BSRV4601 Assessment 2 Variation B(2)

Learning outcomes

2. Explain land ownership titles in relation to real estate practice.

Instructions

Complete and submit your assessment according to the Open Polytechnic’s Assessments webpage. This includes information on academic integrity, word guidelines and referencing.

• Include your name, student number and the assessment number.
• Number your pages.

Submission

• Submit your assessment in one file.
• Submit your work through your iQualify course.
• Emailed assessments will not be accepted.
• You will receive an automated notice following submission.

By submitting your assessment, you confirm that it is your own, original work.

Overview

In this assessment in your role as a real estate salesperson licensee, you will be reviewing documents, explaining real estate processes and terms, and considering scenarios of reallife situations to show your knowledge of real estate practice.

This will include:

• identifying and explaining different types of property tenure
• identifying and explaining interests registered against records of titles
• explaining ‘limited as to parcels’ and its effect on property ownership
• explaining the process of transferring land ownership in Aotearoa New Zealand
• describing key real estate terms relating to property ownership
• identifying and explaining different types of co-ownership when purchasing property

Task 1: Titles and interests

To complete Task 1a and Task 1b, please refer to the four ‘Records of Titles’ that are provided in the Assessment Two – Record of Title Appendix doc. You will need to download this from the Assessment Two iQualify page

The aim of this task is to demonstrate your understanding of these Records of Titles in a way that a purchaser can understand. Remember to use your own words where possible and avoid copying sections directly from the course or legislation.

The titles to be identified and explained are:

1. Identifier: NA166/249
2. Identifier: NA38B/1691
3. Identifier: 470523
4. Identifier: 481121

a. For each of the four records of title:

• identify the full name/s of the registered owner/s as recorded on the title
• identify the full legal description, including any land area and estate details that apply
• Identify the type of property tenure and explain the tenure. Your tenure explanation should consider the ownership rights and obligations and include any advantages and disadvantages of the tenure. At least three key points should be discussed.

                                    (Word count guidelines for (iii) 100 words per tenure explanation)

b. For each of the four records of titles listed in Task 1a:

• list all interests registered on the record of title
• explain each interest you have identified on the record of title. Your explanation must discuss at least two key points for each interest.

Note: If you have already explained an interest in a previous title, you don’t need to provide a further explanation of the same type of interest. However, you must list all interests on each title.

(Word count guidelines: up to 70 words for each interest explanation)

c. Respond to the following query about the term ‘limited as to parcels’.

David is a customer you are showing property to. He has noticed the term ‘limited as to parcels’ on the Record of Title for a property he is interested in purchasing. The property lacks fencing, and David plans to install a fence if he buys it, as he has young children who need a safe play area.

In your response explain to David:

i. what the term ‘limited as to parcels’ means and how might it affect his decision to build a fence

ii. how David can verify the exact boundaries of the property.

(Word count guideline: up to 80 words total for your response)

 Task 2: Transferring land ownership

For this task you need to explain in detail the process of transferring land ownership in Aotearoa New Zealand.

i. Provide an overview of the land transfer system used in Aotearoa New Zealand. Include in your overview the following key points:

a. the name of the land transfer registration system

b. state which New Zealand government department uses the system, when it is used and why it is used

(Word count guideline: up to 150 words)

ii. Explain the steps in the journey of transferring land ownership, including what the customer, the client and both their lawyers will do when a property is purchased and eventually sold. Begin with step 1 being the signed sale and purchase agreement and end with the completed sale and settlement process.

(Word count guideline: 200 words)

Task 3: Key real estate terms

For this task you are required to read the following four scenarios then explain the key real estate terms as per the instructions under each scenario.

(Word count guideline: up to 100 words for each scenario)

Scenario 1: ‘Guaranteed search’ record of title or ‘historical’ record of title

Mere is selling a charming old villa from the early 1900s. She has heard from a community member that the villa was previously owned and designed by a renowned New Zealand architect. Thinking this information could attract potential buyers, Mere decides to order a record of title to verify the ownership details.

(i) Explain the difference between a guaranteed search record of title and a historical record of title. Identify which type of title Mere should request to determine if the property was previously owned by the New Zealand architect.

Scenario 2: Equitable or legal interest

Anika is the sole registered owner of the property, as indicated on the Record of Title. She and her partner, Jayesh, have been living together on this freehold title property for the last 25 years.

(i) Explain the difference between an equitable interest and a legal interest. Identify which type of interest Jayesh has and which type of interest Anika has in the property.

Scenario 3: Ownership or possession

Alex has been renting from Mendhi for two years and has a tenancy agreement to stay on the property. Mendhi, needing a place to stay while her new home is being built, asks Alex if she can park her caravan at the back of the property and live there for eight months. Alex consents to this new arrangement

(i) Identify who holds possession and who holds ownership of the property. Explain one key difference between possessing a property and owning a property.

Scenario 4: Fixtures or chattels

Priya and her two sons are touring a house with Jenny, a local real estate agent. Thrilled by the cozy wood-burning stove, Priya is even more excited to discover the built-in swimming pool, sizeable trampoline, and detached garden shed. These amenities are exactly what Priya has been looking for in a new home, prompting her to put in an offer.

(i) Explain the difference between a chattel and a fixture. Identify which two items in Priya’s offer would be classified as chattels and which two items would be classified as fixtures.

Task 4: Identifying different types of co-ownership when buying property

Read the following scenarios about three different situations where couples are buying property together and identify which form of co-ownership will best suit each customer.

There are three different forms of co-ownership to choose from:

• trusts
• tenancy in common joint tenancy.

(Word count guideline: up to 100 words for each scenario)

Scenario 1

Hana and Tane, who are searching for a new home to fit their growing family, run a successful manufacturing business. They are worried about the possibility of another pandemic forcing their business to close and need safeguards against creditors potentially forcing the sale of their home.

(i) In your answer identify and explain the type of co-ownership that is most suitable for Hana and Tane. Explain at least two key points in your discussion of this type of coownership.

Scenario 2

Anjali and Priya are friends planning to buy a property together. They are interested in understanding their co-ownership options. Anjali will contribute 65% of the purchase price, while Priya will contribute 35%.

(i) In your answer identify and explain the type of co-ownership that would be most appropriate for Anjali and Priya. In your explanation, discuss at least two key points of this form of co-ownership.

Scenario 3

After 40 years of marriage, John and Maria, a retired couple, are moving to a smaller townhouse. They wish to set up their co-ownership so that in the event of one partner’s death, the other will automatically receive full ownership of the property.

(i) In your answer identify and explain the type of co-ownership that best suits John and Maria. Explain at least two key points of this type of co-ownership in your discussion.

Marking schedule