Under the first limb of Barnes v Addy, a person who receives trust property with knowledge that it is trust property is liable as a constructive trustee; dishonesty is not required for this limb. A constructive trust arising under this limb constitutes an 'equity' within s 185(1)(a) of the Land Title Act 1994 (Qld) sufficient to overcome indefeasibility of registered title. Where a purchaser pays the full purchase price but the vendor fails to transfer, the vendor holds the land on resulting trust for the purchaser.
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