RES420 Fundamentals of Real Estate Assignment 2: Property Analysis

This assignment analyzes various aspects of property ownership, including freehold, leasehold, and strata titles, based on the provided property descriptions (WN711/236, WN127/488, WN58A/764, 911224, and 727372). It examines the rights and obligations of owners under each tenure type, the interests involved (mortgages, easements), and relevant legal considerations such as the Real Estate Agents Act 2008. The assignment also covers the Torrens system of land registration, the sale and purchase agreement process, and the concept of 'limited as to parcel'. The document provides detailed explanations of property ownership, mortgages, and associated legal frameworks within the context of the New Zealand real estate market.

ASSIGNMENT 2 (RESUB)
TASK 1
A)
 WN711/236
i) Currently, the registered owners of the property are John Michael Bryant and Susan
Mary Bryant.
ii) John and Susan Bryant have been the owners of this property for the last 5 years and four
months. There are many benefits and consequences of being the co-owners of the property. Since
this property comes under the freehold property ownership there is some restriction on buying
this property. It gives the proper authority to occupy the land, earn money by doing business or
build any enterprise, lease the land to another party, or it can be used for mortgage purposes.
Basically, it gives total and complete authority on the land. If Tom and Lucy decide to buy the
property, they will enjoy the full authority on land they will buy.
Everything has its own pros and cons. Freehold property does have some demerits which
can have a huge impact on buying and selling of a property. Freehold properties are very
expensive as compared to other properties. This reason behind being expensive is because the
land value includes the price value of the property. Since it gives the sole ownership to the buyer
it can also increase the responsibility relating to the property.
 WN127/488

i) The property is equally owned by two people, Peter Brian Lang and Sarah Kate Wilson.
Both of them have equal (½) shares of the property.
ii) Peter and Sarah have owned this property for 7 years equally. This property categorized
under the leasehold property. The buyers will get authority over the flat 1(DP 48861) and Garage
1. Freehold properties are very beneficial for buyers who need the property for a short period.
Even though the agreement made under the leasing process is fixed, but it is very flexible in
terms of the period length of the agreement. It is a very covenant for both of the parties. It is
much easier to enforce the convenience to the landlord as compared to the freehold property. The
enforcement of such covenants can cause issues in the case of a freehold property.
A leasehold property is usually disadvantageous for the tannest. Since this lease is provided for a
defined period. After that period, the tenants might have to look for a new place if the owner
does not renew the agreement. In some cases, the tenant does have some statutory right to renew
the agreement. The tenants also have to look over the property they are completely responsible
for the damages and repairing of the property. Under the leasehold property process, the tenant
does not have much authority over the land and the property. They cannot do anything without
the permission of the property owner.
 WN58A/764
i) This property has a total of three owners including one company. Oka Leota, Simisi
Leota and Waterford Trustee Company limited.
ii) This property has been under the ownership of Oka, Simisi and Waterford Trustee
Company from the last 19 years. They have ownership of unit C and accessory unit 3. Strata are
kind of ownership that allows an individual to be the owner of a particular level or division.

Under stratum in freehold, the owner will have the authority of owning the dwelling area and the
courtyard or grassing area as we can see in apartments. The property holder can lease the
property to the tenant according to their agreement or contract. The tenant should review the
financial position of the owner before buying the property. The disadvantage under strata
property is the changes take place with the property. The buyer cannot make any changes
according to their wishes. They have to take the permission of the owner before the changes are
done within the property. But strata properties are very easier to sell in the market since there is
always a huge demand for these properties in the market.
 911224
i) This property has two owners named as Desmond David Wand and Daisy Joy Wang.
ii) This property has been owned from the last 11 months by Desmond David Wand and
Daisy Joy Wang. Since this property is a leasehold property. It is much more efficient and
cheaper as compared to other properties. It gives the proper financial option to the buyer for the
future. It allows the buyer to get involved in the property market.
There are some disadvantages to these properties. The rent under these properties is not
fixed. The landlord can charge the rent as per their own requirements. The buyers have to
deposits a huge number of advances to the landlord. There will be no profit for the tenant if there
will a rise in the price of land and property.
 727372
i) This property is owned by Valley View Apartment limited.

