PPSA"Legislation"..."69" S12"Meaning"of"security"interest"..."70" S13"Meaning"of"PPS"lease"..."70" S21:"Perfection"..."71"
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1 Cntents' Lecture1:TheTrrensSystemandtheLandTitlesAct...6 WhatisTrrensTitle?...6 Whatistheregister?...6 Whatisan interestinalt? Re#Brks#Caveat[2014]QSC76perHenryJat[30]...7 CnclusiveEvidenceIndeeasibility...7 s185 Exceptinsts Example...8 Lecture2:EquitableandUnregisteredInterests...9 TheTrrensSystemandEquitableInterests...9 Vlunteers...9 TheOldSystemMrtgage...10 Legalvs.EquitableInterests...11 PstpningCnduct...11 MereEquity righttgtcurtandseekanequitableremedy...12 Bursill#Enterprises#v#Berger#Brs...13 Denham#v#Freestne#Leasing#Pty#Ltd#[2003]#QCA# Duble#Bay#Newspapers#v#A#W#Hldings#[1996]#NSWSC# Lecture3:ExceptinstIndeeasibility(Fraud)...15 Fraud...15 CaseLaw...15 LandTitlesActAmendments...17 Fraudagainstwhm?...18 Fraudbywhm?...19 NticeunderTrrens...20 Remedies...20 Summary ElementsFraudExceptintIndeeasibility...20 Lecture4:ExceptinstIndeeasibility(In#persnam)...21 Bahr#v#Nichlay...22 Answeringaquestin
2 2 Uncnscinability:Anecessaryelement?...24 Lecture5:OtherExceptinstIndeeasibility...25 ErrrsntheRegister...26 ShrtLeases(<3years)...28 Easements(rightway)...30 AdversePssessin...31 OverridingStatutes...32 Lecture6:EasementsandRestrictiveCvenants...35 ExamplesTypesEasements...35 FurEssentialElementsanEasement...36 CreatinanEasement...39 EasementsandTrrens...41 Interpretatinaneasement...41 WhenDminantLandissubdivided...42 ExtinguishmentandMdiicatinanEasement...42 Remedies...43 ApprachtPrblemQuestinsrelatingtEasements...43 FreehldCvenants...43 DierentTypesCvenants...43 Passingthebeneitcvenant:CmmnLaw...44 TuchandCncerntheLand(mainhurdletsurpass)...44 Intendtrunwiththeland...44 Cvenanteemusthldlegalestateintheland...45 Summary:CvenantsinLawandEquity...46 ApprachtCvenantsPrblemQuestin...47 Lecture7:Mrtgages...47 OldSystemMrtgages...47 TrrensMrtgages...48 RedemptinMrtgage...48 ClgsnRedemptin...48 NatinalCreditCde...49 RightsMrtgagr...49
3 3 RightsandObligatinstheMrtgagee...50 VitiatingFactrs...52 CaseSummaryTutrialCase...53 Sun#Nrth#Investments#v#Dale#[2013]#QSC# Lecture8:Pssessin...54 PersnalPrperty PssessinandFinding...54 Dierencebetweenwnershipandpssessin...54 Whatcnstitutes suicient pssessintcnstitutepssessrywnership?...55 ElementsPssessin...56 CategriesPssessin...56 CmpetingClaimstPersnalPrperty...57 Testrentitlement...59 Summary...59 FindervOccupier...60 Lecture9:Bailment...60 Bailment:...60 Examples:...61 Nature''bailment...61 Type'and'nature...61 Traditinal'Classiicatin...62 Bailment'and'Licence...56 Types...62 Bailr'Duties...62 Fit'r'purpse...63 Bailee s'duties...64 Limiting'Liability...65 Terminatin'by'Repudiatin...66 SubAbailments...66 Remedies...66 Apprach't'prblemAslving...67 Lecture10:SecurityInterestsinchattels...68 WhatchangeshasthePPSAmadetexistinglaw?...68
4 PPSALegislatin...69 S12Meaningsecurityinterest...70 S13MeaningPPSlease...70 S21:Perectin...71 TypesSecurityInterests...72 Cnsignment...72 IndiciaCnsignment...72 Pledge...73 ChattelMrtgage...73 EquitableCharge...73 Lien...75 PPSLease/Bailment...75 Relieagainstreiture...76 Financelease...76 Operatinglease...76 Remedies...76 Lecture12:GdsinBulk...77 Securityinterestsingdsinbulk equitabletitle/trusts?...77 SaleGdsActs21(5):...77 AscertainedGds...78 InAustralia:...80 Lecture13:PassingTitle...81 SaleGdsAct...81 FactrsAct THC#Hlding#v#CMA#Recycling...83 Smepintsrmthelecture
