O for example a rogue cannot pass good title to a

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o For example a rogue cannot pass good title to a bona fide purchaser because the rogue never had good title. This protects the true owner and therefore favours security of title. Prior Equitable Interest v Subsequent legal interest – subsequent prevails if they are a bona fide purchaser for value without notice. o PLA s199 – you will have notice if you have actual notice/constructive notice/ imputed notice. You must have had notice at the time that you entered the K. This places a burden on the purchaser because they must take all reasonable measures to make sure that there is no prior equitable interest. Equitable interest v Equitable interest – the better right will prevail. If they are of equal value and quality then the first in time will prevail. Deeds registration system was introduced in Australia in the 1940s. Designed to reduce the cost of title investigations. Anybody who had an interest could register it if it was granted in a written document. Allowed for the recording of both legal and equitable interests. The benefit of the register was to give notice that the interest existed. Registration was optional and purchasers were always at risk of there being something else out there. It closed in 1999. Torrens – the register is conclusive as to interests in land. There is provision for warranty by the state guaranteeing that the register is conclusive. The Torrens register contains the title. The title itself depends on registration. The register is supposed to be the be all and end all of title. Security of title is provided for through the concept of ‘indefeasibility of title’ which means that the title cannot be defeated. But it cannot protect you from all claims! For torrens land there is a new 19
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set of priority rules that displace the old set – except that the old rules apply where there is a conflict between 2 sets of unregistered interests. S34(1) TLA – Priority Rule Between 2 Registered interests – every instrument lodged for registration will be registered in the order that it is lodged. They shall entitle the priority according to the order of lodgement. Torrens and the Principle of Indefeasibility Torrens system began in 1858 and spread to the other colonies. Supposedly formulated by Sir Robert Torrens. He adapted the system for the UK Merchant Shipping Act and the German Hansiatic System of Land Registration. Victoria adopted the Torrens Sytsem in 1862. Real Property Act (1862). Now it is embodied in the TLA. Australia was the first place (apart from Germany) to implement such a system. The purpose of the Torrens System was to overcome the problems with the General Law Land system and the deeds registration system. The old system sought to protect security of title above all.
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