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Legal fee simple?

Transferrable
I.e. this is the right in land that you can do anything with exclusive possession which means you
can exclude all other people from it
More importantly, you can alienate it in your lifetime and on your death as well
Fee simple?
o Ownership if you own land, you pretty much have fee simple
o Technically it is an estate in the land because the Crown technically owns all land in the
country
Legal life estate?
Interest in land entitling the holder to exclusive possession to the duration of the measuring life
Can you transfer? Yes if you are a grantee of you can transfer
If you are a recipient of a life estate and its measured according to life of A (the original person) you
can transfer it but its still measured by A
Life estates have been abolished in most jurisdictions (SA still has them) and in NSW at least, all life
estates have been converted to fee simples anyways
Legal remainder?
Relationship between legal remainder and life estate if O is the owner of the fee simple and they
grant a life estate to 1 person (A), O owns the fee simple and A has a life estate (while A is alive it is
vested in possession). But B has vested interest current interest in land even though not entitled to
possession right now. Only entitled to possession when A dies.
o When O grants the life estate and says the life estate is to A, subject to that it is passed on to
B, then B has a legal remainder. Fee simple on return of that life estate goes to B
remainder interest.
o O owns the fee simple to begin with. It converts fee simple to B subject to life estate of A
i.e. I will give this to you but first, As life estate.
BUT this is now redundant because life estates have been made void in NSW
Reversion is the right of the original person.
If I am O and I pass A a life estate, then it reverts back to O when A dies. But what if O dies before A? It
goes back to your estate still part of your assets to be distributed by your will etcetc
If I am O and transfer life estate to A, that stays with A til A dies, then it reverts back to me, O. If I die before
A, does it revert to me before A dies? NO. Life estate means the measuring life only I measure according to
As life.
Lease?
Right to exclusive possession of land for a limited time
What distinguishes a lease from the fee simple? Difference is that fee simple is forever no duration consent
in a fee simple. NOT exclusive possession that is wrong. Lessee can even exclude the original owner
because they do have exclusive possession, it is the DURATION that is different.
Easement?
When parcel of land is benefited by another
Burdened land owner servient tenement
Benefited person - dominant tenement
Generally neighbours
2 types of easement positive or negative easement
o Positive: positive action for the owner on the burdened land
o Negative: negative obligation (refraining) for the owner on the burdened land

E.g. driveway be careful with the example because in the modern world the driveway is part of the
persons land and if that were the case, that would not be the case and that driveway would belong to
the person
E.g. landlocked land if you have land on which you have a cliff and the other 2 sides are blocked
by other land and in front of land there is another parcel, and all edges are blocked so you cant get
to land by public space like road and you need to cross over someone elses land that would be
trespass so you must have some sort of agreement i.e. I agree with you to cut across etc
Simplest easement is a right of way simple right to pass over someones land without committing
trespass
There are also weird easements like negative easement of airflow

Profit a prendre?
Similar to easement but not the same (obvs)
o There must be benefited and burdened land
Right to enter that land and to take naturally occurring produce does not have to be adjacent at all
If we enter in arrangements where you come into my land to take my rabbits, even though no
neighbouring
You cannot enforce a right against a piece of land itself so you would enter agreement with person
etc but your RIGHT is as against the land itself, doesnt matter who owns the land itself
Old System mortage?
Mortgage: Take security over house security interest take your house, sell it and pay off debt
Will lend you money but you have to transfer legal fee simple so bank owns the bank. The old owner (the
borrower) has an equitable interest the equity of redemption. The right to say I have paid the loan back so
the Bank is obligated to reconvey the property at the end of the loan.
Important consequence for old system mortgage, if you are the first old system mortgagee if you have lent
money and taken title to their lind, the borrower have legal title to their land. They only have an equity of
redemption. SO can they grant a subsequent legal mortgage? No. Nemo dat they cannot convey what they
do not have. If they convey the legal title to me, and they dont have it anymore, they can only convey an
equitable interest.
Torrens mortgage?

