MLL327

Property Law

Table of Contents

TOPIC 1.1 Meaning of “Property’, Justification of Private Property and Sources of Property Law ................................................................................................................................11

Meaning of ‘Property’ ............................................................................................................. 11

(a) Definition of ‘Property’ according to its Features ........................................................... 12 Features of Property..................................................................................................................................... 14 Millirrpum v Nabalco.................................................................................................................................... 14 Mabo v State of QLD (No 2) ......................................................................................................................... 15

(b) ‘Property’ defined with reference to its Content ............................................................. 15 Bundle of Sticks Metaphor ........................................................................................................................... 16

(c) ‘Property’ defined as a Relationship .................................................................................. 16 Yanner v Eaton (HC) ..................................................................................................................................... 17

(d) Private Law Right and (e) Public Law Right .................................................................... 18

Preliminary Findings ................................................................................................................ 19

Justification of Property ........................................................................................................... 19

Sources of Property ................................................................................................................. 20

TOPIC 1.2 New Forms of ‘Property’, Virtual Property and Resources Incapable of Ownership ......................................................................................................................21

New Forms of Property ............................................................................................................ 21

Virtual Property ...................................................................................................................... 21

Sources Outside Private Ownership........................................................................................... 21 (a) Natural Resources .............................................................................................................................. 22 (b) Resources Capable of Ownership – Rights to a Spectacle .................................................................. 22 Victoria Park Racing v Taylor (1937) ............................................................................................................ 22

Common Heritage of Humankind ............................................................................................. 23

(c) Moral Boundaries ........................................................................................................... 23 Moore v Regents of Uni California ............................................................................................................... 24

Organ Donation ...................................................................................................................... 25

TOPIC 1.3 Distinction between Property Rights and Contractual Rights and the Classification of Property ................................................................................................26

Property Right ........................................................................................................................ 26

Contractual Right (or personal right) ........................................................................................ 26

Distinction between a Lease and a Licence ................................................................................ 26 Cowell v Rosehill Racecourse Co Ltd (HC) ..................................................................................................... 27

Summary ................................................................................................................................ 28

Classification of Property ......................................................................................................... 29

TOPIC 1.4 TDR Air Rights/Transfer Development Rights and Carbon Sequestration Rights30

TDR: USA ................................................................................................................................ 30

Property Right? ....................................................................................................................... 30

Carbon Sequestration Right ..................................................................................................... 31

TOPIC 2.1 PERSONAL PROPERTY AND FIXTURES ..............................................................32

Classification of Property According to the Nature of the Object ................................................. 32 (a) Real Property ...................................................................................................................................... 32 (b) Personal Property ............................................................................................................................... 32 (c) Leases: Chattels Real .......................................................................................................................... 33

Historical differences between Real and Personal Properties ...................................................... 33

Personal Property Security Act (2009) ....................................................................................... 33

Doctrine of Fixtures ................................................................................................................. 34 Relevance ..................................................................................................................................................... 35 Tests ............................................................................................................................................................. 35 (1) Degree of Annexation ......................................................................................................................... 35 Factors determining Degree of Attachment ................................................................................................. 36 (1) Object of Annexation .......................................................................................................................... 36 Factors determining Object of Annexation .................................................................................................. 37 Leigh v Taylor ............................................................................................................................................... 37 Re Whaley .................................................................................................................................................... 37 Norton v Dashwood ..................................................................................................................................... 38 Intention ....................................................................................................................................................... 38 Elitestone v Morris ....................................................................................................................................... 38

Rights of Third Parties ............................................................................................................. 39 Metal Manufacturer Ltd v FCT ..................................................................................................................... 40 Statutory Protection of Third Parties............................................................................................................ 41 Fixtures and the PPSA .................................................................................................................................. 42

TOPIC 2.2 POSSESSION AND TITLE ...................................................................................43

Definition of Possession ........................................................................................................... 43

Object of Possession ................................................................................................................ 43 Doodeward v Spence .................................................................................................................................... 43 Roblin v Public Trustees for ACT ................................................................................................................... 44 GLS v Russel Weisz ....................................................................................................................................... 44

Methods of Acquisition of Possession........................................................................................ 44

Bailment ................................................................................................................................ 45

Lost Goods ............................................................................................................................. 46 Armory v Delamirie ...................................................................................................................................... 46 Hannah v Peel .............................................................................................................................................. 46

Finders Keepers Rule ............................................................................................................... 46 Waverley Borough Council v Fletcher QB ..................................................................................................... 47

