PDCV101 Foundation Legal Knowledge- Come and Breathe the Serenity

You need to answer three of the questions in Part B. Answers must include proper referencing. Cases and legislation must be cited and quotes from other sources referenced. A bibliography is not required.

Your submission must be either in Word or PDF format.  Answers should be typed using Times New Roman, Calibri or Arial in size 12 font. Longer answers should have 1.5 line spacing.

Part B (10 marks each)

1. You are a licensed conveyancer with a client who is a property developer.  Your client purchases a large lot of land, which he intends to subdivide and sell the smaller blocks. 

You prepare the contracts of sale for the subdivided blocks and you note that the property has two small houses already built on it.  The property is also next door to a livestock farm and is partially in a floodplain, which would restrict the location and types of houses that can be built.

You are aware that your client has already started advertising the subdivision with a local real estate agent. The advertising contains statements like: “Live in rural paradise” “Come and breathe the serenity” and “Be one with nature”

 

What risks are there for your client or any other party involved?  What advice would you give your client? What precautions should you take to minimise those risks?

 

2. Eric purchased a brand new car for $35,000.

He traded in his car and had some cash to make up $10,000 of the purchase price. The remaining $25,000 he borrowed through finance offered by the car yard.

Eric didn’t read the signs in the car yard property.  The signs displayed large writing with ’12 months’ interest free! No minimum payment.’  In small print at the bottom of the signs was written ‘Loan reverts to full capital if not paid within the interest free period.  Interest payable after expiration of the interest free period.’

Eric also didn’t read the contract which the salesman got him to sign.  The contract stated: ‘Minimum weekly payments apply after interest free period.  The car yard can repossess the vehicle at any time, in the event of default. Consumer laws do not apply’

Eric paid $400 per week for 12 months but was unable to pay off the loan in full during the interest free period.  He received a statement from the car yard which said his new minimum weekly payment was $600. Eric can’t afford this and pays $450.

The car yard contacts Eric to repossess the vehicle and advises him that he owes $25,000 plus interest.

What are the legal issues in this scenario?

 

3. Robert and George enter into a partnership to establish a conveyancing business. Robert handles all the insurance and fills out the proposal form.

Robert is not aware of his partner’s business history.  Robert does not know that George has had a previous insurance claim denied on the basis of fraud or that George has a criminal conviction for receiving stolen goods.

After they obtained insurance cover, the premises are burgled. The Insurance Assessor’s report states that there did not appear to be any forced entry to the premises.

After fifteen months of assessing the claim, the insurer refuses to pay.

Advise Robert and George about the legal issues with the insurer.
 
4. Claire is an experienced conveyancer and keen social media contributor.  She runs a conveyancing blog, where she gives tips and hints about the conveyancing process.

Tom, contacts Claire on her blog and asks, “Hi Claire, I am interested in buying this property nearby.  It’s a bargain, right next door to a new development.  What do you think?”

Claire replied, “Sounds great.  You should get some advice on the contract.”

Tom then asked Claire “Will the contract include information about defects in the property?”

Claire replied, “An owner should disclose defects in the contract if they are aware of them, particularly if they want to avoid any future problems with the purchaser.”

Tom bought the property at auction that weekend. There is nothing in the contract about defects.

Not long after settling the purchase, Tom discovers that the property has a significant sewage problem. The plumber who inspects it says that the trees on the property have completely destroyed the pipes and recommends that all of the plumbing is replaced.

Tom tries to sell the property but all the purchasers want a price reduction to compensate for the work that needs to be done.

Advise Tom whether he has a cause of action in negligence against Claire. Would your advice be different if Claire had provided the advice in her office?