UWI OPEN CAMPUS- MGMT 251 INTRODUCTION TO REAL ESTATE LAW

Arya owns five lots of land in Dorsetshire Hill. She recently got a job opportunity abroad and decided to sell her five lots and leave SVG. She knew that her good friend, Marsha, recently opened her real estate and property development business. Arya approached Marsha and asked Marsha to sell her five lots on her behalf. Arya agreed to pay to Marsha 5% commission on the sale of any of the parcels of land. However, it was agreed that under no circumstances was Marsha to purchase any of the lots for herself. Further, Arya informed Marsha that each of the lots had been valued and she wanted to secure sales for no less than 85% of the value of each lot. Arya has her lawyer prepare a specific power of attorney giving Marsha the authority to execute, on Arya's behalf, any contracts necessary to conclude the sale of the lands.

Marsha creates an advertisement in order to market the lands for sale and she publishes it in the newspaper. The ad reads:

Land for sale in Dorsetshire Hill at $22.00 per sq. ft

Lot 1 - 5,000 sq ft Lot 2 - 4,500 sq ft Lot 3 - 4,000 sq ft Lot 4 - 5,200 sq ft Lot 5 - 3,700 sq ft For all enquiries, contact: Marsha's Real Estate Agencies at (784) 400 8000

One day after the publication, Marsha received a call from Brent. Brent told Marsha that he was interested in purchasing Lot 1, but that he could only afford to buy it for 70% of the value. Marsha, excited to secure her first sale, hurriedly accepts Brent's offer and she signs an agreement for sale on behalf of Arya then later concludes the transaction and transfers the land to Brent. After the transfer, Brent discovers that Lot 1 is in fact only 4,900 sq ft and he demands all his money back. Sandy, Marsha's sister who lives in the UK, sees the ad and emails Marsha using Marsha's old UWI email address from 5 years ago. The email states:

To: m@open.uwi.du Fr: s@gmail.om

Hi Marsha, I hope you've been well. Someone sent me your recent newspaper ad. I'm interested in purchasing Lot 2 but I'd like to purchase it at $21 per sq ft. I think this is more reasonable! I'll go ahead and assume that you don't have a problem with this if I don't hear from you by the end of the week, then I'll wire you the 10% deposit. Having not received a response from Marsha. Sandy wires the 10% deposit to Marsha's bank account. Billy telephones Marsha saying that he is interested in purchasing Lot 4. Marsha hurriedly accepts his offer and Billy transfers the 10% deposit to Marsha and signs the agreement for sale. A few days later, a tropical storm passes and there is significant land slippage in Dorsetshire Hill. Lot 4 which is near to a river is almost completely swept away by the river and the river now occupies 70% of the area which used to be Lot 4. Billy demands his deposit back, but Marsha insists that he must take the remaining land.

One week later, a private investor announced that they would be opening a shopping center within walking distance of Lot 3. As a result, Lot 3 is expected to increase in value significantly. Marsha, recognizing this opportunity, asked her brother, Toby, to bid on Lot 3. She sold the property to Toby for 85% of its current value and then Toby transferred Lot 3 to Marsha. A few weeks after the groundbreaking ceremony for the shopping center, Lot 3 increased in value by more than 60%. Marsha resold Lot 3 to a third-party buyer and kept the profits for herself. Arya returns to SVG for a vacation a few months later. Marsha transfers to Arya from her personal bank account the proceeds of the sale to Brent of Lot 1, the proceeds of the sale to Toby of Lot 3, and Billy's 10% deposit for Lot 4. She notices that there is a large sum still remaining in her account but since she cannot recall the source, she decides to keep the extra money for herself. Arya is upset that she has only obtained 70% of the value of Lot 1 and she later finds out about the arrangement between Toby and Marsha in relation to Lot 3. Sandy contacts Arya demanding to know why the transfer of the land is taking so long and is adamant that she wants the contract to be concluded immediately. Billy contacts Arya demanding the return of his 10% deposit.

TASK IS TO:

Advise Arya as to her legal rights against Marsha and advise Arya as to her liability, if any, to Brent, Sandy and Billy. (1500W)