Consequences of Possession..................................................................................................... 48

Enforceability of Possession Against OWNER ............................................................................. 48

Enforceability of Possession Against SUBSEQUENT POSSESSOR ................................................... 48

Competition between Possessory Title Holders .......................................................................... 49

Divisibility of Possession: Asher v Whitlock ................................................................................ 49 Asher v Whitlock .......................................................................................................................................... 49

Acquisition of Possessory Title by Compulsory Acquisition: Perry v Clissold ................................... 50 Perry v Clissold ............................................................................................................................................. 50

Jus Tertii Defence (Right of a Third Person) ................................................................................ 50

Costello v Chief Constable of Derbyshire Constabulary ................................................................................ 51

TOPIC 3.1 Adverse Possession .........................................................................................53

Principle of Limitation.............................................................................................................. 53 JA Pye (Oxford) v Graham (HL) ..................................................................................................................... 53

Adverse Possession Meaning.................................................................................................... 54 Factual Control ............................................................................................................................................. 56 Requisite Intention to Possess (animous possidendi) ................................................................................... 60 Limitation Period .......................................................................................................................................... 62 Whittlesea City Council v Abbatangelo (VSCA) ............................................................................................. 63 Erroneous Belief ........................................................................................................................................... 64

TOPIC 3.2 Adverse Possession: Continuous and Uninterrupted Possession ........................65

Continuous Uninterrupted Possession ....................................................................................... 65 Kierford Ridge Pty Ltd v Ward ...................................................................................................................... 65

Against Which Owner .............................................................................................................. 66

Expediting Adverse Possession Period against Future Title Holders .............................................. 66

Adverse Possession against Lesser Interest ................................................................................ 67

Crown Land ............................................................................................................................ 68 Limitation of Actions Act 1958, s 7B ............................................................................................................ 68

Interruption of Adverse Possession ........................................................................................... 69

Disability and Fraud (Extension) ............................................................................................... 69 Limitation of Actions Act 1958, s 23(1) ........................................................................................................ 71

Consequences of Adverse Possession ........................................................................................ 71

Consequences of Adverse Possession under Torrens ................................................................... 71

Procedural Aspects .................................................................................................................. 72

Adverse Possession and Human Rights...................................................................................... 72 JA Pye (Oxford) Ltd v United Kingdom ([2005] 3 EGLR 1 ............................................................................. 72

Answer Plan (CB 4.25) ............................................................................................................. 74

TOPIC 4 Doctrine of Tenure .............................................................................................75

History ................................................................................................................................... 75

Meaning of Tenure .................................................................................................................. 75

Doctrine of Tenure .................................................................................................................. 76

Tenure Reform ........................................................................................................................ 76

Doctrine of Tenure distinguished from Allodial Title and Doctrine of Estates ................................ 77

Principles of Settlement ........................................................................................................... 77

Adoption of Feudal Tenure ....................................................................................................... 78 Australian Land Tenure ................................................................................................................................ 78 Case Law ...................................................................................................................................................... 79 Scotland ....................................................................................................................................................... 79

Accommodation of Native Title ................................................................................................ 79 Mabo v QLD (1) ............................................................................................................................................ 80 Mabo v QLD (2) ............................................................................................................................................ 80 (a) Indigenous Possession ........................................................................................................................ 81

(b) Rejection of Feudal Tenure System ..................................................................................................... 81 (c) Rejection of Enlarged Terra Nullius Doctrine ...................................................................................... 81 (d) Radical (Root) Title (Ultimate Title) .................................................................................................... 82

Radical Title ............................................................................................................................ 82

Summary ................................................................................................................................ 83

Remaining Features of Doctrine of Tenure ................................................................................ 84

TOPIC 5.1 NATIVE TITLE...................................................................................................85

Native Title ............................................................................................................................. 85 Examples ...................................................................................................................................................... 85 Pre-Mabo ..................................................................................................................................................... 85 Milirrpum v Nabalco .................................................................................................................................... 85 Mabo Cases .................................................................................................................................................. 86 Mabo v Qld (1) ............................................................................................................................................. 86 Mabo v Qld (2) ............................................................................................................................................. 87

Revisiting Sovereignty Assumptions .......................................................................................... 87

Radical Title ............................................................................................................................ 87

Nature of Native Title .............................................................................................................. 88

Features of Native Title............................................................................................................ 90

Extinguishment ....................................................................................................................... 91

