Jessica borrowed $250,000 from Nick, her cousin, to invest in her Young Women Fashion Design business in Canning Vale. The loan was secured by a registered mortgage over Jessica's residential property (the Property). Jessica was able to make enough profit from her business to pay her mortgage repayments of $5000 per month. Early this year, Jessica decided to go overseas for a long holiday. She instructed her accountant to pay the mortgage instalments and her other bills as they fell due. The day after Jessica left Australia, her accountant was charged with tax fraud, and his assets were frozen. As a result, he did not pay the February mortgage instalment. When Nick did not receive his monthly mortgage repayment from Jessica, he sent a default notice to the Property, addressed to Jessica, informing her that he would exercise his power of sale if she did not make the repayment within 1 month from the date of the notice.

When Nick did not hear from Jessica within 1 month, he employed a local real estate agent, Darla, to sell the Property. Darla obtained a valuation from Tom, who had a successful business as a Boat valuer. Tom valued the Property at $400,000. Darla also placed two advertisements in the general notices section of the local newspaper, rather than the real estate section. On the auction day, only three people attended. The Property was sold to Michelle, a close friend of Nick's, for $350,000. Nick had informed Michelle that as it was a mortgagee sale, she should be able to get the Property for a bargain price.

Nick signed the instruments of transfer of the Property to Michelle.Jessica returned to Australia in time and lodged a caveat preventing registration of the transfer.A developer has offered Michelle $500,000 for the Property.Advise Jessica of possible causes of action and remedies, if any.