Louise and her brother Neil are on the title as registered proprietors of a heritage listed house
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CEO of FairLend, Derek Fairlend, decided to gather up some of the unregistered mortgages, where they kept the paper certificate of title, and requested a cash loan from Forward Bank. Derek forged the signature of Louise and Neil and secured a two-year loan of $1 million from Forward Bank. Derek did the same with five other properties on FairLend's book. In 2021, Neil decided to move out of the Hawthorn House and move in with his partner Max. Neil decided to execute a transfer purporting to transfer his interests in the Hawthorn House to Max. This transfer was transmitted to FairLend with instruction form them to release the Certificate of Title so the title can be transferred to Max. FairLend responded by letter to say that because the mortgage remained outstanding, they could not release the Certificate of Title. Unfortunately, this letter was never passed on to Neil. Neil tragically passed away in early 2022 in a car accident. Louise subsequently received noticed from Forward bank that the Hawthorn House has been sold in a Mortgagee Auction to Jack. Louise quickly lodged a caveat asserting her interest so Jack has not been able to become registered on the title. In the mean time, Max, through his lawyer has produced the transfer document, as well as Neil's last Will bequeathing his share in the Hawthorn house to Max. Advise Louise:
2. Can Louise have the mortgage with Forward Bank set aside?
3. Can Louise stop Jack from getting registered?
4. What was the most likely form of co-ownership held between Louise and Neil?
5. What rights, if any does Max have to the house?
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
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