Summary of Conclusion on Native Title Mabo (2) ....................................................................... 91

Establishing Native Title: Section 223(1) NTA............................................................................. 91

Establishing Native Title ......................................................................................................... 92 Yorta............................................................................................................................................................. 93 Yorta Aboriginal Community Victoria .......................................................................................................... 94 Bennel v State of WA [2006] FCA 1243 ....................................................................................................... 95 Bodney v Bennel [2008] FCAFC 63 ............................................................................................................... 95 Intersection of Native Title and Regulatory Acts .......................................................................................... 96 Yanner v Eaton ............................................................................................................................................. 97

TOPIC 5.2 EXTINGUISHMENT OF NATIVE TITLE.................................................................98

Termination of Native Title ...................................................................................................... 98

Extinguishment ....................................................................................................................... 98

Forms of Extinguishment ......................................................................................................... 98

Non-Extinguishment ................................................................................................................ 99

Legislative Powers with Regard to Native Title ........................................................................... 99

Susceptible to Destruction ..................................................................................................... 100 Fejo v Commonwealth ............................................................................................................................... 100 Wik Peoples v Queensland ......................................................................................................................... 101 WA v Ward (HCA) ...................................................................................................................................... 103 WA v Brown (HCA) ..................................................................................................................................... 105

TOPIC 5.3 NATIVE TITLE ACT 1993 (Cth) ......................................................................... 108

Native Title Act 1993 ............................................................................................................. 108

Recognition of Native Title ..................................................................................................... 108

Determination of Native Title (s 225) ...................................................................................... 108

Public Registers ..................................................................................................................... 109

Validation of Past Acts........................................................................................................... 109

Intermediate Acts ................................................................................................................. 109

Compensation Under Native Title Act ..................................................................................... 110

Future Acts ........................................................................................................................... 111

Indigenous Land Use Agreements (ILUA) ................................................................................. 111

TOPIC 6.1 Doctrine of Estates ........................................................................................ 113

Doctrine of Estates ................................................................................................................ 113

Estates ................................................................................................................................. 113 Freehold Estates ......................................................................................................................................... 114

Doctrine of Equitable Waste .................................................................................................. 118

Statutory formalities for Creating an Estate: (a) Writing ........................................................... 118

Statutory formalities for Creating an Estate: (b) Deed ........................................................... 118

Statutory Requirements ....................................................................................................... 119

Torrens System .................................................................................................................... 119

Nemo dat quod non habet rule ............................................................................................. 120

Vested and Contingent Interests ........................................................................................... 120

Conditional Interests (Condition Subsequent) ........................................................................ 121

Determinable Limitation ...................................................................................................... 122

Distinction ........................................................................................................................... 122 Importance of Distinction ........................................................................................................................... 123 Zapetal v Wright ........................................................................................................................................ 123

Summary ............................................................................................................................. 123

Exam Plan ............................................................................................................................ 124

TOPIC 6.2 Doctrine of Estates Continued… ..................................................................... 125

Future Interests .................................................................................................................... 125

Contingent Legal Remainder Interest ...................................................................................... 125

Restraint Against Alienation ................................................................................................... 126

Policy ................................................................................................................................... 127 Hall v Busst ................................................................................................................................................. 128 Nullagine Investments Pty Ltd v WA Club Inc ............................................................................................. 128 Elton v Cavill ............................................................................................................................................... 129

Collateral Purpose ................................................................................................................. 129

Conclusion ............................................................................................................................ 130

TOPIC 6.3 Doctrine of Estates: Rule Against Perpetuities................................................ 131

Background .......................................................................................................................... 131

Perpetuities Period ................................................................................................................ 131

TOPIC 7.1 Leases ........................................................................................................... 132

Introduction ......................................................................................................................... 132

Lease ................................................................................................................................... 132

Historical Development ......................................................................................................... 133

Character of Lease ................................................................................................................ 133

Essential Elements ................................................................................................................ 134

Different Forms of Leases ...................................................................................................... 134 Fixed Term Lease ........................................................................................................................................ 134 Periodic Tenancy ........................................................................................................................................ 135 Tenancy at Will .......................................................................................................................................... 135 Tenancy at Sufferance ................................................................................................................................ 136

Requirements for the Creation of Leases ................................................................................. 136 (a) Statutory Formalities ........................................................................................................................ 137 (b) Exclusive Possession ......................................................................................................................... 137 Radaich v Smith (HC) .................................................................................................................................. 138 Street v Mountford [1985] AC 809 ............................................................................................................. 139 Swan v Ueker and Greaves ......................................................................................................................... 139 (c) Certain in Duration ........................................................................................................................... 141

