DIPLOMA IN LAW LEGAL PROFESSION ADMISSION BOARD LAW EXTENSION COMMITTEE LAW EXTENSION COMMITTEE SUBJECT GUIDE 14 CONVEYANCING WINTER SESSION 2016 This Guide includes the Law Extension Committee’s course information and teaching program and the Legal Profession Admission Board’s syllabus. The syllabus is contained under the heading “Prescribed Topics and Course Outline” and has been prepared in accordance with Rule 27H(a) of the NSW Admission Board Rules 2015. Course Description and Objectives Lecturers Assessment September 2016 Examination Lecture Program Prescribed Topics and Course Outline (Course Outline cont. on page 9) Weekend Schools 1 and 2 Texts and Materials Compulsory Assignment Assignment Question Sample Examination Question Prescribed Topics and Course Outline (Cont. from page 3) 1 1 1-2 2 3-6 6 7 8 8 8 9-17 1 LAW EXTENSION COMMITTEE WINTER 2016 14 CONVEYANCING COURSE DESCRIPTION AND OBJECTIVES The objective of the Conveyancing course is to familiarise students with the concept of conveyancing. Particular emphasis is placed on the structure of the Standard Form Contract for Sale of Land 2005 and how the new 2014 edition relates to it. Whilst the course is to some degree involved with practical issues of conveyancing, a good deal of relevant case law is discussed in order that students will be in a position to recognise problem areas in practice. The course also provides for a consideration of various issues of contract law, equity and planning law. LECTURERS Mr W A Henningham, PSM, LLB (Syd) Mr Bill Henningham, who teaches the evening lecture students, is a solicitor and mediator in private practice who has long specialised in conveyancing. He also specialises in local government and environmental planning law which has important implications for conveyancing. Mr Henningham has written and addressed conferences and seminars on topics covered in the course. He is the author of chapters on Local Government Law and Practice in Lexis-Nexis Local Government and Planning Service (NSW) Vol C and is the teacher of the subject Local Government and Planning in the Diploma in Law course. If you wish to discuss any aspect of the subject matter of the Conveyancing course, you may consult Mr Henningham, whose telephone number is (02) 9427 0519. Mr D H W Ross, LLB (Syd) Mr David Ross, who teaches the external (Weekend) students, has been a solicitor in private practice for over 50 years and has also long specialised in conveyancing practice. In 1996 he taught Property Law and Commercial Law at Seaforth TAFE and has been the weekend lecturer and examiner in Conveyancing since Winter Semester 2010. His experience in also practising in Business and Commercial Law and in related litigation gives him a very relevant understanding of the pitfalls which can arise in conveyancing practice. Mr Ross’s three years of legal practice in Byron Bay gave him a valuable insight into legal issues faced by rural conveyancing practitioners. He is able to be contacted by leaving a message with (02) 9546 7362. ASSESSMENT To be eligible to sit for the Board’s examinations, all students must complete the LEC teaching and learning program, the first step of which is to ensure that you have registered online with the LEC in each subject for which you have enrolled with the Board. This gives you access to the full range of learning resources offered by the LEC. To register with the LEC, go to www.sydney.edu.au/lec and click on the WEBCAMPUS link and follow the instructions. Detailed guides to the Webcampus are contained in the material distributed by the LEC, in the Course Information Handbook, and on the Webcampus. 2 Eligibility to Sit for Examinations In accordance with the Legal Profession Admission Rules, the LEC must be satisfied with a student’s performance in a subject in order for the student to be eligible to sit for the examination, conducted by the Legal Profession Admission Board (LPAB). Assignments are used to assess eligibility. Students are expected to achieve at least a pass mark of 50% in assignments to be eligible to sit for examinations. However, a category of “deemed eligible” has been introduced to offer students whose assignment mark is between 40-49% an opportunity to sit for the examination. In these circumstances students are often advised not to sit. A mark below 40% means a student is not eligible to sit for the examination. Assignments as part of the Board’s Examinations Assignment results contribute 20% to the final mark in each subject. The Law Extension Committee (LEC) administers the setting and marking of assignments. The LEC engages the LPAB’s Examiners to assess or supervise the assessment of assignments. Submission Assignments must be submitted by 11:59pm on the due date unless an extension has been granted. Extensions must be requested