Virat and Sachin are neighbours. Sachin speaks to Virat about obtaining a right of way easement across
Question:
Virat and Sachin are neighbours. Sachin speaks to Virat about obtaining a right of way easement across part of Virats land. Earthmoving will be necessary to construct the right of way, which will give each of them vehicle access to the rear of their properties, which neither currently has.
Sachin suggests that, if Virat agrees to the easement, Sachin will pay:
the necessary survey fees; and
the necessary local council consent fees; and
all legal fees and disbursements to have the easement registered on each of their land titles;
and
of the earthmoving and other costs to construct the right of way.
Virat agrees and they shake hands, but nothing is written down. Subsequent to this agreement,
Sachin:
arranges and pays for the necessary surveys and plans; and
submits the application to the local council with the prescribed fee.
The application to the local council is approved. Subsequent to this approval, Sachin:
obtains three quotations for earthmoving and other construction work necessary to form the right of way; and
enters into an unconditional contract with Versatile Garages Ltd for the erection of a double garage on his land, vehicle access to which will be possible only via the right of way over Virats land; and
pursuant to that contract, pays a nonrefundable deposit to Versatile Garages Ltd
Sachin approaches Virat to produce his land title for registration of the easement and to discuss the quotations for earthmoving and other construction work. Virat says he has changed his mind because he is planning to sell his land and has been advised that having an easement across the land may substantially reduce the expected sale price.
Advise Sachin, with reasons, whether he can enforce the agreement with Virat.
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young