Toby Has Exchanged Contracts for the Purchase of a Torrens

question 4

Multiple Choice

Toby has exchanged contracts for the purchase of a Torrens title residential property.Settlement was scheduled to occur on 15^th October at 3 pm.At 9.30 am on 15^th October Toby's conveyancer searched the title and found no problems.At 1 pm on 15^th October a creditor who had received a court judgment against the vendor on 14^th October registered the judgment order on the vendors' title.Based on the decision in Black v Gannock [2007] HCA 31,what is likely to happen?

• A)The settlement will be blocked but Toby has rights against the creditor for not lodging its interest within a shorter period of time.
• B)The settlement can proceed provided Toby can arrange for the settlement to be conducted by 2 pm or earlier because an hour's notice by the creditor failed to meet the required bona fide standard.
• C)The settlement can proceed because Toby's' search was conducted with reasonable care and skill.
• D)The settlement will be blocked because the creditor had a registered interest.Toby only had an unregistered equitable interest.

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