2. Property Rights, Estates and Interests in Land

Introduction and context

Real estate is often described as land and everything permanently attached to it. That description is physically useful but legally incomplete. A parcel of land is not merely a tangible object; it is the subject of a structured set of rights, powers, duties, restrictions and remedies. Different persons may simultaneously hold different legally recognised interests in the same property. One person may hold the freehold estate, another may possess the premises under a lease, a lender may hold security, a neighbour may enjoy a right of way, and a public authority may impose planning or conservation restrictions.

For real estate managers, this distinction is fundamental. Development feasibility, acquisition, valuation, financing, leasing, asset management and dispute resolution all depend on identifying who holds which interest, for what duration, subject to what conditions, and enforceable against whom. A document that appears to transfer “the property” may in fact transfer only a leasehold interest, a beneficial interest, or a right to occupy. Conversely, an apparently minor restriction—such as an easement, restrictive covenant or registered charge—may materially affect development value.

Property law differs among jurisdictions. The terminology of freehold, leasehold, estates, trusts, registration and conveyancing is particularly associated with common-law systems, while civil-law systems use different classifications and doctrinal language. The principles in this chapter are therefore presented as a comparative and professionally oriented framework. Specific transactions must always be tested against the applicable constitution, statutes, case law, registration rules, planning law and customary or indigenous tenure arrangements.

Learning objectives

By the end of this chapter, the learner should be able to:

1. Distinguish ownership, possession, occupation, title and tenure.

2. Explain the principal estates in land, especially freehold and leasehold interests.

3. Analyse co-ownership, trusts and competing beneficial and legal interests.

4. Identify easements, covenants, licences, encumbrances and security interests.

5. Explain the commercial importance of airspace, subsurface rights and vertical boundaries.

6. Apply property theories to practical real estate decisions.

7. Assess how registration, priority, notice and due diligence affect enforceability.

8. Recognise professional, ethical and governance risks in property transactions.

Land as a legal relationship

Ownership, possession and title

Ownership is a legal relationship between a person and a resource, recognised and protected by the legal system. It is not necessarily a single, unlimited power. Ownership may include rights to possess, use, exclude others, transfer, lease, mortgage, develop and obtain income, but each of these powers can be limited by law or by private agreement.

Possession refers to factual control accompanied, in many legal systems, by an intention to control. A tenant commonly possesses premises without owning the underlying estate. A trespasser may possess land without having a lawful right to do so. A caretaker may have physical control but only a limited authority to act for the owner. Possession can nevertheless have legal significance, including in disputes over occupation, adverse possession, eviction and interim remedies.

Title is the legally recognised basis of a person’s claim to land. In a registered system, the register may provide strong evidence—or, subject to statutory exceptions, conclusive evidence—of title. In an unregistered or partially registered system, title may be established through deeds, historical instruments, possession, inheritance and other evidence. A title search is therefore not merely an administrative exercise; it is an investigation into the legal quality, scope and priority of rights.

Tenure describes the manner in which land is held. It may refer to freehold, leasehold, customary tenure, public tenure, condominium ownership or other legally recognised arrangements. Tenure is especially important in development because it influences duration, transferability, financing, compensation, planning control and residual value.

The bundle-of-rights perspective

A useful analytical model treats property as a bundle of rights rather than as an indivisible object. The bundle may include:

• the right to possess;
• the right to use and enjoy;
• the right to exclude;
• the right to transfer or assign;
• the right to create subordinate interests;
• the right to income and capital appreciation; and
• the right to seek legal remedies against interference.

The bundle is not identical in every case. A long-term tenant may possess and use the premises, assign the lease subject to conditions, and sublet with consent, but cannot sell the landlord’s reversion. A mortgagee may enforce security after default but ordinarily does not become the beneficial user of the property merely because a mortgage exists. The model assists managers in asking a practical question: which incidents of ownership have actually been transferred, retained or restricted?

