PROPERTY B EXAM NOTES
PROPERTY B EXAM NOTES Nicole Chan
Equitable interests
The Torrens system Exceptions to indefeasibility
Priority disputes
Co-ownership
1. 2. 3. 4. 1. 2.
Express trust Purchase price resulting trust Constructive trusts Proprietary estoppel Operation of the Torrens System The principle of indefeasibility
1. 2. 3. 4. 5. 6. 7. 1. 2. 3. 4.
Statutory fraud In personam claims Paramount interests Registrar’s power of correction Inconsistent legislation Volunteers Compensation The caveat system Equitable vs. equitable Prior equity vs. equitable Mortgagor vs. purchaser from improper mortgagee sale Joint tenancies Tenancies in common Creation of co-ownership Severance of a JT/conversion to TIC Termination by proceedings Rights and duties of co-owners
1. 2. 3. 4. 5. 6.
EQUITABLE INTERESTS:
Trusts were developed by the Court of Chancery as a means of subverting harsh CL rules. In a trust situation the trustee holds the legal interest in the land, while the beneficiary retains the equitable or beneficial interest.
1. EXPRESS TRUST: An express trust is created in clear and expressed terms agreed upon by trustee and beneficiary.
Must comply with s 53(1)(b) PLA and be in writing and signed by the person creating the trust. Can be created inter vivos or by will. Most commonly arise by declaration or transfer.
2. PURCHASE PRICE RESULTING TRUST: A PPRT arises at the time of purchase in circumstances where legal title does not reflect unequal contributions to the PP, and equity presumes that the transferor’s intention was for some/all of the equitable title to be retained (Calverley). 1. PRESUMPTION OF RESULTING TRUST: Equity presumes that the transferor or the owner did not intend to transfer the whole legal or beneficial interest in the land; they intended to retain some benefit. Volunteer- Situation where a person purchases real or personal property, and arranges for title to the property to be fully or partially transferred to another person, who provides no consideration. - Equity presumes that the purchaser intended to retain beneficial interest. - Still a volunteer where consideration is rendered void (Xiao). - If the transfer is tainted by fraud then it is likely void (Xiao). - If the transfer is illegal then it is likely void (Cummins). Unequal contributions- Situation where a person purchases property in the name of another, or there is a JT but contribution to purchase price is not evenly distributed. - Equity presumes that the parties return beneficial interest according to their share of the purchase price.
Equitable interests
The Torrens system Exceptions to indefeasibility
Priority disputes
Co-ownership
1. 2. 3. 4. 1. 2.
Express trust Purchase price resulting trust Constructive trusts Proprietary estoppel Operation of the Torrens System The principle of indefeasibility
1. 2. 3. 4. 5. 6. 7. 1. 2. 3. 4.
Statutory fraud In personam claims Paramount interests Registrar’s power of correction Inconsistent legislation Volunteers Compensation The caveat system Equitable vs. equitable Prior equity vs. equitable Mortgagor vs. purchaser from improper mortgagee sale Joint tenancies Tenancies in common Creation of co-ownership Severance of a JT/conversion to TIC Termination by proceedings Rights and duties of co-owners
1. 2. 3. 4. 5. 6.
EQUITABLE INTERESTS:
Trusts were developed by the Court of Chancery as a means of subverting harsh CL rules. In a trust situation the trustee holds the legal interest in the land, while the beneficiary retains the equitable or beneficial interest.
1. EXPRESS TRUST: An express trust is created in clear and expressed terms agreed upon by trustee and beneficiary.
Must comply with s 53(1)(b) PLA and be in writing and signed by the person creating the trust. Can be created inter vivos or by will. Most commonly arise by declaration or transfer.
2. PURCHASE PRICE RESULTING TRUST: A PPRT arises at the time of purchase in circumstances where legal title does not reflect unequal contributions to the PP, and equity presumes that the transferor’s intention was for some/all of the equitable title to be retained (Calverley). 1. PRESUMPTION OF RESULTING TRUST: Equity presumes that the transferor or the owner did not intend to transfer the whole legal or beneficial interest in the land; they intended to retain some benefit. Volunteer- Situation where a person purchases real or personal property, and arranges for title to the property to be fully or partially transferred to another person, who provides no consideration. - Equity presumes that the purchaser intended to retain beneficial interest. - Still a volunteer where consideration is rendered void (Xiao). - If the transfer is tainted by fraud then it is likely void (Xiao). - If the transfer is illegal then it is likely void (Cummins). Unequal contributions- Situation where a person purchases property in the name of another, or there is a JT but contribution to purchase price is not evenly distributed. - Equity presumes that the parties return beneficial interest according to their share of the purchase price.
