RES 410
RES 410 Setting up as a real estate salesperson
Written Assessment 1
How to complete your assessment
To ensure you demonstrate competence in all aspects of this assessment for Module 2
Understanding the ground rules make sure you answer all questions and give all the information asked for.
Take note
All answers must be in your own words. You must not, for example, copy and paste portions of text directly from the course materials as an answer to a question, although you may quote sparingly from the course materials. Any quotes used must be correctly referenced.
All work must be your own. Your assessment will be submitted through an electronic plagiarism detection system before marking. Assessments with a significant match to course materials or other published sources will not be marked. The system will also pick up similarities with other students’ assessments including students from previous intakes. If collusion with another student is suspected then both assessments will be referred to the Academic Registrar for investigation and penalties may be applied.
What this assessment covers
In this written assessment you will:
½ Explain property law terminology.
½ Identify and explain property titles.
½ Explain the law relating to the ownership and transfer of land in simple terms.
½ Explain forms of co-ownership of land to real estate clients and customers.
½ Explain the law relating to ownership and transfer of goods as applied to real estate sales contracts for property and the sale of business.
Demonstrate Knowledge of land ownership, transfer of ownership and titles US23134 / Version 3 / Level 5
© The Open Polytechnic of New Zealand 1
RES 410
Instructions
½ Answer all questions and provide all requested information.
½ While quotations can be used to support your work, answers must be in your own words.
½ Avoid copying sections directly from the course materials.
½ When you have completed the assessment, keep a copy for yourself.

What your marker will do
Your marker will return your work and tell you whether you have achieved the standard required.
Work is marked ‘competent’ or ‘not yet competent’. There may also be a statement that says ‘more evidence required’.
If any parts of the assessment do not meet the required standard, you will be asked to rework them and submit them for reassessment.
2 © The Open Polytechnic of New Zealand
RES 410
Task 1
You have been asked to speak to a group of new immigrants to New Zealand, regarding a number of property issues. They all have good English skills, but are unfamiliar with the following legal terms. Write a set of notes that you could use as a handout at the end of your speech, explaining each of the following concepts, definitions and examples as they apply to real estate practice.
(a) real property
(b) personal property
(c) ownership
(d) possession
(e) lease
(f) licence (in land)
(g) interest (2 types)
(h) certificate of title
(i) title search
(j) indefeasibility
(k) registered security
Use 25–50 words for each explanation.
This task tests Outcome 1: Explain property law terminology. Evidence requirement: 1.1.
© The Open Polytechnic of New Zealand 3
RES 410
Task 2
(a) You are working with a customer, Harry, and have shown him five properties that he has expressed interest in. You have given him copies of the certificates of title to each of the properties, but he is confused about the different estates. He asks you to identify each type of estate and explain what each one means in terms of tenure.
The titles to be explained are:
1. PV711/235
2. PV127A/487
3. PV58A/763
4. 911223
Use 50–75 words for each explanation.
(b) Harry also asks you to identify and explain the interests registered on each certificate of title listed in (a) above.
Take note
If you have already explained an interest in a previous title, you do not need to provide a further explanation of the same type of interest in subsequent titles. However, you must identify all interests on each title.
Use 50–75 words for each explanation.
(c) Harry mentions that he has heard of the following terms
i. limited as to parcels ii. limited as to title.
He asks you for an explanation of what each of them means and how this affects the title. Use 50–75 words for each explanation.
This task tests Outcome 2: Identify and explain property titles. Evidence requirements: 2.1, 2.2.
4 © The Open Polytechnic of New Zealand

COMPUTER FREEHOLD REGISTER UNDER LAND TRANSFER ACT 1952
Search Copy
I Writer
Irma Writer
Identifier PV711/235 Registrar-General Land Registration District Polyvale of Land
Date Issued 14 March 2005
Prior References
PV21/773
Estate Fee Simple
Area 672 square metres more or less
Legal Description Lot 2 Deposited Plan 73221
Proprietors
Arthur David Spencer
Interests
C923413.2 Mortgage to Westpac Banking Corporation – 14.3.2005 at 2.24 pm
6293771.1 Variation of Mortgage C923413.2 – 27.11.2009 at 9.34 am
Appurtenant hereto is a right of way and sewerage drainage and water drainage rights specified in Easement Certificate D322385.4 – 14.3.2005 at 2.26 pm