Estates in land: duration and structure

An estate is a legally recognised interest in land measured by duration. The distinction between an estate and a non-possessory interest is central. A lease normally grants a right of possession for a term, whereas an easement usually grants a limited use over another person’s land without general possession.

Freehold estates

A freehold estate is traditionally an estate of potentially indefinite duration or one measured by a life. The most extensive private estate is commonly called the fee simple absolute in possession. It may be inherited or transferred and is often treated as the closest private-law equivalent to full ownership, although it remains subject to public regulation, compulsory acquisition, taxation, environmental law, planning controls and private restrictions.

A life estate lasts for the life of a specified person. The life tenant may have possession and use, but cannot ordinarily grant an interest that lasts beyond the life estate. When the measuring life ends, the property passes according to the remainder or reversion. Life interests can be relevant in succession planning, family settlements and trusts, although many jurisdictions regulate their creation differently.

Freehold ownership should not be confused with absolute freedom. A freeholder may be unable to build above a certain height, alter a heritage structure, obstruct a neighbour’s access, pollute groundwater or use the premises contrary to zoning law. Private ownership and public authority coexist within a system of regulation.

Leasehold estates

A leasehold estate gives a tenant the right to possess and use land for a defined or ascertainable period in return for rent or other consideration. The landlord retains the reversion, which is the interest that returns to the landlord when the lease ends. A lease therefore creates a relationship as well as an estate: the landlord and tenant owe contractual and, in many jurisdictions, statutory duties to one another.

Common forms include a fixed-term tenancy, periodic tenancy, tenancy at will and tenancy at sufferance. A fixed-term lease ends on a specified date unless renewed or terminated earlier under its terms or applicable law. A periodic tenancy renews for successive periods until notice is given. A tenancy at will is generally terminable by either party, while a tenancy at sufferance may arise when a tenant remains after lawful possession has ended without the landlord’s agreement.

The commercial value of a lease depends on more than its remaining term. Rent review provisions, break options, renewal rights, assignment controls, permitted use, repair obligations, insurance, service charges, fit-out rights, redevelopment clauses and the tenant’s covenant strength may materially alter the interest’s value. A long lease with onerous repair obligations can be less attractive than a shorter lease with predictable costs.

A lease must be distinguished from a licence. A lease normally grants exclusive possession for a term, while a licence is permission to do something on land that would otherwise be unlawful. Labels are not decisive; courts commonly examine the substance of the arrangement. Exclusive possession, duration, control and the parties’ intention are relevant, subject to statutory rules.

Co-ownership and divided interests

Co-ownership exists when two or more persons hold interests in the same land. The legal form affects control, succession, sale, financing and dispute resolution.

In a joint tenancy, co-owners hold the property together, generally with a right of survivorship: when one dies, the surviving joint tenants take the deceased’s interest automatically, subject to local law. There are ordinarily no separately transferable shares while the joint tenancy continues. In a tenancy in common, each co-owner holds a distinct share, which may be equal or unequal and may pass by will or intestacy. Some jurisdictions recognise other forms, including community property or statutory matrimonial ownership.

Co-ownership frequently produces practical disputes. Questions arise concerning who may occupy the property, whether rent should be paid by an occupying co-owner, how expenses are shared, whether one person may mortgage a share, and when partition or sale may be ordered. A professionally drafted co-ownership agreement should address contributions, decision-making, maintenance, insurance, use, refinancing, exit rights, valuation and dispute resolution.

Real estate managers must not infer beneficial ownership solely from the registered name. A person may hold legal title as trustee for another, or several persons may contribute to acquisition without their contributions being reflected in the register. Beneficial ownership, resulting trusts, constructive trusts and family-property statutes may become significant in litigation, insolvency and succession.

Trusts and the separation of legal and beneficial ownership

A trust separates legal ownership from beneficial enjoyment. The trustee holds legal title and administers the property for beneficiaries according to the trust instrument and fiduciary obligations. The beneficiary may be entitled to income, occupation, capital or a combination of these, even though the beneficiary is not the registered owner.