Examples .............................................................................................................................. 143

Equitable Lease ..................................................................................................................... 144 Walsh v Lonsdale........................................................................................................................................ 144 Chan v Cresdon .......................................................................................................................................... 144 Crown Melbourne Limited v Cosmopolitan Hotel (Vic) Pty Ltd (HCA) ......................................................... 145

Right to Assign or Sub-Lease .................................................................................................. 146 Assignment and Sublease........................................................................................................................... 147 Sublease ..................................................................................................................................................... 147

Privity of Contract ................................................................................................................. 148

Privity of Estate ..................................................................................................................... 148

Relevance of Distinction between Privity of Contract and Privity of Estate .................................. 149

TOPIC 7.2 Leases CONTINUED ....................................................................................... 150

Usual Covenants ................................................................................................................... 150

Implied Common Law Covenants ............................................................................................ 150 (1) Duty of Reasonable repair by Landlord ............................................................................................ 150 (2) Duty to Exercise Reasonable Care by Landlord ................................................................................. 151 Duty of Care............................................................................................................................................... 151 (3) Implied Covenant to Provide Tenant with Quiet Possession ............................................................. 152 (4) Implied Covenant of Non-Derogation from Grant by Landlord ........................................................ 153 (5) Implied Covenant to use Premises in a Tenant-Like Manner by Tenant ........................................... 153 (6) Implied Duty by Tenant not to Commit Waste ................................................................................. 153 (7) Implied Duty of Tenant to Yield up Possession at End of Lease ........................................................ 154

Express Contractual Duties .................................................................................................... 154

Statutory Leases ................................................................................................................... 154 Covenants Implied by Statute .................................................................................................................. 154

Termination of Lease ............................................................................................................. 155

Remedies for Breach of Contract ............................................................................................ 155

Forfeiture ................................................................................................................................................... 156 Progressive Mailing House v Tabali Pty Ltd ................................................................................................ 156 Repudiation ............................................................................................................................................... 157 Chan v Cresdon .......................................................................................................................................... 157

Hybrid Nature of a Lease ....................................................................................................... 158

Tenants Fixtures.................................................................................................................... 158 Section 154A Property Law Act 1958 (Vic) ............................................................................................... 158

TOPIC 8.1 Equitable Interests - TRUSTS .......................................................................... 159

Historical Background ........................................................................................................... 159

Trusts ................................................................................................................................... 161 Trustee and Beneficiary ............................................................................................................................ 162 Trust ........................................................................................................................................................... 162 DKLR Holdings CO Pty Ltd v Commissioner of Stamp Duties ...................................................................... 162 Interest of Beneficiary............................................................................................................................... 163

Types of Trusts ...................................................................................................................... 163 Express Trust ............................................................................................................................................. 164 Duties of Trustees ..................................................................................................................................... 166 Rights of Beneficiaries .............................................................................................................................. 166 Resulting Trust .......................................................................................................................................... 166 Calverley v Green ....................................................................................................................................... 168 Presumption of Advancement/Gift .......................................................................................................... 169 Remedial Constructive Trust ..................................................................................................................... 170 Muschinski v Dodds .................................................................................................................................... 170 Baumgartner v Bumgartner (HC) ............................................................................................................... 171 Requirements for Remedial Constructive Trust ....................................................................................... 172 Giumelli v Giumelli ..................................................................................................................................... 172 Institutional Constructive Trust ................................................................................................................ 173 Institutional Constructive Trust: Sale ....................................................................................................... 173 Tanwar Enterprises v Cauchi ...................................................................................................................... 174 Westdeutsche Landesbank Girozentrale v Islington London Borough Council ........................................... 174

TOPIC 8.2 Equitable Interests – OTHER EQUITABLE INTERESTS ....................................... 175

Other Equitable Interests in Land............................................................................................ 175

Equitable Interests ................................................................................................................ 176

Development of Equitable Interest.......................................................................................... 176

Difference between Common Law and Equity .......................................................................... 176

Pre-conditions for creating an Express Trust ............................................................................ 177 Formality Requirements for Equitable Interests ...................................................................................... 177 Section 53 of PLA 1958 (Vic) ..................................................................................................................... 177 Summary: Formality Requirements for Express Trusts............................................................................ 178

Doctrine of Part Performance................................................................................................. 178

