cradduck dealing with unique interests crown land

7/30/2019 Cradduck Dealing With Unique Interests Crown Land

1/14

Pacific Rim Real Estate Society

16th Annual Conference

24 27 January 2010

Wellington, New Zealand

Dealing with unique interests in Crown Land: A Queensland

perspective1

LucyCradduckFacultyofBusiness,UniversityoftheSunshineCoast

SJDCandidate,LawFaculty,[email protected]

AndreaBlakeSchoolofUrbanDevelopment,QueenslandUniversityofTechnology

[email protected]

Abstract

Security of tenure is the cornerstone of the landmanagement system in Australia. Freehold title is

protected through indefeasibility of title entrenched in legislation2 and protection of registrable

interestsin

land

is

offered

through

the

Statutory

Assurance

Fund.

For

those

with

interests

pertaining

to

CrownLandnosuchprotectionisoffered,althoughthispositionisnotuniformacrossAustralia.Notably

those with Crown leasehold interests or aprofit aprendre on Crown Land in Queensland are notprotected through registration on the freehold land register and do not have the benefit of

indefeasibility of title. The issue ofmanagement of interests pertaining to Crown Land has become

increasinglyrelevantduetothecomplexitiesassociatedwithbalancingpublicinterestsincludingnative

title with more commercial interests in land generated through carbon sequestration, forestry and

mining.ThispaperconsiderstheframeworkforthemanagementofCrownLandinQueenslandandthe

adequacyofthisframeworkforcommercialintereststhatpertaintoCrownLand.

Keywords:Crownland,tenure,profitaprendre,leaseholdtenure,landmanagement

1AnearlierversionofthispaperwassubmittedbyMsCradduckaspartofhercourseworkrequirementsforthe

LLM(TechLaw)bycourseworkfromtheQueenslandUniversityofTechnology,Brisbane,Queensland.2Section184LandTitlesAct1994(Qld)

Page1of14
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


2/14

Introduction

The aimof this paper is to examine the adequacyof the existing legal framework inQueensland in

relationtothegrowingcomplexitiesassociatedwithbalancingpublicandcommercialinterestsinland.

InterestsinCrownlandinQueenslandareprimarilyregulatedbytheLandAct1994(Act).TheActseeksto

achieve

effective

stewardship

of

unallocated

State

land3

and

interests

created

in

that

land.

It

does

this by requiring that State lands be managed having regard to the principles of sustainability,

evaluation,development,communitypurpose,protection,consultationandadministration.4

Lesseeshaveageneraldutyofcareforthelandandmayonlyusethelandforstatedpurposes.Priorto

thegrantingofalease,orotherallocation,thechiefexecutiveisrequiredtoevaluatethelandtoassess

themostappropriate tenureanduse.5ThatevaluationmusttakeaccountofState, regionaland local

planningstrategiesandpoliciesandthesevenprinciplesstatedabove.6TheActisabletofulfillitsobject

duetoitsstatutorynature.7Itsrequirementsmustbestrictlycompliedwith;otherwiseinterestsmaybe

forfeited.8With the introductionof thisAct theCrownassumed the roleof steward inmanaging the

landasopposedtoitstraditionalroleaslandowner.

ThepaperisstructuredasfollowsPart1examinesissuesofsecurityoftenureforinterestsinfreehold

land and Crown land. Part 2 considers the adequacy of security of tenure to address commercial

interests whilst protecting public interests. Part 3, through a comparative study, examines how

registered interests in Crown land is dealt with in New South Wales. Part 4 seeks to identify the

adequacy of the Land Act 1994 to effectively manage Crown land in Queensland. Part 5 drawsconclusionsandidentifiesareasoffutureresearch.

1. Security of land tenure in Queensland

Indefeasibili ty under the Torrens System

In the mid1800s land tenure arrangements in Australiawere based on the feudal system of land

ownership then existing in England. The English tenure system involved complicated rules and legal

fictionsthatcontinuedtoexist longbeyondthesocialconditionsthathadcreatedthem.Arguably,the

tenuresystemwasnotsuitableforAustraliassocialorgeographicalconditions.9Historically,thesystem

relieduponregistrationofthedocuments(deeds)dealingwithinterestsinland.Itdidnotdealwiththe

registration of the title to the land itself. In acquiring land, the required process of conveyancing

3DepartmentofNaturalResources,HandbookofLandPlanningGuidelinesPartG,ChapterG.14LandAct1994(Qld)Section45Ibid.,Section16(1)6Ibid.,Section16(2)7See Sections30and40ConstutionAct1867(Qld);CudgenRutile(No2)PtyLtdvChalk[1975]AC520;BonevMothershaw[2003]2QdR600;RvHughes(1866)LR1PC818Ibid.,Chapter5Part59Butt,4

thedition,p.620

Page2of14


3/14

involvedcomplicatedandverycostlysearches, including thecheckingofdocumentsgoingbackmany

yearstoestablishthatthevendorhadagoodtitletoselltothebuyer.10

A new system of registration of interests in landwas devised as amethod of simplification of the

existingAustralianconveyancingand landtenuresystems.11Basedontheshippingregistrationsystem

andthe

land

registration

system

existing

in

the

Hanseactic

towns,

12

anew

system

was

formulated

and

commencedoperation inAustralia in1858.13 Thenew system,namedafter themanwhodevised it,

RobertRichardTorrens,14wasasystemoftitleto landbyregistrationandconveyanceby instrument.

