In Western Australia, a purchaser discovers a registered restrictive covenant preventing commercial use that the vendor did not mention and the contract did not refer to. What is the purchaser's most likely legal position?
Correct Answer
B) The purchaser is bound by the covenant because it is registered on the title
A restrictive covenant registered on the title binds each new owner of the land, whether or not the purchaser knew of it. The vendor's silence does not remove the covenant; at most it may give the purchaser a claim against the vendor, for example under the contract or for misleading conduct. A title search before signing would have revealed it.
Why This Is the Correct Answer
A registered restrictive covenant runs with the land and binds the purchaser, even if nobody mentioned it before the sale.
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