Enforcement of Equitable Interests ......................................................................................... 180 Mere Equities ............................................................................................................................................ 180 Latec Investments v Hotel Terrigal ............................................................................................................. 182 Character of Mere Equity with Reference to its Operation ..................................................................... 183 Hierarchy of Interests ............................................................................................................................... 184

TOPIC 9 Easements ....................................................................................................... 185

Natural Rights ...................................................................................................................... 185

Nature of Easements ............................................................................................................. 185

Example ............................................................................................................................... 186

Positive or Negative Easement ............................................................................................. 186

Substantive Requirements for a Valid Easement ................................................................... 187 Dominant and Servient Tenement ........................................................................................................... 187 Easement must Accommodate Dominant Tenement .............................................................................. 188 Dominant and Servient Owners must be Different ................................................................................. 191 Right must be Capable of Forming Subject Matter of a Grant ............................................................... 191

Right of Amusement ............................................................................................................ 192 Re Ellenborough Park (E CA)....................................................................................................................... 192 Riley v Penttila ............................................................................................................................................ 193 Ancillary Rights ......................................................................................................................................... 193

Common Easements ............................................................................................................. 194

Creation of Easements ......................................................................................................... 194

Grants and Reservations ...................................................................................................... 194 Express Grant and Reservation ................................................................................................................ 195 Equitable Easement .................................................................................................................................. 195 (a) Implied Grant ................................................................................................................................... 195 Wheeldon v Burrows .................................................................................................................................. 196 Rule in Wheeldon v Burrows .................................................................................................................... 197 Requirements (Under Wheeldon) ............................................................................................................. 197 Presumptions ............................................................................................................................................ 198 Continuous and Apparent Easements ...................................................................................................... 198 McGrath v Campbell .................................................................................................................................. 198 (b) Necessity .......................................................................................................................................... 199 North Sydney Printing v Sabemo Investments ............................................................................................ 200 Adealeon International Pty Ltd v London Borough of Merton .................................................................... 200

Other Easements of Necessity............................................................................................... 201

TOPIC 9 Easements Continued… .................................................................................... 202

Creation of Easements (Continued)......................................................................................... 202 (c) Common Intention........................................................................................................................... 202 (d) Construction..................................................................................................................................... 203 Prescription ............................................................................................................................................... 203 Hampshire Automotive Centre Pty Ltd v Centre Com (Sunshine) Pty Ltd (VSCA)........................................ 205 Statute ....................................................................................................................................................... 205 Example: Imposition of Statutory Rights User in Respect of Land (s 180 PLA Queensland) .................. 206

Construction (Interpretation) of Easements ............................................................................. 206

Remedies ............................................................................................................................. 208

Modification or Extinguishment of Easements ......................................................................... 208 (a) Express Release ............................................................................................................................... 208 (b) Unity of Title .................................................................................................................................... 208 (c) Changes in Circumstances ............................................................................................................... 209

Change of Use ...................................................................................................................... 209 (a) Abandonment by Non-User ............................................................................................................ 209 Treweeke v 36 Wolesely Road Pty Ltd (HC) ................................................................................................ 210 Bookville Pty Ltd v O’Loghlen 9 .................................................................................................................. 210

Impact of Abandonment Upon Registration ............................................................................ 211

Profit à Prende (Right of Taking)............................................................................................. 211

Carbon Rights ....................................................................................................................... 213

Rent Charge ......................................................................................................................... 213

TOPIC 10.1 Restrictive Covenants .................................................................................. 214

Nature ................................................................................................................................. 214

What happens on sale of land? .............................................................................................. 215

Definition ............................................................................................................................. 216

Categories ............................................................................................................................ 216 Austerberry v Corporation of Oldham ........................................................................................................ 217

Austerberry Principle ............................................................................................................. 217 (A)(1) Passing of Benefit of a RC under Common Law............................................................................. 218 Touch and Concern and Intention to Bind................................................................................................ 219 (2) Passing of Burden of a RC in Equity .................................................................................................... 219 Tulk v Moxhay ............................................................................................................................................ 219 Passing of Burden of a RC in Equity.......................................................................................................... 220 Forestview Nominees v Perpetual Trustees (HCA) ...................................................................................... 220

Annexation of Covenant in Equity: Burden ............................................................................... 221 Restrictive rather than Positive ................................................................................................................ 222 Covenant must benefit identifiable land ................................................................................................. 222 Clem Smith Nominees P/L v Farrelly ........................................................................................................... 223 Intention to impose burden upon knowing successor in title ................................................................. 223

