2016 Property Law Review Issues Paper 4 Property Law Act 1974 (Qld) – Mortgages, Co-ownership, Encroachment and Mistake Commercial and Property Law Research Centre QUT Law 1 | Page Preface The Commercial and Property Law Research Centre (the Centre) at the Queensland University of Technology (QUT) was established in 2013. The Centre is a specialist network of researchers with a vision of reforming legal and regulatory frameworks in the commercial and property law sector through high impact applied research. The members of the Centre who authored this paper are: Professor William Duncan Professor Sharon Christensen Associate Professor William Dixon Megan Window Riccardo Rivera 2 | Page Property Law Act 1974 (Qld) – Mortgages, Co- ownership, Encroachment and Mistake Table of Contents Preface ................................................................................................................................................ 2 How to make a submission ................................................................................................................... 10 Disclaimer.............................................................................................................................................. 11 1. Background ............................................................................................................................ 12 Review of Queensland Property Laws ................................................................................... 12 PART 1 – Co-ownership – PLA Part 5 ............................................................................................. 13 A. PLA Part 5 Division 1 – General Rules (ss 33-36) ................................................................... 13 2. Section 33: Forms of co-ownership ....................................................................................... 13 Overview and purpose .......................................................................................................... 13 Is there a need for reform? ................................................................................................... 14 Options .................................................................................................................................. 15 3. Section 34: Power for corporations to hold property as joint tenants ................................. 16 Overview and purpose .......................................................................................................... 16 Is there a need for reform? ................................................................................................... 17 Reference to ‘body corporate’ .............................................................................................. 17 Equating ‘dissolution’ with the ‘death’ of a corporation – updating language ..................... 18 Vesting of property – possible issues between the PLA and the Corporations Act 2001 (Cth) .............................................................................................................................................. 18 Other jurisdictions ................................................................................................................. 20 Australia ................................................................................................................................. 20 New Zealand .......................................................................................................................... 21 Options .................................................................................................................................. 21 Reference to ‘body corporate’ .............................................................................................. 21 Equating ‘dissolution’ with the ‘death’ of a corporation – updating language ..................... 22 Vesting of corporation property ............................................................................................ 22 4. Section 35: Construction of disposition of property to 2 or more persons together ........... 24 Overview and purpose .......................................................................................................... 24 Partnerships ........................................................................................................................... 26 Is there a need for reform? ................................................................................................... 26 3 | Page Other jurisdictions ................................................................................................................. 26 Options .................................................................................................................................. 27 5. Section 36 – Tenants in common of equitable estate acquiring the legal estate ................. 28 Overview and purpose .......................................................................................................... 28 Is there a need for reform? ................................................................................................... 28 B. PLA Part 5 Division 2 – Statutory trusts, sale and division (ss 37-43) ............................... 29 6. Section 38 – Statutory trusts for sale or partition of property held in co-ownership ........... 29 Overview and purpose .......................................................................................................... 29 Is there a need for reform? ................................................................................................... 31 Defining ‘co-owner’ and ‘co-ownership’ ............................................................................... 31 Consistency between section 38 and section 41 of the PLA in relation to chattels.............. 31 Partnership property ............................................................................................................. 32 The court’s discretion ............................................................................................................ 33 Transitional provision ............................................................................................................ 34 Other jurisdictions ................................................................................................................. 34 Australia ................................................................................................................................. 34 Reform in Victoria .................................................................................................................. 35 New Zealand .......................................................................................................................... 36 Options .................................................................................................................................. 37 Option 1 – Retain section 38 with modifications .................................................................. 37 Option 2 – Amend section 38 to enable the Court to directly order the sale or partition of the property .......................................................................................................................... 37 7. Section 42 – Powers of the court .......................................................................................... 38 Overview and purpose .......................................................................................................... 38 Is there a need for reform? ................................................................................................... 39 Determination of any question of fact and beneficial interests ........................................... 39 Distribution of net proceeds of sale or retention of the same – express provision required? . .............................................................................................................................................. 39 Options .................................................................................................................................. 40 PART 2 – Mortgages – PLA Part 7 (ss 77-101) ............................................................................. 42 8. Mortgages (ss 77-101) ........................................................................................................... 42 Overview and purpose .......................................................................................................... 42 Is there a need for reform? ................................................................................................... 42 Other jurisdictions ................................................................................................................. 43 4 | Page NSW – Right to early redemption of mortgage ..................................................................... 43 Options .................................................................................................................................. 44 9. Section 77 – Definitions for pt 7 ............................................................................................ 45 Overview and purpose .......................................................................................................... 45 Is there a need for reform? ................................................................................................... 45 10. Section 77A – Application of pt 7 .........................................................................................