Transaction ID 2932752 Search Copy Dated 17/1/16 9.42 am Page 1 of 2
Client Reference Polyvale
Transaction ID 2932752 Search Copy Dated 17/1/16 9.42 am Page 2 of 2
Client Reference Polyvale
COMPOSITE COMPUTER REGISTER UNDER LAND TRANSFER ACT 1952
Search Copy
I Writer
Irma Writer
Identifier PV127A/487 Registrar-General Land Registration District Polyvale of Land
Date Issued 05 December 1997
Prior References
PV27/421
Estate Fee Simple – 1/2 share
Area 1014 square metres more or less
Legal Description Lot 6 Deposited Plan 184185
Proprietors
David George Marshall as to a 1/2 share
Felicity Jane Brown as to a 1/2 share
Estate Leasehold Instrument L B075371.1
Term 999 years commencing on
31 March 1988
Legal Description Flat 1 DP 48861 and Garage 1 DP 48861
Proprietors
David George Marshall as to a 1/2 share
Felicity Jane Brown as to a 1/2 share
Interests
S479955
Building Line Restriction (Affects Fee Simple)
BO75371.1 Lease of Flat 1 and Garage 1 DP 48861 Term 999 years commencing on 31.3.1988
Composite CT PV41C/306 issued 8.4.1992 at 9.09 am (Affects Fee Simple)
BO75371.2 Lease of Flat 2 DP 48861 Term 999 years commencing on 31.3.1988
Composite CT PV41C/307 issued 8.4.1992 at 9.09 am (Affects Fee Simple)
B619691.2 Mortgage to ANZ Banking Group (New Zealand) Ltd – 5 December 1997 at 9.13 am
Transaction ID 2932752 Search Copy Dated 17/1/16 9.42 am Page 1 of 2
Client Reference Polyvale
Identifier PV127A/487
Transaction ID 2932752 Search Copy Dated 17/01/16 9.42 am Page 2 of 2
Client Reference Polyvale
COMPUTER UNIT TITLE REGISTER UNDER LAND TRANSFER ACT 1952
Search Copy
I Writer
Irma Writer
Identifier PV58A/763 Registrar-General Land Registration District Polyvale of Land
Date Issued 04 December 1995
Prior References
PV256B/853
Estate Stratum in Freehold
Area Unit C and Accessory Unit 3
Legal Description Deposited Plan Polyvale 69707
Proprietors
Oka Leota and Simisi Leota
The above estates are subject to the reservations, restrictions, encumbrances, liens and interests noted below and on the relevant unit plan and supplementary record sheet.
Transaction ID 2932752 Search Copy Dated 17/1/16 9.42 am Page 1 of 3
Client Reference Polyvale
Identifier P58A/763
SUPPLEMENTARY RECORD SHEET UNDER LAND TRANSFER ACT 1952
Search Copy
Identifier PV58A/764 Land Registration District Polyvale
Date Issued 04 December 1995
Plan Number DP 69707
Prior References
PV256B/853
Unit Titles Issued
PV58A/761 PV58A/762 PV58A/763
Interests
Fencing agreement in Transfer 225847
709788.1 Change of rules of the Body Corporate – 19.8.1997 at 9.05 am
709788.2 Change of address of the Body Corporate – 19.8.1997 at 9.05 am
Search Copy Dated 17/1/16 9.42 am Page 2 of 3
Identifier PV58A/763
Transaction ID 2932752 Search Copy Dated 17/1/16 9.42 am Page 3 of 3
Client Reference Polyvale
COMPUTER INTEREST REGISTER UNDER LAND TRANSFER ACT 1952
Polyvale
Land
Search Copy Registry
I Writer
Irma Writer
Identifier 911223 Registrar-General
Land Registration District Polyvale of Land
Date Issued 12 August 2009 04:51 pm
Prior References
PV256B/853
Estate Leasehold Instrument LB 122334.1
Area 672 square metres more or less Term Twenty one years
Legal Description Lot 2 Deposited Plan commencing
South Auckland 27913 1.7.2001
(Right of renewal)
Proprietors
Desmond Chan and Melissa Sue Chan
Interests
8000163.2 Mortgage to Kiwibank Limited, 2 May 2006 at 12.51 pm
7732314.1 Caveat to Johnson William Chan, 4 March 2010 at 9.52 am
Search Copy Dated 17/1/16 9.42 am Page 1 of 2
Identifier 911223
Transaction ID 2932752 Search Copy Dated 17/1/16 9.42 am Page 2 of 2
Client Reference Polyvale
SAMPLE – FOR STUDY PURPOSES ONLY
COMPUTER FREEHOLD REGISTER Polyvale
UNDER LAND TRANSFER ACT 1952 Land
Registry
Search Copy
I Writer
Irma Writer
Identifier 727371 Registrar-General
Land Registration District Polyvale of Land
Date Issued 1 November 1972
Prior References
PV621/37 PV 799/17
Estate Fee Simple
Area 2101 square metres more or less
Legal Description Lot 7 Deposited Plan 339201
Proprietors
Mountain View Apartments Limited
Interests
Occupation Licence of Flat 1 and Garage 1 Plan 26634 embodied in Register PV 11C/1001
Occupation Licence of Flat 2 and Garage 2 Plan 26634 embodied in Register PV 11C/1002
Occupation Licence of Flat 3 and Garage 3 Plan 26634 embodied in Register PV 11C/1003
Occupation Licence of Flat 4 and Garage 4 Plan 26634 embodied in Register PV 11C/1004
Occupation Licence of Flat 5 and Garage 5 Plan 26634 embodied in Register PV 11C/1005
Occupation Licence of Flat 6 and Garage 6 Plan 26634 embodied in Register PV 11C/1006
Occupation Licence of Flat 7 and Garage 7 Plan 26634 embodied in Register PV 11C/1007 Occupation Licence of Flat 8 and Garage 8 Plan 26634 embodied in Register PV 11C/1008
Occupation Licence of Flat 9 Plan 26634 embodied in Register PV 11C/1009
Occupation Licence of Flat 10 Plan 26634 embodied in Register PV 11C/10010