Torrens Land ........................................................................................................................ 223

TOPIC 10.2 Restrictive Covenants .................................................................................. 225 (3) Passing of benefit of covenant in equity ............................................................................................ 225 Fed Homes v Mill Lodge Properties (UK) .................................................................................................... 225 Midland Brick Co v Welsh (WA) .................................................................................................................. 226

(B) Assignment of Benefit of Covenant at Law ......................................................................... 226 Section 134 Property Law Act ................................................................................................................... 227 Assignment of benefit of covenant at law ............................................................................................... 227 Assignment in Equity ................................................................................................................................ 227

Building Schemes .................................................................................................................. 227 Doctrine of Building Schemes ................................................................................................................... 228 Small v Oliver & Saunders (Dev) Pty Ltd ..................................................................................................... 229 Dequisa v Lynn HC ...................................................................................................................................... 229

(D) Modification and Extinguishment of Restrictive Covenants .................................................. 230 By Statutes: Section 84 Property Law Act ................................................................................................ 230 Section 84 Property Law Act formulated in Stanhill Pty Ltd v Jackson ................................................... 231 Section 84 Property Law Act ..................................................................................................................... 231 Stanhill Pty Ltd v Jackson............................................................................................................................ 231

(E) Remedies for Infringement ................................................................................................ 232

Summary .............................................................................................................................. 232

TOPIC 11 Mortgages ..................................................................................................... 233

Secured Loan ........................................................................................................................ 233

Mortgage ............................................................................................................................. 233

Types of Mortgages .............................................................................................................. 233 (a) Possessory Securities ....................................................................................................................... 234 (b) Old Title Mortgage .......................................................................................................................... 234 Redemption ............................................................................................................................................... 236 (c) Torrens Mortgages .......................................................................................................................... 236

Formalities ........................................................................................................................... 238

Equitable Mortgages ............................................................................................................. 239 (a) Formal Mortgage over Equitable Title ........................................................................................... 240 (b) Formal Mortgage Improperly Executed ......................................................................................... 241 (c) Specifically Enforceable Agreement to Mortgage ......................................................................... 241 (d) Mortgage by Deposit of Title Deeds ............................................................................................... 241 Third Parties .............................................................................................................................................. 244

Rights of a Mortgagor (Debtor) .............................................................................................. 244 (1) Equity of Redemption ...................................................................................................................... 244 (2) Right to Possession .......................................................................................................................... 246 (3) Leases ............................................................................................................................................... 247

Rights of a Mortgagee (Bank/Financial Institution) .................................................................. 247 (1) Right to Sue for Loan Money .......................................................................................................... 247 (2) Right to Alienate ............................................................................................................................. 248 (3) Right to Possession .......................................................................................................................... 248 (4) Foreclosure ...................................................................................................................................... 248 (5) Mortgagee’s Power of Sale ............................................................................................................. 250 Manner in which the Sale must be Conducted ........................................................................................ 251 Pendlebury v Colonial Mutual Life Assurance Society Ltd (1912) (HC) ....................................................... 251 Forsyth v Blundell (1973) (HC) .................................................................................................................... 252 Latec v Hotel Terrigal (1965) (HC) .............................................................................................................. 253

Discharge of Mortgage .......................................................................................................... 253

TOPIC 1.1 Meaning of “Property’, Justification of Private Property and Sources of Property Law

Meaning of ‘Property’

• There are three basic meanings of the concept of property that can be distinguished: o Things people own (farms, your own property) o Things themselves:

▪ Land (real property)

• Everything that is not land is Chattels or Goods. ▪ Chattels/Goods (personal property); and ▪ Chattels real (leases)

o Rights which people have to things (property rights) ▪ Property right: right to land or goods (to be distinguished from…) ▪ Personal right: right to another person in terms of a contract

• Property can be defined: o (a) with reference to its features (classification regarding features) o (b) with reference to its content (describing a bottle of wine by looking at its content) o (c) as a relationship(s) (legal subject and a laptop that is owned by you: the

relationship between you and the laptop) o (d) as a right (property rights between the property and the legal subject

o (e) as a public law/human right o (f) by distinguishing it from a personal right (once you know what the property right

is)