TheTorrens systemof registrationdidawaywith theneed forabuyer toconduct lengthyandcostly

searchestoestablishagoodtitleinthevendor.

Alldealings inrespectofa lotof landwouldberegisteredontheonecertificateoftitleentered inthe

Register,withtheRegisterbeingconclusiveevidenceofapartystitle.TheTorrenssystemprovidesthat

abonafidepurchaserforvaluefromaregisteredproprietorwhoentershistransfer intheregistershalltherebyacquireanindefeasibleright,notwithstandingtheinfirmityofhisauthorstitle.15TheTorrenssystemalsoprovidedforaStateguaranteeoftitlebackedbyaStatecompensationsystem

that, in specifiedcircumstancesprovidescompensation topartiesdeprivedof their interest in land16.

The essence of the State guarantee of title is not that the rightfulowner of landwho iswrongfully

deprivedofthat interest in landwillhave itreturned,butthattheywillbecompensatedfortheirloss.

Therighttorecovermonetarydamagesreplacingtheoldsystemrighttorecoverthelostland.17

TheTorrenssystemofregistrationexistingtodayinQueenslandisembodiedintheLandTitlesAct1994(LTA). The LTA incorporates the system first envisaged by Torrens as well as introducing other

methodsofprotectinginremandinpersonamrights(i.e.caveats).The

object

of

the

LTA

can

be

found

in

Section

3.

In

continuing

Torrens

work

of

simplification,

the

main

object of the LTA is to consolidate and reform the law about the registration of freehold land and

interestsinfreeholdland. Itisnothoweverconcernedaboutthemanagementanduseofthatfreehold

land,whichisdealtwithbyotherlegislation.18

10SeeConveyancingAct1919(NSW)Section53(1)astotheobligationstoshowtitlewithrespecttoOldsystem

landinNewSouthWales11

Butt,4th

edition,p.62012

A

term

applied

to

certain

commercial

cities

in

Germany

whose

famous

league

for

mutual

defence

and

commercialassociationbeganinacompactbetweenHamburgandLubeckin1241.13

RealPropertyAct1858(SA)14

laterSirRobert15

ThePrivyCouncilinGibbsvMesser[1891]AC248at25416

InQueenslandcontainedinPart8,Divsion2,SubdivisionCoftheLandTitleAct199417

MinisterforConservationandLandManagement,andMinisterforEnergy NSWLegislativeAssemblyHansard

atpage923018November199218

forexampleNatureConservationAct1992;EnvironmentalProtectionAct1988&IntegratedPlanningAct1997Page3of14


4/14

An interest in land is defined tobe a legal or equitable estate in land, or a right,power orprivilegeover,orinrelationto,theland.19 Section181providesthataninstrumentdoesnottransferorcreateaninterestinalotatlawuntilitisregistered.Whilst the separatedistinctparcelof land that isa lot iscreatedby the registrationofaplanor the

recordingof

an

instrument,

20

neither

alot

nor

an

interest

in

alot

is

created

by

the

LTA,

only

the

indefeasibletitletoalotiscreated.21 TheLTAbyregistrationoftitletoalotonlycreatesalegaltitleto

thatwhichisalreadyinexistenceaninterestinland. TheLTAthereforedoesnotpreventthecreation

of,ordealingin,anequitableinterestinalot.

ThecornerstoneofTorrensisindefeasibilityoftitleoftheregisteredproprietor.Whilstindefeasibilityof

title is acquired immediatelyupon registrationbeing effected,22 the general equitable rule regarding

competingclaims,beingquiprioresttempore,potiorestjure(ifthemeritsareequal,priorityintimeofcreationisconsideredtogivethebetterequity23),stillappliestounregistereddocuments.

Therefore until a document is registered there is no indefeasibility of title, only priority to become

registered.Further,indefeasibilityoftitleissubjecttoexceptions.

Indefeasibility of title is subject to impeachment under specified exceptions24 including fraud of the

registeredproprietor,theinterestofalesseeunderaleaseforthreeyearsorlessandanequityarising

from the act of the registeredproprietor. Further, if a statute imposes requirements as a condition

precedenttoacquiringtitle,thoseconditionsmustbefulfilledotherwisethattitlemaybesetaside.25

Tenure under the Land Act 1994

TheActisastatutorycode,whichauthorisesthecreationofinterestsin,dealingsinthoseinterests,and

themanagement

of,

unallocated

State

land

in

Queensland.