By way of charge
That means the mortgager (the borrower) still technically owns the land and is registered as the land
owner but if they stop paying their loan, the bank can come in to sell the property, convey to self if
they like or force the sale and get the proceeds from the sale

Trust?
Most people think a trust is a legal entity but that is WRONG
It is only a relationship between someone who owns the legal title to an asset and another person(s)
who own the equitable title to that asset
Deeds or prescribed by general law
Problem Question
GreenacreisalargeruralpropertyinNewSouthWalesheldunderoldsystemtitle.Thefeesimplein
GreenacrewasconveyedtoAthenabydeedin2012whenAthenapurchasedthelandfromZebedee.Athena
financedthepurchase,inpart,throughmoneyssheborrowedfromBataviaBank.AthenagrantedBatavia
BankadeedofmortgageoverGreenacretosecuretherepaymentofherindebtednesstotheBank.In2013
Athenaenteredintoadeedwiththelocalmountainbikeclub(theClub).BythedeedAthenaagreedto

allowtheClubtoenteradefinedpartofGreenacreeverySaturdayfrom7amto3pmforthepurposeof
conductingracesovertheroughandundulatingterrain.In2014Athenaenteredintoanoralagreementwith
DesdemonaunderwhichAthenawouldleaseGreenacretoDesdemonaforaperiodoftwoyears,withan
optionforrenewalforafurtherperiod,atarentof$50,000peryear.Desdemonaenteredintopossessionof
Greenacre,repairedsomeofthefencing,stockeditwithsheepandpaidtheagreedrent.Desdemonarefuses
toallowtheClubaccesstoGreenacreforthepurposeofconductingitsSaturdayraces.
InJanuary2015AthenaenteredintoawrittenandsignedcontractwithEricinwhichAthenaagreedtosell,
andEricagreedtopurchase,thefeesimpleinGreenacre.ThesaleissubjecttoDesdemonasleaseandhas
notyetbeencompleted.(Thatis,ErichasnotyetpaidthepurchasepricetoAthenaandAthenahasnotyet
executedadeedofconveyanceinfavourofEric.)LastmonthAthenapurchasedfromFelixaseafood
restaurantlocatedinSydney.WhenAthenatookpossessionofthelandandbuildingafterthesalehadbeen
completedshediscoveredthatFelixhadremovedalargefishtankfromitscustombuiltcavityinthewallof
thediningroomoftherestaurant.Thefishtankwaswherelivelobstershadbeenkeptpriortobeingcooked
andservedtocustomersoftherestaurant.Inadditiontorestinginthecavity,thepumpandfiltrationsystem
ofthefishtankhadbeenconnectedtotheelectricalpowersupplyoftherestaurantpriortothesale.When
AthenadiscoveredthatthefishtankhadbeenremovedshetookupthematterwithFelix.Felixinsistedthat
thefishtankwasnotincludedinthesale,andhasrefusedAthenasdemandsthatitbegiventoher.
Answerallofthefollowingquestions,providingreasonsforyouranswersandcitingrelevantstatutory
andcaselawauthority.Ifyourequireadditionalinformationinordertoansweraquestion,statewhat
informationyouneedandexplainwhyyouneedit.
(a) Forthepurposeofthisquestion(a)only,assumethatthepurportedexecutionbyZebedeeofthe
deedofconveyancetoAthenawasforgedbyathirdpartywhowasimpersonatingZebedee,butthat
Athenadidnotknow,andhadnoreasonablebasisforsuspecting,thatthiswasthecase.What
interestinthelanddoeachofAthenaandErichold?How,ifatall,wouldyouranswerdifferifthe
factswerealteredasfollows:GreenacreisTorrenstitleland(thatis,itisheldunderthe
provisionsoftheRealPropertyAct1900(NSW));Athenaisnowtheregisteredproprietorofthefee
simple;andthepurportedexecutionbyZebedeeofthe(registered)transfertoAthenawasforgedby
athirdpartyimpersonatingZebedee?
Oldsystem:ForgedconveyanceisanullitynothingatallsothatpersoneventhoughAthenapurportedly
purchasedingoodfaithandwithoutnegligencenemodatrule.Athenatriestopassbutshehasnointerest
tobeginwithsoErichasnointeresteither.Forgedconveyancetostartwith,everythingthathappensafterit
isanullity.
Torrenssystem:IfAthenahadregisteredherinterestintheTorrenstitle,becausesheactedingoodfaithand
notnegligently,shebecomesthelegalholderoftheland.Indefeasibletitle(s41and42oftherealproperty
act).ThenEriccontractstobuyithasanequitableinterestintheland(hasntbecomeregisteredjustyet)
andhisagreementisinwritingasissigned(whichisrequiredunders54(a)ofConveyancingAct).Canget
anorderforspecificperformance.
Underoldsystem,youcannotgivewhatyoudonothave.Soaforgedconveyancemeansnothing.Under
Torrens,youcouldverywellbecomeregisteredproprietor.Aslongasyoubecomeregistered.
(b) DescribethenatureofAthenasandBataviaBanksrespectiveinterestsinGreenacre.How,ifatall,
wouldyouranswerdifferifGreenacrewereTorrenstitlelandandBataviaBankheldaregistered
mortgageoverGreenacre?
Oldsystem:titletothelandisconveyedtoBataviaBank
Torrenssystem:AthenastillhastitletothelandbutshegivesachargeinfavouroftheBank

