Deck 19: Leases and Transfer of Real Property

Question 1

Which of the following is not a true statement regarding leases?

A)A lease grants the lessee the right to share possession of the property with the landowner for a specified period.
B)The lessor can be referred to as the landlord and the lessee as a tenant.
C)The common law approach to leases has been modified by various state Acts.
D)Leases are generally categorised as residential or commercial.

Answer 1

A

Question 2

Toby has exchanged contracts for the purchase of a Torrens title residential property.Settlement was scheduled to occur on 15^th October at 3 pm.At 9.30 am on 15^th October Toby's conveyancer searched the title and found no problems.At 1 pm on 15^th October a creditor who had received a court judgment against the vendor on 14^th October registered the judgment order on the vendors' title.Based on the decision in Black v Gannock [2007] HCA 31,what is likely to happen?

A)The settlement will be blocked but Toby has rights against the creditor for not lodging its interest within a shorter period of time.
B)The settlement can proceed provided Toby can arrange for the settlement to be conducted by 2 pm or earlier because an hour's notice by the creditor failed to meet the required bona fide standard.
C)The settlement can proceed because Toby's' search was conducted with reasonable care and skill.
D)The settlement will be blocked because the creditor had a registered interest.Toby only had an unregistered equitable interest.

Answer 2

C

Question 3

In New South Wales,which of the following statements is not true in relation to the cooling- off period in the conveyancing process?

A)Purchasers may rescind during the cooling- off period but they must pay 0.25% of the purchase price.
B)There is no cooling- off period if the purchaser agrees to surrender the right and produces a certificate stating that their rights have been explained to them by a conveyancer.
C)Purchasers have 5 days to rescind from the date of the exchange.
D)Purchasers have 5 days to rescind from the date of settlement.
E)A and B only.

Answer 3

A

Question 4

In New South Wales,which of the following statements is not true in relation to the cooling- off period in the conveyancing process?

A)Purchasers have 5 days to rescind from the date of the exchange.
B)Purchasers have 7 days to rescind from the date of the exchange.
C)There is no cooling- off period if the property is sold at auction.
D)Purchasers may rescind during the cooling- off period but they must pay 0.25% of the purchase price.

Question 5

Leases usually require tenants to make covenants (promises)in their lease to:

A)pay rent.
B)permit the landlord to enter and inspect the premises.
C)keep the property in the same condition it was in when the lease commenced.
D)all of the above.
E)comply with A and B only.

Question 6

When Tia's one- year lease expires she stays on with the landlord's consent and continues to pay rent on a fortnightly basis.What kind of agreement does she have?

A)A fixed- term lease.
B)A periodic tenancy.
C)A tenancy at sufferance.
D)A tenancy at will.

Question 7

Which of the following statutory obligations are imposed on retail landlords?

A)They must provide lease documents in written plain English.
B)They must disclose in writing the main features of the lease,including details of the premises,rent reviews and taxes.
C)They must offer a lease term of five years.
D)They must carry out all of the above.
E)A and B above only.

Question 8

In most residential leases a tenant is required:

A)to not sub- let without permission from the landlord.
B)to allow the landlord to enter to inspect and carry out repairs.
C)to keep the premises in good repair.
D)to not carry out illegal activities on the premises.
E)to comply with all of the above.

Question 9

Under common law,commercial landlords are usually not obliged:

A)to allow the tenant quiet enjoyment (possession)of the premises.
B)to pay property rates and taxes.
C)to ensure common areas,such as lifts and entrances,are in reasonable condition.
D)to carry out all of the above.
E)to carry out A and B only.

Question 10

In New South Wales which of the following documents must be attached to the standard contract of sale for land?

A)A property certificate (title search).
B)A sewerage diagram.
C)A planning certificate.
D)All of the above.
E)A and B only.

Question 11

Residential tenancy tribunals have the power to:

A)decide disputes over rental bonds.
B)declare a rent payment is excessive and to order adjustments.
C)order a tenant to allow the landlord to enter the premises.
D)make all of the above orders.
E)carry out A and B only.

Question 12

Which of the following statements is accurate in relation to residential tenancy agreements?

A)The standard form residential tenancy agreement cannot be modified by the landlord or the tenant for any reason.
B)Residential landlords may pay the rental bond into a special trust account provided they share any interest received with the tenant.
C)An agreement that allows a person to book a hotel room for 6 months will qualify as a residential agreement.
D)Residential landlords are required to provide locks on external doors and windows.

Question 13

In New South Wales which of the following statements is not true in relation to the settlement stage of the conveyancing process?

A)The purchaser pays the balance of the purchase price plus any other fees,including the agent's commission,if there is an agent.
B)The vendor hands over the certificate of title,the transfer and the keys to the property.
C)The purchaser hands over an 'order on the agent' that authorises the vendor's agent to pay the deposit to the vendor.
D)If there is a mortgage the vendor pays any outstanding moneys owing and the purchaser recovers the certificate of title.

