Jada, Jack, and Betty come to you for advice concerning their wealth and enterprises.

Mortgages

1. Jada owns 35 Rayland Street, Blacktown. The property is worth $800,000. Jada borrowed $500,000 from Bendigo Bank to make the purchase. Jada suffers a horrendous car accident that leaves unable to work for at least six months and stops making loan repayments. Bendigo Bank is eager to recover their security over the property as they are concerned that Jada will be unable to repay the loan. They send Jada an initial letter of demand. Advise Jada what steps she might take to protect her interest in the property. Advise her also of the options open to Bendigo Bank.

2. Bendigo Bank - having met their various obligations - proceed to exercise their power of sale over the property. The property market is sluggish, and there are few interested buyers. After three months, they receive an offer of $650,000 for the property. Jada thinks this price is too low and wants the bank to hold out for a higher price. Advise Jada of the bank's obligations and her entitlement to any of the proceeds of the sale.

Joint ownership

3. Jack purchases the property as tenants in common with his brother Peter. Jack and Peter make equal contributions to the purchase price. Shortly after purchase, Peter takes off to travel the world. He doesn't make any contact with his brother for five years. During those five years, Jack maintains the property. He also adds a beautiful second story extension to the property, which increases the value significantly. However, all good things come to an end, and Peter returns from his travels broke and wants to sell the house. Advise Jack if he can recover any money from Peter either before the proposed sale or at the time of settlement? Are there any steps Jack should take to protect his interest?

Indefeasibility

4. Peter, frustrated with Jack's reluctance to sell the house, forges his signature on a deed of sale, which transfers the title of the property to Betty. Betty is delighted with her new purchase. She arrives at 35 Rayland Street, ready to move in only to find the Jack is still living in the house. Jack is horrified at this turn of events and comes to you for advice. Advise Jack if Betty has an indefeasible title to the property and indicate how the court might resolve the dispute.

Leases

5. Jada and Jack decide to make a new start in Port Macquarie. They decide to sub-let Mischa's furnished beachfront apartment for a year, as Mischa is out of the country for 12 months. Shortly after arriving, they realize a leak inside the bathroom wall is causing significant damage to the apartment. They are unable to contact Mischa, who is on an 8- month silent retreat in Buthan. They come to you for advice. Advise them who is liable to remedy the issue, why, and suggest what they might want to do, given the circumstances.