26

It

regulates

the

rights

and

obligations

of

both interestedpartiesand theState.Unlike theLTA, theActdoesnotcontainanyprovisiondealing

withthequalityoftheregistered interestscreated,i.e. itdoesnotgrant indefeasibilityoftitle.Neither

does itprovide foramethodof compensatingaparty for lossarising as a resultof thatpartybeing

deprivedoftheir interest inthe land.Howeverthe interests itcreatesarenotsubjecttoexceptions in

Section185oftheLTA.

Thepowerto leaseunallocatedStateLand(andtherebytocreatealease)isvested intheGovernor in

Council27.Thepowertoallowatransferofalease28andtocreateasublease29isvestedintheMinister

19Section

36

ActsInterpretationAct1954

20LandTitleAct1994Schedule2

21Ibid.,Section37

22BreskvarvWall(1971)126CLR376;FraservWalker[1967]1AC569

23LatecInvestmentsvHotelTerrigal(1965)113CLR265;KittoJat276

24LandTitleAct1994 Section184(3)andSection185foracompletelist

25LuguevShoalhavenShireCouncil[1979]1NSWLR537

26StateofQueenslandvLitz[1993]1QdR593atpage610

27LandAct1994 Section15

Page4of14


5/14

of the Department ofNatural Resources andMines.30 A Crown lease under the Act is a statutory

creaturepeculiartoQueensland.31

TheActcreatesinterestsinStatelandbyregistrationofdocumentsintheleaseregister.32Adocument

isnoteffectivetotransferaleaseorcreatealegalinterestinaleaseuntilitisregistered.33Whilstthe

terminology

is

similar

to

that

used

in

the

LTA

the

effect

is

not

the

same.

The

LTA

does

not

create

interestsbutrathercreatesa legal indefeasibletitlebyregistration. TheLTAalsodoesnotprohibitor

preventthecreationofinterestsinlandatequity.UndertheActhowever,aninterestonceregisteredis

a legal interestbutuntil registeredno interest is created and there isnoequitableprotection ifnot

registered before the Ministers approval lapses.34 Priority is granted to legal interests in order of

lodgementforregistration.35

TheinterestscreatedbytheActhoweverarenotcreationsofthecommonlaw36butrathercreaturesof

thestatutethatcreatedthem.37UndertheAct,nointerestsorrightsarerecogniseduntilregistrationis

effected38andthentheonlyrightsrecognisedarethoseprovidedfor,orcreatedby,theAct.Chapter6

ofthe

Act39

contains

the

provisions

relating

to

registration

of

and

dealings

in

those

interests.

Section283(2)provides thatalldocumentsaredeemed to formpartof the register from the timeof

lodgement,40asopposedtothetimeofregistrationundertheLTA.41Theeffectofregistration is that

the interest vests in the person identified in the document as the person entitled to the interest42

irrespectiveofwhethertheyhavegivenvaluableconsiderationfortheinterest.43Thereisnot,however,

anyprovision intheActdealingwiththequalityofthe interestcreateduponregistration.This istobe

contrastedwith section184of the LTA,bywhich indefeasibilityof title is conferredupon theperson

registered as the registeredproprietorof that interest.On theotherhand, thereexistexceptions to

indefeasibilityoftitleundertheTorrenssystemofregistration,whereastherearenoexceptionstothe

interestscreatedbytheAct.

28Ibid.,Section322

29Ibid.,Section332(1)(a);

30AstheMinisterwithportfolioresponsibilityforadministeringtheLandTitleAct1994

31ChrisBoge,(2007)RuralLeaseholdLandChangestotheLandAct1994(Q)aspartoftheStateRuralLeasehold

land Strategy, paper presented at LexisNexis Rural Masterclass Conference, 22 June 2007, p. 7

http://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%20Ju

ne%202007).pdf(viewed01/09/2009)32

LandAct1994Section27533

Ibid.,Section301;JansenvFrexbury[2008]ACA28634

KevroyPtyLtdvKeswickDevelopmentsPtyLtd[2009]QSC4935

Section

298(1)

LA

36WikPeoplesvQueensland(1996)141ALR129,GaudronJatp204

37Ibid.,KirbyJatp261

38HamiltonIslandEnterprisesLtdvCroycomPtyLtd(1998)QConvR54509

39LandAct1994,275to390(inclusive)

40Ibid.,section283(2)

41Ibid.,Section31

42Ibid.,Section302

43Ibid.,Section300

Page5of14
http://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%20June%202007).pdfhttp://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%20June%202007).pdfhttp://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%20June%202007).pdfhttp://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%20June%202007).pdf


6/14

Accordingly,theonlyintereststhattheActcreatesandrecognizesarelegalinterests.AsIsaacsJsaid,in

DaviesvLittlejohn44 Whateverestates, interestsorother rightsarecreatedby theCrownmustowetheiroriginandexistence to theprovisionsof the statute. Inotherwords, theyare statutoryor legalestates,interestsandrights. Theyarenotandcannotbeequitable.45

2. Balancing commercial and public interests

AsmentionedpreviouslytheprincipaltenetbehindthemanagementofstatelandinQueenslandisthe

effectivestewardshipof land.Tosomeextent therehasbeena rationalisationofstate land followingthe introduction of themost recent LandAct 1994 and decisions surrounding themost appropriatetenureforlandareverymuchgroundedinland/environmentalmanagementconsiderations.Section16

of the Land Act introduces the requirement that prior to allocation the landmust be evaluated to

determine themostappropriate tenure takingaccountState, regionaland localplanningpoliciesand

strategies,andtheobjectoftheAct.