by email prior to the due date. Specific supporting evidence must be provided. Assignments that are more than ten days late will not be accepted. Late assignments attract a penalty of one mark out of 20, or 5% of the total marks available, per day. Assessment Assignments are assessed according to the “Assignment Grading and Assessment Criteria” outlined in the Guide to the Presentation and Submission of Assignments. Prior to the examination, assignments will be returned to students and results posted on students’ individual results pages of the LEC Webcampus. Students are responsible for checking their results screen and ascertaining their eligibility to sit for the examination. Review Where a student’s overall mark after the examination is between 40-49%, the student’s assignment in that subject will be included in the Revising Examiner’s review. The final examination mark is determined in accordance with this review. Assignment marks will not otherwise be reviewed. SEPTEMBER 2016 EXAMINATION Candidates will be expected to have a detailed knowledge of the prescribed topics set out and referred to on pages 3–6 and 9–17 in this Subject Guide. Candidates will be expected to have made a study of the prescribed materials in relation to those topics, and to have analysed cases contained in the Law Extension Committee's course outline. Please contact the Legal Profession Admission Board for any enquiries in relation to examinations. 3 LECTURE PROGRAM Lectures in Conveyancing will be held on Mondays, commencing 9 May 2016, from 6.00pm until 9.00pm. In the first half of semester they will be held in New Law School Lecture Theatre 026 (New LSLT 026). Lecture venues for the second half of the semester have yet to be confirmed. Weekend lectures will be held in Lecture Theatres at times as advised on page 6. A map of the University of Sydney’s main campus showing the location of these lecture venues is included at the back of the Course Information Handbook. PRESCRIBED TOPICS AND COURSE OUTLINE (COURSE OUTLINE CONT. ON PAGE 9) LECTURE 1 9 May 2 16 May TOPICS Introduction to conveyancing – what transactions are involved Residential Conveyancing Protocol entered into by the Law Society of NSW and the Real Estate Institute on behalf of their members: see www.lawsociety.com.au Formation of an enforceable contract what is required? exchange of contracts; what is involved in a typical conveyancing matter KEY READING The Standard Form of Contract for Sale of Land, 2014 ed., formerly 2005 ed. (CSL) The Law Society of NSW and the Real Estate Institute of NSW have issued the new Contract for Sale and Purchase of Land 2014 Edition in electronic format only. The 2005 Edition of the Contract for Sale of Land will be available in both hardcopy and electronic format until 30 June 2016 Skapinker, Ch 3 Note that the 2010 ed of Skapinker cannot canvas the 2014 contract amendments. Skapinker, (5th ed 2010) Ch 1 Rossiter, Ch 1 An (amended) Summary of the Main Changes in the 2014 Edition prepared by the Law Society appears on the LEC Webcampus. Subject matter of the sale Caveat emptor and the vendor’s general law duty of disclosure Vendor’s statutory duties of disclosure Consequences of active concealment of defects What is a “proposal” in the context of adverse affectations? “Prescribed documents” under S 52A of Conveyancing Act 1919 and Conveyancing (Sale of Land) Regulation Prudent pre-contract inquiries and actions by a purchaser and a purchaser’s solicitor Unfulfilled conditions of consent Whether to choose E-Conveyancing; see Cl 30 CSL Requirements under the Home Building Act 1989 (as amended 2014) and Swimming Pool Act 1992 and Skapinker, Ch 3 Rossiter, Ch 5 Skapinker, Ch 4 Note: 2010 ed of Skapinker (5th edition) quotes superseded editions of the Conveyancing (Sale of Land) Regulation Henningham, Planning Law implications for conveyancing – negotiating the planning control minefield (LEC Website) 4 3 23 May 4 30 May Swimming Pool Regulation 2008 Swimming Pools Act 1992 and Swimming Pools Regulation 2008 Deposit and deposit-bond alternatives to a cash deposit; cll 2 & 3 CSL Deposit and penalty; status of vendor’s agent holding the deposit as “stakeholder”; forfeiture of deposit; issues related to part-paid deposits; “cooling off” provisions; vendor’s duty of care pending completion Status of vendor between exchange and completion – trustee? Passing of risk and protecting purchaser’s beneficial interest prior to completion Need for vendor to maintain comprehensive insurance until after completion and desirability of purchaser obtaining comprehensive “replacement” cover after exchange of contracts Caveats by purchasers and their relevance; in what circumstances should they be lodged including compensation from caveator who is taken to have lodged a caveat without reasonable cause Do caveats have any limitations? Requisitions and objections - cl 5 CSL Responses to requisitions et al. Vendor’s entitlement to rescind (cl 8.1) and purchasers right to terminate (cl 8.2) of the CSL Misrepresentation/misleading and deceptive conduct in conveyancing transactions - Australian Consumer Law and common law Who could have actionable liability apart from parties? 