Huang v 18 Woodville Holding Pty Ltd; Tao v 18 Woodville Holding Pty Ltd [2023] NSWCA 15

Huang v 18 Woodville Holding Pty Ltd; Tao v 18 Woodville Holding Pty Ltd [2023] NSWCA 15

Section 42(1)(d) of the Real Property Act 1900 (NSW) does not apply to tenancies at will, as such tenancies are not 'created for a term' as required by the section. Therefore, purchasers allowed into possession as tenants at will under contracts for sale do not fall within the exception, and their interests are not protected against or take priority over the interest of a registered mortgagee. The appellants' equitable interests as purchasers and claims to specific performance likewise are not protected, and the mortgagee's registered title is indefeasible and paramount.

Parties
First Appellant (proceeding 2022/240885): Xiuzhen Huang; Second Appellant (proceeding 2022/240885): Reynold Zhou; First Appellant (proceeding 2022/240730): Zhe Tao; Second Appellant (proceeding 2022/240730): Jianmin Tao; First Respondent: 18 Woodville Holding Pty Ltd; Second Respondent: Hua Cheng International Holdings Group Pty Ltd (in liq); Third Respondent: Registrar General of New South Wales
Jurisdiction
Australia
Judgment Date
15 February 2023
Procedural Posture
Appeal / Judgment on Appeal From Supreme Court of New South Wales, Equity–commercial List ([2022] NSWSC 947)
Outcome
Appeals dismissed. Leave granted pursuant to s 500(2) of the Corporations Act 2001 (Cth) to commence the proceeding against the second respondent. Appellants ordered to pay the respondents' costs of the appeal.
Legal Topics
Torrens Title, Indefeasibility of Title, Tenancy at Will, Priority of Interests, Exceptions to Indefeasibility, Short Tenancies, Corporations in Liquidation
Land Law Property Law Equity Corporations Law Torrens Title Indefeasibility of Title Tenancy at Will Priority of Interests +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 29 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Xiuzhen Huang

First Appellant (proceeding 2022/240885)

Reynold Zhou

Second Appellant (proceeding 2022/240885)

Zhe Tao

First Appellant (proceeding 2022/240730)

Jianmin Tao

Second Appellant (proceeding 2022/240730)

18 Woodville Holding Pty Ltd

First Respondent

Hua Cheng International Holdings Group Pty Ltd (in liq)

Second Respondent

Registrar General of New South Wales

Third Respondent

Procedural Posture

Appeal / Judgment on Appeal From Supreme Court of New South Wales, Equity–commercial List ([2022] NSWSC 947)

Legal Issues

  1. 1 Whether the exception to indefeasibility in s 42(1)(d) of the Real Property Act 1900 (NSW) protects a purchaser in possession under an unregistered tenancy at will.
  2. 2 Whether the interests of the appellants as purchasers in possession take priority over a registered mortgagee.
  3. 3 Whether tenancies at will satisfy the requirements for protection under s 42(1)(d).

Ratio Decidendi

Section 42(1)(d) of the Real Property Act 1900 (NSW) does not apply to tenancies at will, as such tenancies are not 'created for a term' as required by the section. Therefore, purchasers allowed into possession as tenants at will under contracts for sale do not fall within the exception, and their interests are not protected against or take priority over the interest of a registered mortgagee. The appellants' equitable interests as purchasers and claims to specific performance likewise are not protected, and the mortgagee's registered title is indefeasible and paramount.

Court Disposition

Appeals dismissed. Leave granted pursuant to s 500(2) of the Corporations Act 2001 (Cth) to commence the proceeding against the second respondent. Appellants ordered to pay the respondents' costs of the appeal.

Orders

  • Grant leave pursuant to s 500(2) of the Corporations Act 2001 (Cth) to the appellants to commence the proceeding against the second respondent (in liquidation) in both proceedings.
  • Dismiss the appeals in both proceedings.