Byvirtue

of

the

LandAct1994theStatecontrolsnearly71%ofQueensland.46Asestablishedthrough

theWik47decision thegrantingofa leasehold interest in state landdoesnotnecessarilygive rise to

exclusivepossession.Thispositioniscontrarytothelegalpositionincommercialleases.48Muchofthis

landisalsosubjecttodualusearisingfromalternative legallyrecognisedlandusessuchasnativetitle

andstateleasesforavarietyofagricultural,pastoral,miningandtourismpurposes.

Toadd to the complexityof landmanagement inQueensland is thegrowthof investment in carbon

sequestrationrights.The lawssurrounding investment incarbonsequestrationrightsare largelybased

onthecontractualarrangementsbetweenthepartiesandthere isanobviousapplicationofconsumer

protectionlegislationsuchastheTradePracticesAct1974(Cth).Beyondthis,istheissueofwhethertheexisting

system

of

land

tenure

is

Queensland

is

adequate

to

provide

security

to

those

commercial

investments.

Although thepositiondiffersbetween the various States andTerritories, carbon sequestration rights

overfreeholdlandinQueenslandareprotectedbyindefeasibilityoftitlethroughs184oftheLandTitleAct1994wherethecarbonsequestrationrightisconsideredasaninterestin land.Thesituation isnot

replicatedwherecarbonsequestrationrightsexistoverstateland.Inthissituationtheonlyoptionisto

view carbon sequestration rightsas apersonal rightenforced through the common lawprinciplesof

contract law. Alternatively, the carbon sequestration rights may be viewed as a profit a prendre

althoughtheyfalloutsideofthecurrentlegalunderstandingofwhataprofitaprendreentails,beinga

righttoremoveorharvestaresourcefromtheland,beitfloraorfauna.Onthecontrarythepurposeof

carbonsequestrationrightsisthatthevegetationremainsonthelandtoembodycarbondioxide.

44(1923)34CLR174atpages187 188

45DaviesvLittlejohn(1923)34CLR174,atp187

46DERMLandManagementhttp://nrw.qld.gov.au/land/state/index.html(viewed9October2009)

47WikPeoplesvQueensland(1996)141ALR129

48RadaichvSmith(1959)101CLR209

Page6of14
http://nrw.qld.gov.au/land/state/index.htmlhttp://nrw.qld.gov.au/land/state/index.html


7/14

According to section373Gof theLandAct1994 theMinistersapproval tograntand registrationarebothrequiredtocreatetheinterestinstate land.Theconceptualisationofcarbonsequestrationrights

asprofitsaprendre isdifficult tobring to realitydue to thecomplexitiesassociatedwitheachof the

state leases granted in Queensland and the specificity that leases be used solely for the purpose

granted.Foraprofitaprendre tobeappropriate theLesseemustownthe treesonthe landandthe

leasemust

permit

the

land

to

be

used

for

the

purpose

related

to

the

profit,

i.e.

for

timber

plantation.

OptionstorenewasubleaseofCrown land,donotformpartoftheregistered legalsubleaseasthey

arerequiredtobeapprovedbytheMinisterunderSection332anddonotobtain legalstatusuntilso

approvedandregistered.Assuch,arenotgrantedtheprotectiongrantedtoregisteredleasesunderthe

LTA.49

3. Interest in Crown land in New South Wales

The Torrens system of registration inNew SouthWales is embodied in the Real PropertyAct 1900(RPA)

and

since

1981

State

land

progressively

has

been

brought

within

the

RPA

registration

system.

50

Thismeansthattheregisteredholders(i.e.lessees)ofinterestsinNewSouthWalesStatelandhavethe

same protection and benefits as registered proprietors of freehold land, including indefeasibility of

title51andaccesstocompensationundertheTorrensassurancefund.52Thisincludescompensationfor

anylossordamagearisingoutofthelandshavingbeenbroughtundertheprovisionsoftheRPA.53

Part 3 of the RPA contains provisions specifically relevant to State land. Those provisions include a

mechanism for bringing perpetual leases and other State land interests under the RPA. Perpetual

leases, if all conditions have been complied with, are provided with an independent folio,54 the

equivalentofatitle.55 Inrespectofother interests,afoliomaybecreatedfirstlyfortheState land in

thename

of

TheStateofNewSouthWalesasproprietor,andthenthe interest isregisteredagainst

thatfolio. Iftheinterestisalease,afurtherfoliomaybecreatedinthenameofthelessee.56