5 6 Lecture'1:'The'Trrens'System'and'the'Land'Titles'Act' What'is'Trrens'Title?' Systemtitlebyregistratin,ntasystemregistratinbytitle (perbarwickcj,breskvar#v#wall (1971)126CLR376) Registratinveststitleinprprietr 3FundamentalPrinciplesTrrensSystem(accrdingtGWHinde) 1. Shuldntbenecessarytinvestigatethehistrytheregisteredprprietr stitle 2. Everythingthatcanberegisteredshuldgiveindeeasibletitleintheabsenceraud 3. Aregisteredinterestinlandshuldeitherbesecurermnetarycmpensatinrthatinterest shuldbepaid TheRP hasthelegalprpertyintheland,subjectnlytequitiesandsuchinterestsastheact expresslypreserves(perwindeyerj,breskvar#v#wall(1971)126clr376,400) Apurchaserwhtakeswithnticeanantecedentequitableinterest,whbecmesregistered withutraud,takesreermthatinterest (perbrennanj,bahr#v#niclay(n2)(1988)164clr 604,652653) Tbecmeregisteredwithnticeaprirunregisteredinterestdesntcnstituteraud (per KittJ,Mills#v.#Stkman(1967)116CLR61,78) TheRegisteredPrprietr s184(1)lta Aregistered#prprietraninterest#inalthldstheinterestsubjecttregistered# interestsaectingtheltbutreermalltherinterests. InteractinwithPLA s5(1)(a)pla PLAappliest(a)unregisteredlandand(b)landundertheprvisinstheLTAbut subjecttthatact What'is'the'register?' s11lta Aninstrumentt transerrcreateaninterest mustbeexecutedbythetranserr(r persncreatingit)andthetranseree(ranauthrisedlegalpractitiner) ss181182lta Aninstrumentdesnttranser/createaninterestatlawuntilregistered (s181),upnregistratininstrumentthetransereeisentitledttheinterest(s182) s183lta apersntwhmaninterestistbetranserred/createdhasarightthavean instrumentregistered s11alta Amrtgageeaninterest musttakereasnablestepstensure thatthemrtgagris identical withtherp Canuseelectrniccnveyancingdcument(s14ALTA) ss173177lta registratinccurswhenregistrarldgesthenecessaryparticularstidentiythe instrumentinregister Registeredinstrument=aDeed(s176)
6 s37lta upntherecrdingtheparticularstheltintheregistry,anindeeasibletitlerthe ltiscreated s35lta persnmaysearchtheregister s42(1)lta Registrarcanissueacertiicatetitleiaskedinwritingbyregisteredwner What'is'an' interest'in'a'lt?' 'Re#Brks#Caveat'[2014]'QSC'76'per'Henry'J'at'[30]' Sch.1AIA Interest,inrelatintland/prperty,means: (a)alegalrequitableestateinthelandrtherprperty;r (b)aright,pwerrprivilegever,rinrelatint,thelandrtherprperty HenryJdescribesthesecndlimbasappearingtcntradicts122(1)(a)LTA sdeinitin interest inalt HweverHenryJcncludesthatitisreasnablyarguablethatapersnwitha right,pwer r privilege ver r in relatin t land has an interest in a lt r the purpses s122(1)(a)lta Cnclusive'Evidence''Indeeasibility' CertiicateTitle=CnclusiveEvidenceindeeasibletitleaslngasitisNOTissued S184(3)(b)LTA withraudbyrp S185(1)(c)(g)LTA ianexceptinstindeeasibilityapplies S46LTA wheretheparticularsdierrmtheactualindeeasibletitle S184(2)(a) LTA Certiicate Title is nt aected by actual r cnstructive ntice an unregisteredinterestaectingalt S184(2)(b)LTA LiabletprceedingsrpssessinnlyibrughtbyaRP interestsubjectt therregisteredinterestsbutreermtherinterests RPhldsinterestsubjectttherregisteredinterestsbutreermalltherinterests S184(3)(a) exceptrminterestsins185 S184(3)(b) RP