Ackland and Billings

In *Ackland and Billings*, the Supreme Court of Queensland was asked to determine whether a caveat lodged by the respondent, Billings, on land owned by the appellant, Ackland, was valid. The dispute arose from a contract for the sale of land, where Ackland was the vendor and Billings was the purchaser. Billings sought to lodge a caveat to protect their interest as a purchaser under the contract.

The central legal issue before the Court was whether the purchaser under a contract for the sale of land had a sufficient proprietary interest to support the lodgement of a caveat under the *Land Title Act 1994* (Qld). Specifically, the Court had to consider the nature of the equitable interest that arises upon the execution of a valid contract for the sale of land.

Carew J held that upon the execution of a valid contract for the sale of land, the purchaser acquires an equitable interest in the land. This equitable interest is sufficient to ground the lodgement of a caveat. The Court reasoned that equity regards that as done which ought to be done, meaning that once a contract for sale is binding, the vendor holds the legal title on trust for the purchaser, who has a beneficial equitable interest. This equitable interest is a proprietary one, capable of being protected by a caveat.

The Court therefore found that the caveat lodged by Billings was valid and ordered that it remain in force.