Question 14

When a landlord permits a commercial tenant to sub- let,the original tenant becomes known as a 'head tenant' and the new tenant as a 'subtenant'.If the property is subsequently damaged as a result of negligence by the subtenant,the landlord:

A)must sue the subtenant before suing the head tenant.
B)must execute a deed of entry to recover his or her loss.
C)may sue the head tenant for the loss.
D)may enter the property and make repairs without giving notice to the head tenant or subtenant.

Question 15

An example of a fixed- term lease is:

A)a lease that will terminate if the landlord's house is put on sale.
B)a lease that will commence when a satisfactory builder's report is obtained.
C)a lease that will terminate on New Year's Eve 2013.
D)all of the above.

Question 16

Which of the following are not statutory obligations that a residential tenancy landlord must obey?

A)To give at least 60 days notice of a rent increase.
B)To provide locks on garages and external upper floor windows.
C)To lodge the tenancy bond with a government authority.
D)A and B only.
E)To use a standard form lease agreement.

Question 17

Which of the following are examples of a fixed- term lease?

A)A lease that terminates 'on Christmas Day,2012'.
B)A lease that commences 'immediately that the civil war in Somalia is officially ended'.
C)A lease that terminates 'within 60 days after the completion of the proposed new motorway from Ballarat to Bendigo'.
D)All of the above.

Question 18

A landlord of a commercial property is usually not required to:

A)satisfy statutory safety requirements.
B)repair and maintain the premises in good condition,except for lifts,stairs and entrances.
C)allow the tenant the right of quiet enjoyment.
D)comply with any of the above.

Question 19

At an exchange of contracts for the sale of Torrens title land,which of the following does not take place?

A)The vendor hands over their certificate of title to the purchaser in return for proof that the purchaser has the financial capacity to buy the land.
B)Each party hands over a signed and dated copy of the contract to the other.
C)The vendor and purchaser are represented by a conveyancer.
D)The purchaser pays a deposit to the vendor.

Question 20

In New South Wales which of the following statements is not true in relation to the exchange of contracts stage of the conveyancing process?

A)The exchange creates an enforceable contact and gives the purchaser an equitable interest in the land.
B)A real estate agent may exchange contracts for the sale of a residential property if they have been authorised by a contracting party or that party's conveyancer.
C)The purchaser usually signs two copies of the contract.One copy is handed to the vendor and the purchaser retains the other copy.
D)The purchaser pays a deposit which is usually held in the trust account of the vendor's agent or invested until the settlement.

Question 21

In the conveyancing process requisitions on title are usually sent to the vendor.Requisitions are:

A)claims for the payment of costs incurred by the purchaser.
B)questions that attempt to discover any problems that have not been disclosed.
C)lists of non- fixtures that cannot be removed by the vendor.
D)requests for repairs or improvements to be made before the sale is completed.

Question 22

Moneys that real estate agents receive from third parties and must be placed in a trust account include:

A)deposits paid as part of an exchange of contracts.
B)'outgoings' (expenses)aid by retail tenants of a shopping centre.
C)rent received from a rental property.
D)all of the above.
E)A and B only.

Question 23

In New South Wales real estate agents who receive money on behalf of a client or another person must:

A)Hold the money exclusively for the person they receive it from and pay it as that person directs them to.
B)Lodge the money in a deposit taking institution or a safe place within five working days after receipt of the money.
C)Place the money in safe place,such as a deposit taking institution or a high quality safe in the real estate office.
D)Confirm with all of the above.

Question 24

Gary Perfect advertised a house for sale 'in the price range of $500 000 plus'.One week before placing the advertisement Gary's vendor had refused an offer at auction of $705 000.In the agency agreement with his vendor Gary estimated that the sale price would be 'in the price range of $680 000'.Which statement best summarises Gary's legal position?

A)He appears to breached consumer protection legislation by engaging in deceptive or misleading conduct.
B)He appears to have breached his general obligation not to engage in deceptive or misleading conduct that is imposed by specific legislation regulating real estate sales practices.
C)He has breached specific legislation in relation to real estate sales practices by over quoting the estimated price for which the property is likely to be sold.
D)He has breached specific legislation in relation to real estate sales practices by advertising at lower price than the estimate provided in the agency agreement.
E)A and B only.

Question 25

Which of the following rules do not apply to auctions that are regulated by state and territory legislation?

A)Dummy bids are strictly prohibited in all jurisdictions except Western Australia.
B)The buyer's agent must keep a record of any bids made.
C)Auction rules and conditions of sale must be clearly displayed.
D)Bidders must be registered and display a number
E)Vendor bids must be strictly limited.

Question 26

Tarice is a licensed auctioneer in Western Australia.While she was auctioning Bryce's house she accepted two bids from a person she knew was Bryce's uncle and not a genuine bidder.Which statement or statements are most accurate in relation to Tarice's legal obligations?

A)She has not breached specific WA legislation for the regulation of real estate selling practices because dummy bidding is not legal in WA.
B)She appears to have breached the Australian Consumer Law by engaging in deceptive and misleading conduct.
C)She has not breached any laws.However,her vendor may be liable for a breach of her prospective contract with any purchaser who buys the property at the auction.
D)She appears to have breached specific WA legislation for the regulation of real estate selling practices because dummy bidding is illegal in WA.
E)A and B only.