5 6 Jun Title defects and their effect upon a vendor’s title Rule in Flight v Booth; purchaser’s remedies for undisclosed defects; Undisclosed stormwater mains What is a material or substantial defect? Prescribed term in contract re encroachments Prescribed warranties in contracts Errors and misdescriptions Claims under cl 7 of the standard form of contract Consequence of changes in planning controls after issue of s 149(2) cert. attached to contract New opportunities for relief for purchasers now available by virtue of clause 8.2 of Skapinker, Ch 7 Rossiter, Ch 4 Skapinker, Ch 8 Skapinker, Ch 8 Henningham, More Pitfalls for the Unwary Conveyancing Practitioner (LEC Website) Skapinker, Ch 8 Skapinker, Ch 10; Rossiter, Ch 6 Henningham, More Pitfalls for the Unwary Conveyancing Practitioner (LEC Website) Izaz Khan, Barrister, “Misrepresentations in Land Transactions” (LEC Website) Stephen Climpson, The Impact of Misleading and Deceptive Conduct on Contracts for the Sale of Land (LEC Website) Skapinker, Ch 5; Rossiter, Ch 5 Skapinker, Ch 6 Skapinker, Ch 11 Rossiter, Ch 8 Note: 2010 ed of Skapinker quotes superseded editions of the Conveyancing (Sale of Land) Regulation 5 CSL 2014 ed No Lecture on Monday 13 June 2016 – Queen’s Birthday Public Holiday Study Break: Saturday 18 June – Sunday 3 July 2016 No Conveyancing Lecture on Monday 4 July 6 11 Jul 7 18 Jul Survey certificates and their importance Building certificates – relevance to prescribed warranty in the context of unlawful building work Regularisation of breaches of Planning Law Section 52A of the Conveyancing Act cannot be excluded Inquiries and adverse affectations Purchaser’s right to rescind and limitations on rights Doctrine of election What constitutes affirmation of a contract? Does the purchaser’s solicitor have any responsibility to enquire in relation to surrounding properties? How should a solicitor for a purchaser deal with a request that such enquiries be made? Skapinker, Ch 5 Skapinker, Ch 4 Skapinker, Ch 12 Skapinker, Ch 6.40 et seq Preparing for completion Rates and adjustments; what constitutes vacant possession Existing uses; what are the duties of a solicitor acting for a purchaser if it is asserted that there is an existing use? Heritage and conservation issues Issues relating to s 149 certificates Should information under s149(5) be supplied by vendor in contract and obtained by purchaser if not provided? Skapinker, Ch 14; Butt, Ch 14 [1447], [20116] Rossiter, Ch 8 Skapinker, Ch 13 Henningham, Exemptions from Rating and other Rating Issues (LEC Website) Occupation certificates, what is their importance? Status under Planning Law of restrictive covenants and easements. Can their operation be suspended? Henningham, More Pitfalls for the Unwary Conveyancing Practitioner (LEC Website) Henningham, Planning Law implications for conveyancing – negotiating the planning control minefield (LEC Website) Henningham, More Pitfalls for the Unwary Conveyancing Practitioner (LEC Website) Butt, Ch 7 [17138-17142], [16134] Suggested special conditions. What special conditions should be rejected by a solicitor for the purchaser? Is interest required to be paid on the balance of purchase price after the completion date a penalty? Note interest rate guideline in cl 18.5.2 CSL. 8 25 Jul Time Precautions on behalf of purchaser prior to completion Requirements for valid notice to complete Skapinker, Ch 15; Rossiter, Chs 4, 6, 7 Skapinker, [8.35]; Rossiter, Ch 7 Butt, [2048-2049] 6 Henningham, More Pitfalls for the Unwary Conveyancing Practitioner (LEC Website) 9 1 Aug 10 8 Aug 11 15 Aug Remedies including rescission and termination In what circumstances can repudiation of a contract be inferred? Alternative dispute resolution The options for consensual resolution of conveyancing disputes Skapinker, Chs 16, 17, 18; Rossiter, Chs 1, 2, 8 The elements of Torrens Title Strata Title and Community Title Mortgages, leases, easements and other interests What is e-Conveyancing and how will it provide an electronic environment for participating practitioners to conduct the financial settlement of conveyancing transactions. (Cl 30 CSL) Butt, Ch 20 Butt, Ch 21 Butt, Ch 18, 15, 16 CSL cll 7,8.1, 8.2, 9, 17.3, 19, 23.9, 27.4-27.6, 28.3, 29.5-29.8. For Registrar Generals FAQs on e-conveyancing visit………………….. http://rgdirections.lpi.nsw.gov.au/edealings/faqs Revision which will take the form of a review and discussion of the whole