Topic 5 - Land Ownership Flashcards
List & Explain the three principles of the Torrens System and how the torrens system is based versus the previous system
- Torrens is a title-based system, as opposed to the previously deeds-based system
The Three Governing Principles are:
- Mirror Principal - that what is on the title reflects reality
- Curtain Principle - that no person should have to look beyond the title to ascertain the quality and feasibility of that tile
- Insurance Principle - that The Crown will back up and insure the land security
Explain the Doctrine of Tenure & Doctrine of Estate
The doctrine of tenure is that all land is Crown-owned and the doctrine of estate is that you hold an estate in land and not the land
Explain the Concept of Indefeasibility & Explain How Fraud Works Wihtin it
- If fraudently got title, resell to indefeasable –> not able to get back but can pursue Crown for remedy
- Unregistered interest, iunregistered in
What does a Cross lease have in terms of estates
- An undivided share in a fee simple estate
- A beneficial interest in common property
- A leasehold interest in your unit
What does a Unit Title offer
- An undivided share in the fee simple/leasehold estate
- A fee simple estate in your unit/accessory unit
What are the three main types of instruments on titles
Mortgages, caveats, easements
What are contained in the three main statements for Unit title disclosures?
1) Pre-contract disclosure statement
- Body corp levy, upcoming maintenance costs, body corp bank balance, leaky home claims, general explanatiion
2) Pre-settlement disclsoure statement
- unpaid repair costs, body corp levies, metered charges
3) Additional discllosure statement
- Insurance
- Reg. body corp expenses
- Long term maintenance plan
What are some of the main Body Corp court reliefs available?
- Minority Relief
- Developer-owner claw back. [control period]
- Schemes
- Ultra Vires Rules
What are the main types of tenancies?
- Joint tenancy [forfeit to other tenant on death]
- Tenancy in common [shares based]
When can a caveat be registered?
When a rigt already exists. E.g unconditionality on a sale
Who do you lodge a caveat with? What are the risks of lodging a caveat wrongfully?
LINZ
- Daamges
What are some common types of easements?
Right to use
- Right to convey power`
Do easements run with the land?
Yes - even if they are unregistered - however, equitable easements could be defeated by equity’s darling
What are the two main elements of a mortgage?
- A peersonal covenant
- A charge on the land
What are the two main methods for mortgage creation?
1) Legal mortgage [indefeasible, registered]
2) Equitable Mortgage [No estate interest, equitable, must meet S24 PLA 2007]
What is a fixed sum mortgage? How does it diffder from an all obligations mortgage?
- Fixed sum = specifys the full value secured and all the t&c
- All obligations - priority sum @ 1.5x lender 0
What Act governs Mortgagee sales, explain the process in detail?
- The PLA
- Notice must be served, and highly accurate with the opportunity to remedy with AT LEAST 20 working days time
- If sold, the mortgagee cannot purchase temselves
- Mus ttake reasonable care to obtain the best price possible at the time
