Read and Interpret the legal documents on Contract law
1. Explain fully what is a contract
The contract can be defined as the legal agreement between two or more than two parties. The contractual relationship is described in the book of law as the intended legal relationships between the parties. For the validation of the contracts legally, the legislation will first consider if both the parties are aware and having genuine knowledge about the making of the contracts or not. Most importantly, the contracts cannot be made if each party does not have equal capability to follow the legal terms and considerations needed for the contractual formalities.
-Why is it used?
The contracts are made basically for the purpose of overcoming the complex situations where the parties want to make a legal settlement for the purpose of the business (Carpenter, Lueders & Thayer, 2017). Through the settlement, at the time of purchasing or selling, both the purchasers and the sellers can stay alert about the legal documentations and most importantly, the legal contracts can be helpful for the parties to have the estimation on the upcoming difficulties.
-What is required for a contract for the sale of land to be enforceable?
For making the contract for the sale of contract and making it enforceable, printed terms and therelevant statutory terms are priory needed. Along with these required terms and conditions, another required terms and conditions, which need to be implied for the enforcement of the sale of land contracts, are common law terms, statutory terms and express terms.
2. Examine a copy of a vendor's statement
The vendor statement is formed under Section 32 of the Sale of Land. It is developed for the sake of the purchasers so that they can be aware about the legal documents before purchasing the land from the vendors. For the taxes and the rates, the vendors are supposed to separate the details of the rates and taxes clearly, so that the purchasers do not have to
What is the alternative to setting out the separate rates and taxes from each authority?
In a Vendor statement, both the purchasers and the vendors are liable to develop the disclosures about the rates and the taxes. Reviewing the vendor statement and the regulations regarding the taxes and the rates, it can be understood that both the purchasers and the vendors are liable to bring changes in the provisions about the disclosures of the warranties. Alternative Vendor’s statement is to be available for overcoming the challenging situations in committing the vendor statement.
What must a vendor do if they are not registered on title?
The title part of the vendor statement is considered as the proof of the ownership and it must be enclosed with the legal documents (Brennan & Casey, 2014). If the title is not registered, then the purchasers must take the advices from their legal advisors or else they can also undertake a binding contract, which is less formal and having less difficulties.
3. In regards to the common law system of ownership, which legislative provision requires conveyances of land to be indeed from?
Conveyances are defined as the Real Estate Agent, whose duties are characterised under the Estate Agents Regulations 1997. They are responsible to investigate the terms of contracts for the purchasers. They can also legally form the terms and conditions for the sake of the vendors. As per the common law system of ownership, the conveyances are responsible to investigate the both the vendor statement and the contract note along with the Contract of Sale of Real Estate (Duncan, Christensen, Dixon, Window & Rivera, 2016). However, the Common Law system does not allow the conveyances to be engaged internally in the contracts. The conveyances or the solicitors are liable to enquire about the implementation of the Section 32 of the Sales of Land.
The regulations in the Professional Conduct and Trust Account are to be followed by the conveyances for the legal researches and the identification of the standards from the contracts. The legal duties of the conveyances, enforced by the Common Law system, are divided as the tasks of researching, disclosures, physical inspection and the certificate collections.
4. How are a purchaser’s rights affected by the acceptance of title in these sections?
Section 27 of the Sales of Land act affects the purchaser’s rights in multiple way and it can also change the dimension of the purchaser-vendor relationship. Most importantly, under the section 27, the sales of land contracts can become unconditional. The matter of the deposit of the monies can be considered as unconditional for the vendors. The purchasers have to accept the title in case of the acceptance of Section 27 (Stein, 2017). It is because the vendors have to send the requisitions within 21 days. On the acceptance of the section 27, it will be considered that the purchasers are satisfied and agreed with the information, provided by the vendors.
Section 32 creates more value for the purchasers than the Section 27. As per this section, the vendors are bound to give each detail about the documentations and the legal requirements to the purchasers. Vendor statement under this Section 32 of the Sales of Land act is the most effective and influential factor for the rights of the purchasers. Caveat emptor is the next major influential factor for securing the rights of the purchasers under this section, where the purchasers have the rights to investigate each necessary detail through the solicitors or through the legal advisors.
5. Briefly discuss the circumstances in which each method may be used and the differences between the methods
Transfer of Land (Single Register) Act 1998 has introduced six methods under different circumstances for bringing general law land under the functional area of the modified version of the act of 1958.
Past practice of the law is the major circumstance under which the actionof bringing general law land can be performed under the functional area of Transfer of Land Act 1958 (Korngold, 2015). The circumstances of the amendments of the 1986 version of the Transfer of Land Act can be considered as the acceleration of the activities of bringing general law land under the Transfer Act 1958.