Nevertheless, State land continues to be State land, irrespective of the creation of an indefeasible

title/s.57StatelesseesthereforeremainsubjecttotheprovisionsoftheCrownLandsAct1989(CLA).58AbreachbyalesseeofanyconditionsoftheCLArenderstheStateleaseliabletoforfeiture.59 TheCLA

specifies how interested parties may acquire an interest60 in State land, what activities they may

49ElsaftyEnterprisesPtyLtdvMermaidsCaf&BarPtyLtd[2007]QSC394[66]

50RealProperty(CrownLandTitles)AmendmentAct1980(NSW)introducedPart3

51Ibid.,Section42(1)

52RealPropertyAct1900(NSW)Part14

53Ibid.,Section129(1)(d)

54Ibid.,Section13B

55LandTitleAct1994(Qld)Section42

56RealPropertyAct1900(NSW)Section13D(3)

57CrownLandsAct1989(NSW)Section3(2)

58Section6

59CrownLandsAct1989(NSW)Part6

60Ibid.,Part4

Page7of14


8/14

conductonthe land,andhowtheymaydealwiththeir interest.61 Thepowerto leaseandconsentto

transfersofleasesvestsintheMinister.62

State land issubjecttoanassessmentbeforeany leaseisgrantedandtheobjects63andprinciples64of

theCLAarefollowedinmakingthatassessment.TheobjectsoftheCLAbeingtoensurethatStateland

ismanaged

for

the

benefit

of

the

people

of

New

South

Wales;

in

the

best

interests

of

the

State

and

consistentwiththestatedprinciples.Theoverallobjectivebeingtofacilitatesoundandefficientlanduse and management decisions that best meet the government and community needs for theremainingStatelands.65

The Department of Land and Water Conservation manages State land and its unit, Land NSW,

specificallyadministersState land. Registrationof interests66 intheTorrensregister,which iskeptby

theRegistrarGeneral,isundertakenbytheLandTitlesOffice.

Once it isdeterminedtograntaState lease,LandNSWundertakeacadastralsurveysandarrangefor

thecreationofRPA folios,one in thenameof theStateand theother in thenameof the lessee.On

registrationoftheStateleasethelesseeisgivenindefeasibilityoftitle.TheCLAcreatestheinterestfor

whichtheRPAthencreatesanindefeasibletitle.

InNewSouthWalesthereforewhilstinterestholdersinStatelandhavethebenefitsofindefeasibilityof

titleandaccesstoacompensationsystemasconferredby theTorrenssystemregistration,State land

remainssubjecttothesystemofmanagementandadministrationembodiedintheCLA.

4. Is something missing from the Land Act 1994?

Because the systemof registrationof interests inState land isnotaTorrenssystemof registration,67

doesthis

mean

that

the

Act

is

deficient

in

some

respect?

Itisnecessarytobearinmind,thatStateleasesandotherinterestscreatedundertheActarecreatures

ofstatute.Assuchordinarygenerallawprinciples,whichmayapplytodealingsinTorrenssystemland,

tothebenefitof lessees,maynotapplyto interestsundertheAct.Conversely, inotherareasauthors

arguethatthegenerallawhas,inasense,agreaterroletoplayunderthe[Act]thatunderthe[LTA](Boge,2009)

It is suggested68 that the provisions in the Act,which confer similar rights to those granted by the

TorrenssystemaresuggestiveofanabsenceofallTorrenstypeandequitablerights,because ifthose

61Ibid.,Part3

62Ibid.,Sections34and38(a)

63Ibid., Section10

64Ibid., Section11

65LandNSWLandAssessment,DevelopmentApprovals&NativeTitle

66RealPropertyAct1900(NSW)Section32

67ElsaftyEnterprisesPtyLtdvMermaidsCaf&BarPtyLtd[2007]QSC394

68Boge[15.26]p173

Page8of14


9/14

rightsappliedtointerestsundertheAct,whyisitnecessarytorepeatthem?ItisnecessaryfortheAct

toconferthoserightsspecificallybecausethegenerallawdoesnotapplytoStateleasesandtherefore

theywouldnototherwiseexist.69

AsGummowJsaidinWik70thestatutemayappeartohaveadoptedgenerallawprinciplesintruththe legislaturehasdone soonlyonparticular terms.71Unlike thegeneral law leases,whereequitygrantscertainrightstoprospectivetransfereesandlessees,dealingswithlandunderthepreviousact72

didnotattractanything likeprotectionofdealingsunder theTorrens system.73Thispositionhasnot

alteredundertheAct.NorightsareconferredundertheActuntilregistrationiseffectedandthenonly

instrictaccordancewiththeprovisionoftheAct.

Asstatedearliertheonly interests,andthereforetheonlyrights,createdbytheActare legaloneson

registration. Equitable rights do not exist in relation to State land, nor does theAct create them.74

Therefore,forexample,ifthepartiesdonotcomplywiththerequirementtoobtainMinisterialconsent

toaproposedtransferofalease,thereisnopassingateitherlaworequityofanyestateorinterestin

theland.75

DoesTorrensprovidebetterprotection to interestholders?Toprovide an answer, it isnecessary to

examinetheprotectionaffordedbyequitytoabonafidepurchaserforvalueofTorrenslandasopposed

tothatprovidedtoavolunteer.

