Recreational area to comprise of the lake itself


Assignment Task:

Alicia's father has left her an expansive area of bushland up north, near a beautiful lake - Lake Howie. Alicia decides to maximize her inheritance by developing the land. This is Torrens land. The development is to consist of 10 lots, well spaced across the large area of the development. 9 lots will be individually owned and the final lot, lot 10, will consist of a recreation area near the lake. Alicia's vision is to created a large recreational area available to all the owners of the land surrounding Lake Howie, with the recreational area to comprise of the lake itself and the surrounding foreshore.

Alicia subdivides the land into 10 estates. The development is registered under s88B of the Conveyancing Act 1919. The 88B instrument created an easement over lot 10 in favour of lots 1-9 and contains the following clause:

"The owner of the land receiving the benefit of the easement (hereinafter called "the Grantee") and guests of the Grantee from time to time as authorised by the Grantee shall have the right to enter upon and use the land burdened by the easement (hereinafter called lot 10) for private recreational purposes".

Lot 10 is retained by Alicia. Lot 9 is bought by Hector. His lot is right next to the recreation area. It is very noisy with the other owners using the lake with their small boats with outboard motors, surf skis and other equipment. This is less of a problem for the other owners, some of whom are up to 1 km away but Hector is bothered by this...

Hector comes to you for advice as to whether this is a valid easement. Advise Hector.

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Business Law and Ethics: Recreational area to comprise of the lake itself
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