Slan v Edgerly and 3 ORS

In the case of Slan v Edgerly and 3 ORS, the dispute revolves around a property sale agreement involving a purchaser's lien for part of the purchase money. The transaction in question involved a sale for $180,000, with Special Clause 35 acknowledging the receipt of $138,000 from the purchaser towards the purchase price, which was in satisfaction of a judgment obtained by the purchaser against the vendor in prior proceedings. The case was heard in the Supreme Court of New South Wales. The central legal issue was whether the purchaser's lien for $138,000 existed throughout the period until completion, even if no entitlement to repayment had arisen. The court considered the case of Ex Parte Lord, which established that a purchaser's lien arises upon exchange of contracts and persists until completion. The court also assessed the competing equities between the alleged unregistered mortgagee and the purchaser to determine priority.

The court's reasoning hinged on the established principle that a purchaser's lien attaches upon the exchange of contracts and remains in effect until the transaction is completed. This principle was affirmed by the court's reference to Ex Parte Lord, which confirmed that the lien arises at the point of exchange and continues until completion, irrespective of whether the conditions for repayment have been met. In assessing the equities, the court found that the purchaser's lien for $138,000, which arose upon exchange, held precedence over the alleged unregistered mortgagee's interest. This decision underscored that the purchaser's lien, having been established at the exchange of contracts, was a stronger equity than the unregistered mortgagee's claim.

The Supreme Court's judgment confirmed that the purchaser's lien for $138,000 remained valid and enforceable throughout the period until completion, despite the absence of an immediate entitlement to repayment. The court's decision was grounded in the principle that the purchaser's lien attaches upon the exchange of contracts and persists until the transaction is finalised. This ruling ensures that the purchaser's financial interest is protected until the completion of the sale. The court's assessment of the competing equities further reinforced the purchaser's position, confirming that their interest took precedence over the alleged unregistered mortgagee.