(a) Definition of ‘Property’ according to its Features

• Blackstone’s Common law definition: o “There is nothing which so generally strikes the imagination and engages the

affections of mankind, as the right of property; or that sole and despotic dominion which one man claims and exercises over the external things of the world, in total exclusion of the right of any other individual in the universe.” (Blackstone Commentaries on the Law of England) (CB 3)

• The Following features can be deduced from Blackstone’s definition: o (i) Definition is about a right (right of property) o (ii) Sole and despotic dominion (sovereignty of control: you can control your laptop)

▪ Sole - power is concentrated in a specific person(s):

• Distinguish right to bicycle (property right) from right of access to library (personal right)

• Indigenous rights are concentrated in group ▪ Dominion denotes some legally authorised power (ownership of something)

• Control exercised by a person over an object (control over disposal) ▪ “Despotic” denotes an absolute power

o (iii) Things of the world ▪ Outside of a person – bodies, right to good name or reputation are not things ▪ Things must be separate and apart from ourselves ▪ Physical things (land and chattels - tangible) (also incorporeal things) ▪ Importance of object in property relationship (Lametti)

o (iv) External things of the world (externalised) ▪ Demarcation of property/boundaries (a farm has boundaries which can be

identified) ▪ Must be identifiable

• “The first man who, having fenced in a piece of land, said ‘This is mine,’ and found people naïve enough to believe him, that man was the true founder of civil society. From how many crimes, wars, and murders, from how many horrors and misfortunes might not any one have saved mankind, by pulling up the stakes, or filling up the ditch, and crying to his fellows: ‘Beware of listening to this impostor; you are undone if you once forget that the fruits of the earth belong to us all, and the earth itself to nobody’: Jean-Jacques Rousseau (Discourse on the Origin and Basis of Inequality Among Men)

o (v) Exclusion ▪ To exclude others from:

• (a) enjoying same rights; or

• (b) interfering with the exercise of rights ▪ Excludable: property consists primarily in control over access (Gray) ▪ Exclusion serves the use interests of property (Smith) ▪ State can enforce someone, entitlement to exclusion (matter of law not

power) ▪ Power of exclusion is said to be total/absolute

• Criticism: o Property is not an absolute concept (“total”) – because:

▪ (i) one may not interfere with rights of others; or ▪ (ii) property is subject to health and safety regulation

• Holder of, for instance, an easement cannot exclude owner from using land (Your ownership of something is never absolute [easements to travel over some property]).

• Not the only right inherent in property (there are other associated rights)

• Exclusion is not a characteristic of an indigenous relationship: connection with land rather than exclusion

o (vi) Enforceability of right against other persons: ▪ Right in rem (operates against the whole world) - property right

• Continued existence of a thing is required

• Enforceable against a large and indefinite class of people o Criticism: rather a consequence or feature of a property right

than a tool of identification o Conceded, there is universal acceptance of in rem operation

of a property right: “A real right, such as ownership, is as every first-year law student knows, enforceable against the whole world.” (XZS Industries v AF Dreyer (Pty) Ltd (2004 (4) SA 186 (W) 196F/G)

▪ Right in personam (enforceable against another specific person) – personal right

• Enforceable against a specific person (parties privy to relationship)

• Not depended on existence of a thing

• Basis for division between personal rights and property rights (great divide)

o (vii) Transferability of right ▪ Property rights are said to be transferable/assignable

• Criticism: o Too wide: most rights are transferable (including personal

rights) o Some property rights are not assignable (non-assignable

residential lease) o Native title (indigenous) rights are not transferable

(Millirrpum) (from generation to generation yes, but not otherwise)

o (viii) Value ▪ Market value ▪ Sentimental value ▪ Some things are valueless (have no value, so is it even property?) ▪ Negative value? (toxic chemicals) - have to spend money to get rid of it

(negative value) ▪ Personal rights (or intellectual property rights) also have market value ▪ Value (is relevant… but) is not necessarily a characteristic of property

o (ix) Legal recognition ▪ Property rights must be recognised and be legally enforceable

• ‘Property and law are born together and die together. Before laws were made there was no property. Take away the laws and property ceases’(Bentham) (property is a legal construct)

▪ It is a legal construct: there is no property in the absence of a legal system ▪ Criticism: Other rights (such as contractual rights) are also recognised by law

▪ Legal identity of property depends on legal system in which it is enforced: Common law, Equity or statute

▪ Aboriginal rights recognised as proprietary because the common law and statutory framework recognise them (SINCE MABO)

▪ Aboriginal rights are only recognised if rights have their origin in pre-sovereignty law and custom (Yorta Yorta)

