apartment. At lunch with his friend Dilip, Rasheed says that he is thinking of selling the property and that he has an offer of $450 000.00. Dilip, who has always liked the property, offers Rasheed $500 000.00. Rasheed says, “No problem, consider it sold.”
Before the contract is signed, Dilip sends his architect, Thomas, to inspect the property. Thomas enters a darkened room in the basement, on the door of which is a sign “DANGER-DO NOT ENTER”. He is injured in the room when he trips over the broiler.
(A) Rasheed contacts Dilip to say that he will still let him have the property of Dilip will give him a further $50 000.00 “under the table” do that they will pay reduced transfer tax. Dilip refuses.
Advise Rasheed of the principle of contract on which Dilip could challenge him.
[10 marks]
CAPE 2005 MODULE 3: REAL PROPERTY Answer ONE question.
2. In January 2002 Cain applies to Gimme Bank for a loan and offers as security therefore the registered title in respect of his land at 15 Ragabuffing Bay.
In February 2002 Gimme Bank causes a caveat/caution to be lodged in protection of its equitable mortgage.
In March 2002 Cain sells the land to Abel. Abel enters into possession of 15 Ragabuffing Bay and builds a three-bedroom house in which he lives with his wife and 8 children.
In December, Cain having defaulted on the loan, the bank brings an action for a declaration that is equitable mortgage ranked in priority to the rights of Abel. Abel agreed to hold his stamped transfer documents until Gimme Bank released the title.
He is unaware that they lodged a caveat.
(a) Explain the effects of the bank lodging a caveat or caution against 15 Ragabuffing Bay. [10 marks]
(b) Discuss whether Abel would be successful in defeating the bank’s claim to a mortgage interest in 15 Ragabuffing Bay. [15 marks]
Total 25 marks 3. “A house may be a chattel or a fixture depending upon whether it was intended to
form part of the land on which it stands.”
Wooding CJ in Mitchell v.Cowie Using appropriate illustrations, discuss this view of the ‘chattel house’.
Total 25 marks 4. “Now there is a principle which I will accept without qualification… that on a
mortgage you cannot by contract between the mortgagor and the mortgagee, clog, as it is termed, the equity of redemption so as to prevent the mortgagor from redeeming on payment of principal interest and costs.”
Using appropriate illustrations, discuss this view in relation to the ‘equity of redemption’.
Total 25 marks
to operate a restaurant, giving him permission to use the empty lot next door as a car park. Kenyatta gave Ruiz permission to renovate the building and make the necessary changes to accommodate the restaurant. Ruiz spent $25 000.00 to renovate the shop. He then sublet the shop to Candice to operate the restaurant. Ruiz presented his bill to Kenyatta who accepted it and wrote on it “I.O.U”.
When the first lease expired, Kenyatta offered to sell the property to Ruiz for $100 000.00 and refused to consider the $25 000.00 previously spent by Ruiz. Ruiz refused to purchase the property. Kenyatta gave him notice to quit but he refused to move out of the premises. One month later Kenyatta set up a pig farm next to the restaurant. Because of the constant horrible odours coming from the pig farm, Candice’s customers stopped coming to the restaurant and Candice lost thousands of dollars in business. Candice also became ill from constantly inhaling the odours. Eventually she had to close down the restaurant because all of her customers had stopped coming there.
Advise the following persons:
(c) Candice on whether she, as a sub-tenant, would succeed in a claim against Kenyatta
for breach of any covenants under the lease. [10 marks]
CAPE 2007 MODULE 3: REAL PROPERTY Answer ONE question.
2. Flint Stone lived on a Commonwealth Caribbean country. He had one son, Anthony, who emigrated to America, and two nieces, Jill and Mary. In 1995, Jill told him about her plans to do agriculture, and Flint offered her the use of an unoccupied cottage he owned in the countryside. “You are welcome to use it,” he said. “It needs quite a lot of work to make it habitual, but you don’t need to pay me any rent.”
Jill moved into the cottage, made it habitable and started her poultry business.
Mary was unemployed, and in 1997, when Flint’s housekeeper died, he suggested to Mary that she should come and live with him in his house in the city and assist him as unpaid housekeeper and secretary. In 1999, when Flint was ill, he told Mary not to worry about the future as he was leaving her the city house in his will. In 2000 Flint retired, sold the city house and bought a bungalow by the sea. Flint and Mary lived in the bungalow for two months until his death later in 2000. In his will Flint Stone left his whole estate to his son, Anthony, who now seeks possession of both the cottage in the country and the bungalow.
(a) Jill has brought an action against Anthony claiming a right to the countryside cottage.
Advise Anthony whether there is any likelihood of Jill succeeding in her claim.
[15 marks]
(b) Advise Mary on whether she has any legal interest in her uncle’s property.
[10 marks]
Total 25 marks 3. (a) Explain THREE remedies available to a mortgage to enforce his security.
[15 marks]
b) Describe the circumstances which may influence the mortgage to choose among the available remedies. [10 marks]
Total 25 marks 4. Abbott and Costello own adjoining farms and for over twenty years Abbott used a
narrow, rough dirt track leading from his farm over Costello’s land to the main road.
However, when the weather is bad the truck is hardly passable. Abbott and Costello have
been friends and Costello has never objected to Abbott’s use of the track. Abbott and
Costello quarrel and when Abbott starts to pave the track to make it passable to vehicles,
(a) Whether he has acquired an easement over Costello’s land [15 marks]
(b) The remedies that would be available to him to protect his legal interest [10 marks]