Furthermore, it can also be said that, the functional analysis of the Transfer of Land Act helps in the identification and distinction of the tangible assets along with intangible assets. On the other hand, it can also be said that, the tangible assets of the Act refers to the property and equipments that are being financed in order to expect and earn a long term rate for the sole purpose of commensuration the business risk that has been essentially assumed.
6. Answer the following fully - Suggested word length: 300 words each answer
Refer to the Transfer of Land Act ss.40-44 and solve the following problems
(a) Melbourne Water forwards an overdue rate notice to the new owner of the property. The settlement of the transaction adjusted (balanced the books) for the current rate year, but failed to deal with the overdue rates and penalty interest from a previous year.
Does Melbourne Water have to find the vendor to claim the balance owing?
As per section 42 or schedule 7 of the Transfer of Land Act, it is stated that the payment regarding penalty is imposed on the condition if either of the parties associated in the agreement delays the payment of the supposed payment amount. The most common form of the delays is considered to be the postponement of the settlement.
It is important to understand when the penalty amount is payable. Penalty amount is payable when money is due and it has not been paid by the due date. As mentioned in the section late payment of the deposit and late payment of the balance at the time of settlement.
As mentioned in the section it refers to the default by either of the two parties in the payment of the money (www.lawteacher.net, 2017). It clearly indicates that the vendor is the only one who is capable of charging the penalty interest simply because of the purchaser who suffers loss as a result. Another important fact that worth mentioning that if there are may be other remedies available to the purchaser but the penalty interest is not payable. The current penalty interest rate is mentioned under the Penalty Interest Rates Act and it is subjected to possible variation. Another important factor is that if the delay is not a particular party’s fault then the matter of penalty is more complex than usual. For instance if any of the involved parties is not liable for the delay but the subsequent bank is responsible for the delay in the payment, then the bank is supposed to compensate the penalty but often they do not.
Keeping in mind the above mentioned facts, the vendor here needs to be contacted for the penalty payment as he is obliged to pay under the charge stated by section 44 of the act. Condition 4 of the act clearly mentions that the vendor is the only one who is to be contacted to charge the penalty interest because the purchaser is the one who is obliged to make payment in any possible sale.
(b) A tax department officer wishes to prove in a court case that a taxpayer owns certain land. How can this be done?
It is a known fact that possession of land is an eminent evidence of seisen and the possession of the documents of the title are the primary evidence of a security over a particular land. As per the Torrens system, the titles based on a register of land for instance, a certificate of the titled guaranteed by the State and not a series of written deeds which are constituted under the old law titles. A certificate regarding the registration is usually registered under the registry book and it is maintained by the Land Registry and it certifies the ownership of the land. Therefore, this serves as the prime document that serves as the ownership evidence of the land.
Therefore, this can be cited as an important evidence by the tax department officer in order to prove the ownership of a certain land. This document as under the Torrens system, consists of a single document and it serves as the certificate of the ownership. Unregistered dealings are considered to be illegal and the registered dealings are only considered to be valid. The certificate of the title includes a volume and a folio number, along with that a description of the land, and encumbrances which includes mortgages and caveats (www.lawteacher.net, 2017).
The land registry in Victoria has conveniently converted the paper certificates into digital format and the complete process of registration has been digitalized. Therefore, it is easier to get hold of the registry receipt.
A tax department officer based on the proper use of legal methodology can examine various forms of information in order to prove a tax payer to be the owner of the land and the aspects that require to be verified are:
- The volume and the folio mentioned in the certificate
- Provided land description
- Details of the registered proprietor
It is important to note that the tax payer can easily be proved to be the owner of a particular land if the owner has the registry certificate of the land which has been obtained legally.
(c) Need a business operator renting a shop premises be concerned when the owner of the shop notifies him / her that a sale of the property will occur? Why? Protected by S42of the Transfer of Land Act
If a business operator is operating from a property that does not registered upon his or her name, then the property is considered to be a leased property that is under the subject of agreement or contract between the two parties. It is important understand the terms and conditions that are associated with the business operation. Any business that is operating through a leased property depends on several predetermined terms and the general conditions of the contract of sale include:
Condition 1 states that encumbrances and any mortgages to be adopted must be detailed in the Schedule.
Condition 2 states that the vendor is responsible for the property and chattels until settlement.
Condition 3 stipulates that any finance must be applied for in accordance with this condition.
Condition 4 states that terms contract details must be set out in the Schedule and the deposit paid into trust.
Condition 5 states where a purchaser wishes to insert another party, they will be responsible under the contract and for any further documents.
Condition 6 examines how various payments are to be made.
Condition 7 applies where the contract is breached; the innocent party is entitled to compensation for loss.
