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THE UNIVERSITY OF BRITISH COLUMBIA FACULTY OF LAW

FINAL EXAMINATION - APRIL, 2017

LAW 231 PROPERTY LAW

Section 4 Professor Sheppard

TOTAL MARKS: 100

TIME ALLOWED: 3 HOURS **************

NOTE: 1. This is an open book examination. You may bring into the examination room and refer during the examination to the required materials for the course, handouts and your notes and summaries, but use of library or textbooks is prohibited.

2. You have the choice of answering either question 3.1 or 3.2. Answer either question, do not answer both. There is a further choice of topics from which you may choose one only, under 3.2. If you need additional facts to answer a question, state what the facts are, and why they are necessary. If you feel that an answer requires discussion of the same issue that you dealt with in an earlier answer, you may refer to your previous answer and limit your subsequent answer to additional matters. Give reasons for each answer.

3. Suggested times are given for each question based on the allocation of marks. The times have been allocated based on the duration of 3 hours or 180 minutes, including 12 minutes for reading time (12 minutes reading time plus 168 minutes allocated to questions).

THIS EXAMINATION CONSISTS OF 3 QUESTIONS Page 2of 5

MARKS 1. Lionel Hutz practices law as a sole practitioner in Springfield, British Columbia. You are articling with Hutz’s law firm. Hutz assigns you the following files for your advice on the land law issues:

15 (a) [Suggested time: 25 minutesj Reverend Timothy Lovejoy passed away in 2012. In his will he bequeathed all his personal property to his widow, Helen. also devised all his real property to Helen for life and remainder in fee simple to their daughter, Jessica. The will provided that Helen was unimpeachable for waste.

In the years since the winding up of the estate, Helen lived in the family home, but she has allowed winds to rip shingles off the roof. From lack of repairs to the roof, rainwater enters through the holes into the interior of the house causing rot and mildew. Also, Helen demolished the library and study room at the back of the house. Helen is planning redecoration of the principal rooms by removing ornamental wood paneling from the walls and fitted wall-to-wall carpeting, which was measured and cut to fit the rooms, and tacked to the floors. Helen pians to sell off the paneling and carpets keeping for herself the proceeds of sale.

Hutz’s client, Jessica has just returned to Springfield from an extended world tour, only to discover the state of the house and Helen’s future plans. Jessica seeks your advice concerning whether or not she has a basis of civil claim and available remedies against Helen for her conduct and to stop her plans for the future. Advise Jessica with reasons.

15 (b) [Suggested time: 25 minutes] Artie Ziff, a wealthy life-long bachelor owns and lives in a mansion with an adjacent run-down cottage on the same lot in Springfield. Four years ago, the cottage was unoccupied and Artie was lonely, but he learned that a single female aspiring country singer named Lurleen Lumpkin, who had limited financial resources, was looking for suitable premises in which to dwell and to set up her recording studio.

Artie wrote a letter to Lurleen in which he told her that he was a big fan of hers and would be only too happy to allow her the use of the cottage for her home and studio. Artie wrote: “The cottage needs fixing-up, but with work it would make an ideal home and studio for you. I am offering the cottage to you rent-free as long as you want, I won’t ever throw you out, and when I die, you’ll own it.” Lurleen accepted the arrangement and, using up her life-savings, renovated the cottage at her own expense. Artie died last month. Lurleen has just learned that six months ago, Artie entered into a written contract of purchase and sale to sell the mansion and cottage to Costington’s Department Stores, with the closing date of May 31, 2017. Lurleen immediately told Costington’s that she was entitled to the property and produced Artie’s letter to her but Costington’s says nothing was registered on the title and it has a valid and binding contract. Costington’s claims that it is entitled to complete Artie’s contract of sale by paying the agreed purchase price to Page 3 of 5

Artie’s estate for clear title ownership of the mansion and cottage free of Lurleen’ s claim, but she contends that the cottage belongs to her and refuses to leave it. Advise the executor of Artie’s estate, whether Lurleen or Costington’s is entitled to the property with reasons. Does the losing party have any remedies? Advise the executor.

15 (c) [Suggested time: 25 minutes] ’s teacher, gave a parcel of freehold land to her adult nieces, Penelope, Queenie, Rosanna and Shirley as joint tenants in fee simple. Misfortune subsequently befell the nieces. Penelope suddenly passed away, but among her private papers was found a valid form of transfer signed by Penelope transferring her interest to herself, which was never registered or disclosed to any family member during Penelope’s lifetime. Then Rosanna wrote to Edna informing her that she had decided to make a gift of her interest to her husband, Terry. Subsequently Rosanna made a new valid will devising her interest to Terry and she died shortly thereafter. Advise the surviving parties, Queenie, Shirley and Terry, of their interests, if any, in the property. Queenie insists that the property should be sold but Shirley and Terry oppose sale. Queenie threatens legal action to compel sale. What are Queenie’s prospects of obtaining a court order compelling a sale? In the event of a court-. ordered sale, in what proportions should the proceeds of sale be divided and among whom?

