BSBCNV502 Interpretation Of Legal Documents Assessment Answer Part 3

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Question :

BSBCNV502 Assessment – Read and interpret a legal documents and provide advice

his is the legislation under which you operate. You should download a copy of this to your computer and you will find that it has an inbuilt hyperlink index that takes you to the exact section your need to read. The start of the act looks like this:

Version No. 011

Conveyancers Act 2006

No. 75 of 2006

Version incorporating amendments as at 24 August 2011

  • The rule at general law (common law land) is caveat emptor. Briefly explain how this rule has been fundamentally altered by the Parliament in Victoria by the application of section 32 of the Sale of Land Act 1962 and by the Retail Leases Act 2003.
  • Damion inspected a municipal property advertised for sale in Melbourne. The property was vacant. Damion made an offer to purchase the land. His offer was verbally accepted. When Damion attended at the vendor's Agent's premises to sign the Contract of Sale and pay 10% deposit, Damion requested (before signing) that an old rusted car in the rear yard of the premises be removed before settlement. The Agent declined to consent, explaining to Damion that the vendor was overseas and Damion should approach the vendor when the vendor returned, which would be about 14 days before settlement. So Damion signed the contract and paid the deposit. About 14 days before settlement Damion arranged to meet - and met - the vendor and requested that the old car be removed. The obliging vendor promised Damion that the old car would not only be removed, but the rear yard would be "cleaned up as well" before settlement. Hours before settlement Damion discovered the vendor had broken his promise. Damion now does not want to settle. Advise Damion, assuming that a quotation for the cost of the car removal would be $1,000 and the general clean up would be $2,000.
  • What is your policy and procedures for the signing and disbursement of documentation.
  • James and Simone are both aged 21 years. They have been going out together for the last 18 months. They have just purchased 20acres, near a national park, for $100,000. Appropriately, how should the Transfer of Land be expressed? Why?
  • List all fees, taxes, rebates etc and explain how they are advised to the client. 
  • In one sentence describe:

General Conditions number:





  • Explain how special conditions need to be read in connection with the general conditions.
  • If, after a settlement in Melbourne, David (purchaser) discovered James' mother-in-law was living in a granny flat at the overgrown back of the premises pursuant to an unregistered life estate (not disclosed by the usual searches and not disclosed in answers to Requisitions on Title) advise David of his options. Explain as if you were speaking to David one on one.
  • Explain the difference between T1,T2, T3 forms fully.
  • Before we speak to Beyoncet and James, research your relevant State Government and Conveyancing Institute website download and study a current :
  1. Sale of Land Act
  2. Contract of Sale
  3. Section 32  Vendors Statement
  4. Instruments Act 1958 s126
  5. Summarise Division 3  Insurance, and include JUST the first page of each of the above with your submission.

Beyoncet has noticed there is some action around the old school site and requests you place a caveat on their interest in the 8a Lime Ct property.

  1. What would you do
  2. How would you go about it 
  3. What would be your costs
  4. Give all details of the caveat along with your file notes on your actions and your reasons
  5. Include a copy of the caveat with your submission
  • In the s32, you have received you notice the property currently is on a month to month lease - what would you be aware of here in representing your clients?
  • Also the s32 notifies you there is a mortgage on the property. Is this important ? Why? Do you need to know the amount of the mortgage? Explain.
  • What instructions/precautions will you give to James and Beyoncet during your conveyancing for them? Include one obligation and one entitlement of the vendor in the contract of sale.
  • You also notice in the S32 there are some details that you are not sure are current. How would you check the Contract is up to date? And what parties/entities are required to supply accurate and relevant information in relation to the contract of sale? Include examples of how a Contract of Sale could become non compliant even though it has been completed.
  • Include file notes for all communicati
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Answer :


  • caveat emptor

The retail lease act, 2003 specifies under section 77 about the general and common law for Caveat emptor. In the lease of property the conduct of party’s unconceivable means is defined.  Where the lease holder being legally running any business on any landlord property and such landlord try to treat unfairly with the lease holder then as per the mentioned section, the lease holder have right to avoid such actions or take any action against it. The exponents are available who scrutinize the drafts and takes action against any unfair drafted document.  These documents are judged on following basis –

The position of the tenant and the landlord that could affect each other position as mentioned in the draft document.

The tenant need to legally follow all the conditions mentioned for him as tenant and so is compiled by the landlord.

