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BLDG2012 Construction & Property Law

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Sharon is a property developer who is interested in purchasing land at 38 Blues Drive, Ormeau. As part of her due diligence the following information became available:

  • Along the back boundary there is a significant amount of native vegetation;
  • There is a worn down old timber farmhouse built in the 1940s;
  • A large derelict shed which has asbestos;
  • The current title search identifies the following interests in the land:
    • Electricity easement running through the middle of the land;
    • A covenant preserving the adjoining landowner’s view through restricting development on the land to 3 storeys;
  • Large steel artwork by the world renown artist Michael Star which Sharon would like to utilise for her proposed development.

Sharon believes that she can still work with the land for her development and therefore progresses purchasing the land. She obtains Finance from her Bank, ABC Loan. She receives a draft Contract of Sale for review from the Seller’s solicitor. Within the draft Contract there was the following Special Condition of the Contract of Sale:

Special Condition

This sale is subject to the Buyer giving written notice to the Seller (or the Seller’s solicitor) that she is satisfied with the terms and conditions of the short team lease agreement within 14 days of the date of contract. If the Buyer gives notice that she is not satisfied, this contract shall be null and void and all money paid hereunder, shall be returned to the Buyer.

Tenancy Details

Tenant’s name: Charlotte Flair

Term and Option: 2 years with a 1 year option Starting date of Term: 1st August 2018

Ending date of Term: 31st July 2020 Rent: $152,000 per year

Sharon did not believe that the short term lease was an issue as it was not registered on title and therefore she could remove Charlotte from the land when she needs to develop. Sharon executes the Contract of Sale. Settlement occurs and the land is transferred into Sharon’s name and she is now the registered owner. Sharon gives Charlotte notice to leave within the week.

After one month, Sharon enters her property and notices the following:

  • The large steel artwork has been removed from the land;
  • Charlotte is still occupying the land;

Sharon is initially seeking your advice specifically in relation to the above.

While finalising your advice to Sharon, Sharon has contacted you for advice in relation to the development of a flat plan building development scheme on the land. She wanted to know the applicable legislation and regulation that she will need to comply with and the requirements involved in developing such a scheme.

Sharon has taken your advice into account and continues to progress the development. Due to Sarah becoming extremely busy she has forgotten about fencing the house and shed due to their dilapidated nature. Unfortunately, Roman enters the land in the belief that there is buried treasure in the basement of the house. While on the premises Roman injures himself by falling through the floor of the second level of the house. Roman is not happy and is seeking legal advice to sue Sharon.

Sharon’s development costs are spiralling out of control as well as the costs associated with the legal fight with Roman. Unfortunately, Sharon has not been able to make her mortgage repayments for six months. ABC Loan is concerned about Sharon’s failure to make her mortgage repayments and would like to be advised as to possible action it could take.

Advise as to the following:

  • Development issues that Sharon would have considered;
  • Advise Sharon as to her legal responsibility with regards to the other interests in land.

2. Bob is Sharon’s next door neighbour. He has recently returned to his property from a long 12 year working holiday. When he returned he noticed that there were some changes to his property. His house has been repainted, a granny flat has been constructed, and a vegetable garden has been planted. Also, he has noticed that the name on the letterbox is no longer his. He entered the property and found Joseph watching TV in his loungeroom. Joseph told Bob to leave and escorted him out of the house. Bob is left dumbfounded and upset as he has been thrown out of his own property. He contact the police and explained the situation but the police refused to get involved into a legal dispute.

Joseph has issued a caveat over Bob’s property making a claim as an adverse possessor on the following facts:

  • He claims to have been in possession of the land for 12 years. His friend Mary was in possession of the land from 2005 to 2012 and then he entered the land and lived with Mary for 1 year from 2012 to 2013 and after Mary left in 2013 he has remained in possession up to today (2018).
  • He claims that himself and Mary while in possession had maintained the land, paid the rates, fenced the land, built improvements, and they had occupied the land without the consent of the true owner.
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My Assignment Help (2021) Construction & Property Law [Online]. Available from: https://myassignmenthelp.com/free-samples/bldg2012-construction-and-property-law/the-rule-of-indefeasibility.html
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My Assignment Help. 'Construction & Property Law' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/bldg2012-construction-and-property-law/the-rule-of-indefeasibility.html> accessed 15 April 2021.

My Assignment Help. Construction & Property Law [Internet]. My Assignment Help. 2021 [cited 15 April 2021]. Available from: https://myassignmenthelp.com/free-samples/bldg2012-construction-and-property-law/the-rule-of-indefeasibility.html.

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