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In 2019, Zachary and Adam purchased a cottage on a 400 square metre lot of land in North Adelaide. Zachary contributed 40% of the purchaser

In 2019, Zachary and Adam purchased a cottage on a 400 square metre lot of land in North Adelaide. Zachary contributed 40% of the purchaser price and Adam contributed the other 60%. The transfer to Zachary and Adam was registered and both were noted on the title as "registered proprietors in fee simple". Unfortunately, due to a computer error at Land Services SA (the Titles Office) Zachary and Adam were recorded as being "joint proprietors."

Zachary and Adam moved into the cottage, and for a while, all was well. Unfortunately, during the COVID-19 pandemic induced lockdown in April 2020, Zachary and Adam had a fierce argument and Adam moved out. After Adam left, Zachary quickly rented out Adam's room to Fiona, a UniSA student. The rent was $400 per week. Zachary also renovated a shed at the back of the cottage. The renovation cost $20,000. Zachary used the shed to cultivate orchids (a long-time hobby). Zachary's orchids were a huge success, and he built a very lucrative business supplying private consumers and retail clients all over Adelaide.

Adam has decided that he does not want to return to the cottage while Zachary is living there but would like to stay in North Adelaide. Adam seeks an order for partition from the court. Adam would prefer to simply buy the whole lot and have no further contact with Zachary.

Advise Adam in relation to:

  1. Zachary and Adam being referred to on the certificate of title as "joint proprietors."
  2. How do you think Zachary and Adam's interest should be described - as joint tenants or tenants in common? Provide reasons for your answer.
  3. What presumptions may assist in making an assessment of whether Zachary and Adam are joint tenants or tenants in common?
  4. Whether Zachary has to pay to Adam:
  5. Occupation rent,
  6. A share of Fiona's weekly rental payment, and
  7. A share of the income and profits from Zachary's orchid business?
  8. Whether Adam needs to contribute towards the cost of renovating the shed?
  9. Whether Adam will be successful in obtaining partition?

Change the facts a little. Before the partition application reached the court, Zachary sadly passed away in a hang-gliding accident. In his will, Zachary left all his real property to Fiona (with whom he had entered into a relationship). Adam believes that he should inherit Zachary's interest pursuant to the rule of survivorship. Advise Fiona whether she can inherit Zachary's interest in the land.

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