LAWS 205 Equitable interests in land part 2

Front

What is the only way to create a legal title under the Torrens system?

Back

There is no other way to spawn a legal title without registration of it under the Torrens system.

Front

What is the reason for this?

Back

This is to notify any third party wishing to deal with the land, of any encumbrances that may be on the title.

Front

What is the issue with this?

Back

Because an equitable interest is unregistered, it can be difficult for a subsequent purchaser to determine whether the title they wish to purchase has any encumbrances such as a mortgage or an existing lessee, inhabiting the property.

Front

How can this issue be resolved?

Back

The party that has an equitable interest in the land, can lodge a caveat on the title, warning the registrar general to not proceed with any agreements concerning the title, because there is an equitable interest on it.

Front

In what situation does an existing lessee have to be concerned with whether their leasehold interest is registered on the title or not?

Back

In a situation involving a subsequent purchasers legal interest in purchasing the land due, to the legal title being free from any encumbrances, the existing lessee has to be concerned with whether their Leasehold interest is registered or not, because if it isn't, then in the absence of any other statutory provisions or fraud intervening, the subsequent purchasers legal interest prevails over the lessee's equitable interest.

Front

In what situation does an existing lessee not have to be concerned with whether their leasehold interest is registered on the title or not?

Back

In a dispute between the existing lessee and a subsequent lessee as to who's interest shall prevail, the existing lessee need not worry about whether their leasehold interest is registered or not, if there leasehold interest term is for less than one year, because statutory provisions intervene. Moreover, even if their leasehold term is for over a year, if the existing lessee lodges a caveat on the title, then their equitable interest prevails, because it is first in time as compared to the subsequent lessee's interest.