subject WEEKEND SCHOOLS 1 AND 2 There are two weekend schools principally for external students. Lecture students may attend on the understanding that weekend school classes aim to cover the same material as provided in weekly lectures and are primarily for the assistance of external students. External students should refer to the detailed material in the Prescribed Topics and Course Outline It may not be possible to cover the entire course at the weekend schools. Weekend School 1 Prescribed topics covered in Lectures 1 - 5 Friday 27 May 2016 5.00pm – 9.00pm in Carslaw Lecture Theatre 373 (CLT 373) and Saturday 28 May 2016 Noon – 4-00pm in New Law School Lecture Theatre 106 (New LSLT 106) Weekend School 2 Prescribed topics covered in Lectures 6 – 10 and Revision, being a review and discussion of the whole subject of Conveyancing Friday 22 July 2016 5.00pm – 9.00pm in New Law School Lecture Theatre 026 (New LSLT 026) and Saturday 23 July 2016 Noon – 4.00pm in New Law School Lecture Theatre 106 (New LSLT 106) 7 TEXTS AND MATERIALS For the period from 21 April to 30 May 2016, LexisNexis is offering our students a special discount and free shipping on purchases made through the LexisNexis e-store at www.store.lexisnexis.com.au. Students quoting the promo code LECW2016 will receive a 15% discount on all text titles (except for those authored by John Carter). This discount is not limited to the prescribed or recommended texts for our courses. Students should, however, still compare LexisNexis’s discounted price with that of other outlets. The Co-op Bookshop, for example, offers a discount on texts sold to its members. Course Materials Guide to the Presentation and Submission of Assignments (available on the LEC Webcampus) Prescribed Materials Skapinker and Lane, Sale of Land: Commentary and Materials, 5th ed. Thomson Reuters, 2010 Butt, Land Law, 6th ed. Thomson Reuters, 2009 Rossiter, Principles of Land Contracts and Options in Australia, LexisNexis, 2003 Standard Form of Contract for Sale of Land, 2014 ed. approved by the Law Society of New South Wales and the Real Estate Institute of New South Wales with other materials Note: The Standard Form of Contract for Sale of Land 2005 ed approved by the Law Society of New South Wales will continue to be included with other materials for cross reference with texts published before 2014, as well as the 2014 ed. CSL, including A Summary of the Main Changes in the 2014 Edition prepared by the Law Society, in the Course Materials section of the LEC Webcampus. Relevant Legislation Internet access to the relevant legislation can be readily obtained through: http://www.austlii.edu.au for section by section references and for unbroken presentation (more convenient for printing), www.legislation.nsw.gov.au and www.commlaw.gov.au Conveyancing Act 1919 and Conveyancing (General) Regulation 2013 Real Property Act 1900 and Regulations NSW Conveyancing (Sale of Land) Regulation 2010 NSW (CSL Reg 2010) with amended Schedule 1 which took effect on 29 April 2016 Environmental Planning and Assessment Act 1979 NSW Environmental Planning and Assessment Regulation 2000 NSW Strata Schemes Management Act 1996 NSW; it is anticipated that this Act will be replaced by the Strata Schemes Management Act 2015 (NSW) on 1 July 2016 July Competition and Consumer Act 2010 and Fair Trading Act 1987 – Australian Consumer Law (Cwlth) Community Land Management Act 1989 NSW Electronic Conveyancing (Adoption of National Law) Act 2012 NSW Home Building Act 1989 (as amended 2014) Encroachment of Buildings Act 1922 Swimming Pools Act 1992 and Swimming Pools Regulation 2008 LEC Webcampus Once you have registered online with the LEC, you will have full access to the facilities on the LEC Webcampus including the Course Materials section containing links to cases and legislation as well as three papers by Bill Henningham: Planning Law Implications for Conveyancing – Negotiating the planning control minefield More Pitfalls for the Unwary Conveyancing Practitioner Exemptions from Rating and other Rating Issues, a paper by David Ross, The Advent of Electronic Conveyancing, January 2015 And a paper by Stephen Climpson, Barrister, entitled “The Impact of Misleading and Deceptive Conduct on Contracts for the Sale of Land”, 2014. 