Mr BAILEY - 1997-05-01
Yesterday, I asked a question of the Attorney-General about the legal status of covenants to protect people's investments in housing. Is he in a position to say what he will be doing to allow that protection of Territorians' single largest investment?
ANSWER
Mr Speaker, I thought the member might exhibit a little more patience. I told him I would take the question seriously and undertake some research. I am not in a position to provide a full answer at this stage, but I shall do so later.
As I understand it, the legal issue is whether the benefit of a restrictive covenant, contained in the registered memorandum of encumbrance which is, in effect, an unregistered equitable interest which happens to be included in a registered instrument, is enforceable. If he understands that, he is doing better than I am. That is the difficulty. It is a complex legal issue.
Mr Bailey: People are buying houses, thinking they have protection.
Mr BURKE: I understand the difficulties with covenants. I am in a similar position myself at Fairway Ridge. The matter is complex. It has not been settled conclusively by the courts. I shall provide a full answer as soon as I am able to do so.
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ANSWER
Mr Speaker, I thought the member might exhibit a little more patience. I told him I would take the question seriously and undertake some research. I am not in a position to provide a full answer at this stage, but I shall do so later.
As I understand it, the legal issue is whether the benefit of a restrictive covenant, contained in the registered memorandum of encumbrance which is, in effect, an unregistered equitable interest which happens to be included in a registered instrument, is enforceable. If he understands that, he is doing better than I am. That is the difficulty. It is a complex legal issue.
Mr Bailey: People are buying houses, thinking they have protection.
Mr BURKE: I understand the difficulties with covenants. I am in a similar position myself at Fairway Ridge. The matter is complex. It has not been settled conclusively by the courts. I shall provide a full answer as soon as I am able to do so.
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Last updated: 09 Aug 2016