InrespectofagiftofTorrensland,ithasbeenheldthat,ifforanyreason,thetransferofthelegaltitleis

incomplete (eitherbecauseaprescribedmethodoftransferhasnotbeenfollowedorregistrationhas

notoccurred),equitywillnotenforcethegift.Thisisirrespectiveofthefactthatthetransferorhasdone

allhecantoconferit.76

However,apurchaser

for

value

under

the

terms

of

the

contract

for

purchase

of

Torrens

system

land

can,iftheobligationtotransferhasarisen(i.e.allconditionsofthecontracthavebeensatisfied)obtain

an order for specific performance of the contract77 and thus become registered on the title as the

registeredproprietor.Thisisirrespectiveofwhetheratransferhasbeenexecuted.Therefore,inrespect

of gifts of Torrens land, registration is necessary to perfect the gift. Without registration of the

documentsnecessary to transfer the interest, thegift is ineffective.However, ifall that iswanting is

registration itselfandalldocumentsare inorder,equitymayprovide thatatrust forthegiftarises in

69Boge[15.26]p173

70WikPeoplesvQueensland(1996)141ALR129

71Ibid.,atp242

72LandAct1962

73BeardvWratislaw[1993]2QdR494,McPhersonSPJatp500

74DaviesvLittlejohn(1923)34CLR174,atp187

75RoachvBickle(1915)20CLR663,at670671

76AnningvAnning (1907)4CLR1049;BrunkervPerpetualTrusteeCoLtd(1937)57CLR555perDixon J;Corinv

Patton(1990)169CLR549perBrennanJ77

PiantavNationalFinance&TrusteesLtd(1964)38ALJR232Page9of14


10/14

favourofthevolunteertohavethetransactioncompleted.78Itissubmittedthatsuchatrustwouldbe

sufficientgroundsforavolunteerto lodgeacaveattoprotecttheir interestwhilsttakingcourtaction.

Further,section183providesthatupon lodgement forregistration, ifthedocumentsare inorder the

Registrarmustregister.

Underthe

Act

ifthe

Ministers

consent

was

obtained,

and

any

other

conditions

of

the

sale

were

satisfied, it is submitted that thepurchaser alsohas a right79 to require theRegistrar to register its

transferintheleaseregister.Nevertheless,undertheAct,withouttheMinistersconsent,nointerestis

conferredonthepurchaser80andthereforenoobligationtotransferariseswhichcouldbeenforcedby

anorder for specificperformance.Therefore if theMinisterialconsent is lackingaprospective lessee

(whether avolunteeror for consideration)hasnopower toenforce registration.81Nor,as the rights

createdarelegalrightsonly,doestheprospectivelesseehaveanyprotectionatequityorabilityunder

theActtolodgeacaveattoprotectitsinterests.

IfMinisterial consent is obtained, but the transferee fails to lodgewithin the required sixmonths82

whilstthe

purchaser

may,

as

against

the

registered

lessee

vendor

be

the

beneficial

owner

of

the

lease

interest83,neverthelessasagainsttheStatetheyhavenothing.Withoutregistrationof,orat leastthe

grantingofMinisterialconsentto,thetransferthepurchaserisnotalesseeandhasnorightsorbenefits

undertheActandisunabletoinsistuponregistrationbeingaffected.

Nooneshouldbearbitrarilydeprivedoftheirproperty,84anditissubmittedthatifapersonisdeprived

of their property, then they should be compensated. It has been suggested that the absence of a

compensation system from theAct is a further indicationof a deliberate intention that the Torrens

systemof registrationdoesnotapply toState land.85Thismightbeso;however itmightalsobeasa

resultof a policy decisionmade separately andwithout any consideration of the Torrens system of

registration.

TheAct is a code,which regulates creation anddealings in leases. Asdiscussedearlier, a failure to

complywithaconditionprecedentintheActregardingacquiringtitle,(i.e.obtainingMinisterialconsent

toatransfer)meansthatthetitleacquiredmaybesetaside.86Therefore,eveniftheinterestholders

ofState landweregiven indefeasibilityoftitle, ifthose interestsremainedsubjecttotheprovisionsof

theAct,a failure to complywitha conditionprecedentwouldmean thatno indefeasibilitywouldbe

78ReRose;RosevIRC[1952]Ch499

79LandAct1994Section295

80McWilliamvMcWilliamsWinesPtyLtd(1964)114CLR656

81BrownvHeffer(1967)116CLR344

82LandAct1994Section322

83SouthernPacificHotelCorpEnergyPtyLtdvSwanResources(unreported,SupremeCourtofWesternAustralia,

BrinsdenJ,27July1981)84

Article17.2oftheUniversalDeclarationofHumanRights85

Boge,301.3Ap914/286

LuguevShoalhavenShireCouncil[1979]1NSWLR537Page10of14


11/14

conferred.The registration couldbeoverturned and it is suggested, as thepartyhadno right tobe

registeredinthefirstplace,nocompensationwouldbepayable.

