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PROPERTY LAW – LECTURE 9 WITH “SEMINAR 9.1” PRIORITIES Introduction Range of Proprietary interests in land – Legal and equitable life estate and fee simples, easements and mortgages. Priorities issues arise where competing claims to proprietary interests in land where such interests in inconsistent with each other Range of rules and guidelines to assist courts determine priorities disputes from common law Under Torrens System – Specific statutory rules are applicable with position dominated by Principle of Indefeasibility (once someone is registered under the Torrens system , they are bound by no others). There are different rules to the Torrens System and the general law. Need to understand Common Law rules to assist in applying Torrens system approaches Priorities rules are full of inconsistencies and anomalies 4 possible situations when looking at priorities under the common law: o Prior legal interest followed by a subsequent legal interest o Prior legal interest followed by subsequent equitable interest o Prior legal interest followed by subsequent legal principles o Prior legal interest followed … 3 general principles o Interests rank according to date of creation where they of same general nature. o Interest cerated earlier ntime may be postponed to an interest created later in time because of donduct of parties (eg: Fraud, misrepresentation, gross negligence) – Even if an interest prior, may be put later in time. There can be postponement in time due to the conduct of the parties. o An earlier equitable itneresti n land will be deferred to a later legal interest acquired bona fide for value and without notice of the earlier interest. There are a range of exceptions to these principles however. Equity however sets a high standard in regards to notice given. Prior legal v subsequent legal
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If 2 or more legal estates in land are inconsistent with each other – Priority depnds on date of creation of interest Nemo dat – A person cannot concey an interest that he or she does not have Most lega interests conveyed by deed – what date was deed executed? Examples: o A conveys lega estate in fee simple to B and late purports to convey same estate to C B has priority and C has no interest. Not a priority issue as there was nothing for A to convey into C In this event (???) A grants legal lease to B – then purports to convey lega fee simple to C C gets the land subject to the legal lease that B entered into with A. Prior legal v subsequent equitable Provided no fraud or negligence on part of prior legal estate it will take prior over any subsequent equitable estate. Example of case where legal interest postponed because of fraud is: o Northern Countries Fire The legal interest holder was a party to… Involved borrowing money over company for the estate. In return, gave company title documents including mortgage, which was locked in the company safe, which Crab had access to. Crab took out and borrowed more and Whipp …
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This note was uploaded on 09/27/2011 for the course FINANCE 1001 taught by Professor Profassorted during the Three '11 term at University of Adelaide.

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