  • Case study 

The contract in terms of illegality cannot be assumed to be not enforceable or void. As the purchaser has right under the Transfer of land act under provision 32, that in exceptional cases the right can be foregone or rescinded by the purchaser. In case where purchaser has not accepted the contract, the possession has not been received by the purchaser or any right of the possession like rent or profits are not received empowers purchaser to rescind the contract. (Crawford, Johnson, Karin, Straus Feld & Waldman, 2019)

  • disbursement

The real estate agents receive disbursement in exchange of services provided by them like certificates, search or investigation to their clients.  The disbursement amount is based on the procedure involved to avail the required documents.  The procedure depends on the area and the type of certificates.  The authority need to mention their clients on the clerical and estimated cost the procedure would incur. They need to inform that the cost might increase based on the procedure. The procedure includes imputing the professional knowledge and other cost incurred in the process. (Alberti, 2021)

  • Case study 

It is considered that the disclosures mentioned in the sub section 5 of section 32 of the act might abuse the purchaser right. Henceforth, the purchaser are given right to rescind the contract.  The act does not allow the fraudulent party to take the advantage of misconception and coercion. 

  • List of fees, taxes 

The conveyances services facilitates and benefits to derive the rebates, taxes and fees. The parties of the contract need to consider following points while confirming the contract. 

The contract should be read and reviewed along with the vendor’s statement. The property should be measured with accuracies. The property should be insured before settlement. The requisite cost and estimated expenses should be pre-determined and discussed prior to the contract.  

There certain issues that needs to be mentioned to the client other than the above mentioned points. The certificate application. The clients should be given advice on required points. The legal rights and powers should be narrated to the parties.  (Naya, Schafer, Bock & Stiller, 2018)

  • Lists of following conditions 

1-9.7 –

The general condition is distinguished into divisions. The divisions 14, 15 and 16 states for conveying systems, mechanical aspects and electrical aspects. There are other mentioned conditions as well that helps to suit the general conditions. These are survey condition, diversion of the already existing services, the temporary services and so.


The general condition includes in this part are as follows –

  • Division 15 – mechanical
  • Division 14 –conveying system
  • Division 13 – special construction
  • Division 12 – furnishings 
  • Division 11 – equipment’s 
  • Division 10 – specialist 


This general condition states that any clerical error occurred while measuring the property or defining its structure, this would not affect the sale. The purchaser would not have any right in such circumstance to avoid the contract or to ask vendor to compensate for the same. 


The general condition states that specific members and state agreed upon to commence a common venture. The contractual obligations are defined, depends on it. The repercussions of breach of duty are also mentioned. These contracts are dealt through the coordination and organizational approach with the help of legislation. (Spagnuolo,  Menotti & Rodrick, 2020

  • special Conditions

The private treaty like sale of residential land is not considered as auction and thus does not inherit any special condition in the contract. Henceforth, it is considered to be unconditional.  All the property sold through auction is unconditional except their deposits and payments settlements are negotiable. Thus, it is important to analysis the contract and ensures that the conditions are specifically understood to avoid contract lapse. The special condition instances can be seen through it –

The fund requirement of the purchaser to purchase property – it requires accuracy as it states about the funds available on loan and interest paid on it. The funds should be acquired in such manner that is secured an vendor thinks it appropriate.  (Martel, Whitman & Shako, 2019)

  • case study 

It is purchaser’s responsibility to get all the details about the property from the conveyance process. This helps to give idea of legality of the title of the property. The process starts with discussing it with the vendor so directly to know more about the property characteristics that are yet not mentioned in the contract.  The draft documents include all the required property details. The vendor’s warranties clause can be changed with the right to obtain details of the property by the purchaser. The property is validly measured to reduce any inaccuracy in the process to avoid the invalidity in the sale process. The liability and guarantee clause helps the propriety to incorporate valid documents.   The license and consent clause given by the vendor authenticates the document. 

  • T1, T2, T3 FORMS 

The imperative part of the contract is its elements. The promise given by one party to another to accomplish the agreed contract in order to receive the consideration on its behalf is very crucial. Where the two parties have decided to exchange property and deposit in near future. This signifies that both the parties will receive the consideration in the near future.  The deposit of money is not the sole element to make it a valid or invalid. The whole process from promise to agreement all are necessary. While the consideration in form of nonpayment of deposit would not invalidate the agreement.  (Markovitz, 2020)

In regard with the sale of land, the advance settlement is required including the transfer of land. The title office registers this sought of documents of settlement.  It is a transform form with single page of A4 size attached with the A4 annexure with the size of 12.  The form cannot be altered later thus all the important criteria are met primarily.  The act recognizes the vendor as the transform and purchaser as transferee. The documents show the folio number of property and its volume. The value of consideration for transfer of property given by the buyer is mentioned specifically in the document. All the consideration involved on the part of both the parties is specifically mentioned. The T1 form is recognized as most common form.  This T1, T2, T3 forms are other forms that are used by the conveyance to meet the need of transform land clause. The T1 form signifies that vendor is compiled to transfer its stake altogether to the buyer. T2 form inherits the strict approach where property is transferred by the vendor. The T3 form is available to that vendor whose property was mortgaged and wants to avail the right of sale. The form provides two types of options. 