However,whatwouldoccuriftheregisteredproprietorhadforgedtheconsentandbysomemeans87a

transfertoan innocentthirdpartyhadregistered?InthisinstanceitissubmittedthattheStatewould

beable

to

overturn

the

registration

of

the

bona

fide

purchaser

for

value

because

the

Minister

did

not

in

factgivetheconsent. Theinnocentthirdpartywhilstdeprivedoftheir interestinthelandwouldonly

beabletotakeactionagainstthelessee/seller.UnderTorrenshowever,theinnocentthirdparty,whilst

itmaynotbeabletoattainregistration,maybeentitledtocompensationforitsloss.

However, if compensation were to be payable under the Act, then in circumstances similar to

Walsteam88theStatemightfindthat,eventhoughnoleasedocumentswereexecuted,itwasliableto

pay compensation. Where the Governor in Council does not grant a lease where the State or the

Departmenthadpreviouslyrepresentedthataleasewouldbegranted,itmightbeabletobesuggested

that theprospective lessee isdeprivedof its interest. Where thatprospective lesseehadexpended

moneyon

works

and

structures,

the

State

may

be

liable

to

pay

compensation,

not

directly

as

a

consequenceofitsactions,butthroughthecompensationschemeasaconsequenceoftheprospective

lesseeslossesarisingthroughthedeprivationofinterest.

UndertheActwhilsttheRegistrarhasthepowertocorrectmistakes,89thereisnomethodforapartyto

be compensated for any loss arising from such a mistake. Torrens compensation however is also

availablewherelossarisesthroughamistakeoccurringintheRegister.IftheRegistrymakesamistake

then it is submitted that they should take responsibility for thatmistakeand thataparty shouldnot

sufferlossbecauseofit.Intheeraofincreasedemphasisonconsumerprotectionconsiderationshould

begiventointroducingStatelesseestothebenefitsoftheTorrenscompensationfund.

5. Conclusion

ThesignificanceofthetreatmentofCrown(State)landinQueenslandisevidentduetotheStateshuge

land holdings. State land inQueensland ismanaged by the LandAct 1994 and is not protected bycommon law notions of infeasibility of freehold title which have been embodied in Queensland

legislation.90SimilarlyaccesstotheStatutoryAssuranceFundofferedtothosedispossessedoffreehold

landinterestsisnotappliedtointerestsinCrownland.

ThetreatmentofCrownlandinQueenslandhasbeeninformedbythestateshistoryandgeographybut

arguably

is

ill

equipped

to

deal

with

new

interests

in

land

such

as

those

arising

out

of

trade

in

carbon

sequestration rights.An attempthasbeenmade toalign such rightswith theexistingandpossibility

87AdmittedlyanunlikelyscenarioasitistheTitlesOfficewhichalsoarrangestheMinisterialconsenttobegiven,

howeverusedherefordiscussionpurposes.88

WalsteamPtyLtdvTheStateofQueensland(unreported,SupremeCourtofQueensland,HortonSM,29May1990)89

LandAct1994Section29190

Section184LandTitleAct1994(Qld)Page11of14


12/14

antiquated common law notions such as the profit a prendre considered within the existing landmanagementframework.Theeffectivenessofthisasaresolutionoftheissuesisquestionable.

Thetreatmentofthesenewpropertyrightsarguablyrequiresareconceptualizationofpropertyrights

to ensure that the interests of investors are adequately protectedwhilst ensuring land ismanaged

effectivelyin

Queensland.

Policy

development

however

takes

time

as

the

consultation

process

necessarily involvesavarietyofparties includinggovernmentministers,andpublicservants,aswellas experts such as academics and others in the community91 so that the developed policies arebuiltuponconsistentprinciplesandunderpinnedbyenduringvalues.92Policydevelopmentshouldinvolveallrelevantpartiesandfollowaclearframeworkthatisimplemented

rigorouslybutsystematically.93Auseful framework is thatasadaptedbyEdwards from theBridgman

andDavismodel.Thatisapolicydevelopmentframework94thatutilisesthefollowingstages: Identifyissues

o Problemdefinedo Problemarticulated

Policyanalysiso Collectrelevantdataandinformationo Clarifyobjectivesandresolvekeyquestionso Developoptionsandproposals

Undertakeconsultation Movetowardsdecisions Implement Evaluate

Aresolutionoftheissuesidentifiedwillnotbedevelopedovernightasanychangetothecurrentregime

will require consultation bothwithin andwithout government to ensure appropriate input from all

stakeholders.Asastartingpointgovernmentwillneedtoreviewexistingpolicytoensurethatthere is

developedanappropriateframeworkforthefuturebothofsequestrationrightsandthemanagement

ofCrown land.Once theappropriatepolicy isdeterminedonly then canamendments to theexisting

regulatoryregimebecontemplated.

