A mortgage is a legal agreement

Running Head: RES420 1
RES420 FUNDAMENTALS OF REAL ESTATE
Name
Institution
Date

RES420 2
RES420 Fundamentals of Real Estate
Task 1: First Home Buyers
a.
The title of certificate proves the ownership rights as well as the restrictions of each
property. They have been recorded electronically since early 2002. They are divided based on the
12 regions of New Zealand districts.
 WN711/236 – The current owners are based in Wellington. In this case, land owners are
affected by both the state and Wellington land tenures. For instance, the transfer of land
is done with a lot of supervision and interests.
 WN127/488 – land owners are based in Wellington. Just like in in the first case, land
tenure dictate how land is allocated within the society.
 WN58A/764 – real owners are based in Wellington. Unlike previous titles, there are
associated responsibilities and restraints.
 911224 – In this case, the land owners do not belong to a particular district. Land tenure
in this case defines how land is allocated within societies.
 727372 – Just like the former title certificates, the land owners do not belong to a
particular district. However, the land tenure in this case shows the relationship between
the real property and the owners.
b. A mortgage is a legal agreement in which a building society or financial institution
lends money at interest in exchange a property title. In cases of mortgage, the company holds the
company ownership while the person is bound to use it until the full payment is made (Aalbers,
2016). This calls for the person to make and owner the payments of the mortgage as discussed
and agreed in those cases. However, the condition becomes void upon the payment of the debt.

RES420 3
Other interest include fee simple absolute, possessory, life estate, and leasehold interests. In
possessory interests, a person controls land (Campbell & Cocco, 2015). However, such control
does not include its ownership. Fee simple absolute entails the highest possible ownership
interest held in real property. Finally, leasehold involves interest that is garnered through
property lease. When a property is leased, the person is bound to make payments as they use the
same property for their intended use. This means that the person might be making profits while
still leasing the property and paying the interests.
c. A title to land that is “limited as to parcels” refers to time of issuing the first title. In
this case, a guaranteed title cannot be issued. This is a limitation to Lucy and Tom since they will
not be guaranteed full ownership of the land they want to purchase. This is because they will not
be able to use or else have the title due to the same limitation which is guaranteed to occur
(Duncan et al., 2016). On the same note, their case can be explained under the guarantee and this
can be as result of insufficient survey information or somebody else adversely possessing part of
the title.
Task 2: Helping New Immigrants into the Housing Market
A.
i. According to the recommendations by the Waterford Community Centre, this is the
overview of the Torrens land transfer system used in New Zealand. It is a very common form of
land transfer in the country. Before the introduction of the land transfer system, the deed system
was the most common type of land transfer in New Zealand. According to the government, the
use of this system is mandatory. In fact, no legal interest on land can be registered except on this
type of transfer (Doling & Ronald, 2010). The principle underpinning the system include the
following. The mirror principle is one of the major principles used in this case. The principle