Condition 8 outlines that public holidays and weekend dates will be extended to the next business day.
Condition 9 stipulates that the Table A conditions will be included in the contract.
Condition 10 explains that special conditions will override general conditions.
Condition 11 explains how this contract will replace any previous contract.
Condition 12 states that service by post is deemed the next day.
Condition 13 explains that the transfer is to be prepared by the purchaser at east 10 days prior to settlement, and any more than 3 bank cheques are to be paid by the vendor.
As per the mentioned conditions it is evident that the owner can sell the property but if there is an agreement that clearly identifies the time of lease then it is not possible for the owner to sell the property under the subsequent lease period. As mentioned in section 126 of Victorian Instruments Act 1958, a contract of sale needs to be announced in writing in order to be legally enforced (www.austlii.edu.au, 2017). In this case if the lease and the subsequent agreement regarding the lease is mentioned in a form of a note or a memorandum that includes the material terms, the names of the parties, the consideration and the subject matter, and if it is signed by both the parties then the operator of the business does not need to be concerned. In a similar manner, if no time of lease is mentioned and the business operation is continuing after the lease period and no further agreement has been made, then the business operator has no legal right over the property. If the interest of the business operator is registered then under section 42 he or she can take further actions.
7. A vendor of land sold the property twice to different purchasers. The first purchaser, therefore, has an equitable interest in the land. The second purchaser, however, quickly settles the transaction and registers their ‘net interest’, even though they had heard from another person of the possible first sale.
Who has the greater right? Why?
In this case as it is mentioned that the second purchaser has quickly settled the payments and has registered their net interest. However, any such proceedings on the part of the first purchaser has not been mentioned. Based upon the action of the vendor as he has extinguished his rights upon different purchasers (www.austlii.edu.au, 2017). Another important fact is that as per the rights of the first purchaser, the first purchaser has an equitable interest in the land but it is important to identify whether the interest has been registered or not. If their interest is registered then the first purchaser has greater right. This is solely because of the presence of Caveat. Refers to the fact that, real estate needs to be acquired in the purchased property. But the purchaser will not be the real owner of the property but until the interests are registered there might come a risk of claiming the property properly.
8. Sebastian is employed in the loans department of the Eastpac Bank, which has loaned $380 000 to
Isabelle Francis to purchase a Torrens title property in a Melbourne suburb. Unfortunately, Isabelle defaults in her payments and Sebastian is instructed to exercise the bank’s rights as mortgagee. Sebastian wanted to impress the boss and suggests that foreclosure might be a good idea
Is this the best option? What does the law require in these circumstances
It is a general practice for the lender or the mortgagee to avail the ownership of the property if the borrower or the mortgagor exhibits any defaults regarding consistent payments. In the current context, it is legitimate for the Eastpac bank to exercise their rights of foreclosures and to sell the property to some substitute buyer to recoup the incurred losses. Apart from exercising the power of sale, the bank might sue for gross violations of contract and charge the amount from the mortgagor. However, it does not appear a potent option hereby since it is financial misery that can only cause the defaults of consistent payments. Thus, the option suggested by Sebastian happens to be the fecund one.
In order to avail the power of sale the Eastpac bank needs to acquire a court order with a filing for eviction since this prevents the mortgagor to appeal for a loan modification. Instead of appealing for Dual Tracking, which is illegitimate in terms of,Transfer of Land Act 1958 of ASIC, the Eastpac bank might pursue a court order to reduce the redemption period of the mortgagor since the property is still vacant (Kok, Monkkonen & Quigley, 2014). Furthermore, the mortgagee needs to act in accordance with the notions of good faith in order to obtain the best price from the auction.
9. What is another name for equity law, and how does it differ from statutory law?
Another name for Equity Law is Non-statutory law. Historically equity has been depicted as the collection of legal principles which allow the courts to reach to the fair decisions in the cases that might lead to an unjust decision because of the practicing the common law. Equity law helps in reaching to a fairer decision and it primarily works in the situations where strict application of the law can provide an unfair ruling for particular situations ( www.austlii.edu.au , 2017 ). Importance of Equity law is it provides the citizens with the possibility of liberty in the face of the system in order to provide every individual with the liberty to express their own stories and have a chance to achieve fair judgment in the courts.
Difference with statutory law
Statutes are laws that are made by legislative bodies that are both central and state. Equity law is not originated from any law made through a statue or the parliament.
10. Patrick and Anna are cruising one fine Saturday when they spot their ideal mansion for sale. They place a deposit and sign a contract for $2 million. All the way home, they make plans about renovations and additions. Their biggest plan is to add a top storey to the existing two-storey dwelling, to take in spectacular views over the nearby mountains. Their conveyancer rings them urgently the next week to advise that there is a restriction on the building dating back one hundred years, limiting it to two storeys. The surrounding land has since been developed into one acre lots with complete and well-spaced housing.