desn t get beneit indeeasibility i there has been raud# by the RP, whether r nt there has been raud by a persn rm whm the RP has derived the registeredinterest s185' 'Exceptins't's184'' s185(1)lta ARPdesntbtainthebeneitsectin184rthellwinginterestsinrelatin tthelt (a)anequityarisingrmtheacttherp; (b)theinterestalesseeunderashrtlease; (c)theinterestapersnentitledtthebeneitaneasementiitsparticularshavebeen mittedrm,rmisdescribedin,thereehldlandregister; (d)theinterestapersnwh,napplicatin,wuldbeentitledtberegisteredaswner theltbecausethepersnisanadversepssessr; (e) the interest anther registered prprietr making a valid claim under an earlier existingindeeasibletitlerallrpartthelt; 7
7 ()theinterestantherregisteredwnerithereare2 indeeasibletitlesrthesame interest in the lt and the incnsistency has arisen thrugh ailure n transer t cancel, whllyrpartly,theindeeasibletitletheirstregisteredwner; (g)theinterestantherregisteredprprietritheltdescribedintheindeeasibletitle wrnglyincludeslandinwhichthetherregisteredprprietrhasaninterest;! Example'' Fred is abut t buy Blackacre. He learns that Abby, the daughter the vendr, Sue, is making suggestinsthathermther prmised Blackacretherrwrkingntheprperty,unpaid,rthe last32years.hehastenstsettleandthenregistershispurchase.advisesue. InQld,upnsigningcntracttbuylandthepurchasergetsanequitableinterest,upnsettlement purchasergetsalegalinterest FredhassettledthereregainslegalinterestasRPandthushasindeeasibletitle s182 LTA n registratin creatin/transer instrument the interest (a) is created/transerred accrdingtinstrument,(b)isregistered,and(c)veststheinterestinthetranseree s184(1) LTA RP hlds the interest subject t ther registered# interests but ree rm all ther interests Subjectts185interestsandiRPhascmmittedraud Ns185exceptinsapplyntheactsandprirnticeSue sunregisteredinterestdes ntcnstituteraud(millsvstkman) s184(2)(a) LTA RP s interest is nt aected by actual r cnstructive ntice an unregistered interest Fred sknwledgesue sunregisteredinterestdesntaecthisindeeasibletitle AbbymayhaveprmissryestppelclaimagainstSue ButitwuldgiveAbbyanequitableinterestnly,ntaectingFredasRP! 8
8 Lecture'2:'Equitable'and'Unregistered'Interests' The'Trrens'System'and'Equitable'Interests' EquitableInterest anunregisteredinterestinthelandwhichdirectlycnersprprietaryrightsn therightsbearer(westminster#bank#ltd#v#lee UpjhnJ) Requiresaclaimtaprprietaryinterest TrrensSystem(LTA)recgnisesequitableinterests(Chan#v#Cresdn) Usuallyninterestatlawuntilregistered(Exceptin:shrttermleases) Maybeagapbetweencreatintheinterestandregistratin Maybeanequitableinterestwhichisntcapableregistratin i.e.! Beneiciary sclaimunderatrust! Purchaser sinterestunderanuncnditinalsaleland! Purchaser sinterestunderanptintpurchase! Arightpreemptin(Walker#Crp#v#Pateman(1990)20NSWLR624)! Purchaser slienrareturnadepsitandinstalments! Aninterestunderaresulting,cnstructiverimpliedtrust! Arightt pssess abuildingsitetbuild! Theinterestapartnerinpartnershipland! Theclaimacwnerwhenatrusteersalehasbeenappinted s72(1)lta altrinterestinaltmaybemrtgagedbyregisteringamrtgageinstrument Butamrtgageisntaninterestthatcanbemrtgaged(s72(2)) s74lta RegisteredMrtgage=achargentheltrtheliabilitysecuredbythemrtgage RegisteredmrtgageehaspwersandliabilitiesassignedunderPart7PLA EquitableMrtgage