Marshall v Minister for Lands

Case [1995] QLC 112


[1995] QLC 112

 
  LAND COURT

BRISBANE

22 September 1995

Re:     Determination of the unimproved value for
  the purposes of conversion of tenure
  Special Lease No 35/38401, Rockhampton District.
  Lessee:  Kerrie Dean Marshall.

(Hearing at Rockhampton)

D E C I S I O N

Mrs KD Marshall is the lessee of Special Lease No 35/38401, Rockhampton District, which is in respect of lands described as Lots 4 and 5 on Plan RN 1548, Parish of Calliungal, Town of Mount Morgan, containing an area of 810 square metres.  Under the provisions of section 207 of the Land Act 1962, Mrs Marshall made application for the conversion of tenure of this land to fee simple, the relevant date being 14 March 1994.  As at that date the Minister for Lands determined the unimproved value at $4,500 and Mrs Marshall requested that the matter of the unimproved value be referred to the Land Court for determination.
           Mr RW Marshall, husband of the lessee, appeared and gave evidence.  He stated that the township of Mount Morgan has been struggling since the closure of the mine, with many services being downgraded or withdrawn.  The town has a high unemployment rate, with 65% of the population being welfare recipients which in turn provides the community with a poorly funded council.  As there is no industry in the town, children leaving school must move to other towns to find work.
           Mr Marshall went on to say that these factors all contribute to the low prices for real estate in the town.  He said that he had attended recent auctions of residential land where blocks sold in the range of $2,000 to $2,500, while others were passed in, not reaching their reserve prices.  Some had received no bids at all.  He went on to say that there are many empty houses in Mount Morgan.
           Mr Marshall said that he had investigated the unimproved values applied to other properties in Mount Morgan.  He explained that there were allotments in East Street which he considered to be superior, where the current valuation is in the range of $3,200 to $3,500.
           Mr Marshall's principal argument was that the subject land had only a small useable area, which measured 20 metres frontage x 15 metres depth.  The balance of the 810 square metre parcel, he said, falls steeply into a gully at the rear of the property and is not useable. 
           Mr Marshall was of the opinion that the unimproved value of the land for conversion purposes as at the relevant date should be $2,900, because he thought that was the Council valuation at the relevant time.  He felt that the Department had overvalued the land as so little of it was useable.
           Mr Marshall stated that his wife had purchased the subject house and land about two years ago and it had been rented out since July 1994.  He said that they had no trouble renting the house although there are many vacant houses in the town of Mount Morgan.  He said…

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Details
AGLC
Marshall v Minister for Lands [1995] QLC 112
Case
[1995] QLC 112
Decision Date

CaseChat Overview and Summary

Kerrie Dean Marshall, the lessee of Special Lease No 35/38401 in the Rockhampton District, applied for the conversion of tenure of the land to fee simple, with the relevant date being 14 March 1994. The Minister for Lands determined the unimproved value of the land at $4,500, but Marshall requested that the Land Court determine the unimproved value. Marshall argued that the subject land had only a small usable area, with the balance falling steeply into a gully, and that the land should be valued at $2,900. The Minister for Lands, represented by Mr AW White, a registered valuer, argued that the subject land had a good building contour, reasonable aspect and elevation, and good views of the Mount Morgan mine and surrounding residential development. The court was required to decide the unimproved value of the land for the purposes of conversion of tenure.

The court considered the evidence of Mr Marshall and Mr White, and found that the most comparable sale was Sale No. 3, which was situated in River Parade, had an area of 721 square metres, and sold in May 1994 for $3,500. The court found that the subject land was similar in size and had superior elevation and building contour, but that the majority of the town blocks were lower. The court found that the unimproved value of the subject land was $3,500.

The court determined the unimproved value for Special Lease No 35/38401, Rockhampton District, for the purposes of conversion of tenure is $3,500.

Orders

Orders of the court

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Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

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Ratio Decidendi

Legal Principle Established

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