  1. The vendor’s statement is prescribed in section 32 of the sales of land act. The act inherits parameters that are associated with the predetermined procedures and formats. These include as follows –
  2. The property purchased by the buyer is under a charge then the buyer of such property have power to collect any profits derived or rent receipts of such property after settlement. These essential parts need to be mentioned in the contract. (Sah, 2019)
  3. Instrument Act 1958 under section 126. The acts states any person cannot be imposed to answer for any other person debt for the sale of contract.  The person who is legally authorized to answer for such debt in writing can be referred here.
  4. The division 3 states that insures contract cannot be avoided. Only the life insurance contract is allowed to avoid in circumstances of any error. The insurer in such case renews the already entered contract having geniuses. 

Case study –

It is the responsibility of the Bayonet to ensure that the documents and files are legally authenticated and the information of the contract is in his knowledge.

It is imperative to understand the consequences and parameters of the consideration involved in the contract. The contractual obligations need to be understood first and then actions to be taken with regard.

The cost depends on the process that requires in the drafting the documents. The time and knowledge it requires investigating the appropriateness of the documents and the parties. The time given to parties to consul them and share requisite advice with them to make their clients aware.

  • mortgage on the property

The section notifies about the legal and judicial warning to the clients in default of settlement, the vendors detail, the certificate of title of the property, the building measurements or land measurements and its legal position, the property market price, the predominant services if required any. 

  • amount of the mortgage

The party does not need to acquaint themselves with the knowledge of mortgage amount and the other details of the mortgage. When mortgage is claimed by another party, it is of no concern to the buyer who has already registered the property under its title.

  • instructions/precautions

The agreement is considered to be of legal value. The contract binds the parties, confirming their assent to become oblige to meet the contracts obligation. 

  • non-compliant

Apart from the previous mentioned contract, if there occurs any change and requirement to renew the contract occurs. The primary obligation is to understand the draft of the contract and explore several other contractual obligations inherit in the contract of the clients. Then the changes are need to firstly drafted rightly to interpret ate in most continent manner and redraft it accordingly. This contract binds the parties. The contract appropriateness is must.

  • Advice 

The parties communicated as buyer and the conveyance. The Bayoncet has advice the party to renew the contract as the contract does not seem appropriate and narrate specific areas concern with section 32 of the act. He advise him, about the caveat emptor and his rights according to it.

File notes- 

As in the given case, it has come under the notice of Bayoncet that there would be some action around the site of the school. He must requests him place a caveat on their level of interests. 

  • What should be done? 
  • How to go about the same?
  • What will be the fixed costs?
  • Giving all the details of caveat along with the notes of files on the actions and the reasons. 
  • Including a copy of the caveat with the required submission. 
  • Providing an adequate level of the advice. 

Caveat emptor- 

It is the type of legal injunction which has been prevented the registration of the dealings which are very much particular with the real property in the case study. The word caveat is defined as being aware, and lodging the caveat on the real estate. There has been warned anyone who has been dealing with the real estate. Here there is a priority interest in the property. The party who has been lodging the caveat is recognized as caveator. If an individual is having an estate or the any kind of the interest in this property, through which there are possibility of registration, then another dealing can not be helpful for the protection. One might considering the lodging a caveat for protecting the legal position. These are possibly called as caveat able interest.  The individual must assure that he or she must have a genuine interest for the time being, for lodging of caveat. These caveat able interests would involve the mortgage which could be either registered or equitable. It would also include the transferring, or purchaser under the sale agreement. These are followed at a given circumstances. This also include a registered owner and his rights which are contractual in the nature. 

Let suppose if James and Bayoncet signs the contract on 8a lime court, and if they have some sort of doubt, they would be advise to go through the procedure of lodging the caveat of the purchaser. And if they are interested to go with the action, they could lodge the same. 

It is advised that here the caveat of the purchaser is quickly down at the time of the settlement of the property. All the state as well as the territory have an individual system for lodging these caveats. 

When Victoria gets settled through a way of PEXA, al the caveats would be lodge and would be withdrawn as well. 

Prior to these there are numerous clients who give the cheque of their banks which are given to land titles office for 48 dollars. It would help in completion of the caveat form from the perspectives of the clients.

These are forms which are sent to land tiles office so that it could be lodged against the property. 

It would take a time of a week for getting a confirmation regarding lodge. 

Then PEXA workspace are opened, and the caveat of the purchasers are created using an electronic way. It is then authorized and then digitally signed on the behalf of the clients, and then are automatically lodged. 

A copy of the documents are finally sent to the clients for their references.