QUESTION 1 [20 marks] The following clause is contained in special conditions you receive from another licensed conveyancer for your purchaser client. You are shocked at the wording used and write to...

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QUESTION 1 [20 marks] The following clause is contained in special conditions you receive from another licensed conveyancer for your purchaser client. You are shocked at the wording used and write to the conveyancer with a redraft of the clause. “35. If the name of the vendor’s estate agent is not disclosed in this contract, the purchasers warrant that they were not introduced as purchasers to the vendor or to the property, nor were they notified that the vendor’s property was for sale, nor have they become aware of the availability of the vendor’s property for sale through or by, directly or indirectly, the action of any person, firm or corporation, which may be entitled to charge the vendor commission in relation to the sale of the property by reason of that action. The purchasers hereby indemnify and shall keep indemnified the vendor from any and all claims for commission charges by any agent and against all claims, actions, suits, demands, costs and expenses arising by reason of any breach of this warranty. This condition shall not merge on or be extinguished by the transfer on completion”. Explain exactly what is wrong with the drafting in the clause above. QUESTION 2 [20 marks] Following a routine investigation of a licensed conveyancer’s practice by an officer of the Office of Fair Trading in October 2018, the following findings are reported to the Compliance Division. 1. The trust accounts for the practice have not been written up since July 2018. 2. No bank reconciliations or trial balances for the trust account had been prepared since June 2018. 3. No ‘statement of accounts’ had been sent to clients at the end of three conveyances. 4. The licensee holds a ledger account in his own name. 5. The licensee has deposited $500 to his office bank when paid on account of (i.e.in anticipation of) costs and disbursements in the matters of Johnson purchase. 6. The investigation showed a debit of $1000 in a trust ledger in the name of James Kennedy. 7. There was a journal transfer of $2000 to the licensee’s own account from a sale matter for Smith but no costs disclosure had been given or an itemized bill rendered in the matter. 8. There was a journal transfer from trust to office in the Davis purchase matter but nothing recorded in the ledger or in the cash book. 9. No audit certificate had been lodged with Fair Trading by 30 October. As the Director of the Compliance Division of the Office of Fair Trading you review the investigating officer’s findings and make some notes on each of the 9 reported findings setting out whether taking any further disciplinary action can be justified. You are to refer to the relevant sections or clauses of the legislation and to any cases to support your view. QUESTION 3 [20 marks in total] Part B [10 marks] Karen telephones before her appointment and she tells you she has changed her mind and wants the power of attorney to be an enduring one and not limited only to the sale. She also has a few issues she wants you to explain to her and you note these down as follows: 1. Can you prepare and complete an enduring power of attorney for her and her husband at the same time? 2.What is meant by “ademption” in relation to a Power of Attorney (What is it and how does the Power of Attorney legislation affect the concept)? 3.Can she appoint her other son Robert Alan Drew as an attorney as he will be 18 in three months time? 4.Her husband has had a minor stroke and has some lapses of concentration will this have any effect on his ability to act as an attorney? 5.Her son Robert is in some minor financial difficulties at the moment, does it matter if he is made bankrupt? Respond to Karen’s questions in a short letter.