What can they do? Are they bound to accept this restriction? Explain in full:
Initially, it can be depicted that it is chiefly Patrick and Anna’s fault that they does not ask their conveyance adviser to reveal all the relevant documents coupled with the exchange of properly signed agreements while paying the deposit. It is imperative in this regard since they need to scrutinize the proposed documents against the nuances of the Planning and Environment Act 1987 since it is the prime regulator of the planning principles while having a command regarding the use of the land (Hall & Kepe, 2017). On the other hand, the conveyancer appear to breach the regulatory obligation to disclose each and every regarding the provisions of using the mansion.
Since a partial settlement has been acquired by the duo in terms of, the deposit issued, Patrick and might appeal for a consideration of adjustment to the conveyancer. It is imperative for them to acquire the statement of adjustments since it prevents them from any kind of financial liability or burdens of particular expense for the tenure when they are not the owner of the property (Duncan et al. 2016). Furthermore, they needs to remind the conveyancer regarding the expenses that the latter is obliged to pay to develop the title again. Instead of availing that, the duo must exercise their right to redeem their deposited amount through the provisions of withdrawal of the respective caveat.
11. Is payment of a deposit a requirement for a valid contract of sale? Explain
As it is stated in the consideration, the payment of the deposit does not always validate a contract. The validity of any contract does not entirely depend upon the payment of the deposit. Without any deposit a contract can be valid (Tait, 2015). Consideration is the fundamental aspect of any contract and it clearly states that provided that all the other criteria are met even without paying the deposit, a contract can be valid.
12. Sect. 126 of the Victorian Instruments Act 1958 is relevant because it establishes the rule that a contract of sale must be in writing to be enforceable. Record a copy of the relevant section.
The mentioned copy clearly states the relevance of the section 126 of Instruments Act 1958. It also clarifies that it is necessary to have the certain agreements in the written document format.
13. List the other professionals involved in the sale of land industry and their roles
Apart from the real estate agent there are other professionals who are involved in the sale of land industry and they are
- Mortgage brokers
The major role in the industry is played by the real estate agents. The real estate agents act on behalf of the buyers and the vendors in the state of their licensing. In order to perform the licensing activity successfully it is important for them to be trained and they also need to undergo the training regarding the laws that govern buying and selling of property.
Register is another important professional who is associated in the legal registration process of the land or the estate.
Solicitor plays a significant role in researching the legal facts associated with the land or the property and he is also responsible for providing important legal solutions to the possible future problems oriented with the registration of the property (www.lawteacher.net, 2017).
Mortgage brokers are the one who search for the subsequent property and also plays the intermediate between the client and the vendor.
The conveyencer is associated with several roles and they are completing and lodging all the legal documents with the department of the land services. They are also responsible with searching for the certificate of the title (www.lawteacher.net, 2017). They need to search the government departments and the local authorities for anything which can influence the property. They also adjust and rate the taxes for the clients.
14. In simple language, explain ‘consideration’ in regards to a contract?
Consideration is the element of the contract that is fundamental in the process of enforcement of the land contracts. The value of the consideration lies in the part of promising something in the future. Consideration is a factor that is provided to both the parties regarding their future promises. Therefore, according to a contract if one party is to pay a certain amount of money in a provided time span and another party promised to transfer a title in the said time span, then consideration is provided to both the involved parties (www.lawteacher.net, 2017). If all the other requirements are met, then it is possible for a valid contract to exist without paying any certain amount of deposit.
As per the consideration it is an important factor that, though the common practice is to pay a certain amount of deposit, but the contract can be valid even without any payment. Absence of deposit can not invalidate a contract. Even without payment a valid contract can exists and a defaulting purchaser can be sued for damages as well as a defaulting vendor.
15. What would you do if you found a conflict of interest with a client? What is the policy at your organization?
It is important for any business operator to explain and discuss the recommendations and the rationale with the client in order to avoid possible discrepancies regarding the interest of both the parties. It is also important for the consumers and the clients to clearly understand the developed solutions in regard to their identified requirements (www.austlii.edu.au, 2017 ). Therefore it is important to discuss and determine the course of action in order to avoid certain conflict of interest with the clients. If any kind of conflict of interest arises then it is important to ensure that the clients are aware of all the information and a positive and clear communication is maintained with the client (www.austlii.edu.au, 2017). Therefore, they need to be aware of the products and the organizational policies. If a conflict arises then the following steps can be considered:
- Discuss and explain the possible solutions with the clients with the help of unambiguous and clear language.
- It is important to avoid all possible linguistically jargons in order to avoid miscommunication.
- It is important to discuss and explain the possible risk precisely and clearly to the clients.
- Another possible solution is to provide the clients with written documents in order to guide them about the proposed solutions.
The organizational policy that we believe in is giving prior importance to the value of the consumers and the clients as they are the foundation of the business.
16. 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.
The general or common law land, which is extensively known as Caveat Emptor in the legislative dialects is supposed to categorize under section 77 of the retail leases act 2003. In this lease, the notion of Unconscious able conduct has been attempted to define. It has been described there that if you are running any business and supposed to be unfairly treated by the landlord or vice versa, then legislative regulations allow to speak with commercial leasing exponent. They are the exponents who are supposed to scrutinize the draft against the declared notions if any reasonable doubt indicates any cases of unfair drafting (Cohen, 2015). This has been judged on the following basis;
- The relative strengths of bargaining positions of the tenant and landlord prospective if any cases of obvious disadvantage
- On that regard, the tenant is supposedly comply with the conditions regarding the reasonably essential for the landlords valid interests across the landlord and holds universality in accordance with landlord legislation.
17. 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. Therefore, 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. Advice 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.
The word “illegal” is supposed to be vindicated as not enforceable. Because the Transfer of Land precisely dictates a section 32 disclosure statement Act 1958 which metrics most exceptions to indefeasibility, which a purchaser has a right to rescind any contract before the purchasers acceptance or fails to possession or entitlement to receive, rents and profits (Roberts, 2015).
The contract sale in a terms contract where the contract for the land remains at the risk of the vendor.
18. What is your policy and procedures for the signing and disbursement of documentation?
Disbursements are considered as the amounts that is paid on the behalf of the client for certificates, searches and agency fees (www.lawyersconveyancing.com, 2017). It is not always possible to provide the client with an accurate figure for this disbursements as there are multiple variables are involved in the procedures. This is an important procedure as different certificates that are applicable to several different areas.
The primary policy that requires to be followed that
- Informing the client of the charging structures of different authorities and the number of the title searchers.
- Keeping a running total of the disbursements paid on the behalf of the client.
- Refraining from guessing, keeping track of all the costing and to be specific to the clients.
19. 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?
The requisite disclosure are prone to be abused and that is why Section 32(5) of the Sale of Land Act 1962 is suppose to grant the purchaser a right to rescind any agreement regarding the purchasers acceptance of the title and entitlement of the possession. However, the act effectively allows false information of fails to provide or supply false information.
20. List all fees, taxes, rebates etc and explain how they are advised to the client
Before buying or selling, the conveyance services help with the taxes, rebates and fees. For the buyers following factors need to be taken under consideration. At the time of the settlement and the period of contract.
- Review the contract and Vendor’s statement
- It is important to measure the property and immediately advise of the inaccuracies.
- Insuring the property from the day of sale is also important (www.lawyersconveyancing.com, 2017). Detailed fee structure and anticipated expenses need to be enlisted and the client needs to understand the validity of the payments.
Among the other issues, the following factors need to be mentioned to the client and they are;
- Application of the certificates and the searches.
- Another important factor is to advise the vendor’s representative whether the purchaser requires production of a form 312 or building any insurance certificate according to the general conditions 7 and 8 of the prescribed agreement.
- It is significant to lodge a purchaser’s caveat on title along with preparation of the transfer documents and dealing with the lending institution.
21. In one sentence describe
General Conditions number:
There are certain specifications under this general condition number, which are as follows:
Division 14: conveying systems
Division 15: mechanical aspects
Division 16: electrical aspects
The divisions 7-10 and 14 are considered subcontracted divisions, out of which 11-13 are typically by owner (Pashukanis, 2017).
Apart from this, it can also be said that, there are certain more provisions, which are associated with this general condition number.
It is to be noted that there are some other specific items that might be required in the contract in order to suit the site conditions. They are as follows:
- Survey conditions
- Temporary steel working platform
- Diversion of the existing services
- Temporary works for obtaining occupation permit.
This general condition number contains the following:
Division 10: specialties
Division 11: equipments
Division 12: furnishings
Division 13: special construction
Division 14: conveying systems
Division 15: mechanical
It refers to the fact that, an omission or mistake in the definite description of the property or any deficiency in the area might result in the measurements or description of the land and does not invalidate the sale. The purchaser is not subjected to have the following:
- Cannot make any objection or claim for any definite compensation for any alleged mis-description of the desired property along with any deficiency in their definite area or measurement.
- They do not require the vendor to pay or amend title any cost of amending title.
These are considered common ventures that are essentially agreed on by the definite members of definite states. The obligations and rights of the participants in the legislation are characteristically determined by specific contracts of specialization and cooperation. It also includes rules on the consequences of breach. Based on such contracts, it can be propagated that, the definite deliveries are concluded. Therefore, it can be formulated by stating the fact that, the contracts of specialization as well as cooperation are considered contracts of coordination and organisational approaches within the legislations, which needs to be taken into consideration (Welch et al. 2016).
22. Explain how Special Conditions need to be read in connection with the general conditions
It is to be noted that, a contract for the sale of residential land that is sold by private treaty and essentially not an auction has no special conditions. However, it is said to be unconditional. Furthermore, a property that is purchased at an auction is generally considered unconditional, but it might be subjected to negotiation in terms of amount of the deposit or the date of payment for the deposit. Therefore, it is important to understand and evaluate the proper terms and conditions of the definite contract. On the other hand, it is also important to note that, if a contract includes certain specific conditions and if those conditions are not properly fulfilled, then it is likely to happen that, the contract will lapse. After the lapse of the document, the vendor needs to put the property back on the market or renegotiate the terms and conditions of the contract. There are some of the common instances of special conditions, which are as follows:
Purchasers intending to obtain finance for the purchasing of property: this specific condition needs to be quite accurate and absolute in its approach. This condition provides a vivid detail of the credit provider along with the interest rates and the time as to when the finance should be finalized. It is significant to ensure the fact that the finance is arranged in a better way before signing a contract in order to make the contract attain more attraction and amusement to the vendors who are interested into attaining this specific condition.
Sale of the purchaser’s home: this special condition largely depends on the state of the predominant housing market, which includes the fact that, the vendor might not want to take any potential risk of the property of the purchaser within the specified timeframe. On the other hand, it is also important to note that, the conditions must specify a particular date for the contract to be signed and they must give every effort in order to ensure that settlement of both properties occur on the similar date in order to avoid the additional costs.
Satisfaction in the building inspection: it is important to note that, the usual process of building an inspection is subjected to arrange a short notice. Most of the vendors are happy in allowing a proper inspection, which must take place in order to attain a prior auction or an offer. Therefore, it is however unusual and peculiar to accept a particular contract, which is subjected to a definite satisfactory building inspection.
Furthermore, it can also be propagated that, the purchaser must make every possible reasonable Endeavour in order to fulfil any special condition. Furthermore, if the special condition is not met, then it is likely to happen that the contract lapses and becomes enforceable. This thus implies the fact that, the vendor cannot insist the purchaser who buys the property, or sue damages for the breach of contract. It is to be noted that any refund needs to be authorised by the vendor. Furthermore, it can also be said that, if a particular property is being purchased from a mortgage, which is in possession of the vendor, it is likely to happen that the complex social conditions to protect the mortgagee. If an individual does not understand the special condition under any definite circumstance, then it is subjected to seek legal advice or speak to a conveyancer (Black, 2014).
23. If, after a settlement in Melbourne, David discovered Boris' mother-in-law was living in a hut 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.
As a part of the normal conveyance process, the purchaser needs to make appropriate enquiries with the vendor about the definite Title of the property. These aspects are usually referred to as the requisition on title. The primary purpose of these requisitions is to ask the vendor regarding the information about the facets, which might not have been disclosed in the contract while promulgating the essential characteristics. On the other hand, it is also important to note that, the latest draft contract includes the addition of the following fundamental characteristics:
- The warranties of the vendor’s clause need to replace the right of the purchaser in order to attain a requisite and inquiries.
- Proper identification of the property tends to oblige the purchaser in order to make their won queries, which are associated with the proper description and measurement or area of the land. This is because; if there is any mistake associated with the matters does not invalidate the sale of the land.
- Compensations or an objection of the misdescription that is allegedly done by the purchaser tends to attain deficiency of the area of the land.
- Guarantee and liability of signatory clauses are closely involved with the propriety that is limited in the corporation of the purchasers.
- The consent clause of the vendors in order to obtain the necessary consent and license is required and needs to be authentic and accurate.
- The stake holding clause releases the deposit of the vendor regarding the fact that if a definite purchaser is provided with essential proof, then it is likely to happen that satisfaction of any debts are usually secured by the property and tends not to exceed 75% of the definite purchasing price.
- An additional term obliging the purchaser to identify the vendor against all obligations under any lease that needs to be performed by the property owner after settlement.
24. Explain the difference between T1 T2 T3 forms fully.
The potential elements of a contract, which are considered a fundamental aspect in the legislations needs to be taken into account. However, it is important to note that, a particular promise to achieve and attain something in the near future is often precious and valuable and must be taken into consideration. Therefore, as an instance, if A promises to pay B $100 000 in 90 days time, and if B consoles to transfer the title in the form of a block of land to A within the very timeframe of 90 days time, then it is evident from the assessment that, no deposit has been made and both the parties have consideration regarding this fact. The payment of a deposit is often not considered a requirement for a valid contract that is up for sale. Therefore, it is to be noted that, the entire concept might be prudent and might be a common practice to attain and require a proper payment of a definite deposit from a purchaser in order to obtain a particular financial commitment. Furthermore, it can also be said that, the absence of a deposit does not invalidate the contract that has been made between the two people.
Therefore, in the context of the sale land act, it can be referred that, a purchaser or the conveyance of the purchaser needs to prepare an advanced settlement, which will include the Transfer of Land. It will be a form that is eligible for the registration at the Titles Office. The Transform form must be in an A4 single page, along with an A4 annexure and must be ordinarily in size 12. There must be no alteration of this form, as the criteria that are supposedly required need to be fulfilled. The Transfer of Land further describes the name of the Vendor as Transferor along with the name of the purchaser as Transferee. It will also contain a vivid description of the land, which usually contains the volume number and Folio number. Furthermore, it can also be propagated that, the interest in land, which is essentially intended to be effectively transferred or conveyed, must be stated with precise considerations. The considerations that are to be mentioned also require proper statement and proper justification in order to facilitate the entire give and take process. However, the most common and effective Transfer of Land form is known as the T1 form. The conveyancers can easily use a T1 or T2 or a T3 form, which will be enough as per the requirements of the transform of land clauses. The primary facet of a T1 form states the fact that, the vendor needs to transfer all of the vendor estates. On the other hand, a T2 form refers to the fact where the transferor in transferring the desired land to a definite transferee in addition to a rigid and absolute covenant, which contains strict rules regarding the processes and procedures that are closely associated with the covenant that has been propagated by annexure and clauses (Skogstad et al. 2014). Furthermore, T3 form is available for the people who are interested in mortgaging their land or certain part of their land and has managed to use their remedy of a power of sale, which will be against a defaulting mortgage. It can be stated that, there are two choices in the context of the forms. The two are as follows:
- Ownership as joint tenants
- Ownership as tenants who are in common in equal shares of in unequal shares but are always found to be frequently and fractionally shares of specification.
25.Before we speak to Beyoncet and James, research your relevant State Government and Conveyance
Institute website and download a current:
Sale of Land Act
Contract of Sale
Section 32 – Vendors Statement
The section 32 of the law states the fact that, there are certain parameters, which are associated with the processes and procedures, which includes the following:
- Any particular charge, over the land that is characteristically imposed and discharged before the purchaser is entitled to possession or to the receipt of rents and profits. It includes the definite fundamental aspects of rents and profits that are already specified in a contract.
- Any particular charge over the land that is imposed by or under an Act in order to secure an amount due under the Act, it tends to include the amount that owes under the definite charge.
Instruments Act 1958 s126
The specific parameters of the law states the fact that, a definite course of action cannot be brought to charge a person upon a special promise to answer for the debt of any person that is based on a contract for the sale or other disposition of a definite interest in land. It can only be done unless the agreement based on which the actions are supposedly brought or a note of agreement, which is essentially signed by the person who is to be charged by the person that is lawfully authorised in writing by that definite person.
Summarise Division 3 – Insurance, and include JUST the first page of each of the above with your submission.
The division 3 summarised and is enriched with the fact that, no contract of insurance other than a contract of life insurance shall be avoided by any specific reason only if any incorrect statement is essentially made. The faith of such contract was essentially entered into revived and renewed insurer unless the statement is to be made in a proper way.
Beyoncet has noticed there is some action around the old school site and requests you place a caveat on their interest in the Lime Ct property.
What would you do?
Beyoncet needs to do a proper research on the basic facets and necessities of the processes and procedures that needs to be taken into consideration while going through essential paperwork and documents of the contract.
How would you go about it?
At first, it is essentially significant to understand the parameters that need to be taken into consideration. The contract, which is essentially made in order to locate the predominant aspects of the sites need proper account and suitability.
What would be your costs?
The costs include the varied facets and facilities that are to be essentially provided for the estimation of the supposed plans and propositions that needs to be made.
Give all details of the caveat along with your file notes on your actions and your reasons
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?
In addition, the s32 notifies you there is a mortgage on the property. Is this important? Why?
- Statutory warning to the definite purchasers
- The details of the vendors
- Title details
- Suitable information that is associated with the building of permits that are issued within a time span of seven years
- Access to the property of the road
- Information on the predominant services that are connected to the property.
Do you need to know the amount of the mortgage? Explain.
It is not essentially important to understand the amount of mortgage that is to be claimed by the other party.
What instructions/precautions will you give to James and Beyoncet during your conveyance for them?
Include one obligation and one entitlement of the vendor in the contract of sale.
It is to be noted that, the agreement is considered a legal binding that tends to define the definite obligations that are to offer and provide specific mortgage or contracts over a set of period.
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? In addition, 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.
In order to understand the fact that there is an update in the contract, it is important to understand the basic and predominant facets that are associated with the sale of land act legislations. It is also important and relevant information in relation to the non-compliance with the contracts and the bindings of the contract as well.
W1: Explain the difference between the terms: shall may must will
Has the Sale of Land Act changed the legal position of purchasers of land from caveat emptor to Caveat venditor by incorporating section 32?
It is to be noted that, the primary focus of the amendments is the certainty of the consumer or the purchaser, which is responsible for the protection of the increase in the disclosure of vendor obligations. However, before the proper consideration of the additional obligations, it is important to recognise the definite methods of disclosure, which is likely to change in every possible way. Furthermore, the sole document in this aspect, which is an absolute necessity, is the copy of the title and the copy of the relevant plan of subdivision. On the other hand, it is also important to note that, all the other information was capable of being given in a recited form and no other documents are compulsory. Therefore, the certified certificates that are rating from the authorities and the like could be used but however, they were not compulsory and that is the change that essentially takes place (Skogstad et al. 2014).
W2: Not everyone can know everything. Do you/your organisation have a network of other professionals you use for advice and as a resource?
If you were still uncertain of the advice you have received, how else could you confirm it?
It is extremely important to have a network of other professionals in order to attain an extensive knowledge regarding the presence of networking and importance of networking within the resource aspects of the premises of the organisation. The concept of networking refers to the recognition and advantage taking aspects of valuable relationship in order to get things done and to achieve a goal and accomplish them. It also helps in the involvement of the work in close with the potential and future needs of the improvements within the organisational premises.
W3: Can this be done? Whom do you refer to if you need assistance or guidance? Is this part of your organizations policies procedures?
The organisational policies and procedures those are present within the premises of the organisation needs proper implementation in order to abide by the supposed rules and regulations within the obligations of the contract of the organisation. It is to be noted that, if a client needs effective assistance or guidance, it is likely to happen that, they must refers to the organisational head in order to attain information about the terms and conditions that are present in the contract.
W4: A- Examine carefully a copy of the contract note (available from a Real Estate Agent or Law Institute or AIC). Is it necessary to complete a Contract of Sale where a contract note has been used in the same transaction?
B -Obtain current year information leaflets (no charge) from the State Revenue Office in relation to Land Tax.
It is to be noted that, it is necessary to complete a Contract of Sale where a contract note has been used in the same transaction. This is because, as the number of participants is increasing in the stock market odds of fraud and disputes tending to grow day by day. However, it has been found that, the Australian government has taken certain steps in order to protect the interest of common investors. It is to be noted that, one of the very first steps in this direction is the direction of the digital contract note in the prescribed format, which shows price, brokerage and service steps in tax and STT. The steps are as follows:
- Calculation of capital gains
- Calculation of the total brokerage charged
- Total calculation of the data filling income and tax return
- Legal proof if there is any case of dispute with broker
W5 You are organising a new client meeting when you realise there will/could very likely be a language barrier. What do you do?
Language barrier is one of the most designated aspects of a contract. It is important to provide proper clarity of language in order to make the client understand regarding the facets and features of the contract that are entitled in a contract. Thus, if such situations occur, it is important to provide a proper translator in order to make the client understand the basic aspects of the contract title.
W6: Why is the swimming pool issue another example of caveat emptor?
Caveat emptor refers to the process of letting the buyers beware of the contract. It is similar to the phrase, which is sold as is. This term refers to the fact that is the buyer assumes the risk that a product might fail to meet up with the expectations or have definite defects. However, in other words, the major principle of a caveat emptor is to serve as a warning that buyers have no particular recourse with the seller if the product does not meet their expectations.
Include file notes for all communication/interaction with James and Beyoncet, and any advice or actions you take or need to take.
It is important to communicate with client in an effective manner. On the other hand, it is also important to keep some records of their contact with the clients. The records that are kept characteristically vary in accordance with the roles and responsibilities that are accounted by them. It might include:
- Completion of the communication diary
- Providing case notes in the file
- Complete writing of formal reports for supervisors or courts
However, it has also been found that each of the case records is an important form of communication and needs to meet the requirements of the organisational standards. One of the most common responsibilities for the communities and services of disability, the worker needs to keep a record of the essential information and planning that is agreed to in client interviews and meetings.