week four

Question 1

what is a manifest injustice situation where a mortgage can be taken off

Answer 1

where a mortgage is taken off a property and the property is given back without the mortgage because the fraud was manifestly injust

Question 2

what does s55 (3) of the 2017 LTA say

Answer 2

if you can solve the problem with money you can do that instead of upsetting the system

Question 3

what is compensation usually capped at

Answer 3

usually the value of the asset

Question 4

what do sections 54 - 57 of the LTA say

Answer 4

in exceptional circumstances the situation can reverse and you can get the property back, or back without the mortgage. there are however guidelines around manifest injustice

Question 5

what is the main exception to immediate indefeasibility

Answer 5

fraud

Question 6

its not fraud if you know of the equitable interest but dont?

Answer 6

intend to cheat

Question 7

unless there is fraud, someone taking or dealing with land from a registered proprietor need not?

Answer 7

• inquire as to how the RP became registered
• worry about what happened to the purchase money
• be affected by notice of any trust or unregistered interest

Question 8

in hard copy times, there was a big gap between what 3 events that affected you depending on when you found out about the equitable interest

Answer 8

sale and purchase, settlement and registration

Question 9

what were the 2 ratios of frazer v walker

Answer 9

immediate indefeasibility of title and that mortgagees are as safe as a purchaser

Question 10

what are the two attacks on indefeasibility of title

Answer 10

fraud against the registered owner, fraud against an unregistered interest

Question 11

what agreement was there between X and the NZ Meat Nominees in New Zealand Meat Nominees v Sim

Answer 11

an agreement for meat nominees to park in X’s carpark

Question 12

X’s mortgage to Q fell in default and Q sold to Y. What didn’t Y like and what did they do? (New Zealand Meat Nominees v Sim)

Answer 12

that meat nominees were using the carpark - he put pamphlets on the cars telling them to leave

Question 13

what was the question in New Zealand Meat Nominees v Sim

Answer 13

whether he was guilty of fraud for ignoring an unregistered lease outside the title

Question 14

what was the result of New Zealand Meat Nominees v Sim

Answer 14

Mr Sim (Y) was guilty of fraud because he intended to cheat meat nominees out of their unregistered interest. He made it obvious with the pamphlets that he wanted to kick them out and because he knew about the interest and dishonestly intended to cheat this was enough for the court to say he was guilty of fraud

Question 15

who scammed the Burmeisters out of their property

Answer 15

Mr O’Brien, junior

Question 16

what did the O’Brien trust do with the Burmeisters property?

Answer 16

Mortgaged it to the ASB

Question 17

what was wrong with the solicitor in Burmesiter v O’Brien

Answer 17

he was acting for both the ASB and the O’Brien family trust. He knew the O’Brien trust had been fraudulent and still registered the mortgage

Question 18

is the ASB safe in Burmesiter v O’Brien

Answer 18

yes, they did everything properly

Question 19

could the Burmesiters get their property back

Answer 19

Yes because of the fraud, but the mortgage to ASB was still on it because the ASB was innocent. They could get compensation from the state, but it would be capped at the $430k ish the house was worth not the $640k ish on the mortgage

Question 20

what happened in Cook v Abdallah

Answer 20

Cook gave her property to Mr Abdallah because he said he wanted to come and live in Greymouth and needed to show that he had property in NZ to get a visa. It was obviously a scam and when she contacted him to get the property back he said she needed to pay him. She lost a lot of money but eventually got the title transferred back because there was no one defending the claim anyways.

Question 21

what is a caveat

Answer 21

a warning to the world that somebody has a claim on that particular piece of land for whatever reason

Question 22

who can lodge a caveat

Answer 22

anyone who claims an estate or interest in the land - a beneficial estate or interest

Question 23

what is the person who lodged the caveat called

Answer 23

a caveator

Question 24

what is the purpose of a caveat

Answer 24

to warn the world and means the registrar cannot take any action on that land

Question 25

when will a caveat lapse

Answer 25

when the RO applies to the registrar for a lapse the registrar gives notice to the caveator and it is up to the caveator to make an application to the court in order that that caveat may not lapse

Question 26

who was the caveator in North Shore Aero CLub v Black River

Answer 26

North Shore Aero Club

Question 27

who were the registered owners in North Shore Aero Club v Black River

Answer 27

originally sunrise, who then sold to Black River (RO in these proceedings)

Question 28

who were the mortgagors in North Shore Aero Club v Black River

Answer 28

Spinnaker + Black River

Question 29

what order did the court make in North Shore Aero Club v Black River

Answer 29

removal of the Aero Club’s caveat

Question 30

what was the conclusion of North Shore Aero Club v Black River

Answer 30

that Black River didn’t commit fraud because there was no equity left in order for there to be an equitable interest because it made sense for Sunrise to sell to pay for Black River to pay off the debt to Spinnaker and the Aero Club knew about the sale so it would be the exact same as if they were selling to a third party

Question 31

under s6 of the LTA 2017, fraud means?

Answer 31

forgery or other dishonest conduct by the registered owner or the registered owner’s agent in acquiring a registered estate or interest in land

Question 32

what are the two main categories of cases involving fraud?

Answer 32

fraud against a previous registered proprietor and fraud against the holder of an unregistered interest

Question 33

what is a caveat

Answer 33

a warning to the world that somebody has a claim on that particular piece of land for whatever reason

Question 34

who can lodge a caveat

Answer 34

anyone who claims an estate or interest in the land

Question 35

when does a caveat lapse

Answer 35

when the RO applies to the registrar for the lapse of the caveat, who gives notice to the caveator and then the caveator would have to make an application to the court for an order that the caveat may not lapse if they want it to stay