Tutorial module 3 LOCO 2005 54 PDF

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Law of Commercial Obligations 200554 Module #3 (Week 4) Tutorial questions Torrens Title System 1. Discuss the concept of fraud in relation to s. 42 of the Real Property Act 1900 (NSW). Your answer should refer to the relevant case law and the effect of notice? 2. Kate owns an apartment in Wollongong, her bother David (a lawyer) holds the title deeds. Kate goes on long holiday to Greece. At the time the apartment is worth $350,000. David has a gambling problem, and two months after Kate departs, David forges her signature and sells the apartment to Sue, (his secretary), for $250,000 cash. David goes to Las Vegas and loses all the money. Sue puts the apartment on the market and sells to Jack for $450,000. Kate arrives home about six month later to find Jack living in her house. Kate come to you for advice; advise Kate? 3. Keith rents a small factory off Jeanette under an 4-year lease, beginning two years ago. Jeanette the owner never got around to registering the lease. Jeanette decides to sell the factory this year under a standard commercial contract. The contract makes no mention of Keith’s unregistered lease, but includes the following standard script, ‘The purchaser has read and agreed to the lease documents provided by the vendor’ While discussing the contract over coffee, Jeanette tells prospective purchaser Anna, that Keith’s lease is still unregistered, but says, ‘Keith is a good tenant, please look after him.’ Before Settlement, Jeanette does not get a chance to register the lease. Three months after becoming the registered owner Anna issues Keith with an eviction notice. Advise Keith? 4. List and explain the exceptions to Indefeasibility of Title under the Torrens Title System. 5. What is a caveat in the Torrens Title System? How would a Caveat help Keith

in Q3 above?...