Under the Property Law Act 2007, which of the following contracts for the sale of land must be in writing to be enforceable?
Correct Answer
A) All contracts, regardless of the price or type of land involved
Section 24 of the Property Law Act 2007 says a contract for the disposition of land is not enforceable by action unless it is in writing or recorded in writing and signed by the party against whom it is enforced. It applies regardless of price, land type or relationship. Short-term leases and sales by court order or through the Registrar are excluded (s 24(2)), and the doctrine of part performance is preserved (s 26).
Why This Is the Correct Answer
Section 24 of the Property Law Act 2007 makes every contract for the disposition of land unenforceable by action unless it is in writing and signed by the party to be charged, whatever the price or type of land. The main exceptions are short-term leases and court or Registrar sales.
Why the Other Options Are Wrong
Option B: Only contracts where the price exceeds $500,000
Section 24 sets no price threshold. It applies to every contract for the disposition of land.
Option C: Only contracts for residential rather than commercial land
The writing requirement is not limited to residential land; commercial and rural land are covered too.
Option D: Only contracts between family members or related parties
The rule applies to all parties, not just related ones.
Deep Analysis of This Property Law Question
The question tests the modern statute of frauds rule for land, found in section 24 of the Property Law Act 2007. Section 25 is a different provision about writing for certain dispositions of existing interests and trusts.
Background Knowledge for Property Law
Section 24 of the Property Law Act 2007 continues the old statute of frauds rule for land contracts. It excludes short-term leases and sales by court order or through the Registrar. Section 25 separately requires writing for dispositions of existing interests in land and for trusts of land made in the settlor's lifetime.
Memory Technique
Remember 'ALL Land = ALL Written' - if it involves land in New Zealand, it must ALL be written down. Picture a giant pen writing across a map of New Zealand, covering every property from Auckland apartments to Canterbury farms. No exceptions, no thresholds, no special cases - ALL land sales need ALL the details in writing.
When you see any question about land contract requirements, immediately think 'ALL Land = ALL Written'. This eliminates options that suggest exceptions based on value, property type, or parties involved. The universal nature of this requirement makes it easy to identify the correct answer.
Exam Tip for Property Law
Look for absolute language in property law questions. When the Property Law Act 2007 requires something for land contracts, it typically applies universally. Eliminate any options suggesting exceptions or thresholds - New Zealand's approach is comprehensive coverage for certainty.
Real World Application in Property Law
Two neighbours agree on the phone to sell a small strip of land for $15,000. Under section 24 neither can enforce that deal in court until it is recorded in writing and signed by the party against whom it is to be enforced, so the agent prepares a written agreement before anything else happens.
Common Mistakes to Avoid on Property Law Questions
- •Thinking small-value properties are exempt from writing requirements
- •Believing family transactions don't need written contracts
- •Assuming commercial properties have different rules than residential
Related Topics & Key Terms
Key Terms:
More Property Law Questions
Under the Unit Titles Act 2010, who is responsible for maintaining the common property in a unit title development?
A real estate agent discovers that a property they are marketing has a significant structural defect that the vendor has not disclosed. Under the Real Estate Agents Act 2008, what should the agent do?
Under the Property Law Act 2007, what is the effect of a properly executed deed compared to a simple contract?
Which document is required to be registered under the Land Transfer Act 2017 to transfer ownership of fee simple land?
Under the Land Transfer Act 2017, which of the following would NOT be registered or noted on a record of title?
- → A real estate agency holds a client's deposit in their trust account. Under the Real Estate Agents Act 2008, the agency becomes insolvent. What protection does the client have for their deposit?
- → Under the Unit Titles Act 2010, who is responsible for insuring the common property of a unit title development?
- → A client complains to a salesperson about the service they received. Under the Client Care Rules, what must the licensee make sure the client knows?
- → According to the Land Transfer Act 2017, what is the primary purpose of the land transfer system?
- → A lawyer is verifying a client's identity before certifying an electronic land transfer instrument. Which document, on its own, would NOT be enough?
- → A registered owner disagrees with a decision the Registrar-General of Land made about their record of title. After any review by the Registrar, where can they appeal under the Land Transfer Act 2017?
- → Under the Unit Titles Act 2010, owners of what share of the principal units can require an extraordinary general meeting to be held?
- → A licensed real estate agent has been convicted of a serious criminal offence unrelated to their real estate work. Under the Real Estate Agents Act 2008, what disciplinary powers does the Real Estate Agents Disciplinary Tribunal have in relation to the concept of 'fit and proper person'?
- → A licensed salesperson is convicted of fraud in dealings outside their real estate work. Under the Real Estate Agents Act 2008, what can follow?
- → A licensed real estate agent is found to have misappropriated client funds from their trust account. Under the Real Estate Agents Act 2008, which statement correctly describes how far the Real Estate Agents Disciplinary Tribunal's powers go?
People Also Study
Agency Practice
89 questions
Sale & Purchase Process
63 questions
Professional Conduct & Ethics
46 questions
Property Management
85 questions