Question 2

Alan, Bob, Chris, and Derek studied surveying together. Since they were such highly paid graduates at the end of their study they decided to buy a house in Brisbane together as joint tenants. After a couple of years Alan gets engaged to Eric and Chris gets a job in North Queensland and wants to free up some money to buy a house there. He signs an agreement to sell his interest in the house to Derek for $300,000. Derek takes the agreement and registers the transfer after he receives the money. Alan and Eric get married and Eric buys Chris’ share in the house from Derek for $350,000 and registers the transfer. Everyone is happy until Alan dies in a freak plumb bob related accident.  Eric is the beneficiary of Alan’s will. It all gets too hard and they decided to sell the house for $2,000,000.

Using you understanding of co‐ownership and severance advise Eric, Bob and Derek as to what sums they should expect from the sale and why. (In your answer it would be useful to show what the registered owner section of the title would look like after every stage.)