ii) Valley View Apartment has owned this property form the last 47 years, which is almost
half a century. The buyers will get ownership of the whole area under Lot 7, which is 2101
square meters. Since this property is fee simple, property it allows the full authority to the buyer.
There are many advantages to this property. The buyers are fully responsible for the whole
property according to his wish and priority. Unlike in freehold property, the buyer doesn’t have
to be under any time-bounded contract since they will get the complete ownership after buying
the property. Fee simple provides the highest permit on the property by the law. Buyers can also
sell the property to another party if he wants to. They can also start up any business in the
property and earn money or they can even destroy the property since it is their property. If Tom
and Lucy will buy this property, it will be very beneficial for them since this property allows
them the permanent ownership of the property. They do not have to pay rents or any
maintenance fees. However, the things, which the buyer has to consider as the owner of the
property, are that they will have to be responsible for the tax payments and general municipality
funds.
B)
 WN711/236: The interest that is mortgage to Westpac banking corporation.
Appurtenant hereto is a right of way and sewerage drainage and water drainage rights
specified in the easement certificate. As the easement certificate is provided, the above allows
the right of using the property for the specified purposes given above.
Mortgage refers to the agreement by which the bank can provide money at an interest in
exchange for the borrower property. If the borrower is not able to return the amount of loan

within the given period than the bank will sell the property of the borrower. Before the
agreement of mortgage, the borrower needs to clear the terms and conditions of the agreement.
This agreement includes time, amount of loan and percentage of interest.
 WN127/488: The interests are mortgaged to ANZ banking group, building line
restriction, lease of flat, composite issue.
Building line restriction is refers to that the building that is work is restricted of a certain
distance from road or property. Lease of flat refers that in exchange of particular amount you
will get the flat for a specific time.
 WN58A/764: Mortgaged to the bank of New Zealand
As per The Fencing Act 1978, the fencing agreement acts similarly to the covenant.
However, the agreement itself can have an inclusion of another agreement that related to the non-
erection of a fence. The agreement can provide an allowance of benefits to be provided with the
land. Further, it helps towards passing over the same to the purchasing followers.
Mortgage is the process through which bank provide certain amount in exchange of the
property of the borrower. In that situation the borrower need to return the amount within the
mention time period.
 911224:
It is mortgaged to kiwi bank limited. Here, a CAVEAT is a legal warning that prevents any
particular dealings related to the property for getting the property registered. It is also a warning
for the public to be aware of the interest on the property for a specified purpose. Thus, it helps in
the identification of the priority interest of the holder on the property.

There are mainly six types of mortgage available, these are:
Simple mortgage, mortgage by condition sale, unsufructuary mortgage, English mortgage,
mortgage by deposit and amamolous mortgage.
 727372:
Occupation Licence of Flat 1 and Garage 1 Plan 26634 embodied in Register WN11C/1001,
Occupation Licence of Flat 2 and Garage 2 Plan 26634 embodied in Register WN11C/1002,
Occupation Licence of Flat 3 and Garage 3 Plan 26634 embodied in Register WN11C/1003,
Occupation Licence of Flat 4 and Garage 4 Plan 26634 embodied in Register WN11C/1004,
Occupation Licence of Flat 5 Plan 26634 embodied in Register WN11C/1009, Occupation
Licence of Flat 6 Plan 26634 embodied in Register WN11C/10010, Occupation Licence of Flat 7
Plan 26634 embodied in Register WN11C/10011, Occupation Licence of Flat 8 Plan 26634
embodied in Register WN11C/10012
The Operational Licence is a form of regulations under the Government that makes it necessary
towards holding the property. Thus, it helps in providing a hold over the property by becoming
the unit holder of the real estate.
C)
Limited as to parcel
It is a situation when the area and its boundaries not properly defined and guarded by the owner.
There can be two reasons for this situation. Firstly, when there is a lack of proper information
while developing the plan and there might be another owner with the adverse possession of a
certain part of the property. Removal of limitation as to parcel applied under two situations.

 By building units or subdividing, the property for which the cross leases title will be
entitled- it is important to remove limitation as to parcel.
 By building the sizeable structure near the boundaries-, it is necessary to have an updated
survey of land to make sure the boundaries are not close to the building.
As the adjoining owner how the limitation as to parcel removed-
 The letter will be forwarded by Land Information New Zealand (LINZ) to AT about the
notice regarding the property has been resurveyed. The landowner will provide the means
for AT to oppose if the roads are impinged by the new buildings.
 As the affected adjoining landowner, the landowner’s surveyors request the approval of
AT before launching any new survey plan in LINZ. Under this process, the application is
submitted to AT for the removal of limitations as to parcel.

