This is an extract of our Sale Of Land document, which we sell as part of our Property Law Notes collection written by the top tier of University Of Otago students.
The following is a more accessble plain text extract of the PDF sample above, taken from our Property Law Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Sale of Land
Stage 1 - Contract (exchange of promises)
o Must be in writing and signed
Usually purchaser pays a deposit once signed
Part Performance - an oral contract which is not enforceable, but equity might enforce it if 'partly performed' by one of the parties
In NZ - most contracts use the 'Standard Form Contact' (Auckland District Law
o Strict rules to ensure certainty and to encourage evidence in court cases
Stage 2a - Settlement (enabling registration)
o P pays V in full
Stage 2b - Registration
P gets the actual property title
Issue (in-between stage)
o Assuming there is an unconditional contract, what happens if problematic events occur between the contract and settlement/registration? E.g. damage,
death of party
Re Richards (party dies)
- Richards left Opie Street to Ms McTague in his will
- Richards and Eade enter into an unconditional agreement to sell Opie
- Richards agrees to buy a house in Meyer Street
- Richards dies
Issue 1 - Did Ms McTague have an interest in Opie Street?
o Issue 2 - Does Ms McTague have an interest in Meyer Street?
o Judgment on Issue 1
- When contract is signed, purchaser (Eade) becomes owner in equity
- Vender (Richard) holds land in a similar way to a trustee
- This means vendor no longer has an interest in the land but in a personal estate i.e. the sum of money being the unpaid purchase price
- Therefore, Opie Street no longer in will (adeemed)
o Judgment on Issue 2 - as Opie Street not in will, can't trace title to Meyer
Clark v Ramuz (when land is damaged)
- R enters into contract to sell land to C
- In between, trespasser entered property and took a piece of land
Issue - does the vendor (R) or the purchaser (C) have to pay for the land?
o Default Rules
- Equitable title passes on the contract. This means that risk lies with the purchaser.
- But the vendor becomes a 'sort-of' trustee.
Buy the full version of these notes or essay plans and more in our Property Law Notes.