Occupation Licence of Flat 11 Plan 26634 embodied in Register PV 11C/10011 Occupation Licence of Flat 12 Plan 26634 embodied in Register PV 11C/10012
Search Copy Dated 17/1/16 9.42 am Page 1 of 3
SAMPLE – FOR STUDY PURPOSES ONLY
COMPUTER INTEREST REGISTER Polyvale
UNDER LAND TRANSFER ACT 1952 Land
Registry
Search Copy
I Writer
Irma Writer
Identifier PV11C/1009 Registrar-General Land Registration District Polyvale of Land
Date Issued 1 November 1972
Prior References
PV621/37 PV 799/17
Type Licence to Occupy under Part VIIA Land Transfer Act 1952
Legal Description Flat 9 Deposited Plan 26634
Original Proprietors
Angus Finn McPike and Sheryl Gayle McPike
Interests
A400319 Variation of the covenants conditions and restrictions of the within licence – 9.8.1978 at 9.30am
5975591.1 Transfer to Brian Stewart Fisher and Elizabeth Fisher – 9.4.2003 at 9.10am
5575591.2 Mortgage to Bank of Polyvale – 9.4.2003 at 9.12 am
Transaction ID 2932752 Search Copy Dated 17/1/16 9.42 am Page 2 of 3
Client Reference Polyvale
SAMPLE – FOR STUDY PURPOSES ONLY
Identifier 727371
Transaction ID 2932752 Search Copy Dated 9/10/10 9.42 am Page 3 of 3
Client Reference Polyvale
RES 410
Your talk to the immigrant group was such a success, you have been asked to return and explain the land transfer system used in New Zealand, known as the Torrens system.
Explain the procedure for the transfer of land under this system. Make sure you include:
(i) an explanation of the purpose of the certificate of title
(ii) details of the procedure for transferring land from a vendor to a purchaser (use the example of a fee simple property for simplicity), including the documents required
(iii) an explanation of the process by which the new owner’s details are registered on the certificate of title at LINZ
(b) Explain the process by which a current owner may add a mortgage to his or her certificate of title.
(c) Explain the following terms as they are applied to the land transfer system:
(i) indefeasibility
Make reference to relevant court case decisions to help support your answer.
(ii) exceptions to indefeasibility
Make reference to relevant court case decisions to help support your answer.
(iii) the effect of the order in which interests are lodged on a certificate of title, e.g.
first and second mortgages.
Use 50–75 words for each explanation.
(d) Explain the following forms of transferring land ownership:
(i) by will
(ii) by gift
(iii) by trust
(iv) by operation of law
(v) by assignment of lease.
Use about 50–75 words for each explanation.
This task tests Outcome 3: Explain the law relating to the ownership and transfer of land in simple terms.
Evidence requirements: 3.1, 3.2.
© The Open Polytechnic of New Zealand 17
RES 410
Explain the following forms of co-ownership to a potential purchaser:
(i) joint tenancy
(ii) tenancy in common
(iii) civil unions
(iv) trusts
(v) Maori ownership of land.
Use 50–75 words for each explanation.
(b) Provide an explanation of enduring power of attorney.
Use 50–75 words for your explanation.
This task tests Outcome 4: Explain forms of ownership of land to real estate clients and customers.
Evidence requirement: 4.1.
18 © The Open Polytechnic of New Zealand
RES 410
Jessica is purchasing a dental practice from Dr Fang, who is retiring. He is selling the business including all plant, stock, and equipment, including some items which use the very latest technology. Two days before their agreed settlement date, there is a substantial earthquake which causes significant damage to the building, and makes some of the equipment unusable.
(i) At the time of the earthquake, did Jessica have a legal or equitable interest in the equipment?
(ii) Who is responsible for the loss – Jessica or Dr Fang? Give a reason for your answer.
Use 100-150 words for your answer.
(b) You have recently facilitated an unconditional sale for some elderly clients, Mr and Mrs Thompson. The sale is settling in 8 weeks. Mr Thompson says that he is very glad the property is now sold and that he is not going to bother paying the insurance premium for the property, which is due for payment in the coming week, because it is now the purchaser’s problem. He says that they will be able to put the money they are saving towards a long-awaited holiday.
Mrs Thompson feels that they still have some obligation in respect to insurance on the property. She says her greatest excitement will be paying off their mortgage when settlement takes place.
Explain to Mr and Mrs Thompson whether the insurance premium needs to be paid, explaining the law relating to ownership and the transfer of goods in a real estate context. Include in your answer brief details of what document you might show him to help persuade him that you are correct.
Use 100–150 words for your answer.
This task tests Outcome 5: Explain the law relating to ownership and transfer of goods as applied to real estate sales contracts for property and the sale of business. Evidence requirement: 5.1.
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