Question 1

Prevailing interest rates on second mortgages are invariably higher than rates paid against first mortgages.Explain fully the reasons for this phenomenon.

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Question 2

If no date for the end of the lease is discussed by the parties,what type of lease is this? How is the end of the lease determined in the normal course of matters? What facts would you need to know to determine the scope of the landlord's rights upon termination?

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Question 3

How does the legal interest in land under a leasehold compare to the interests of the parties to a mortgage.If the landlord has mortgaged the property,how does that affect the actual legal interests of the various parties in the land?

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Question 4

Phillip owns a home in fee simple,which he subsequently mortgages for $150,000 to the Empire Bank.Two years later Phillip decides to move to another city and sells the property to Carl,who assumes the mortgage to the Empire Bank.Carl is later laid off from work,and runs into serious financial difficulties,resulting in the mortgage going into default.Describe the options open to the Empire Bank with respect to each of the parties,and follow these options through to their natural conclusion.Speculate as to any mechanisms that may commonly be put in place for greater certainty between the parties on the assumption of a mortgage.

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Question 5

Savesure Department Stores was a chain of discount stores offering low-priced consumer products in a no-frills environment.The company had found great success particularly in urban centres where it offered many name-brand or comparable products at prices far below the competition.As a result,Savesure had built a network of over 50 franchised stores,many located in shopping centres.
One of its stores was located in a leased building on the main street of a large city directly opposite a major shopping centre.The lease provided for a minimum annual rent of $24,000 payable monthly plus 10 percent of gross sales revenue.The lease also contained a covenant that the tenant would not open one of its stores within a five-mile radius of the existing leased premises.
After several years the landlord sold the property and assigned the lease to the purchaser.The new owner then discovered that Savesure had been operating a store in the shopping centre across the street for five years.
What issues does this case present? What rights,if any,does the new landlord have?

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Question 6

Explain the purpose of zoning legislation and the role played by the provincial and municipal governments in this process.

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Question 7

Colin operated an apartment building,in which he had installed dishwashers in the kitchen cabinets.The dishwashers were attached by a flexible plastic hose to the copper plumbing system of the apartment,and were plugged into the electrical wiring by means of a normal socket.As an express term of Colin's mortgage,all appliances in the apartments were considered to be fixtures.Colin soon ran into financial difficulties in his operation,and found himself pressed by his creditors.The holder of the mortgage foreclosed on the building,and the local hydro utility obtained a judgment against Colin.The hydro company seized upon the appliances of the building,including among them the dishwashers.The mortgage holder brought an action to recover the property and appliances,including the dishwashers.Discuss the issues raised with respect to fixtures,treating the situation of the dishwashers as well as other appliances.Discuss the issues that both creditors may raise in their argument,and explain why the mortgage holder should not simply limit his argument to the provisions of the mortgage.Render a decision.

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Question 8

List the right of,and the duties imposed upon a landlord and tenant at Common Law,and the remedies available to each party.

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Question 9

Explain the potential liability of the person who registers and uses an Internet domain name similar to another's trademark and then passes off his or her Web site as the trademark holder's.

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Question 10

Describe the major ways in which commercial leases differ from residential leases,and any terms that are commonly found only in commercial or shopping centre leases.

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Question 11

Illustrate by example the use of mortgage financing in the course of land development by each of the land developer,the builder who buys a lot on speculation that someone will buy the house he intends to build,and the purchaser of such a home.Use of specific numbers is not required unless desired.

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Question 12

Jamil and Kevin purchase a residential property as an investment for $50,000.Each contributes $10,000 in cash and together they mortgage the property for $30,000 to raise the remainder of the purchase price.A few weeks later,Kevin decides to end the partnership and Jamil buys his interest in the property for $10,000.Advise Kevin.

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Question 13

The landlord would be obligated to rectify the floor as the covenant to maintain the premises in good repair would require him to do so.Whether the landlord would be in breach of this duty after being prepared to fix the floor is a matter of engineering requirements,not one of whether the tenant is satisfied with the manner in which the task would be performed.The suggestion that the tenant hand back the keys amounts to repudiation by the landlord,and the tenant doing so completes surrender,or termination,of the lease.The most likely outcome would be dismissal of both the claim and counter-claim.
Based on Ng v.Au (November 3,1992),Doc.Regina 3317/91 (Sask.Q.B. ),selected for reporting in R.P.R.
-Distinguish between the terms "trademark" and "trade name." Give an example of each.

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Question 14

The Elegant Gift Shop had been a tenant in Harborvale Shopping Centre for ten years.The commercial lease contained a term in which all tenants agreed to participate in all Centre promotional activities and to be open for business during the hours that the landlord stipulated as hours of operation for the centre.At the time Elegant entered into the lease,legislation was in place that prohibited the opening of retail establishments on Sundays and statutory holidays.
Recently the provincial government's legislation was challenged and was found unconstitutional by the courts,thus allowing retail stores to remain open on Sundays and holidays.The manager of Harborvale Centre immediately sent notices to all mall tenants that the Centre would now be open on Sunday and all shops were required to be open for business.The notice referred to the clause in the lease entitling the landlord to require tenants to be open during the hours designated by the landlord as hours of operation.
What issues does this situation present? Discuss the rights of the parties involved.

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Question 15

In 1951,George purchased a piece of property in a cottage resort area.The property was subject to a restrictive covenant running with the land until August 1,2001,that the property shall never be sold,assigned,transferred,or leased to any person born in the State of Israel.In January 2002,George entered into an agreement of purchase and sale with another individual.The purchaser through his solicitor submitted the following requisition on title: "in view of the fact that the purchaser herein was born in the State of Israel,I require a release from the restrictions imposed on the land,and the restrictive covenant struck out,void and of no effect." George was only too happy to provide this release;however,an adjoining landowner wished to enforce the restrictive covenant.Together George and his purchaser made an application to the courts to have the restrictive covenants struck down as against public policy.Discuss the issues raised in this case,from a perspective of the 1950s and the perspective of today,and render a reasoned decision.Regardless of your answer,if the covenant was upheld,suggest an alternative way this sale may be effected without violating the covenant.

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Question 16

Explain the concept of "part-lot control."

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Question 17

Does the legal idiom "possession is nine-tenths of the law" apply in the context of mortgages?

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Question 18

Aunt Moira lent $25,000 to her nephew Alan as a down payment for a house.Aunt Moira prepared a document on her own,which set out the terms of payment.The document was never executed,but was turned over to Aunt Moira's solicitor with instructions to "do whatever was supposed to be done." The solicitor drew up a promissory note,which stated that it created a charge on the land until paid,and gave it to Aunt Moira.Alan signed the note,and paid in accordance with the terms of "the mortgage." Some years later,Alan approached a bank for more extensive financing.Alan filled out a comprehensive standard form statement of his assets and liabilities at the bank's request.Advise the bank as to its position.

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Question 19

Discuss the application of the Statute of Frauds and the requirement of registration with respect to leasehold interests,give reasons these conditions are imposed,and explicitly treat the situation of a lease of indefinite term.

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Question 20

Explain the difficulties faced by the songwriter who wishes to enforce his or her copyright when the posting,by an anonymous individual,of the lyrics the song writer's hit song result in the song's wide dissemination.

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Quiz 13: Real Estate Law