Property Law

Running head: PROPERTY LAW 1
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Running head: PROPERTY LAW 2
Property Law
Part A
An easement refers to a property right for the making use of land belonging to
someone else without really occupying it. Creation of easements enables land to be provided
with access to permanent essential services, utilities and passing over of communications
through or under neighbouring land. Restrictive covenants refer to property rights which
restrict the manner in which land may be utilised. These covenants begin as agreements
between each lot’s purchaser and the developer, but can later be enforceable against all the
occupiers and owners that follow for a period of time which is unlimited. They act as private
land usage tools and they do not fit with the policies of public planning.
Under the prescription rule provided by the common law, there is the possibility of an
individual who has been enjoying another individual’s land for almost 20 years to get an
easement over the said land without having to pay compensation. This rule aids in dispute
reduction and maintaining expectations that are long standing and that can enable a person to
rely on. Easements are a property right which runs with land and their enforcement can be
against the successive landowners. This is unlike covenants because it is only restrictive
covenants which impose land restrictions. Positive covenants impose obligations on a
purchaser to do something on the property such as repairs or contributions towards the
maintenance of the property. Easements and covenants must be recorded either by deed or in
the Title Register so as to avoid the many potential and actual disputes involving the
property. The purchaser is not bound by any tenancy arrangement by the vendor that exists
but does not contain the buyer’s or seller’s name.
Retail leases are different from commercial leases because of the different regulatory
frameworks. A commercial lease applies to premises which are usually used as warehouses,

Running head: PROPERTY LAW 3
commercial building offices without retail activity or as industrial sites. A retail lease on the
other hand provides a permit for the sale of goods in the business premises (Retail Leases Act
2003). This therefore means that the Retail Leases Act may protect the retail leases but not all
the commercial leases because this is beyond its scope.
Part B
1 (a) Paula’s rights to object the sale of her property
Paula Ryan has certain rights to object to the sale of the farm property, being the owner of
the property (Kulkarni, 2016). These rights include the right to ample notice whereby the
mortgagee, Quickie Finance is legally bound to give Paula enough grace period to organize
herself and clear the farm before it is sold to another party. The notice period should be at
least 60 days. She also has the right of ensuring fair value to the property in question,
following the assessment of by the bank experts. She has the right to object to the sale if the
property has been undervalued. The contract of sale offered to Robyn Andrews of $ 970000
is below the purchase price of $1.2 million that was incurred by Paula. She can base her
objection on this variance. Paula also has the rights to be heard and to humane treatment. She
may make her representation to Quickie Finance to the effect that the only reason she has
been unable to repay her mortgage is because of the accident which she was involved in and
which has left her weak and continually ill. However, this may be encountered by her
mortgagee who may strongly hold that they do not have any other option in such a case but to
sell her farm so as to repay the loan of $950000 that she had borrowed.
b) Distribution of Sale Proceeds after Mortgage Default
The mortgaged property would be sold to the highest bidder, in this scenario, being
Robyn Andrews. The paid amount is distributed in the following manner: The costs of the