2. The sketch (immediately below) depicts the south shoreline of Lake Springfield, in British Columbia. The lots depicted as A and B are under the Torrens system and registered in the Springfield Land Title Office, but the rest of the land is unregistered Provincial Crown land. The straight lines represent the boundary lines between the registered lots. The shoreline boundaries of lots A and B follow the contours of Lake Springfield: during the rainy season, the water level rises and during the summer drought, the water level falls. NORTH Page4of 5

10 (a) Suggested time: 17 minutes] Go-getter real estate agent, Cookie Kwan, is the registered owner of lot A. Cookie recently built a house [#3], but due to a design error the house unintentionally extends over onto lot B, owned by , on which he operates the profitable Kamp Krusty, with the slogan, “The Krustiest Place on Earth.” Having only recently learned about the construction error, Krusty is furious and demands demolition of the house, to the extent that it intrudes on his property. Must Cookie demolish her house? Advise Cookie.

10 (b) [Suggested time: 17 minutes] Krusty the Clown has been the registered owner of lot B for many years. Over the years, the surface area of lot B has diminished from its former size, which initially (when he bought it) included area #1. High winds and wave action recurring seasonally over the years on Lake Springfield have removed soil from area #1, which is now under water and deposited it on the shore of lot A, to Cookie’s delight, as she has gained surface land thereby, which is shown as area #4. Krusty claims either ownership of area #4 as “his soil” or compensation from Cookie for the loss of lot size #1. Alternatively, Krusty claims continuing ownership of the land under water [#1], but the Provincial Crown opposes that claim. Advise Krusty.

10 (c) {Suggested time 17 minutes] Strong winds off Lake Springfield make kite- flying a popular activity for the kids at Kamp Krusty. The windiest place to fly the kites is as close as possible to the boundary line between Lots B and A. The kids control the kites with strings while they stand on Lot B, but the wind carries the kites high over Lot A, as high as a hundred feet above the ground. The kites, designed by Krusty, are replicas of his clown face, with green frizzy hair and big toothy grin. When the kites catch a gust of wind, they emit Krusty’s distinctive laugh. Cookie is a cat-lover and keeps her feline companions on Lot A. The flying kites terrorize her pets and annoy her, but Krusty refuses to terminate the activity because of its popularity among the campers. Advise Cookie of her rights and remedies, if any, to stop the flying of kites over her lot and/or to make a claim of compensation from Krusty.

10 (d) {Suggested time: 17 minutes] Area #2 will be the site of a Provincial park if the government has its way. However, a First Nations Band, which is now located near Shelbyville, B.C. has informed the Province that it claims Aboriginal title to area #2, and opposes the development of a park on its ancestral lands. Briefly, the history of area #2 is that ancestors of the current band members lived in a fishing village on area #2 for hundreds of years until 1900, when scarcity of fish required the band to relocate to the Shelbyville area, where food sources were plentiful and where the band has resided ever since. The current members of the band demand that the project be delayed until the courts can determine the validity of their claim to area #2, but the Province has a legal opinion that denies any merit to the claim of Aboriginal title and announces that the park project will proceed. Advise the band on the legal merit, if any, of their claim. Page5of5

ANSWER EITHER 3.1 OR 3.2

15 3.1 [Suggested time: 25 minutes] Morris “Moe” Syzslak was the registered owner of the fee simple to the land on which “Moe’s Tavern” stands. Moe is the proprietor and bartender after whom “Moe’s” is named. Many years ago, when Moe purchased the tavern, he borrowed money from the First Bank of Springfield on the collateral security of a mortgage on the tavern. The bank registered its mortgage on Moe’s title. Moe’s personality hurt his tavern business so badly that eventually he decided to sell the unprofitable tavern and skip town, but the mortgage loan had not been paid in full yet. To remove it from the title, and maximize the selling price, Moe forged a discharge of the mortgage and registered the discharge.

Moe then made an agreement of purchase and sale to sell the property quickly at a bargain price somewhat below fair market value, to hard-luck and gullible Gil Gunderson. A follower of Ronald Regan’s motto to “trust but verify,” Gil searched the register and found Moe’s title was clear of any charges. Gil did not notice the recent discharge of mortgage. Gil paid Moe in full and Moe fled with the proceeds to parts unknown. Gil applied to the Springfield Land Title Office to register his purchase, but the Bank had already discovered Moe’s forged discharge of its mortgage and his disappearance. The Bank was quick to start an action to set aside the discharge and restore its mortgage. The Bank had filed a certificate of pending litigation ahead of Gil’s application to register his purchase. The registrar refused to accept Gil’s application to register his purchase. What is the nature (legal or equitable) of Gil’s interest in the property? What, if anything should Gil do to protect his position? How does Gil’s purchase rank relative to the Bank’s mortgage? Discuss.

OR

3.2 Select ONE of the following topics and write a short essay. Include in your essay specific references to the relevant course materials.

(a) “Between the contracting parties, a valid written and signed agreement for the sale of land serves them as well as a completed and registered sale.” Do you agree or disagree? Discuss with reference to the relevant course materials.

(b) “Prevention of unconscionable and unethical conduct is a major goal of Equity in relation to land transactions.” Do you agree or disagree? Discuss with reference to the course materials.

(c) Critically assess the reforms to the Torrens system in British Columbia contained in the Land Title Act, s 25.1 Has this provision brought title registration closer to or further away from the Torrens’ goals of the register as a curtain and mirror?

END OF EXAMINATION