Cathay and Mathew are siblings who own equal shares in a Torrens Title property. To purchase the
Question:
Cathay and Mathew are siblings who own equal shares in a Torrens Title property. To purchase the property, they borrowed $800,000 from ANZ Bank.
When the value of the property went up, Mathew decided that he would like to start up an investment portfolio. He had read stories that he could make good money from Bitcoin. Mathew and Cathay approached ANZ Bank to borrow another $200,000. After performing the requisite assessments, ANZ Bank advanced the $200,000.
Mathew used this money to purchase Bitcoins and was excited to see that the value of the Bitcoins went up almost immediately. He started using his savings and wages to purchase more. When the value of the Bitcoins was worth double what he had put in, Mathew decided it was a good time to sell. But when he sold the Bitcoins, he never received any cash. After investigation it turned out that the company selling the Bitcoins was fraudulent. Mathew is suing the fraudulent company to recover his losses.
Unfortunately, at the same time Cathay was made redundant at her work place. Due to these events, Cathay and Mathew were unable to make their mortgage repayments for two months. ANZ Bank seeks to exercise their power of sale.
Question:
List the information ANZ Bank must include providing adequate notice to exercise the power of sale validly. Refer to relevant statute and case law in your response
Assume that ANZ Bank provided valid notice. ANZ Bank obtained an independent valuation that Cathay and Mathew's property is currently worth $1,000,000. ANZ Bank advertised the sale of the property over the Internet and in the local newspaper for eight weeks before going to Auction. At Auction the highest offer was $850,000, so the sale was passed in.
Rose is a manager of ANZ Bank. Parts of his job responsibilities are to keep track of properties being sold under power of sale by ANZ Bank. He liked Mathew and Cathay's property and so he made an offer to the real estate agent of $1,000,000. The Contract of Sale has been exchanged.
Meanwhile, Mathew manages to obtain an out of court settlement with the fraudulent Bitcoin company. He receives a payout of $700,000. Mathew and Cathay's parents are also willing to gift them $300,000 if it will mean their children can keep the property.
Question:
Advise Cathay and Mathew on whether they can prevent their property from being sold. Refer to relevant statute and case law in your response
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts