LAND LAW 2 Flashcards
Re Richards (1987) HC Timaru CR43/85
(Vendor dies after contract but before transfer)
Agt for sale amd purchase executed =
Vendor, who ahs legal estate holds the land as trustee
Burnett’s Trustee v Grainger [2004] S.CL.R. 433 (Scottish case)
Illustrates problems of pure registration system.
Solution = from the moment of specifically enforceable contractual commitment, the purchaser of a land interest acquires not merely a contractual right against the vendor but also a proprietary right in the vendor’s land, a right which is necessarily equitable.”
Clarke v Ramuz [1891] 2 QB 456, CA (Property suffers damage after contract but before transfer)
Seller owed duty (reasonable care) as a trustee
vendor duties as a trustee?
Normal trustee duties BUT “within those limits he is entitled to the ordinary rents and profits” (different to normal trustee as they are not allowed conflict of interest)
New view of trustee = maybe the Trusts Act shouldn’t inc these vendors unless payment has passed
Chang v Registrar of Titles [1976] HCA 1
If there is only the property to transfer and everything else is done, then the vendor will be acting as a trustee, otherwise it is merely contractual, and not trustee-like.
Batchelar Centre Ltd v Westpac New Zealand [2014] NZHC 272
Two large commercial parties, no reason for equity to intervene.
AND
There was a cl removing liability for accepting alternative offer - removing equity’s intervention
ADLS provision?
Standard contract, clause 5 (“at this stage risk will pass”)
Southland District Council v McClean (1999)
example of ADLS provision, determining if the land was ‘untenantable’ to determine if they could cancel
Bevin v Smith [1994] 3 NZLR 648 (CA)
equitible interest (in conditional contracts) = you can have an equitable interest as long as you do x
conditions precedent
no interest unless condition is met eg “if you reach the age of 21 you get x”
conditions subsequent
you have a right but if you subsequently stop meeting the condition you will loose what you have eg “I give all my land to x on condition they maintain a particular faith”
rights to first refusal, what does it need?
triggering event (eg deciding to sell) + essential terms of sale (eg price)
who has a R2FR?
Palm Gardens Consolidated Pty Ltd v PG Properties Pty Ltd [2009] SASC 311
Did they have a cavetable interest?
What is it that ought to have been done? Nothing.
“in this case the legal freedom to develop or not develop the land, which in my view is so clearly given by the Option Deed, precludes a finding that an equitable interest in the land has been acquired under it”
= equitable interest moulded by conditions
Remedies for trespass against third parties
“diminution in value of land”
“reasonable cost of reasonable reinstatement”