofsocialsecuritiesvjames; HaganvWaterhouse] S%23(1)(c)( Appliestointerestsinlandandpersonalty[PTLtdvMaradonaPtyLtd(No2);GreyvIRC] Dispositionofasubsistinginterestmustbeinwriting(eg.Byabeneficiary) Invalidatespurelyoralmanifestationsofanintentiontoassign[NormanvFCT] DeclarationofsubUtrustsisamethodifdisposingofapreHexistingequitableinterest needs writing[controllerofstampsvhowardusmith] Dependsonfactsofcasebutneedtoshowthatsettlordoesnotintendtoretaindutiesasa trustee Beneficiariescanorderatrusteetotransferhisequitableandlegalinteresttoathirdparty withoutwriting[vandervellvirc]

6 Torrens'Land' Introduction' Common%law%statutes%have%tried%to%mitigate%the%problem%of%unreliable%and%inconvenient% common%law%system.%% o Purchasers%want%land%to%be%free%from%any%other%third%party%interest%(eg.%Easements% over%land)% o Purchaser%does%not%want%to%task%of%verifying%the%title%to%be%complex%and%costly% % Issue:'what%mechanisms%in%place%in%the%Conveyancing%Act?% The%seller%of%land%must%prove%that%he%or%she%had%good'title'in'land'for'30'years%preceding%the% sale%of%land%the%purchaser%[conveyancing'act'(nsw)'s'53(1)]% o Good%title:% An%instrument%of%disposition%dealing%with%or%proving%on%the%face%of%it% (without%the%aid%of%extrinsic%evidence)%the%ownership%of%the%whole%legal%or%equitable% estate%in%the%property%sold,%containing%a%description%by%which%the%land%can%be% identified,%and%showing%nothing%to%cast%an%doubt%on%the%title%of%the%disposing%parties% [Re'Lemon'and'Davies 'Contract'[1919]]% The%purchaser%shall%not%require%the%production%of%any%deed,%will,%or%other%document%made% before%the%time%stipulated%for%the%commencement%of%title%and%can%assume%they%are%correct% [Conveyancing'Act'(NSW)'s'54(1)]% o The%purchaser%shall%not%be%deemed%to%have%any%notice%of%matters%prior%to%the% statutory%period%for%the%commencement%of%title%unless%the%purchaser%actually%makes% investigations%or%inquiries%into%matters%prior%to%that%period%[conveyancing'act'(nsw)' s'53(3)]' % Issue:'have%the%mechanisms%worked?% No,%because:% % ' S%54(1)%does%not%relate%to%the%question%of%whether%interests%created%by%documents%executed% before%the%period%of%commencement%of%title%will%bind%the%purchaser%!legal%interests% created%before%the%period%of%commencement%of%title%will%bind%the%purchaser% Immunity%against%notice%(s%53(3))%does%not%protect%the%purchaser%against%legal%interests,% since%the%enforceability%of%such%interests%does%not%depend%on%notice%[darbyshire'v' Darbyshire'(1905)]% Purchaser%cannot%avoid%a%contract%of%sale,%by%relying%defects%in%the%vendor s%title% [Conveyancing'Act'(NSW)'s'54(10)]%

7 Indefeasibility- Introduction- Theconclusivenessoftheregister(ie.Theideathattherewouldbenoneedforapurchaser toinvestigatethehistoryofthevendor stitle,nordetermineanydefects)iswhatismeant bytheprincipleofindefeasibility It isaconvenientdescriptionoftheimmunity-from-attack-by-adverse-claimstothelandor interestinrespectofwhichheisregistered,whicharegisteredproprietorenjoys [Frazer-v- Walker-[1967]] The-indefeasibility-provisions- Evidentiary+provision+ Whereamanualfolioisreceivedbythecourts,thatwillbeconclusiveevidencethatthe namedpersonistheproprietoroftheestateorinterestinland[real-property-act-(1900)-s- 40] o NotamajorsourceofindefeasibilityinNSWbutassistsinrelationtoproofoftitle throughanevidentiaryprovision Key+indefeasibility+provision+( paramountcy+provision )+ Registeredproprietorofland,exceptinthecaseoffraud,willholdlandsubjectto encumbrances(burdens)notifiedbycrownbutfreefromanyotherencumbrancesexcept: [Real-Property-Act-s-42] o InterestsunderapriorregisteredCrowngrantorcertificateoftitle o Land(profitapreandre,easement,parcelofland)includedintheCrowngrantor certificateoftitlebyomissionormisdescription Note:-TheRHGhasthepowertocorrecterrorsandomissionsintheRegister[RPA-s-12(1)(d)]- Issue:-howdoestheprovisionoperate? + + Fraudwillvitiatearegisteredproprietor stitle Theestateorinterestoftheregisteredproprietorissubjectonlytothoseencumbrances actuallynotedontheregister,withthetwoexceptions Therearestillcertainunregisteredinterestswhichareenforceableagainsttheregistered proprietor(variesfromstatetostate)