8 COMPULSORY ASSIGNMENT In Conveyancing, there is only ONE ASSIGNMENT. This assignment is compulsory and must be submitted by all students. Students must submit the assignment by the due date. A pass mark is 50%. Refer to the Guide to the Presentation and Submission of Assignments for the assignment grading and assessment criteria. Students who fail to satisfy the compulsory requirements will be notified through the Results screen on the Webcampus before the examination period of their ineligibility to sit the examination in this subject. The maximum word limit for the assignment is 2000 words (inclusive of all footnotes but not bibliography). The rules regarding the presentation of assignments and instructions on how to submit an assignment are set out in the LEC Guide to the Presentation and Submission of Assignments which can be accessed on the LEC Webcampus. Please read this guide carefully before completing and submitting an assignment. The completed assignment should be lodged through the LEC Webcampus by 11:59pm on the following date: Compulsory Assignment Thursday 21 July 2016 (Week 9) ASSIGNMENT QUESTION To obtain the Conveyancing assignment question for the Winter Session 2016, please follow the instructions below: 1. Register online with the LEC (see page 26 of the Course Information Handbook for detailed instructions). Once you have registered, you will have full access to all the facilities on the LEC Webcampus. 2. Then go into the Webcampus, select the Course Materials section and click on the link to the assignment question for this subject. SAMPLE EXAMINATION QUESTION Attempt BOTH parts of this question. (i) You act for the Vendor in a Contract for Sale of a property (2014 ed.) which specifies a Completion Date of 9 September 2016. A special condition provides “If completion does not take place on the Completion Date, either party may serve on the other a notice to complete stipulating a date for completion 14 days following the date of service of the notice making time for completion of the essence. The parties agree that such time is reasonable and sufficient notice.” The Purchaser has failed to complete on the Completion Date. The Vendor requires you to enforce completion. What are the prerequisites to doing so? Refer to relevant legislation and decided cases. (10 marks) (ii) Referring to decided cases, explain any pitfalls for a vendor of real estate who is requested by an intending purchaser to accept as a deposit 5% of the purchase on exchange of contracts (2014 ed.) with provision to pay a further 5% on completion or default, whichever occurs first. (10 marks) 9 PRESCRIBED TOPICS AND COURSE OUTLINE RELEVANT CASES (CONT. FROM PAGE 3) 1. INTRODUCTION (1) Sale and purchase of land (2) Mortgages (3) Leases (4) Other interests and dealing 2. FORMATION OF AN ENFORCEABLE CONTRACT FOR THE SALE OF LAND (1) INCLUDING LECTURE 1 LECTURE 1 Certainty of agreement Air Great Lakes P/L v KS Easter (Holdings) P/L (1985) 2 NSWLR 209 Hall v Busst (1960) 104 CLR 206 Bushwall Properties v Vortex Properties [1976] 1 WLR 591 Sudbrook Trading Estate v Eggleton [1982] 3 WLR 315 Booker Industries v Wilson Parking (Queensland) (1982) 149 CLR 600 Meehan v Jones (1982) 149 CLR 571 Igloo Homes Pty Ltd v Sammut Constructions Pty Ltd (2006) ANZ ConvR 143 (2) Intention to be immediately bound Masters v Cameron (1954) 91 CLR 353 Guilfoyle Developments P/L v Frumar [2012] NSWSC 859 Allen v Carbone (1975) 49 ALJR 161 G R Securities v Baulkham Hills Private Hospital (1986) 40 NSWLR 631 Waltons Stores (Interstate) v Maher (1988) 164 CLR 87 Arfaris v Vosnakis [2016] NSWCVA 65 Welch v Welch [2012] NSWSC 1128 Teviot Downs Estate Pty Ltd v MTAA Superannuation Fund (Flagstone Creek and Spring Mountain Park) Property Pty Ltd (2004) ANZ ConvR 152 Peter Warren (Properties) Pty Ltd v Jalvoran Pty Ltd (2005) ANZ ConvR 52 Article : “Is there a Binding Contract?” : Peter Butt (2005) 79 ALJ 205 Grave v Blazevic Holdings P/L [2012] NSWCA 329 (3) Conveyancing Act, s 54A – contracts for sale must be in writing (4) Conveyancing Act, s 66S – 66Y – cooling off provisions (5) Methods of exchange of contracts Eccles v Bryant [1948] 1 Ch 93 Domb v Isoz [1980] 1 All ER 942 Sindel v Georgiou (1984) 154 CLR 661 Longpocket Investments v Hoadley (1985) NSW Conv R 55-244 10 3. SUBJECT MATTER OF SALE (1) Standard contract LECTURE 2 Changes made by CSL Reg 2010 including the warning required in relation to a landowner’s obligations under the Swimming Pools Act 1992 requiring Certificates of Compliance for properties sold with a pool after 29 April 2016. The Law Society of NSW and the Real Estate Institute of NSW have issued the new Contract for Sale and Purchase of Land 2014 Edition (CSL 2014 ed.) in electronic format only. The 2005 Edition of the Contract for Sale of Land will be available in both hardcopy and electronic format until 30 June 2016. A table prepared by the Law Society containing a summary of the main changes in the CSL 2014 ed. appears on the LEC Webcampus. (2) Description of the subject of the sale Travinto Nominees P/L v Vlattas (1973) 129 C1 LR Palumberi v Palumberi (1986) NSW ConvR 55-287 Abraham v Mallon (1975) 1 BPR 9157 Nicita v Maloney (1971) 1 BPR 9105 Avim v Guilianotti [1989] NSW Conv R 55-479 Harris v Harris [2008] NSWSC 545 4. CAVEAT EMPTOR AND PRE-CONTRACT ENQUIRIES (1) Vendor's general