Frazer v Walker (1967) 1 AC 569 – Law Case Summaries

Alan Frazer and Flora Frazer were joint owners of a New Zealand dairy farm under the Land Transfer Act 1952 (NZ) (the Act).
Mrs Frazer borrowed ₤3,000 from the Radomskis, using the dairy farm as security for this loan without her husband’s consent.
The contract needed both of the Frazers’ signatures for the mortgage to be legally valid.
Mrs Frazer forged Mr Frazer’s signature and persuaded her lawyer’s clerk to falsely witness the signature of Mr Frazer.
Mrs Frazer paid out the existing mortgage on the property and retained a sum of money for herself.
The Radomskis’ sold the farm to Mr Walker for ₤5000.
Both the Radomskis and Mr Walker were unaware of Mrs Frazer’s fraud.
Mr Walker was registered as to the legal owner. Mr Frazer refused to recognise Mr Walker’s legal interest in the farm – Mr Walker commenced proceedings for possession of the farm.

Was Mr Walker’s title to the property legal, despite the defective title caused by Mrs Frazers’ fraud?

Mr Walker was a “bona fide purchaser for value without notice”.
Mr Walker was unaware of Mrs Frazer’s fraud at the time of purchase, as were the Radomkis.
This mean that Mr Walker had indefeasible title.
This position was consistent with section 183 of the Act, which stated that fraud would not defeat a “bona fide purchaser for valuable consideration”.

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