8 + Notice+provision+ Exceptinthecaseoffraud,nopersondealingwiththeregisteredproprietorwillhaveto lookintothepriorregistrationandinterestoftheland.-[rpa-s-43] Theywon tbeaffectedbycertainequitableprincipleshpurchasertakestransferfreeofany outstandingunregisteredinterest,notwithstandingtheyhavenotice. Protection+of+purchaser s+provision+ Bonafidepurchaserswhohavegivenvaluableconsiderationwillbeprotectedfroma recoveryofdamagesoranactionofejection/deprivationofhisorherestateorinterest unlesstheyreceivedtitlebyfraudorerror[rpa-s-45] Deferred-vs-Immediate-indefeasibility- Issue:-howshouldthelawallocatethelosswhentwoinnocentpartiestoatransactionareaffected byafraudperpetratedbyathirdparty? Deferred+indefeasibility:+ Thistheorystatedthatthetitleofapurchaser(P1)whoregistersaforgedinstrumentis defeasible whichmeansthatitcanbesetasidebyacourtatthesuitofo.however,ifbeforep1 stitleisset aside,p1passesaninstrumenttoasubsequentpurchaser(p2)whoregistersingoodfaith,p2 stitle isindefeasiblei.e.indefeasibilityis deferred untilthesubsequentpurchaser,p2,registerswithout fraud. + Immediate+indefeasibility:+ ThisispreferredHP1hasgoodtitleimmediatelyonregistrationandtitlecannotbesetasideunlessit wasregisteredthroughfraud,error,orbymeansofavoidinstrument[frazer-v-walker-[1967];-rpa- s-45]- Thepurchaserisgrantedindefeasible-title-immediately-UNLESSthepurchasercausedthe fraud,error,orvoidinstrument- Iftherewasfraud,thereisstillaregistrationandchangeofinterests,itisjustthatthetitleis defeasibleasopposedtoindefeasibleandtherighttogetthelandbackisanequitablenot legalright[breskvar-v-wall-(1971)] o Aninnocentthirdpartywhopurchasesthelandbonafideforconsiderationhas priorityovertheplaintiffbecausetheyhaveabetterequity Thisdoesnotdenytherightofaplaintifftobringagainstthethirdpartyaclaimin+personam,+ foundedinlaworequity,forsuchreliefasacourtactingin+personam+maygrant[frazer-v- Walker-[1967]-[Seepersonalequitiesexception Exceptionstoindefeasibility]+

9 - Issue:-whatsortsofrightsareindefeasible? Personalrightsarenotindefeasiblebutonlytherightswhichtouchandconcerntheland(in remnotinpersonam)[mercantile-credits-ltd-v-shell-co-of-australia-ltd] o Arighttorenewaleasewillbeindefeasible(inrem) o Apersonalrightcreatedbyamortgagecovenant,suchastheborrower sobligations underadeedofguarantee,aredefeasible Achargecreatedonregistration(apropertyright),isdifferenttoacovenanttopayeven thoughtheyarecontainedinthesameinstrument[french-v-qld-premier-mines-pty-ltd- [2007]-HCA]- Issue:-ontheregistrationofavoidmortgage,isthemortgagor scovenanttopaymadeenforceable? (Ie.Isthecovenanttopayindefeasible?) 3linesofauthority: Fullindefeasibility approach: o Themortgageewouldbeabletoholdtheregisteredownerpersonallyliableforthe debtthatexceedstheamountrecoveredbythemortgageeonsaleasthe mortgagee sabilitytorecoverthedebtbysuingonthepersonalcovenanttopayis soconnectedtothemortgagee spropertyinterestthatitwouldbeindefeasible-[pt- Ltd-v-Maradona-Pty-Ltd-(1992)] Noindefeasibility approach: o Whilethemortgagee ssecurityinterestisindefeasible,thecovenanttopayisnot [Grgic-v-Australian-and-NZ-Banking-Group-Ltd-(1994)] o IndirectlysupportedbytheHC!themortgagee scovenanttopaydoesnottouch andconcernthelandandisthereforepersonal.personalrightstonotattract indefeasibility[gumland-property-holdings-pty-ltd-v-duffy-bros-fruit-market- (Campbelltown)-Pty-Ltd-(2008)] Limitedindefeasibilityapproach : o Thepersonalcovenanttopayismadeenforceablebyregistratriononlytotheextent necessarytomakethemortgagee ssecurityinteresteffective[duncan-v-mcdonald- (1997)-NZCA-not-endorsed-in-Australia]

