Can you pay for a property and still not become its registered owner?

Most clients assume that once a property contract has been signed and settlement has occurred, the transaction is finished.

A recent Supreme Court of NSW decision shows why that is not always the case.

In Su v Zhao’s Brothers Investment Pty Ltd as trustee for the Zhao Family Trust (receiver and manager appointed) [2026] NSWSC 842, two purchasers claimed the same 10% interest in five parcels of land at Magenta Shores.

The first purchaser signed a contract in September 2025 and received a transfer in December 2025. However, the transfer was not registered.

A second purchaser later paid for the same interest through what was said to be a sale by a mortgagee. That purchaser also received a transfer and sought to have it registered.

The dispute became more complicated because the mortgagee sale relied on documents whose history and validity were challenged. It was alleged that some documents may have been signed years after the dates appearing on them and at a time when the person signing may no longer have been authorised to act for the company.

Importantly, the Court did not decide whether those allegations were true. It decided that the issues were serious enough to stop the later transfer and related mortgages from being registered until the dispute could be properly determined.

For clients, the case provides a simple but important warning: settlement is not always the end of the transaction.

Before buying property—particularly from a company, trust, mortgagee or receiver—it is important to understand:

• who actually owns the property;
• whether the seller has authority to sell it;
• whether someone else has already lodged a transfer or claimed an interest;
• whether any court proceedings affect the property; and
• whether there is anything that could prevent registration after settlement.

In this case, there were warning signs before the later transaction was completed. An earlier transfer appeared in a title search attached to the contract. The later purchaser’s financier had also raised questions about existing court proceedings and other dealings affecting the land.

Those warning signs may ultimately be important. A purchaser cannot always proceed with a transaction despite obvious concerns and then assume that registration will solve the problem.

The lesson is not that clients should be frightened of purchasing from mortgagees, trustees or companies. These transactions occur regularly. The lesson is that they often require more investigation than an ordinary sale.

A careful title search is only the beginning. The transaction documents, the seller’s authority and any existing disputes must also be examined. If something unusual appears, it should be resolved before money changes hands.

The Court temporarily froze the position and required the disputed sale proceeds to be paid into Court. The final ownership dispute remains unresolved.

Judgment: https://www.caselaw.nsw.gov.au/decision/19f6953df2c243fa57baa0be

Thinking about buying a property? Speak with the team at Solari & Stock, we can answer your questions, review the contract, and help you understand what is required from you.

To speak with one of our experienced Solicitors call us on 8525 2700, click on the Book Now button below or click here to request an appointment.

Article by Rebecca Exley
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