In: Accounting
1.Joe is the owner of a large farm, and Joe wants to be certain that his farm will continue to be used for agricultural purposes after his death. Since none of Joe’s children are interested in maintaining the farm, Joe decides to sell his farm to Lou on condition that Lou uses the farm for agricultural purposes. If Lou fails to do so, ownership of the farm will instantly transfer to a charitable organization called the Farming Preservation Society. What is (or could be) the wording of the granting clause found in the deed that transfers ownership of the farm from Joe to Lou.
2.Eli is the owner of a small commercial farm located in Washington (the state). For the past twenty years, Eli’s farm has relied on water drawn from a lake located three miles away. Each day, Eli (or one of Eli’s employees) would take a truck to the lake and fill-up large tanks with its water. The water would then be driven back to the farm to be used to water the crops. One day, a developer bought a large plot of land adjacent to the lake. This developer intends to construct fifty luxury homes on this plot of land, and they plan to draw water from the lake to fillup the dozens of new swimming pools that will soon be constructed. As a result, there will not be enough water in the lake for Eli to use for his farm. If Eli files a lawsuit to limit the amount of water that the developer can draw from the lake, is Eli likely to succeed? Briefly explain your answer. (3 points)
3.What is the easiest and most reliable way to prove someone has title to real estate?
Sol :
1. For the transfer of ownership of Joe's farm to Lou, the granting clause of the deed contains the wording as follows :
WHEREAS by an agreement for sale dated ________ made between the Purchaser and the Vendor and the Purchaser has agreed to procure for agriculture the said land consisting of farm as per the plan approved by the ____________ Municipal corporation and as per the specifications required by the Purchaser at the rate and on the terms and conditions contained in the said agreement.
WHEREAS the transfer is approved by the ________________ Additional collector permitting only for agricultural use by the Purchaser
NOW THE AGREEMENT OF SALE WITNESS AS FOLLOWS
1. If the purchaser commits a breach of the Agreement, the vendor shall, not only forfeit the earnest amount of Rs...................... paid by him to the vendor, the land underlying the agreement for sale shall be transferred to the Farming Preservation society, charitable organisation.
2. Acquisition and distribution of water has been a matter of legal concern since ancient times. Water is a natural resource and in general, every individual has equal ownership over it.
With the rise of new technologies, which allow large scale extraction and utilization of water, it becomes important for the state government to intervene and ensure equitable distribution among the people.
In the given case, the suit filed by Ms.Eli can be succeeded, provided that the limitation of use of water from the lake by the developer is in accordance with the prescribed rules and regulations and also doesnot override the equitable distribution policy.
3. The easiest way to prove the ownership of a real estate is the deed or agreement relating to the acquisition of such estate. ( eg. : Deed of agreement for sale )
It is also the most reliable document to prove that someone has a title to a real estate.