LLB270 Chapter Notes - Chapter 7: Consideration, Fide
WEEK 3 – OLD SYSTEM TITLE AND PRIORITIES:
Chapter 7 – Old System and Priorities:
7.34: Registration of deeds and priorities:
o7.34: Introduction:
Legislation has always existed to encourage registration
Never provided a guarantee of title
System was created to induce parties to register by conferring priority by reference
to the time at which the deed or agreement was registered
o7.35: Registration of instruments only:
‘General Register of Deeds’: allowed for the registration of instruments generally
Two instruments are generally created through the course of a transaction and one
or both may be registered
Registration confers priority
Possible to register wills but it does not confer priority
o7.36: Registration and priority:
Priority by registration – Conveyancing Act s 184G(1)
No distinction between legal and equitable interests
Unregistration = loss of priority
Normal priority rules
Notice is very important
Registration prevents priority of later instruments
Position is the same regardless whether the register was searched – Mills v
Renwick (1901) 1 SR (NSW) Eq 173
o7.37: Bona fide and for valuable consideration:
Bona fide:
Imposed on the party seeking to take
Amplified meaning
If purchaser has notice of the existing interest they are unable to take advantage
of registration
oActual or constructive knowledge – Sydney & Suburban Mutual Permanent
Building Society Ltd v Lyons [1894] AC 260
oDeed executed without knowledge, but knowledge gained before
registration – priority
oAfter execution, but before settlement – not able to claim priority
Possible to gain priority by registering an earlier document without
notice
Valuable consideration:
Need not be the full or market value
Cannot be nominal
o7.38: Effect of registration on void instruments:
Void instruments remain void
Forgery – Re Cooper (1882) 20 Ch D 611
Instruments falling under the nemo dat rule can be given priority if registered
7.39: Reform:
o7.40: Persistence of old system title generally:
find more resources at oneclass.com
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Document Summary
Week 3 old system title and priorities: 7. 34: registration of deeds and priorities: 7. 34: introduction: System was created to induce parties to register by conferring priority by reference to the time at which the deed or agreement was registered: 7. 35: registration of instruments only: General register of deeds": allowed for the registration of instruments generally. Two instruments are generally created through the course of a transaction and one or both may be registered. Possible to register wills but it does not confer priority: 7. 36: registration and priority: Priority by registration conveyancing act s 184g(1) No distinction between legal and equitable interests. Position is the same regardless whether the register was searched mills v. Renwick (1901) 1 sr (nsw) eq 173: 7. 37: bona fide and for valuable consideration: If purchaser has notice of the existing interest they are unable to take advantage of registration: actual or constructive knowledge sydney & suburban mutual permanent.