(c) Describethenatureoftheinterest,ifany,thattheClubhasinGreenacre.Againstwhomcanthe
Clubenforceitsinterest?
NowAthenahasenteredintoadeed.Thisreturnstotheearlierpointaboutrightswhoistryingtokick
themout?DwhoapparentlyholdsaleaserefusestheClubaccesstoGreenacre.IfwererighttosayDhasa
leaseintheland,theleasegivesthemtheexclusivepossessionpossessthelandtotheexclusionofall
others.ThisisnotadisputebetweenAthenaandthebikeclubeventhoughAthenaenteredintoanagreement
thatispurelycontractual.ItisproprietaryagainstthenextpersonakaD.
SowhatinterestwastheBikeClubgiven?CanDactuallyexcludetheclub?Bikeclubhasntbeengivena
leasebecausemissingthecharacteristicsofexclusivepossession.
Notaneasement(notnextdoorandalsonotabenefitburdensituationevenifnextdoor)justarightof
accesssituation.
Notaprofitnottakingnaturallandwhentheyrideonit.
Purelycontractualthisisalicense.Therighttoenterontosomeoneelseslandbecausethatpersonhas
allowedyoutoenterontothatland.PersonalbetweenAthenaandBikeClubKingvDavidAllen&Sons
WhatwouldBikeClubremedy?Sueforbreachofcontractandtheywouldgetdamages.Eventhatwould
onlybeconsiderationpaidunderthecontract(becausetheytoldyouunderdeedanddeeddoesnotrequire
considerationandifshehadntpaidconsideration,probablynot.Thisisbecauseequitydoesnotassista
volunteermaximofequityiftheyhavenotpaidconsideration,thecourtsofequitywillprobablynot
help.
(d) AssumethatAthenasmortgagetoBataviaBankexpresslyandeffectivelyallowsAthenatoleaseher
interestinGreenacre.DoesDesdemonahaveanenforceableleaseoverGreenacre?
Athenaentersintooralagreementsothinks23DunderwhichAthenawouldleaseforaperiodof2years
withanoptionatarentof50Kandshehasenteredintopossession.Shehasrepairedsomefences,stocked
withsheepandpaidrent(soundslike?)
Youwouldprobablystartwith23Dbecausemainpointisthatitsanoralagreement.Setsoutrequirements
foranorallease.S23D(2)takingeffectinpossession.
Thenweneedtoassesstheotherrequirements.Istherentpayablethebestwithouttakingafine?Wedont
knowonthefactsifthatisthebestmarketrent.
Wealsodontknowtheoptionfortherenewalweknowthetermis2yearsandhasanoptionbutwedont
knowhowlongistheoption.Iftheoptionislessthanyearsothewholetermislessthan3sounder23D(2).
Butiftheterm+optionexceeds3years,orthodoxviewisthatitisoutsideofs23D(2).
Ifyourtermislessthan3yearsbutoptionpushesyouover3yearmark,thenneithertheoriginaltermnorthe
term+optiongetthebenefitofs23D(2).
Wedontknowif23D(2)butletssayitdoesmeettherequirementsofs23D(2)?Itdoesntneedtobein
writing.Isitalegallease?Yes.If23D(2)issatisfied,itbecomesalegallease.Butproblemis,Athenadoes
nothavelegaltitle.Whathasshedonethathastakenawaylegaltitle?ShehasmortgageditunderOld
Systemtothebank.Canshegrantleaseunders23D(2)?NO.Assheonlyhasequitabletitle,shecanonly
grantequitabletitlethankstonemodat.
Wedontknowifs23D(2)appliesinthefirstplace.Isthereachanceofequitableleaseundergeneral
principles?Whatistherelevantcaseforanequitablelease?WelshvLonsdalerequires2thingseffectively.

