Bruce Zhang was the registered proprietor of lot $12$ in SP$79307($attached$).$ Bruce didn$$t drive

and so in $2010$ he agreed to sell his parking space in a brick garage behind the apartment

building to Noushin Baker. Bruce and Noushin signed a contract containing the essential

terms and Noushin paid Bruce the $$20,000$ purchase price. Noushin used the parking space

when she was at work nearby.

In $2019,$ Bruce moved into a nursing home and gave his apartment to his daughter Felicity,

who became the registered proprietor of lot $12.$ She wanted to use the apartment as security

for a loan to start an ethical make$-$up business with her friend Vanessa Vargas.

Felicity negotiated for a loan of $$500,000$ from Bligh Bank, providing them with a business

plan, as well as Vanessa$$s business credentials. The bank$$s solicitor, Daniel McEvoy, asked

Felicity to come to his office with her passport and drivers licence so that he could verify her

identity and keep the appropriate records. Felicity did so and the bank$$s mortgage was

registered on $1$ July $2019.$

By May $2021,$ the business was struggling, and Vanessa could not pay the rent on her house.

She rang Bligh Bank and spoke to Daniel McEvoy explaining their difficulties. She told

Daniel that Felicity had asked her to arrange for a further $$300,000$ loan, using Felicity$$s

apartment as security. Vanessa said she would bring in a mortgage document that Felicity had

signed. In fact, Vanessa had not asked Felicity but thought a further loan was the best thing to

do$.$ She had become frustrated with Felicity$$s caution in business matters, so she signed

Felicity$$s signature on the mortgage document. Daniel thought it was odd that Felicity had

not spoken to him, but he knew Vanessa was her business partner, so he arranged for the

money to be deposited in Vanessa$$s personal account and he registered a second mortgage

over $12/$SP$79307$ securing $$300,000.$

Felicity made repayments on the $$500,000$ loan every month and Vanessa initially did the

same in relation to the $$300,000$ loan. However, the business continued to go badly and by

early $2022,$ Vanessa told Daniel she could not make any more repayments. Daniel was

worried that he might get in trouble with his boss, Yung, for registering the second mortgage

without checking with Yung first, and so Daniel decided to transfer the second mortgage to

his brother, Jake, to stall for time. He told Jake that it was just a technicality, and he did not

need to do anything. Jake became the registered proprietor of the second mortgage.

By late $2022,$ with a heavy heart, Felicity accepted that the business was not viable. She

decided to sell the apartment and repay her loan. First, she spoke to Noushin and told her that

whatever arrangement Noushin had with her father would have to end.

Felicity then contacted Bligh Bank and spoke to Yung about what she needed to do to sell her

apartment and repay her loan. Yung asked her about the second mortgage to Jake McEvoy

and Felicity said she knew nothing about it$.$ Yung did some investigations and realized that

something was very amiss. He gave Felicity the details and advised her to contact a lawyer.

You work for a senior partner in the firm that Felicity consults. She asks you to write her a

memo setting out what rights Felicity or others may have in relation to $12/$SP$79307.$