FNSTPB505 – Apply Legal Principles in Property Law

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Assessment Cover Sheet

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Case Study/Oral Discussion
You are a lawyer in a sole suburban practice.
A new client comes to see you to seek your assistance and provides the following information:
(a) The client is 19;
(b) The client is male;
(c) The client received a substantial insurance payment four years before for serious injuries he
suffered in an accident that occurred when his father swerved to avoid a car driving on the
wrong side of the road. The client’s father was killed and the client suffered serious injuries
from which he is still recovering. The client takes a number of medications daily;
(d) The client’s mother also received a large payment but this has been used in the client’s
mother’s business ventures during the 4 years;
(e) The client has entered into a contract to purchase a house from a friend of his mother. The
client agreed to pay $650,000 for the house on the basis of advice from his mother that the
house would be a good investment. The client had paid a deposit of $100,000. Settlement was
due to occur in two weeks. The house is to be registered in the client’s name;
(f) The client also used a portion of the settlement to purchase an apartment. The apartment is
registered in the client’s name;
(g) The client’s mother had run a number of businesses over the years with her husband that had
been successful but, since his death, the current business has had been having difficulties;
(h) The mother’s friend has removed a number of items from the house after the contracts were
signed and sold them. Those items included:
(1) a large tapestry that had been hanging against a wall suspended by a rod attached to the
wall;
(2) a large antique bookshelf;
(3) a tin box containing several pieces of jewellery that had been found in the garden
several years before but left in the ground;
(4) a new hot water system and air compressor for the ducted air conditioning system that
had been sitting on the roof. The items were connected to the house;
(5) a large number of wine racks that had been built into the walls of a cellar.
(i) The client’s mother set up her current business 2 years ago but the business has been having
difficulties and a number of cheques have been dishonoured;
(j) Six months ago, the client’s mother negotiated with her bank, of which she has been a customer
for many years and which holds the businesses accounts, for a loan to help grow the business
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which the mother thinks will allow the business to trade out of its difficulties. The loan is to be
secured against the client’s apartment. The mortgage has not been registered;
(k) The client has recently learnt that the mother’s friend had been advised that the house was
actually worth far more as a new retail development has just been approved. The client has
learned that the mother’s friend has entered into a new contract to sell the house for $750,000
with settlement to be in 1 week;
(l) The client advises that the mother’s business has continued to suffer and is unable to pay the
instalments on the loan. The bank is threatening to call in the loan and take action under the
mortgage.
Required:
Once you have considered your client’s situation, please contact your lecturer to discuss:
(1) the areas of the law that apply to the above scenario;
(2) the material facts relevant to each area;
(3) what additional facts, if any, would you require from the client;
(4) any additional issues that may affect your client’s legal position.
Following that discussion, within 2 weeks
On the basis of the facts above and any relevant additional information you consider necessary, provide a letter of
advice (500 words maximum) to the client setting out your view of the client’s rights and the actions he should
take to protect himself.
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Assessment Outcome
Satisfactory: Not satisfactory:
Reassessment details (if applicable):
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Date of reassessment: _____________________________________
(Attach supplementary documentation used in re-assessment)
Reassessment outcome, if applicable:
Satisfactory: Not satisfactory:
Feedback to student:
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