Don't Dawdle When Registering Dealings

Introduction

The Supreme Court's recent decision in Taleb v National Australia Bank Ltd [2011] NSWSC 1562 (Taleb v NAB) is a reminder for banks and financial institutions to move promptly to register Real Property Act 1900 (NSW) (RPA) dealings. In this case, had NAB registered sooner it would have avoided costly litigation.

Background

The dispute arose from loans by NAB and Mr Taleb to Hock A Car Investments Pty Ltd (the Company). The key events were as follows:

1. 28 January 2010 - The Company and Mr Taleb entered into a Deed of Acknowledgment (Deed) recording a substantial debt owing to Mr Taleb. Under clause 1.3 of the Deed, the Company granted Mr Taleb the right to register a Caveat over its land (Property).