law duty of disclosure (also lecture 5) LECTURE 2 Best v Glenville [1960] 3 All ER 478 Dormer v Solo Investments (1974) 1 NSWLR 428 Anderson v Daniels (1983) NSW Conv R 55-144 Tsekos v Finance Corporation of Australia (1982) 2 NSWLR 347 (2) Vendor's statutory duty of disclosure Conveyancing Act, s 52A(2)(a) Lismore CC v Stewart (1989) 68 LGRA 445 Verman v McLaughlin (1990) NSW Conv 55-521 Port Stephens SC v Booth (2006) 148 LGERA 351 Mid Density Developments v Rockdale MC (1993) 81 LGERA 104 Conveyancing (Sale of land) Regulation 2010 Standard Form Contract for Sale of Land Gibson v Francis (1989) NSW Conv R 55-458 Argy v Blunts and Lane Cove Real Estate (1990) 94 ALR 719 Pisano v Dandris [2014] NSWSC 1070 Williams v Pisano [2015] NSWCA 177 (The High Court refused leave to appeal) See also Anderson v Daniels ((1) above) (3) Prudent Pre-Contract Enquiries Hillpalm Pty Limited v Heaven’s Door Pty Limited [2004] HCA 59 Article: “Indefeasibility Overriden – Significantly”: Peter Butt and Scott Freidman (2003) 77 ALJ 88 Adderton v Festa Holdings Pty Limited & Ors [2003] NSWSC 1065 Luxford v Sidhu [2007] NSWSC 1356 Article: ”The importance in Evidence of Usual Practice” Tony Cavanagh (2009) July LSJ 48 (4) Vendor's contractual duty of disclosure Standard Form Contract for Sale of Land, case law, legislation and the Regulation. 11 (5) Requirements under the Home Building Act 1989 as amended 2014 5. DEPOSIT (1) Functions of a deposit LECTURE 3 Brien v Dwyer (1978) 141 CLR 378 (HCA) (2) Status of agent in relation to the deposit (3) Holding and contractual deposits Sorrell v Finch [1976] 2 WLR 833 (4) Split Payment of Deposits– steps to take if the deposit is only part paid on exchange CSL cl 2 2014 ed. Luong Dinh Luu v Sovereign Developments Pty Ltd and 2 Ors (2006) NSWCA 40 Ianello v Sharpe [2007] NSWCA 61 Ashdown v Kirk [1999] 2 Qd 1 Boyarsky v Taylor [2008] NSWSC 1415; (22-12-2008); [2009] NSWSC 468; (1-5-2009); Cloud Top PL v Toma Services PL [2008] NSWSC 568 Rana v Dalla Costa [2014] NSWSC 1113; @para 35-72 (5) Forfeiture of deposit {see also Remedies Lecture 9 Chap 21(3) (d)} CSL: cl 9 2014 ed. Conveyancing Act, s 55(2A) Lucas and Tait (Investments) v Victoria Securities (1973) 2 NSWLR 268 Romanos v Pentagold (2003) ANZ Conv R 601 Tsekos v Finance Corporation of Aust Ltd (1982) 2 NSWLR 347 Timanu PL v Clurstock PL (1988) 15 NSWLR 338 (6) Deposit-Bond CSL 2014 ed. Cl 3 (7) Cooling-Off Provisions (8) GST on Deposits Conveyancing Act S 66V Commissioner of Taxation v Reliance Carpet Co P/L (2008) 236 CLR 342 ATO Decision Impact Statement 4/6/08 (Skapinker 7.230) 6. RISK AND DUTY OF CARE PENDING COMPLETION (1) Vendor's duty of care Bunny Industries v F S W Enterprises [1982] ANZ Conv R 627 Phillips v Lamdin [1949] 2 KB 33 Trust Company of Australia Ltd v Commissioner of State Revenue [2007] VSC 451 (2) Status of vendor between exchange and completion – trustee? Bunny Industries LTD v FSW Enterprises Pty Ltd (1982) ANZ ConvR 627 Kern Corporation v Walter Reid Trading Pty Ltd (1987) 163 CLR 164 Carpenter v McGrath (supra; lecture 6 Chapter 11) Chang v Registrar of Titles (1976) 137 CLR 177 LECTURE 3 12 (3) Protection of purchaser's equitable interest – Insurance & Passing of Risk (a) Caveats Black v Garnock [2007] HCA 31 Credit Finance Australia Ltd (in liq) v Panella [2011] NSWSC 311 Beca Developments v Idameneo (No. 92) Pty Ltd(1990) 21 NSW LR 459 Source and Resources Pty Ltd v Porada [2007] NSWSC 883 Hillpalm Pty Ltd v Wilson [2009] NSWSC 362 Real Property Act 1900 Part 7B (Priority notices); Ss74S to 74Z amended by Real Property Act (Electronic Conveyancing) Act 2015 assented 15/9/15 (b) Insurance and passing of risk Insurance Contracts Act 1984, s 50 Conveyancing Act, ss 66J-0 (comm 1.5.1986) Stephenson v State Bank of NSW (1996) 39 NSWLR 101 Shadlow v Skiadopolous (1988) NSW Conv R 55-383 Robert Pryke Investments v Blazai [2000] NSWCA 222 (18 August 2000) Nevitoro Investments v Turner [2004] NSWSC 1315 Ziel Nominees v V A C C Insurance Co (1978) 50 ALJR 106 (pre 1984) Kern Corporation Ltd v Walter Reid Trading PL (supra) Qld law (dissenting Deane J ) 7. REQUISITIONS AND OBJECTIONS (1) Types of requisitions and objections LECTURE 4 Godfrey Constructions v Kanangra Park (1972) 128 CLR 529 Gardiner v Orchard (1910) 10 CLR 722 Sullivan & Ors v Dan & Ors (1999) ANZ ConvR 32 Crowe v Rindock [2005] NSWSC 375 Avim v Guilianotti (supra lecture 2) (2) Time for making requisitions and objections CSL 2014 cl 5 (3) Vendor's entitlement to rescind CSL 2014 cl 8 Duddell v Simpson [1866] LR 2 Ch App 102 Pierce Bell Sales v Frazer (1973) 130 CLR 575 Noske v McGinnes (1932) 47 CLR 563 Crowe v Rindock (supra) 8. BREACHES OF COMPETITION AND CONSUMER ACT 2010 (Australian Consumer Law) & REMEDIES; MISREPRESENTATION UNDER THE GENERAL LAW LECTURE 4 Statewide Developments