TOPIC 8: Property Law Flashcards
In December 2014 Bruce lent Dave his road bike worth $2,000 because Dave was training for a triathlon. In late January 2015 when Bruce asks for his bike back Dave refuses, saying he is really sorry but he sold it to Darren for $500 and Dave has spent that money and has no money left.
Bruce has no rights to the bike as Darren did not know that Dave was not the owner of the bike.
If Bruce had registered his ownership of the bike under the Personal Property Securities Act, Darren would be deemed to know that Bruce was the bike’s owner and would be required to give the bike to Bruce.
Bruce remains the owner of the bike; therefore he is entitled to get that bike back from Darren. It does not matter that Darren had no knowledge that Dave did not own the bike.
Bruce remains the owner of the bike; therefore, he is entitled to get that bike back from Darren, although he must pay Darren $500 as Darren had no knowledge that Dave did not own the bike.
Bruce remains the owner of the bike; therefore he is entitled to get that bike back from Darren. It does not matter that Darren had no knowledge that Dave did not own the bike.
Which of the following are items of personalty?
Computer software, computers, offices and swimming pools.
None of the above.
Houses, trees on land and milled timber in a yard.
Books, company shares and patents.
Books, cars, boats and houses.
Books, company shares and patents.
Mr and Mrs Pretty jointly own a residential property in Auckland which is rented out to Columbine. Mr Pretty wants to have some cosmetic surgery done but his wife does not approve of spending any of their money on this. Mr Pretty borrows $30,000 from XYZ Bank and a mortgage in favour of XYZ is registered on the title to the property. Mrs Pretty knows nothing of these transactions, nor does she know that her husband has forged her signature on the mortgage document. XYZ is also unaware of the deception. Mr Pretty is unable to keep up the mortgage repayments and XYZ exercises its power of sale under the mortgage. The property is sold at auction to Columbine (who is very pleased that she has been able to purchase the property at the modest price reached at the mortgagee sale). Columbine buys the property in good faith and without any knowledge of Mr Pretty’s misdeeds. Mrs Pretty later becomes aware of what has transpired in respect of the property. In these circumstances, under the Land Transfer system and on the authority of Frazer v Walker [1967] NZLR 1069, which of the following situations would result?
The property would be transferred to Mrs Prettys sole name due to Mr Prettys fraud, with Columbine then being able to sue Mr Pretty.
The property would be placed in the name of the bank for a fresh auction now that all parties are aware of the true factual situation.
The property would be returned to the joint ownership of Mr and Mrs Pretty as tenants in common, with Mrs Pretty and Columbine then being able to sue Mr Pretty.
Columbine, as registered proprietor, would obtain good title as she acted in good faith at all times and without any knowledge of the fraud.
Columbine, as registered proprietor, would obtain good title as she acted in good faith at all times and without any knowledge of the fraud.
Select the most accurate general statement from the following:
The law of property gives rights against a thing, called rights in rem.
The law of property gives rights against a person, called rights in personam.
All of the above are true general statements in respect of the law of property.
The law of property is entirely based on the nemo dat rule.
The law of property is entirely based on common law principles, there being no statutes concerning property law.
The law of property gives rights against a thing, called rights in rem.
The significant concept upon which the Land Transfer system is based is:
None of the above is true.
the personal properties security register which provides a system of notice and priority in respect of personal property securities.
the nemo dat rule meaning that you cannot give a better title to property than what you yourself had.
the concept of indefeasibility of title, meaning that the interests in land which are registered on the title to land are conclusive of matters relating to that land.
the concept of indefeasibility of title, meaning that the interests in land which are registered on the title to land are conclusive of matters relating to that land.
An estate in fee simple is:
an estate in land for a specified number of years.
the same as a life estate as all land must pass upon death according to the law of succession.
None of the above accurately describes an estate in fee simple.
a piece of land not subject to a mortgage.
None of the above accurately describes an estate in fee simple.
a piece of land not subject to a mortgage
When someone buys stolen goods:
The original owner will likely be able to claim the goods back based on the nemo dat quod non habet rule.
The buyer can keep the goods only if the buyer registers under the Personal Property Securities Act before the original owner claims the goods back.
The buyer can keep the goods provided the buyer paid a fair price for them and did not know that they were stolen.
The buyer can keep the goods unless the original owner’s title was registered under the Personal Property Securities Act.
The original owner will likely be able to claim the goods back based on the nemo dat quod non habet rule.
In relation to the law of property, a secured creditor will be paid out:
after all the other creditors have been paid out.
before the unsecured creditors are paid out but only if the secured creditor has actual possession of the secured property.
before the unsecured creditors are paid out.
after all the unsecured creditors have been paid out.
before the unsecured creditors are paid out.
Which of the following is true:
Very often when someone infringes your property rights in a property object, you will be able to sue that person personally as well as exercising your property rights over the object.
Whoever has possession of tangible personal property has title to that property.
The only way of acquiring property rights is to purchase them.
It is not possible for more than one person to have property rights in the one property object at the same time.
Very often when someone infringes your property rights in a property object, you will be able to sue that person personally as well as exercising your property rights over the object.
A secured creditor:
has direct rights against all the property of the borrower if the borrower defaults.
never goes unpaid when a borrower defaults.
All of the above are true.
has direct rights against the secured property when a borrower defaults.
has direct rights against the secured property
In relation to the law of property, the term personal property refers to:
everything owned by a person in a private capacity (as opposed to property owned in a business capacity).
None of the above is correct.
everything owned by a natural person (as opposed to property owned by an artificial person. for example, a company).
everything owned by a person and his/her spouse/partner.
None of the above is correct
In relation to the law of property, one of the following statements is incorrect. Select the INCORRECT statement:
The general rule in relation to personal property is nemo dat quod non habet (no person can give a better title to goods than he himself had).
In New Zealand, there is a statutory system for registering interests in land, but there is no equivalent system for the registration of securities over personal property.
Intellectual property rights are mainly protected by statute in New Zealand, though they may also gain some protection from the general law.
Intellectual property is a type of intangible property and describes the outcomes of mental or artistic endeavour which the law recognises as property.
In New Zealand, there is a statutory system for registering interests in land, but there is no equivalent system for the registration of securities over personal property.
The significant concept upon which the Land Transfer system is based is:
the personal properties security register which provides a system of notice and priority in respect of personal property securities.
None of the above is true.
the concept of indefeasibility of title, meaning that the interests in land which are registered on the title to land are conclusive of matters relating to that land.
the nemo dat rule meaning that you cannot give a better title to property than what you yourself had.
the concept of indefeasibility of title, meaning that the interests in land which are registered on the title to land are conclusive of matters relating to that land.
Which of the following observations about the classification of property is the MOST CORRECT:
“Choses in action” refers to property rights that can only be enforced by legal proceedings and not by seizing possession because choses in action have no significant physical presence.
“Real Property” refers to tangible assets such as cars and houses but not to intangible assets such as trademarks or mortgages of land.
Scaffolding used by a painter to stand on while painting a building would usually be classified as a fixture because under health and safety regulations scaffolding must be firmly attached to the building to prevent the scaffolding from falling over.
“Personal property” refers to property held by natural persons for personal use and would not include property held by a company for business use.
“Choses in action” refers to property rights that can only be enforced by legal proceedings and not by seizing possession because choses in action have no significant physical presence.
An estate in fee simple is:
None of the above accurately describes an estate in fee simple.
the same as a life estate as all land must pass upon death according to the law of succession.
a piece of land not subject to a mortgage.
an estate in land for a specified number of years.
None of the above accurately describes an estate in fee simple.
