QUT 24 St Id be Mane Student Number Surname Given Name/s Examination Paper SEMESTER: FIRST SEMESTER EXAMINATIONS 2018 UNIT: LLB301 REAL PROPERTY LAW - THEORY 1 DURATION OF EXAMINATION: PERUSAL: 30 MINUTES WORKING: 2 HOURS 10 MINUTES EXAMINATION MATERIAL SUPPLIED BY THE UNIVERSITY: EXAMINATION BOOKLETS - FOUR (4) PER STUDENT BLANK A4 PAGE FOR NOTES DURING PERUSAL - ONE (1) PAGE ATTACHED EXAMINATION MATERIAL SUPPLIED BY THE STUDENT: STUDENTS MAY BRING ANY WRITTEN MATERIALS THEY WISH INTO THE EXAMINATION ROOM (NO CALCULATORS) INSTRUCTIONS TO STUDENTS: Students are prohibited from having mobile phones or any other device capable of communicating information (either verbal or written) in their possession during the examination. NOTES MAY BE MADE ON THE EXAMINATION PAPER + ATTACHED BLANK A4 PAGE/S + OPEN BOOK MATERIALS DURING PERUSAL TIME. HIGHLIGHTING AND/OR TABBING OF TEXTS IS ALSO PERMITTED. YOU MAY NOT MAKE NOTES ON OTHER MATERIALS SUPPLIED BY THE UNIVERSITY DURING PERUSAL TIME. ALL FOUR (4) QUESTIONS ARE TO BE ATTEMPTED ATTEMPT EACH QUESTION IN A SEPARATE EXAMINATION BOOKLET MARKS FOR EACH QUESTION ARE AS INDICATED THIS IS AN OPEN BOOK EXAMINATION THIS EXAMINATION PAPER MUST NOT BE REMOVED FROM THE EXAMINATION ROOM
1 QUESTION 1 A month ago, Harlan, a graduate lawyer, was instructed by his supervisor to issue a Notice of Exercise of Power of Sale ('NEPOS') on behalf of ABC Bank Ltd for a residential property at 37 Lang Avenue, Morningside, Queensland ('Property'). The Property is owned by Mr & Mrs Smith. The amount owing at the time of default was $150,000 with the total instalments outstanding equalling $8,400 (four monthly instalments of $2,100 each). Harlan used a NEPOS precedent in his office. Unfortunately, however, he misstated the amount to remedy the default as equalling $8,350 and gave the Smiths 30 days to remedy the default. Once the NEPOS had been served on Mr and Mrs Smith, ABC Bank Ltd appointed a national real estate firm, Ray Black & Co as their agent to market the property for sale. Principal Ray Black lives in Sydney and arranged for the advertisements to appear in two Saturday editions (24 February and 10 March 2018) of The Weekend Australian newspaper. He decided against internet advertising as it was too costly. Ray is not a qualified valuer in Queensland and has only ever visited Brisbane once. The advertisements in The Weekend Australian' stated that the auction was to be held at 4:30pm on the Thursday before Easter 29 March 2018, which is 21 days after service of the NEPOS on Mr & Mrs Smith. ABC Bank Ltd did not obtain a valuation of the Property but set the auction reserve at $250,000 based on Ray Black's "gut feel" of the Property's value and on the basis that the ABC Bank Ltd are only owed $150,000 principal under their mortgage plus interest unpaid. On 17 March 2018, Samantha Sawyer, made an offer to purchase the property pre-auction for the amount of the mortgage debt plus interest owing. ABC Bank Ltd refused her