Problem Question 1

Martha is the owner of a large lot of land in Ryde, a suburb of Sydney. The property is held under the provisions of theReal Property Act 1900 (NSW). She decides to subdivide the property into 4 separate lots. She sells lots 1, 2 and 3 and retains lot 4 herself. In the contracts for sale of the 3 lots she includes the following term:

"The purchaser covenants that neither the proprietor nor the heirs, successors or assigns of the proprietor shall allow to be displayed on the property any Christmas, Easter or Halloween decorations such as trees, reindeers, rabbits or giant coloured eggs.

After completion of these contracts and registration of the new proprietors, the restriction is noted on the folios of all 4 lots as a restriction on user. On all 4 folios the lots benefitted by the covenants are noted as lots 1,2 3 and 4 and the covenant otherwise complies with s 88(1)Conveyancing Act1919 (NSW).

5 years later, Martha sells to Muriel. Muriel loves Christmas and Easter and is concerned about the covenant on the title. She speaks to the neighbours who tell her that it is only Martha who hated these celebrations and that once she is gone they will be able to continue as they please, however, the covenants remain on the titles. Shortly after Muriel completes her purchase and moves in, the owner of Lot 3 sells to Humbug. When Muriel erects a brightly lit reindeer and sleigh on her roof early in December Humbug sends her a letter telling her that he intends to enforce the restriction on user and is requiring her to remove her decorations as they amount to visual pollution.

Advise Muriel using the IRAC format and use relevant case law and the Real Property Act 1900