PVL3701 Law Of Property EXAM SOLUTIONS Rated A+

In 2004 the Khumalos sold their farm to Peter and Jenny (who are unmarried) in equal undivided shares. A right of habitatio was reserved over the farmstead in favour of Mr and Mrs Khumalo for as long as they lived. This right was duly registered against the title deed of the farm. Peter and Jenny decided to develop a part of their farm as a residential township. However, legislation stipulates that the area must be utilised for agricultural purposes only. Peter and Jenny, nevertheless, developed a residential area on a portion of the farm because, in their opinion, the farm belongs to them and therefore, they are allowed to make their own decisions regarding the farm. Peter and Jenny make life unbearable for the Khumalos. As a result of the nuisance caused by excavations on the farm and Peter and Jenny’s ill-mannered behaviour towards them, the Khumalos had to leave the home on the farm in which they lived. They now wish to return to the house on their erstwhile farm. The Khumalos describe themselves as pensioners who are struggling to make ends meet on their small state pension. They are unable to afford accommodation in town. After the Khumalos left, Peter and Jenny move into the homestead that was previously occupied by the Khumalos. Furthermore, Peter and Jenny give permission to Mr and Mrs Williams in terms of a lease agreement to reside in one of the newly developed units in the residential area on the farm. Peter and Jenny also leased a newly developed house to Ben for a period of 12 months. Ben’s lease eventually expired, but he continued to stay in the house without paying any rent. Peter and Jenny decided to go away on holiday for a month. Upon their return, they noticed that Ben’s friend, Jan, had placed a container behind the house that Ben is occupying. Jan converted the container into a small living unit and moved in. Peter and Jenny loaned money from the Blue Bank. A limited real right is registered over the farm in favour of the Blue Bank until the principal debt has been paid in full. Peter and Jenny also enter into an agreement with Lerato in terms of which they loan R100 000.00 from Lerato. They agree that they will deliver their John Deere tractor to Lerato in pledge as security for the payment of the principal debt. They receive the money from Lerato but fail to provide Lerato with the tractor. 5 Jacob contacts Peter and Jenny to purchase their flock of sheep. Peter and Jenny point the flock of sheep out to Jacob. Jacob fails to collect the sheep from the farm. Peter and Jenny eventually sell the flock of sheep to Karel by pointing it out to him. Karel collects the sheep from Peter and Jenny’s farm. Peter and Jenny decide to move abroad temporarily for a period of 15 years. Before they leave, they appoint their long-time friend, Elsa as an agent to manage the farm and their affairs. Elsa acts as if she is the owner of the property and fraudulently decides to alienate the farm to an unsuspecting third party, Xolisa. Xolisa purchases the farm, only to find out a few years later that Elsa is not the owner of the farm and that she was not authorised to sell the house. Keeping this set of facts in mind, answer all the questions below. Motivate your answers with reference to the most relevant legislation and case law. Do not consult your prescribed sources. This is a closed-book exam. 1 It can be said that the concept of the constitutional protection of property is a wide concept. Briefly discuss this statement and identify the different rights in view of the set of facts above that could be protected in terms of the Constitution. (8) 2 Identify and describe the nature of the real relationship that Peter and Jenny have over the farm. Provide reasons for your answer. (5) 3 As indicated, Peter and Jenny are of the view that they can develop a residential area on their farm despite legislation that prohibits such a development because the farm belongs to them. Evaluate the correctness of their view. Fully motivate your answer. (5) 4 Identify and describe the nature of the right that Mr. and Mrs. Khumalo have with regard to the farmstead on Peter and Jenny’s farm. (5) 5 Identify, describe and apply the test that was formulated in Ex Parte Geldenhuys to determine the nature of the rights that the Khumalos and Williamses have with regard to the respective properties. (7) 6 6 Can Mr. and Mrs. Khumalo evict Peter and Jenny from the homestead? Fully substantiate your answer with reference to relevant authority. (8) 7 Peter considers selling his share in the farm without obtaining Jenny’s consent. Is he entitled to do so? Substantiate your answer. (2) 8 Jenny tries to convince Peter that they should rather subdivide the farm instead of Peter selling his share. What would the process be that Peter and Jenny would have to follow? (5) 9 Due to the excavations on Peter and Jenny’s farm, their neighbour’s farm suffered a lot of damage. The walls of the neighbours’ house, storeroom and cowshed eventually collapsed. Which common law principle of neighbour law did Peter and Jenny contravene? Also, specify the remedy that is available to Peter and Jenny’s neighbour. In your answer, specifically indicate what the chances of success of the neighbour will be with this remedy. (5) 10 Due to a dispute between the Williamses and Peter and Jane, the Williamses destroy the house which they have leased from Peter and Jane by setting it alight. Identify and explain which remedy will be most suitable for Peter and Jane to institute against Mr. and Mrs. Williams and briefly indicate what their chances of success with this remedy are. (6) 11 Peter and Jenny seek to vindicate their property from Xolisa with the rei vindicatio. Will Peter and Jenny be successful or could Xolisa prevent them from succeeding with the rei vindicatio.? (8) 12 Identify the type of real relationship that Jan has with regard to the part of the farm where the container was placed. Substantiate your answer. (3) 13 Peter and Jenny apply for an eviction order against Jan and succeed. Jan wants to remove the container, but Peter and Jenny are of the view that Jan cannot remove the container. On what basis could Peter and Jenny argue that Jan 7 should not be able to remove the container? (3) 14 Mary, an attorney friend of Peter and Jenny heard about the eviction order that Peter and Jenny obtained against Jan. She jokingly tells them that they could have saved a lot of money by just removing the container themselves. Fully analyse the correctness of Mary’s statement. (8) 15 Identify the real relationship that Ben has with the house now that the lease has expired. (2) 16 Identify and explain the operation of the remedy that is available to Peter and Jenny to secure Ben’s debt in terms of the lease agreement, which is currently outstanding. (5) 17 Identify the type of real security right that the Blue Bank has over Peter and Jenny’s property and explain what Blue Bank’s recourse would be if Peter and Jenny should fail to pay the whole debt. (5) 18 Identify the type of right that was established in terms of the pledge agreement between Peter, Jenny and Lerato. Substantiate your answer. (5) 19 Jacob is extremely upset because Peter and Jenny sold the sheep to Karel. Jacob wants to take legal action against Peter and Jenny because he is of the view that the sheep belongs to him. Discuss Jacob’s legal position and substantiate your answer