▪ Pre-sovereignty rights may encumber title of Crown upon colonisation ▪ Post-colonisation aboriginal rights are destroyed

Features of Property

• In terms of the features approach the following features of property can be distinguished: o Dominion (sovereignty of control) o Absoluteness (‘despotic’) o External to humans o Identifiable (boundaries) o Excludability: control over access o Enforceability o Alienability o Value (economic, sentimental or negative?) o Legal construct (Wily v St George Partnership Banking 1999; Yorta Yorta Aboriginal

Community v Victoria (2002)) ▪ -and?

o Criticism of features approach: One must not overstate essential characteristics of property to identify property (see for example Millirpum decision): where the court focused on some features to come to the decision about whether native title rights were property (Section 223 of the Native Title Act outlines what ‘Native Title’ means)

Millirrpum v Nabalco

Facts

• Claim that a mining company was interfering with right to perform indigenous ritual ceremonies

• Issue: whether Aboriginal customary rights over land qualified as ‘property’

• ‘I think that property in its many forms, generally implies the right to use or enjoy, the right to exclude others, and the right to alienate. I do not say that all these rights must co-exist before there can be proprietary interests or deny that each of them may be subject to qualifications.’ (Blackburn J)

• According to the court the following incidents of property were absent:

– No use and enjoyment - right of clan extended to performance of rituals only

– Not exclusionary - no right to exclude other members or other clans;

– Inalienable - no right to alienate the land - Aboriginal custom prohibited transfer of rights

Holding

• Held that due to absence of the above features: absence of property rights to land in Anglo-Australian meaning of the term property

• Criticism: • Rights related to land to which they were

connected

(b) ‘Property’ defined with reference to its Content

• In Roman law a real right entailed the so-called: ius utendi, ius fruendi et abutendi - 'the right to use, enjoy and abuse a thing’ (within the limits of law)

o See also Millirrpum v Nabalco: right to use, exclude and alienate ▪ According to Honore ‘property’ includes following incidents or elements

(forming basis of) property:

• Right to possess (exclusive physical control)

• Right to use (use and enjoyment)

• Right to manage (determine who may use and how)

• Right to income (right to value generated by a thing)

• Right to capital (right to consume, waste and destroy)

• Right to security (right to exclude others)

• Power of transmissibility (right to transfer)

• Absence of a term (of termination): indefinite right to enjoy

• Prohibition of harmful use (refrain from interfering)

• Liability to execution (liability for satisfaction of debt)

• Residuary rights (rights which governs entitlements of others) ▪ Bundle of rights (Telstra Corporation Limited v The Commonwealth (2008)

• Right to perform ceremonies can be a property right (compare to easement)

• Had power to sever connection with land by moving away

Mabo v State of QLD (No 2)

Holding

• Native title recognised by the common law despite the fact that it did not fit the Western definition of property

• Native title: interests and rights of indigenous inhabitants in land, whether communal, group or individual, possessed under the traditional laws acknowledged by and the traditional customs observed by indigenous inhabitants (Brennan J) (Vide s 223 NTA (CB p 16-7)

• Native title (special form of property) has its own special features:

– Native title is inalienable; – Not transferable to third parties (transferred

from generation to generation or to Crown ito its pre-emptive right);

– Native title is vulnerable, as it can be extinguished by the Crown’s exercise of radical title

– Based upon the traditional belief of belonging to land

• Native title does exhibit some proprietary features (Bartlett):

– Claim for compensation (s51(xxxi) CA 1901(Cth)) – Exclusionary because of availability of equitable

and common law remedies – Burden upon Crown title

Bundle of Sticks Metaphor

• In common law property is seen as a bundle of rights (metaphor) o Provides an accurate description of whom can do what to whom in a relationship

▪ Bundle of rights (ito common law) can, however, be restricted by statute

• Bundle of rights can be split up between legal and equitable interests and freehold and leasehold interests

o Problems with “bundle of sticks” metaphor: ▪ Property is not a monolithic notion of standard

content (content may differ if different owners of a farm) (Commissioner of State Revenue v Placer Dome Inc (2018))

▪ Abstract treatment of property ▪ Defines according to constituent parts and treat

each parcel of land similar ▪ Problematic with propertisation of natural resources ▪ Attempt to analyse legal relationship to smallest

atoms (Smith) ▪ More of a description than a theory (Smith) ▪ “Bundle of sticks” metaphor focuses on the

collection of interrelated rights rather than a single defined notion