-
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
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] -
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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
-
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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
-
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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
-
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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 -
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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 -
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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
-
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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
-
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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
-
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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
-
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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
-
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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
-
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
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 -
7/30/2019 Cradduck Dealing With Unique Interests Crown Land
14/14
Page14of14
LegislationActsInterpretationAct1954ConstitutionAct1867(Qld)ConveyancingAct1919(NSW)CrownLandsAct1989(NSW)EnvironmentalProtectionAct1988IntegratedPlanningAct1997LandAct1994(Qld)LandTitleAct1994(Qld)LandAct1962(NSW)NatureConservationAct1992RealPropertyAct1858(SA)RealPropertyAct1900(NSW)RealProperty(CrownLandTitles)AmendmentAct1980(NSW)UniversalDeclarationofHumanRights