Leros Pty Ltd v Terara Pty Ltd [1992] HCA 22

Leros Pty Ltd v Terara Pty Ltd [1992] HCA 22

An option for renewal in a prior unregistered lease for not more than five years is not valid against a subsequent registered proprietor unless the lease is registered or protected by caveat. In this case, neither Terara's nor the Bank's caveat sufficiently protected the option for renewal, so Leros acquired title free of the option.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Judgment After Appeal From Full Court of the Supreme Court of Western Australia
Outcome
Appeal allowed
Legal Topics
['caveats' 'indefeasibility of Title' 'options for Lease Renewal' 'torrens System' 'unregistered Interests']
['property Law'] ['caveats' 'indefeasibility of Title' 'options for Lease Renewal' 'torrens System' 'unregistered Interests']

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Procedural Posture

Appeal / High Court Judgment After Appeal From Full Court of the Supreme Court of Western Australia

Legal Issues

  1. 1 ['Whether an option of renewal in an unregistered lease is valid and enforceable against a subsequent registered proprietor under the Transfer of Land Act 1893 (WA)' 'Whether caveats lodged by lessee or mortgagee protect options for renewal in unregistered leases under section 68 of the Act' "The operation and interpretation of 'protected by caveat' in section 68"]

Ratio Decidendi

An option for renewal in a prior unregistered lease for not more than five years is not valid against a subsequent registered proprietor unless the lease is registered or protected by caveat. In this case, neither Terara's nor the Bank's caveat sufficiently protected the option for renewal, so Leros acquired title free of the option.

Court Disposition

Appeal allowed

Orders

  • ['Set aside the orders of the Full Court of the Supreme Court of Western Australia' 'Order that the appeal to that court be allowed with costs' "Second respondent's motion dismissed with costs" "Orders of Supreme Court of Western Australia (Rowland J.) set aside; first respondent's originating summons dismissed with...