James is the owner of an estate in fee simple, in NSW under old system title, known as "Dolbern". James wants to develop the property into a Bed and Breakfast, but does not have the funds necessary for this. As a consequence, on 1 June 2019 James leased "Dolbern" to Sally for a legal lease, registered under s 184 of the Conveyancing Act 1919 (NSW), for a term of 5 years, hoping that by the end of this period he may be able to finance his proposed Bed and Breakfast. To ensure that the property is well maintained over this time, James inserts a covenant in the lease that it be occupied over this period. However, Sally has taken an extended 3-month European holiday during 2020, leaving the property vacant.

Realising that his dream of funding his Bed and Breakfast would not be possible due to his terrible gambling addiction, James decides to abandon his proposed development. Subsequently, on 23 July 2021 James conveyed the legal estate in fee simple of "Dolbern" to Chris. He does so without disclosing the existence of the lease held by Sally. Chris now wishes to terminate the lease so that he can redevelop the property.

Sally has sought advice from you as her solicitor. In a competition of priorities, advise how the interests of Sally and Chris compete, and how this competition will be resolved. If Chris had been told about Sally's lease might your answer be any different, and if so why or why not?