James, who is the registered fee simple owner of a house in Aldgate, leased out his property to David for a term of 5 years at an annual rent of $12,000 per year. David paid James $6,000 in advance and told James that he was going overseas for 6 months but that when he got back, he would sign a written lease and get it registered. 5 months later James entered into a written contract to sell the Aldgate property to Felicity for the sum of $500,000. Felicity, before signing the contract, had walked right round the house, contemplating the renovations she was going to undertake to the house and garden. With James' permission she put up a fence round the property and padlocked the gate. David has returned to Adelaide and found that he cannot access the Aldgate property.

Whose right has priority, David's or Felicity's? Give reasons to support your answer.