Under Queensland law, an unregistered interest in land that arose from a specifically enforceable contract may be protected by lodging a caveat. If a competing registered interest is subsequently lodged, the priority dispute is generally resolved by:

Q: What is the correct answer to: Under Queensland law, an unregistered interest in land that arose from a specifically enforceable contract may be protected by lodging a caveat. If a competing registered interest is subsequently lodged, the priority dispute is generally resolved by:

The correct answer is The order of registration, with the registered interest prevailing unless fraud or notice is established. Under the Torrens system in Queensland (Land Title Act 1994), a registered interest takes priority over an unregistered equitable interest. The registered holder prevails unless they obtained registration through fraud or had actual notice of the prior equitable interest, which are recognised exceptions to indefeasibility.

Q: What background knowledge is needed for this Property Law question?

The Torrens system provides certainty through registration. Section 184 of the Land Title Act 1994 establishes indefeasibility, meaning a registered interest is protected. Caveats under Part 7 protect unregistered interests by preventing inconsistent dealings, but registration generally prevails.

Q: What is a good way to remember the answer to this Property Law question?

REGistered beats EQuitable — unless Fraud or Notice breaks the rule. Registration is king in Torrens. For priority questions, remember REG > EQ, then check for fraud or notice exceptions.

Q: What exam tip applies to this Property Law question?

In Torrens priority questions, always default to 'registration wins' then look for fraud or notice as the exception.

Q: How does this Property Law concept apply in Australian real estate practice?

A buyer signs a contract but delays settlement. Meanwhile, the seller fraudulently sells to a second buyer who registers first. The first buyer's caveat was not lodged in time. The second buyer's title prevails unless the first buyer can prove the second buyer knew about the prior contract.

Question

Property LawQLDHARD

Under Queensland law, an unregistered interest in land that arose from a specifically enforceable contract may be protected by lodging a caveat. If a competing registered interest is subsequently lodged, the priority dispute is generally resolved by:

Answer Options

A

The date of creation of the equitable interest

B

The order of registration, with the registered interest prevailing unless fraud or notice is established

C

Whichever party paid the higher purchase price

D

An automatic auction conducted by the Registrar of Titles