P/L v Higgins [2011] NSWCA 35 Ackers v Austcorp International Ltd [2009] FCA 432 Kyriacou v Kogarah MC (1995) 88 LGERA 110 Havyn PL v Webster 2005 NSWCA 182 Butcher v Lachlan Elders Realty PL (2004) 218 CLR 592 Zhang v VP302SPV PL [2009] NSWSC 73 Boyana PL v Jainran [2010] NSWCA37 9. TITLE DEFECTS (1) General law position Flight v Booth (1834) 131 ER 1160 Lee v Rayson [1917] 1 Ch 613 LECTURE 5 13 Fuller’s Theatre Ltd v Musgrove (1923) 31CLR524 @538 Hamilton v Munro (1951 SR (NSW) 250 @253-4 Carpenter v McGrath (1996) 40 NSWLR 39 Sullivan & Ors v Dan & Ors (1999) ANZ ConvR 32 Festa Holdings Pty Ltd v Adderton & Ors (2004) ANZ Conv R 341 (2) Contract CSL Cl 6 (errors and misdescriptions) Travinto Nominees PL v Vlattas (1973) 129 CLR 1 @14 (3) Statutory position CSL Reg 2010 Sched 2(1) (prescribed terms); Sched 3 Part 1 (4) Undisclosed stormwater mains and other underground pipes of service authorities Micos v Diamond (1970) 92 WN (NSW) 513 (5) Changes in planning controls after the date of the s 149 certificate attached to the contract or controls omitted from that certificate. Verman v McLaughlin (1990) 70 LGRA 19 10. ERRORS AND MISDESCRIPTIONS LECTURE 5 (1) General law position (2) Contract (3) CSL cl 6 2014 ed. Travinto Nominees v Vlattas (1973) 129 CLR 1 Drummoyne MC v Beard (1970) 1 NSWLR 432 Owmist v Twynam Pastoral (1984) NSW Conv R 55-165 11. LEGALITY OF STRUCTURES AND USER (1) Survey certificates CSL cl 10.1.1 2014 ed. Svanasio v McNamara (1956) 96 CLR 186 (2) Illegal and non-complying buildings Environmental Planning and Assessment Act 1979 CSL Reg 2010– Sched 3 Part 1 Carpenter v McGrath (1996) 40 NSWLR 39 (but see now Conveyancing (Sale of Land) Regulation 2010 Sched 3 Part 1(d)) Tambel v Field (1982) NSW Conv R 55-077 (3) Building certificates Cramer v Leichhardt MC (1992) 130 LGERA 182 Ireland v Cessnock CC (1999) 110 LGERA 311 Mineral Wealth v Gosford CC (2003) 127 LGERA 74 LECTURE 6 14 12. INQUIRIES AND AFFECTATIONS (1) LECTURE 6 Statutory duty of disclosure & Purchaser’s right to rescind Conveyancing Act, s 52A(2)(b) CSL Reg 2010 Cll 16-18 CSL cll 19, 23.9, 29.5, & 29.8; 2014 ed. (2) Limitations on purchaser's right to rescind Arias v Brigden [1986] NSW Conv R 55-278 Korbol Holdings v Johnson [1987] NSW Conv R 55-337 Chantaloup v Thomas (1975) 2 NSWLR 38 Little v Piccin [1983] NSW Conv R 55-152 Jones v Assef (1976) 1 NSWLR 467 Marinkovic v Pat McGrath Engineering [2004] NSWSC 571 Timanu v Clurstock (1988) 15 NSWLR 338 @ 339 (3) Doctrine of Election Sargent v A S L Developments (1974) 131 CLR 634 Turner v Labafox International (1974) 131 CLR 660 Zucker v Straightlace (1987) 11 NSWLR 87 Molotu v Solar Power [1989] NSW Conv R 55-490 Uremovic v P E I [1986] NSW Conv R 55-311 Copmar Holdings v The Commonwealth [1988] NSW Conv R 55-404; [1989] NSW Conv R 55-451 (4) Is there any obligation on a purchaser’s solicitor to make enquiries about surrounding properties? Luxford & Anor v Sidhu & Ors [2007] NSWSC 1356 (See Lecture 4 (3) supra.) 13. RATES AND NOTICES (1) Council and water rates (2) Land tax LECTURE 7 Lynch v Olympic Bowling Centres (1969) 90 WN (pt 1) (NSW) 44 D and B Eastern Units v C A G A [1981] NSW Conv R 55-034 Dainford v Yulora [1984] NSW Conv R 55-184; [1984] NSW Conv R 55-185 14. VACANT POSSESSION LECTURE 7 Cumberland Consolidated Holdings v Ireland [1946] 1 KB 264 Point Glebe v Lidofind [1988] NSW Conv R 55-412 Austral Standard Cables v Walker Nominees (1992) NSW Conv R 55-630 Smilie v Bruce (1999) NSW Conv R 55-886 15. EXISTING USES, OTHER LAWFUL USES AND EXISTING CONSENTS Environmental Planning and Assessment Act 1979, ss106, 107 and 109 Shire of Perth v O’Keefe (1964) 110 CLR 529 Lane Cove MC v Lujeta (1986) 58 LGERA 157 Kyriacou v Kogarah MC (1995) 88 LGERA 110 Caltex Australia Petroleum v Manly Council (2007) 155 LGERA 255 Grace & Anor v Thomas Street Café & Ors (2007) 159 LGRA 57 Grace & Anor v Thomas Street Café & Ors (No 2) [2008] NSWCA 72 North Sydney MC v Boyts Radio & Electrical (1989) 67 LGRA 344 LECTURE 7 15 16. ISSUES RELATING TO s 149 (5) CERTIFICATES LECTURE 7 Mid Density Developments v Rockdale MC (1993) 81 LGERA 104 17. OCCUPATION CERTIFICATES LECTURE 7 Environmental Planning and Assessment Act 1979 ss 109C – 109I and ss 109M and 109 N 18. STATUS OF RESTRICTIVE COVENANTS AND EASEMENTS LECTURE 7 Environmental Planning and Assessment Act 1979 s 28 Lennard v Jessica Estates [2008] NSWCA 121 (30 May 2008) Cumerlong Holdings Pty Ltd v Dalcross Properties Pty Ltd & Ors [2010] NSWCA 214 (2 September 2010) Cumerlong Holdings Pty Ltd v Dalcross Properties Pty Ltd [2011] HCA 27 (3 August 2011) Challister Ltd v Blacktown CC (1992) 76 LGRA 10 Ludwig v Coshott (1994) 83 LGERA 22 Cracknell v Lonergon v Sydney CC (2007) NSWLEC 392; 155 LGERA 29 19. TIME FOR COMPLETION (1) LECTURE 8 Historical background Conveyancing