10 Exceptions+to+indefeasibility+ Volunteers+ Avolunteerisonewhodoesnotgivevaluableconsiderationforhisorhertitle,suchasa doneunderagiftoradeviseeunderawill InNSW,immediateindefeasibilityextendstovolunteersaswell[Bogdanovic+v+Koteff+(1988)+ 12+NSWLR+472] Inobiter,theHighCourtunanimouslysupportedthisbysayingthatregisteredproprietors wouldprevailovertheappellantseveniftheywerevolunteers[farrah+constructions+pty+ltd+ v+sayldee+pty+ltd+(2007)]+ Exceptions+to+indefeasibility+ 5maincategoriesofexceptions: 1. Express+exception+created+by+the+Torrens+legislation+itself:[RPA+s+42]! Fraud! InterestsunderapreviousCrowngrantorcertificateoftitle! Landomittedormisdescribed[SeeEXTINGUISHMENTOFEASEMENTS]! Shorttermtenancies[RPA+s+42(1)(d)] 2. The+Registrar s+power+to+correct+the+registerin+certain+circumstances+ 3. Personal+equities+exception:+! therightsofaplaintifftobringagainstaregisteredproprietoraclaiminpersonam, foundedinlaworinequity,forsuchreliefasacourtactinginpersonammaygrant [Frazer+v+Walker+[1967]] 4. Overriding+statutes:! GeneralprinciplesofstatutoryinterpretationwhichaffecttheTorrenslegislationby subjectingtheregisteredproprietortointerestsnotnotedontheregister 5. Specific+exceptions+imposed+by+other+statutes! Eg.thoseauthorisingthecompulsoryacquisitionoflandbypublicauthoritiesand thosedealingwithencroachmentofbuildings + The+Fraud+Exception+ Mostobviousexceptionisfraud(containedinRPAs42): Theremustbesomethinginthenatureof personaldishonestyormoralturpitude need tolookatconductandintention[butler+v+fairclough+(1917);+russo+v+bendigo+bank+ltd+ (1993)+extracted+below]

11 Whereapartymakesafalseandfraudulentpromisethatanunregisteredinterestwillbe preserved(inordertoinduceanotherpartytoagreetoatransaction)andthengoesbackon thatpromise[loke+yew+v+port+swettenham+rubber+co+ltd+(1913);+see+also+bahr+v+nicolay+ (No+2)+(1988)+HCA+extracted+below] Thefraudmustbe operative inthesensethatitoperatedonthemindofthepersonsaidto bedefraudedandtohaveinduceddetrimentalactionbythatperson[bank+of+south+ Australia+v+Ferguson+(1998)] Thefraudwhichactivatestheexceptiontoindefeasibilityhasgenerallybeenunderstoodas temporallylimitedtotheperiodleadinguptoregistration Fraud&distinguished&from&carelessness& Carelessness,incompetence,disorganisationorstupiditydon tusuallyamounttofraud& Recklessindifference and wilfulblindness donotextenttoembracecasesofnegligenceor wantofduecareinmakinginquiries.[pyramid+building+society+(in+liq)+v+scorpion+hotels+ Pty+Ltd+[1998]]& o Eg.Whereanagentimproperlyaffixedacompanysealbutthemortgageehadno knowledgeofit=/fraud & Fraud&and&agency& Issue:+whencananagentmaketheprincipalresponsibleforfraud?[Schultz+v+Corwill+Properties+Pty+ Ltd+[1969]]+ 2situationswhenaprincipalwithberesponsiblefortheactionsoftheiragent: 1. Theagentmustbeactingwithintheirscopeofactual+or+apparent+authorityfortheprincipal toberesponsible 2. Theagenthasknowledgeofthefraudwhichisimputedtheprincipal o Theremustbeareal,asdistinctfromahypotheticalorconstructive,involvementin thefraudbythepersonwhosetitleisimpeached(actual+not+constructive) o Actualknowledgeshowsthattheagenthascommunicatedtotheprincipalall informationthathegained'inthecourseofcarryingoutthetransaction EXCEPTIONS:++ Iftheinformationsoughttobeimputedtotheprincipalisknowledgeoftheagent sown fraud+ Iftheagentacquiredtheinformationwhileapartytofraud+

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