Advanced Property Law

Running head: ADVANCED PROPERTY LAW
1
Advanced Property Law
Student’s Name
Date

ADVANCED PROPERTY LAW 2
QUESTION 1
Key and Paramount ‘Sticks’ in Fee Simple Bundle
There has been insufficient research and discussions around fee simple bundle despite its legal
and economic supremacy1. In a fee estate the owner of the land has the most number of sticks in
the bundle. While the definition of fee simple bundle has been based on comparison to peripheral
freehold life estate and obsolete fee tail estate, Simon Douglas relates this to lack of better fee
simple analysis2. The definition and understanding of fee simple bundle not only helps in
identification of key sticks in the fee simple bundle but it also helps in determining the
paramount stick in this bundle.
In a bundle of rights, there are several rights which have been forwarded in real estate properties,
this include right of exclusion, right of enjoyment, right of disposition, right of possession and
right of control. For a fee simple bundle, the key sticks are right to exclude, right to possess, right
to alienate and right to enjoy and use3.
An explanation of why these rights are key is based on the possession of several sticks by the
owner. The right to exclude in a fee simple bundle entails the fee simple holder limiting or
completely restricting the access of the property which he owns. Easement in this case may be
permitting access to utility unless there is a warrant that goes against this. Right to alienate
entails the voluntary transfer of property form the owner to another person through sales or other
means. Scholars have argued that it merely applies for fee simple bundle, therefore these rights
are viewed as unenforceable and void.
1 Theodore, Steinberg. “Slide Mountain, or, The folly of owning nature”. University of California Press,
(1995), 9.
2 , Andrea, Blake. "New dimensions in land tenure-the current status and issues surrounding carbon
sequestration in regional Australia." Australasian Journal of Regional Studies, The 24, no. 3 (2018), 309.
3 Eric T, Freyfogle. “On private property: finding common ground on the ownership of land”. Beacon
Press, (2007),70.

ADVANCED PROPERTY LAW 3
Arguably, the most important stick right of the fee simple estate holder is the right to use and
enjoy. Initially several scholars argued that the predominant stick in the fee simple bundle was
right to ownership or possession. This is because of the several number of sticks that is possessed
by the holder.
However, I support Simon Douglas argument which supports the right to use and enjoys the most
important stick because, the fee simple owner has the greatest number of sticks in facts and at
law which asserts the activities performed or carried out on the land. As a result, this stick forms
basis of all other rights. All other right is viewed from the perspective of right to use and enjoy
understanding the rights that are possessed by the fee simple holder.
QUESTION 2
Unit Entitlement in Strata Systems
The development of strata systems in Australia has been a solution to the challenges
experienced in property ownership due to increase in population, urbanization, increase in
standards in standards of living and decrease in family unit amongst other challenges4. This
system determines land ownership in a specific region called a lot and shared regions in the same
area called pools. One key element of this system is the unit entitlement.
A unit entitlement which is indicated in the strata plan together with the size, sketch, easement
and other title reference details is the proportion owned by the holder out of the whole strata
property. It can also be defined as the share owned by lot owners in a strata property. There are
three main purposes of unit entitlement which are, for the voting powers of lot owners, for
determining the amount which are paid for levies and to determine the shares of each lot owner.
4 Allison, Benson. "Property law: NSW strata reforms: How the changes will affect you." LSJ: Law Society
of NSW Journal 27 (2016), 84.

ADVANCED PROPERTY LAW 4
Unit entitlement are determined during strata registration based on the strata property market
value5.
The operation and management of the strata systems is carried out by the strata management. A
successful management of the strata entails effective ownership framework, financial
management and developmental management of various owners and users in the strata property.
This has been greatly achieved by these administrators with the help of unit entitlement which
has made their work more efficient and effective in the manners mentioned below.
Firstly, unit entitlement assists the administrators in financial management. Pursuant to section
78 of the Strata Schemes Management Act 1996 the lot owners are supposed to provide levies
which are used in in repairs and other utilities as decided in the annual general meeting. This
levies are provided as per the unit entitlement; therefore, the administrators are able to determine
levies based on entitlement6. This therefore helps them in financial management.
Unit entitlement have also assisted the administrators in records management. The administrators
have the permission of inspecting their records as per section 108 of Strata Schemes
Management Act 1996, or they may give their books for inspection to other special companies
whose focus is auditing7.
Unit entitlement enables them to follow in details the amount of resources or services offered to
the lots and in the case that there is a misunderstanding they are aware of where to start from8.
5 Jacqui, Bell, Bonnie Dale, Caitlin Kameron, and Michelle Havill. "Sharing the Air: The Need for Strata
Law Reform to Reduce Second-hand Smoke Exposure in Multiunit Housing in Australia." Journal of law
and medicine 25, no. 2 (2018), 465.
6 Keang Sood , Teo. "By-laws in a strata scheme." Singapore Journal of Legal Studies (2015), 189.
7 Laurence, Troy, Hazel Easthope, Bill Randolph, and Simon Pinnegar. "‘It depends what you mean by
the term rights’: strata termination and housing rights." Housing Studies 32, no. 1 (2017), 4.
8 Jacqui, Bell, Bonnie Dale, Caitlin Kameron, and Michelle Havill. "Sharing the Air: The Need for Strata
Law Reform to Reduce Second-hand Smoke Exposure in Multiunit Housing in Australia." Journal of law
and medicine 25, no. 2 (2018), 465.