Act, s 13 (2) Time clauses in contracts Raineri v Miles [1980] 2 WLR 847 Neeta (Epping) v Phillips (1974) 131 CLR 286 Louinder v Leis (1982) 149 CLR 509 Sindel v Georgiou (1984) 154 CLR 661 Pastizzi Café Pty Ltd v Hossain (No. 4) (2011) NSWSC 808 (3) Time and requirements for notices to complete Michael Realty v Carr (1977) 1 NSWLR 553 Ng v Chong [2005] NSWSC 270 (31.3.05) Castle Hill Tyres PL v Luxspice PL (1996) 7 BPR 14,959 @14,964 McNally v Waitzer (1981) 1 NSWLR 294 Balog v Crestani (1975) 132 CLR 289 Laurinda v Capalaba Park Shopping Centre (1989) 166 CLR 623 Sindel v Georgiou (1984) 154 CLR 661 Wood v Lyons (2009) NSWSC 419 Galifassi v Kelly [2014] NSWCA 190 (13.6.14) 20. RESCISSION and TERMINATION for REPUDIATION Shimden Pty Ltd v Rona [2006] NSWCA 256 (19 September 2006) Foran v Wight [1989] 168 CLR 385 Laurinda v Capalaba Park Shopping Centre (1989) 166 CLR 623 McQueen v Leduva Pty Ltd [2008] NSWSC 284 (3 April 2008) Sunbird Plaza Pty Ltd v Maloney [1988] 166 CLR 245 Galifassi v Kelly [2014] NSWCA 190 (13.6.14) LECTURE 9 16 21. REMEDIES LECTURE 9 Ogle v Comboyuro Investments [1976] HCA 21; (1976) 136 CLR 444 DTR Nominees Pty Ltd v Mona Homes [1978] NCA 12; (1978) 138 CLR 423 (1) Rescission (2) Termination for breach (3) Equitable remedies CSL 2014 cll 8.2 & 9 (a) Specific performance (b) Injunctions (c) Relief against forfeiture of deposit (d) Relief against forfeiture of interest in land Tanwar Enterprises Pty Limited v Cauchi (2003) 77 ALJR 1853 Romanos v Pentagold Investments Pty Limited (2003) 77 ALJR 1882 Fairmede Pty Ltd v Von Pein [2004] QSC 220 (5 August 2004) (4) Statutory remedies Orders for repayment of deposit Conveyancing Act, ss 55, 55(2A) Tsekos v Finance Corporation Aust Ltd [1982] 2 NSWLR 347 Lucas and Tait (Investments) v Victoria Securities (1973) 2 NSWLR 268 Shimden Pty Ltd v Rona (2007) ANZ Conv R 15 Chambers v Borness [2014] NSWSC 890 Donald on Danks PL v Alio PL [2014] NSWSC 753 (5) Alternative dispute resolution Options for consensual resolution of conveyancing disputes 22. ELEMENTS OF TORRENS TITLE LECTURE 10 23. STRATA TITLE AND COMMUNITY TITLE LECTURE 10 Houghton v Immer (No 155) Pty Ltd (1997) 44 NSWLR 46 at 52-54 Lin v Owners – Strata Plan 50276 (2004) BPR 21,463 at [27], [30} and [34] Halpin v Sydney City Council [2000] NSWLEC 218 24. MORTGAGES, LEASES AND OTHER INTERESTS Breskvar v Wall (1971) 126 CLR 376 Epic Feast v Mawson KLM Holdings (1998) 71 SASR 161 Farrow Mortgage Services v Victor Tunevitsch (1998) 8 Tas R 65 Darling Point Securities v Industrial Equity (1991) NSW Conv R 55-589 City of Rockingham v PMR Quarries (2001) 118 LGERA 93 Abbeyfield (Harpenden) Society v Woods [1968] 1 WLR 374 Fush v McKendrick (2004) V Conv R 54-686 195 Crown Street v Hoare [1969] 1 NSWR 193 Castle Constructions P/L v Sahab Holdings P/L [2013] HCA 11 (10 April 2013) LECTURE 10 17 25. E-CONVEYANCING LECTURE 10 National e-Conveyancing NSW NSW Land & Property Information advises that Property Exchange Australia (PEXA) was formed to fulfil a Council of Australian Governments (COAG) agenda item to deliver a national electronic conveyancing solution to the Australian property industry. Supported by the NSW Government PEXA will enable industry participants to settle property transactions, lodge instruments with land registries, and pay associated duty and other disbursements. Electronic conveyancing went live in New South Wales on 8 October 2013. The initial release provided functionality for financial institutions to lodge Mortgages and Discharges through the PEXA platform. On 10 November 2014 the second release of electronic conveyancing expanded the range of functions to include financial settlement and the lodgment of transfers and caveats. This release allows subscribers such as solicitors and conveyancers to transact through PEXA. Legislation in NSW has introduced priority notices as part of our electronic conveyancing reforms. At the present time, the take-up of electronic transactions has been slow, due to the conservative nature of the conveyancing profession, what seems to be a mistaken belief in its complexity, the need to subscribe to PEXA and the need for all parties to a transaction to agree to participate electronically. An energetic program is being run by PEXA to win the profession over. The Electronic Conveyancing National Law is an appendix to NSW Electronic Conveyancing (Adoption of National Law) Act 2012. See paper by David Ross on ‘Advent of Electronic Conveyancing’ on WebCampus. Note amendments have been made to Real Property Act 1900 to accommodate electronic conveyancing to the Torrens System by the Real Property Act (Electronic Conveyancing) Act 2015 assented 15/9/15. REVISION LECTURE 10 At the conclusion there will be Revision which will take the form of a review and discussion of the whole subject.