1)Isthereagrantofleasethatisenforceable?Wasntanywritingsocantlooktoanywrittendocumentso
youtryandpointto54A(2)partperformance.I.e.mustbeanactualagreementtogranttheleasesoifshe
hasntwrittenanything,gotopartperformance.Hastherebeensufficientactsofpartperformance?Paying
rentbyitselfisNOTconsideredsufficient.Butifyoutakepayingrent+otherthingsDhasdone,youwould
probablysayitissufficient(shehasenteredintopossession,repairedfencing,stockedwithsheep,paidrent)
2)Leasemustbesuchthatacourtofequitywouldgrantspecificperformance.Cantseeanyreasonwhy
equitywouldnotgrantspecificperformance.Equitywillalmostalwaysgrantspecificperformanceincases
ofrealpropertybecause(thetaxicabcase?DixonJarticlesofbeauty,rarityandfinedistinctionandall
landisconsideredbeautiful/distinct).Ifspecificperformanceistobegrantedinallrealpropertythats
useless??ItwontbegrantedifthereisFRAUDorifpersoncomingtocourtofequityisnotcomingwith
CLEANHANDS,orifthepersonwhoiscomingtothecourtsofequityisPURELYAVOLUNTEER.So
thosearethemaximsofequity.HewhoclaimsequitymustDOequityi.e.youmustcometothecourtsof
equitywithcleanhands.
Generallyspeaking,specificperformancewillbegrantedincasesofrealpropertyunlessthoseapply^.
(e) IsAthenaentitledtothereturnofthefishtanktakenfromtheseafoodrestaurantpriortothe
completionofthesale?How,ifatall,wouldyouranswerdifferifthefactswerealteredasfollows:
thefishtankhadbeeninstalledintherestaurantbyGeraldine,wholeasedtherestaurantfrom
Felix;andGeraldineremovedthefishtankattheendofherlease,whichwasimmediatelybefore
completionofthesaletoAthena?
Thisisafixturesquestion.TutorseesthisasaQof3parts.
1)FirstthingtothinkaboutinafixturesQespeciallywithcontractforsaleisdidtheKincludethefixture
tobeginwith?**Thisisthemostimportantpreliminarypoint.IftheKsaysthegoodistopasswhether
fixtureorchattel,thatsit.Nodebatewhetheritispartofthelandoranything.

2)DoestheKexplicitlysayitdealswithfishtank?NotdealtwithinKsoNOWletstalkabout:isita
fixtureorisitachattel?
Startingwithyourpresumption,thegeneralpresumptionisthateventheslightestfixation/connectionis
enoughtoraisethepresumptionthatitisafixture.BelgraveNomineesvBarlinScottAirconditioning[e.g.
bolts,pipes].
Here,wearenottoldthedegreetowhichitisfixed.Ifitislayingonownweightetcthenpresumptionof
chattel.Inthiscase,probablypresumptionofchattel.
UptoAthenatoshowpurposeofannexationwassuchthatitwasmeanttobeafixture.Ifitsafixtureitwill
passwiththerealproperty,itgoeswiththeland.Letspresumechattel.SonowAthenahastoshowitwas
meanttobefixturesowasitforthebetterenjoymentoftheland,ratherthanthebetterenjoymentfora
chattel.SOitsaspecialpurposecavityyouwouldntknockoutpartofawalltoputinafishtankas
opposedtoputtingitonthetableunlessyouthoughtyouwantedtobetterenjoythelandasopposedtojust
thefishtank.Youcouldargueitispartofthegrandarchitecturaldesign(DaneCourtCase)becauseitis
ornamentalalmost.
Conclusionisthatyoutendtohaveagoodcaseforfixture.Specialpurposecavity,somedegreeof
annexation,probablygrandarchitecturalandindiningroomsoitstoshowothers(partinparcelofthe
diningroomexperience)notjusttohouselobstertobecookedlol.
3)Assesswhethertenantsfixture?

SoGeraldineinstalleditshewasalessee.Youcouldarguethatlesseeyoudontintendforsomethingtobe
afixture.Whateverthedegreeofinstallation,whywouldthelesseegiveittothelandownerIwanttokeep
it.
Sothefactthatshehadashorttermlease,youmightobjectivelyconstrueherintentionsuchthatshedidnot
intendforittobecomeafixture.
RelevantcaseistheCancerCarecase.Tenantwouldhaverighttoremovefixturesthathe/she/ithasbrought
ontothelandfortrade,domesticorornamentalpurposesPROVIDED,theremovalwillnotdestroythe
essentialcharacterorvalueoftheitemORcausesubstantialdamagetotheREALproperty.
Broughtonfortrademaybeornamentalpurposesandremovalfromcavityandprobablywontdamagethe
realpropertyso
SidenotethetutorlearntthisfromsomeMarkdudeinhisEvidenceclassbackatUSYDThereisnosuchthingasa
rebuttablepresumptionifthereissuchthingasrebuttablepresumption,thentheremustbesuchthingasirrebuttable
presumption.Andifthereisirrebuttablepresumption,thenyouthinkokaythatsapresumptionyoucantrebut,then
thatsjustlawsoifyoucanthaveirrebuttablepresumptionsoyoucanthavearebuttablepresumption,sojustcallita
presumption.

3)

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