TASK 2
A)
i. Torrent's system was earlier known as deeds system. It is compulsory to use this system
because registration under this Land Transfer Act 2017 can only be formed and applied. No
other legal interest in land can be used. Registration should be exact and accurate as the state
of title. People who purchase the land should not be lying behind the curtains of the record.
They need to follow the Insurance principle as it provides state guarantee to the title.
ii. Sale and purchase agreement process
 The initial state is working on the budget. It is very important to see how much money is
in the saving account matter the most before buying.
 Preparing for a home loan. Before buying is very important to check how much money it
can be borrowed.
 Finding an independent legal advice is very important.
 Hunting for a house. As everyone has their own way of finding home some do online and
some do offline.
 It is always very important to check on property you are buying.
 Checking out the property is a must before buying.
 Making an offer and accepting it. There should be agreement between both the parties.
iii. All the Sale and purchase agreements should be under Real Estate Authority (REA) that is
regulates by the New Zealand real estate industry. Title memorials have to be officially
processed and recorded legally that deals with the land.
The process of registering the new owner's details on the certificate of title at LINZ
 Legal documents are required to be prepared.

 The paper documents should be delivered to the recommended place.
 The documents shall include statutory declarations from both the buyer and the seller.
 It should be surveyed properly. And after the documents are received it will be checked if
they meet the legal requirements.
B)
i. Real estate means physical or real property that includes land, building, etc. It can be any
property that includes can be construction or resale of homes.
ii. Personal property is classified in different ways tangible, intangible, and other distinctions.
Tangible refers to something that can be touched like art, jewelry. Intangible refers to
property that cannot be moved, touched or felt like securities. Other distinctions are
properties that depreciate faster than improvement.
iii. Ownership is a kind of property which consists of collective, private. It means the person has
a certain right over the property. Ownership is a kind of property which consists of
collective, private. It means the person has a certain right over the property and a legal title.
Title also states to ownership of the assets and properties.
iv. Possession means controlling a certain thing or a property. For example, the car owner can
give someone to drive. The driver can possess the car but cannot own just by riding someone
else care. Personal property consists of possessions that are owned by someone and it is
movable. Real property consists of possessions that are fixed permanently to a certain place.
v. A Lease is a contract that is written by the owner of a precise property or asset that grants
another party the right to possess for a certain period time under special condition.
vi. License is a short-range right to posses’ specific asset or property for a certain purpose.

vii. A legal interest means the responsibilities of the owner for looking over a certain property. It
is genuine ownership of the property whereas equitable interest means not owning the
property but enjoying it for a certain time. They are person who does not have any right sell
or transfer any property.
viii. Indefeasible means something that cannot be made void. It is the right or title in the property
that cannot be defeated or canceled.
ix. At the time of registration, the holder needs to register certain interests and needs to acquire a
secure title to protect rival interests. But sometimes such defending cannot be protected by
indefeasible, which is known as the exception of indefeasibility. Some of the exception
includes:
 Misdescriptions
 Prior certificates of title
 Prior registered interests
 Forgery
 Fraud
x. Registered security is security that has a restricted transfer or security who has a file with the
issuer which is not given to the owner. The name can be given to securities whereas ownership is
recorded when the company or their agent is issued.

TASK 3
A)
1. Joint tenancy:
Joint tenancy is the understanding of two or more owners of a property who shares equal
rights and responsibility on the same property. If deferent owner rents or purchased the same
property for use together then they both have to take equal responsibility for the purchased or
rented property. Joint tenancy directly gives the right and responsibility to the remaining
owner in case of one owner permanently or temporarily absence.
2. Tenancy in common:
When two or more people won real estate together is called tenancy in common.
Through this arrangement different buyers can buy a different percentage of
property .through a deed tenancy in common is created where the previous owner transfers
his interest to the new owner. In this case the right and responsibility divide as per the
percentage of ownership.
3. Civil unions:
The legal relationship of two people which gives legal protection to the couple only at the
state level is called civil unions. a civil union always not must be a marriage or same-sex or
opposite-sex. it totally depends on the rules of the present state. Civil unions may not be
recognized by all states.
4. Trust:

Trust is a helpful thing to reduce presser on a trustee. Trust is the relationship between
three-party and its created by the owner. The tractor transfers property to the second party for
the benefit of the third party. a testamentary trust is formed by a will and arises after passing
away of the colonizer
B)
i. With the help of the title, you can claim your legal right to something. Property ownership
refers to the title. Certificate of title content with some information like:
 Current record of title (present owner legal description, registered rights and
restrictions, etc.)
 Historical record of title (include with plane or diagram of the land, scan copy of
papers)
 Technical detail (Freehold, Leasehold, Unit, Composite, Cross Lease, Life Estate, etc.)
ii. Legislations applies for sale of land
 Residential tenancies Act 1986
 Unit tiles Act 2010
 Public works Act 1981
 Privacy Act 1993
 Overseas investment Amendment Act (OIA) 2018
iii. The legal definition is given by section 129 Te Ture Whenua Māori Act 1993..

if you want to know about your land that is your land is a Māori land or not .we are suggest you
to contact the appropriate Māori Land Court District or search Māori land online or a land
professional.