mrtgageeretainspssessinthetitledeed Equitable mrtgagee cannt ldge a nnlapsing caveat (s122(2) LTA; Circuit# Finance# v# Registrar##Title[2006]1QdR204) s75(1) LTA equitable mrtgage may be created by leaving a certiicate title with the mrtgagee s75(2)lta Therearetherswaystcreateanequitablemrtgage theyarentaected bys75(1) Hwtprtectanunregisteredequitableinterest? Caveatrsettlementntice Caveat desn t add t existing prprietary right, merely prtects thse rights Butler# v# Fairclugh#(1917)23CLR78,84 s346(1)pla cnstructiverimputedntice purchaserntprejudiciallyaectedbynticeany instrument/actunless: It swithinpurchaserwn,rhisslicitr/agents,knwledgerwuldhavebeenihe/they searchedregisterasareasnablepurchaser/agentughtt Vlunteers' s180lta Vlunteers registratincnersindeeasibletitlewhetherrntvaluablecnsideratin hasbeengiven Equitywillntcmpeladnrtcmpleteanimperectgit Whenlegaltitlepassesagitprpertyiscmpleteatlaw(Milry#v#Lrd)! MilryvLrd trustsharesramily,settlrailedttransersharesttrustee 9
9 HELD: transer ineective at law and equity, equity will nt perect an imperectgit Agitprpertymaybecmpleteinequityithednrhasdneeverythingthatheneeds tdastheassignrttransertthednee(crin#v#pattn;#anning#v#anning)! Crin#v#Pattn Mr&MrsPJTsland,MrsPdyingstriedtseverinterestinland and transer t P as trustee, Mrs P signed transer dcs but ailed t prcure certiicatetitlermmrtgagee HELD:MrsPhadntdneeverythingnecessaryinequitytperectgit Canthedneebtainregistratinwithutanyurtheractinnthepartthednr? S200PLA avluntaryassignmentprpertyshallbeeectiveinequitywhentheassignr hasdneeverythingwhichtheyughtthavedneinrderttranserprperty Executr = a persnal representative, des nt acquire a beneicial interest in the trust prperty,merelyhasalegalinterestastrusteeandperatesaccrdingttrustinstrument!! Maytakethebeneicialinterestsubjecttexistingequitableinterests Gdwinv Gilbert[2000]QSC309!! Executr is nt a vlunteer (even thugh they may administer estate r n cnsideratin),theyarealegalrepresentative! s78lta Imrtgagrdeaultsnregisteredmrtgage,mrtgageecan: Takepssessin,aslngasdesn tcntravenecriminalcde! Pssessinincludesreceivingrent/prits Cmmenceactintbtainpssessin,reclsethemrtgagr srighttredeemrbtain curtrderrsalemrtgagedlt Partnerstapartnershiphavenlegaltitlercaveatableinterestinpartnershiplandprirtthe partnershipbeingwundup,partnershipitselwnstheland,partnershaverighttasharethe prceeds(chettlevbrwn) All debts/charges/reunds must be paid prir t the partners claiming prceeds rm the partnership Gdwin#v#Gilbert[2000]QSC309 Facts:GOwnedprpertybutailedtpaycuncilrates,cuncilhadstatutryrighttselltheland trecvertherates,cuncilsldlandtgibutwereyettregisterit,godiedandhisexecutr becamerpprperty HELD:Inpersnamexceptinarsermdeceasedasaresultntpayingtherates,whmthe currentexecutrasrpwasrepresenting Whenexecutrisregisteredtitlehlder,theydn tgettheprtectincertainrightsa nrmalrp GOisRPasexecutr,dn thavebeneicialinterestintheprperty arguablethattheytake theirinterestsubjecttanyequitiescreatedbydeceased The'Old'System'Mrtgage' LawarundMrtgages=creatureequitytmitigatecmmnlawrigur EquityRedemptin=brrwerretainsanequityinthesecurity Mrtgage=lenderhassecurityinterest,ntalegal(abslute)interest Histricallybankhadtitleundermrtgage,andupnmrtgagr sdeaulttheywuldlse theirentireinterest 10
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