91MeredithEdwards (2001) SocialPolicy,PublicPolicy:Fromproblem topractice (Allen&Unwin,CrowsNest,

NSW)p.192

Centre forPolicyDevelopment, ReclaimingourCommonwealth:Policies for a Fair and Sustainable Future,

CommonSensePaperNo1,June2006,ISSN18350070(http://cpd.org.au)(accessed15July2008)93

MeredithEdwards (2001) SocialPolicy,PublicPolicy:Fromproblem topractice (Allen&Unwin,CrowsNest,

NSW)p.394

MeredithEdwards (2001) SocialPolicy,PublicPolicy:Fromproblem topractice (Allen&Unwin,CrowsNest,

NSW)p.4

Page12of14


13/14

ReferencesChrisBoge,(2007)RuralLeaseholdLandChangestotheLandAct1994(Q)aspartoftheStateRuralLeasehold

land Strategy, paper presented at LexisNexis Rural Masterclass Conference, 22 June 2007

http://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%

20June%202007).pdf(viewed01/09/2009)

ChrisBoge(2009)WhenTenureMatters SomeDifferencesBetweenFreeholdandStateLeaseholdLandRelating

toRegistration

delivered

at

the

LexisNexis

5th

Annual

Property

Law

Masterclass,

Marriott

Hotel,

Brisbane,

20

February2009.

PeterButt,LandLaw,5th

Ed(ThomsonLawbookCo.2006)

Centre for Policy Development, Reclaiming our Commonwealth: Policies for a Fair and Sustainable Future,

CommonSensePaperNo1,June2006,ISSN18350070

DepartmentofNaturalResources,HandbookofLandPlanningGuidelinesPartGDERMLandManagementhttp://nrw.qld.gov.au/land/state/index.html(viewed9October2009)

MeredithEdwards(2001)SocialPolicy,PublicPolicy:Fromproblemtopractice(Allen&Unwin,CrowsNest,NSW)

LandNSWLandAssessment,DevelopmentApprovals&NativeTitle

MinisterforConservationandLandManagement,andMinisterforEnergy NSWLegislativeAssemblyHansardat

page923018November1992

QueenslandGovernmentDepartmentofEnvironmentandResourcesManagementLandManagement

http://www.nrw.qld.gv.au/land/state/index.html[viewed

8October

2009]

UniversalDeclarationofHumanRights

CasesAnningvAnning(1907)4CLR1049BeardvWratislaw[1993]2QdR494BonevMothershaw[2003]2QdR600BreskvarvWall(1971)126CLR376BrownvHeffer(1967)116CLR344BrunkervPerpetualTrusteeCoLtd(1937)57CLR555CorinvPatton(1990)169CLR549CudgenRutile(No2)PtyLtdvChalk[1975]AC520DaviesvLittlejohn(1923)34CLR174ElsaftyEnterprisesPtyLtdvMermaidsCaf&BarPtyLtd[2007]QSC394[66]FraservWalker[1967]1AC569GibbsvMesser[1891]AC248at254HamiltonIslandEnterprisesLtdvCroycomPtyLtd(1998)QConvR54509JansenvFrexbury[2008]ACA286KevroyPtyLtdvKeswickDevelopmentsPtyLtd[2009]QSC49LatecInvestmentsvHotelTerrigal(1965)113CLR265LuguevShoalhavenShireCouncil[1979]1NSWLR537McWilliamvMcWilliamsWinesPtyLtd(1964)114CLR656PiantavNationalFinance&TrusteesLtd(1964)38ALJR232RvHughes(1866)LR1PC81RadaichvSmith(1959)101CLR209RoachvBickle(1915)20CLR663ReRose;RosevIRC[1952]Ch499SouthernPacificHotelCorpEnergyPtyLtdvSwanResources(unreported,S.CrtofW.A.,BrinsdenJ,27July1981)StateofQueenslandvLitz[1993]1QdR593WalsteamPtyLtdvTheStateofQueensland(unreported,S.CrtofQueensland,HortonSM,29May1990)WikPeoplesvQueensland(1996)141ALR129

Page13of14
http://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%20June%202007).pdfhttp://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%20June%202007).pdfhttp://nrw.qld.gov.au/land/state/index.htmlhttp://www.nrw.qld.gv.au/land/state/index.htmlhttp://www.nrw.qld.gv.au/land/state/index.htmlhttp://nrw.qld.gov.au/land/state/index.htmlhttp://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%20June%202007).pdfhttp://www.queenslandstatelands.info/State%20Rural%20Leasehold%20Land%20Strategy%20Paper%20(22%20June%202007).pdf


14/14

Page14of14

LegislationActsInterpretationAct1954ConstitutionAct1867(Qld)ConveyancingAct1919(NSW)CrownLandsAct1989(NSW)EnvironmentalProtectionAct1988IntegratedPlanningAct1997LandAct1994(Qld)LandTitleAct1994(Qld)LandAct1962(NSW)NatureConservationAct1992RealPropertyAct1858(SA)RealPropertyAct1900(NSW)RealProperty(CrownLandTitles)AmendmentAct1980(NSW)UniversalDeclarationofHumanRights

cradduck dealing with unique interests crown land

Documents