(You are to assume the role of the Conveyancing Clerk working at Competent Conveyancing Company Ltd. Your manager, Horace Holemeal has asked you to handle a client file for purchasers Nik and Keiff.

Nik and Keiff have a committed relationship and live in Byron Bay where they can relax and chill in between their creative work gigs. They have three beautiful girls Rosie, Iris and Daisy who already demonstrate creative gifts. They are visiting

Melbourne for one of Keiff's gigs and are very excited about the cultural scene which is a great contrast to the relaxed life in Byron. They decide to invest in a beautiful Federation style home in Thornbury, which will be perfect once renovated. A week later, Nik and Keiff employ Horace at Competent Conveyancing Company Ltd. (CCC) to complete the transaction. Horace asks you to be in charge of this file. You examine the contract and vendor statement documents and discover that the vendor is Parvati Pawar as executor of her mother's estate. The property is in the City of Darebin council.

Attached to the vendor's statement is a copy of the title register statement. The title shows the registered proprietor to be Sita Pawar and the land is encumbered by a registered mortgage to the Easy Money Bank, as well as a restrictive covenant. The real estate agent told your clients that Sita died last year, and her children are selling the property.

The covenant imposes various restrictions on the land including a prohibition on building more than one dwelling on the land. Nik and Keiff have instructed you that they intend to add a music and drama studio separated from the house at the rear of the property. The studio will also have an ensuite bedroom and kitchen facilities for visiting grandparents. In addition, they plan to add a modern architect designed sustainable extension to the house.

The vendor's statement discloses that the zone is Neighbourhood Residential with an Environmental and Landscape overlay. It does not have any explanation of why Parvati is the vendor and Sita is the registered proprietor. All other information in the vendor's statement complies with s32 Sale of Land Act.

You conduct a search of the zone and overlay and discover that owners of properties in this zone must not remove any vegetation, trees or build fences without a permit. The council website also notes that their property is subject to a proposed interim Heritage Overlay, which may be permanent in the future and affect the house and the clients' modern extension plans. After reporting all this information to your clients, Nik and Keiff decide that they do not want to proceed because of all the possible permit delays and that their renovation plans could be impossible. They ask you to end the contract and organise the return of their deposit.

Question 1

As the conveyancing clerk handling the file at Competent Conveyancing Company Ltd and must provide a written memo for your manager, Horace setting out all the relevant legal issues in relation to the claimed right of rescission.

a) The memo must demonstrate your research and include possible defences, applicable legislation and cases, and any further information you would require. Evaluate and assess the strategies to address the legal issues identified. Cross-check that all details are clear, concise and accurate in relation to the purchase. As part of the advice, reference should be made to the relevant cases examined for this assessment and the particulars of s32 Sale of Land Act.

b) Include in your memo the contractual steps required for you to end the contract on Nik and Keiff's behalf. Refer to the relevant terms in the standard contract general conditions in relation to the notice, process and consequences of ending the contract.

(approximately 800-1000)