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QUESTION 1

Rodney, a landscaper and gardener, owned 3 acres of land near Taree.  In 1992 he subdivided his land into 1 large lot (1 acre) surrounded by twenty small lots.   Rodney sold the small lots to purchasers who each built houses on them with small yards.

He retained the larger lot which he has turned into a lovely garden with walkways and a central pond and lawns, garden beds and ornamental trees surrounding the pond. 

When Rodney subdivided the land in 1992 he granted a right to each of the small lot purchasers allowing them use of the garden and requiring them to contribute to the maintenance costs for the garden.

Melanie purchased one of the small lots in 1992.  She has now consulted you because Rodney, who has given up landscaping and gardening, has sold the large lot to a developer.   Melanie is very concerned that the developer may try to stop her and the other small lot owners from using the garden as she has heard the developer plans redevelop the garden for housing.

Melanie and the other owners want to retain the use of the garden. 

Advise Melanie whether there is any way they can do this.  Support your advice with relevant authority.

QUESTION 2

You act for Stephen on the purchase of an old warehouse in Parramatta.  Stephen thinks he has got a great bargain and is keen to settle.  The contract is the 2018 edition.  Completion is due under the contract on 25 September which is 6 weeks after exchange.

The title search in the Contract shows a Caveat registered on the title.  When you send requisitions to the vendor’s conveyancer, Michael, you include the following requisition:

“32.  Caveat W9988223 must be removed from the title and evidence shown of its removal at least 3 days before completion.”

On 22 September you receive by fax from Michael replies to your requisitions.  The answer to requisition 32 states “The vendor relies on the contract”.

On 24 September you fax to Michael a request for a proper reply to requisition 32.  Later that day you receive from Michael notice under Clause 8 of the Contract requiring the purchaser to waive requisition 32.  You write to Michael insisting on a proper reply to the requisition.  On 12 October you receive from Michael a Notice of Rescission due to the purchaser’s failure to waive the requisition.

What advice would you now give to Stephen?  Support your advice with relevant case authority.

 

 

 

 

 

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