Torrens Title –guaranteed title
Cassegrain 2015 case in High Court shows that just because you are shown as the owner on the title doesn’t mean that you can rely on Torrens Title to guarantee that title.
Cassegrain and Co Pty Limited owned land. It transferred that land to Gerard Cassegrain and Felicity Cassegrain as joint tenants. This was a fraudulent transaction because there was only bogus consideration/price for the transfer. Felicity was not involved in the fraudulent transfer and became co-owner without knowing of the actions of her co-tenant. The court found this did not defeat her title.
However some years later there was a subsequent transfer where Gerrard transferred his interest to Felicity for a small and nominal price. Again she had not paid anything for his share but the court treated this transferee differently and said that the transfer of the husbands share was not valid and she did not become owner of the whole property.
She did not gain the benefit that a person who shown as a Registered Proprietor of Torrens Title land because of the fraud of Gerrard.