Trusts are used in investment structures, pension and collective ownership arrangements, estate planning, charitable ownership and development projects. They can facilitate professional management and continuity, but they also create governance obligations. Trustees must act within their powers, avoid unauthorised conflicts, preserve trust assets, account properly and exercise powers for proper purposes.

A purchaser dealing with a trustee must verify the trustee’s authority, the trust deed where relevant, signing requirements, restrictions on sale or borrowing, and the identity of persons who must consent. A transaction may be commercially attractive yet defective if the person purporting to sell lacks authority or if a beneficiary’s rights are protected by registration or notice.

Non-possessory interests in land

Easements

An easement is a right enjoyed by one parcel or person over another parcel, such as a right of way, drainage right, right to lay utilities, or right to receive light where recognised by law. The land benefiting from the easement is often called the dominant land; the burdened land is the servient land.

An easement usually requires identifiable land or a legally recognised beneficiary, a distinct right rather than general ownership, and accommodation of the dominant land. It must not amount to possession of the servient land. Easements may arise by express grant, reservation, implication, necessity, prescription or statute. Registration may be required for enforceability against purchasers.

For development, an easement can be enabling or restrictive. A registered access easement may make an otherwise landlocked site viable. Conversely, a utility easement may prevent foundations, excavation or construction within a corridor. Due diligence should examine the route, width, maintenance responsibility, permitted vehicles, relocation rights and whether the easement benefits or burdens the acquired land.

Covenants

A covenant is a promise concerning land. A positive covenant requires expenditure or action, such as maintaining a road or contributing to landscaping. A restrictive covenant limits use, for example by prohibiting certain building forms, commercial activity or nuisance. Whether a covenant binds successors depends on jurisdiction, wording, intention, notice, registration and statutory rules.

Restrictive covenants may protect amenity and preserve a development concept, but they can also reduce land value and obstruct intensification. Positive obligations are often more difficult to enforce against successors in traditional common-law doctrine, although legislation and contractual structures may alter that position. A developer should investigate release, variation and modification procedures before relying on assumed development potential.

Licences

A licence is permission to enter or use land without transferring an estate. Examples include a ticket to enter a stadium, permission for temporary site access, or consent to place construction equipment on adjoining land. A bare licence may be revocable, while a contractual or proprietary estoppel context may provide stronger protection. The distinction matters because a licensee ordinarily lacks the security, exclusive possession and transferability associated with a lease.

Encumbrances and security interests

Encumbrance is a broad term for a burden or claim affecting land, including mortgages, charges, liens, easements, restrictive covenants, leases, tax claims and judgments. An encumbrance does not necessarily defeat ownership, but it may limit use, reduce marketability or give another party priority on enforcement.

A mortgage or registered charge secures repayment of a debt. The lender’s rights may include restrictions on further dealings, appointment of a receiver, possession or sale after default, subject to law and equitable duties. Priority is critical: a first-ranking lender may be paid before a later charge-holder. Registration, notice, contractual subordination and insolvency rules often determine priority.

Vertical dimensions: airspace and subsurface rights

Land is three-dimensional, but the traditional maxim that ownership extends from the heavens to the centre of the earth is not applied literally in modern law. Airspace is generally protected only to the extent reasonably necessary for ordinary use and enjoyment. Low-level overhanging structures, cranes or cables may therefore create trespass concerns, while aircraft operating at lawful heights are regulated under aviation law.

Airspace has considerable development value in dense urban areas. Air-rights transactions may permit construction above transport corridors, railway stations, roads or existing buildings. They require precise definition of the vertical envelope, structural support, access, fire safety, maintenance, insurance and interaction with planning approvals. Ownership of airspace does not itself guarantee a development right; planning permission, building controls and aviation restrictions remain separate questions.

Subsurface rights may include foundations, basements, minerals, groundwater, tunnels, archaeological resources and geological storage. Many jurisdictions reserve minerals or strategic resources to the state. Excavation can also affect neighbouring structures through subsidence, vibration or groundwater movement. A real estate manager must therefore coordinate title review with geotechnical, environmental, mining, infrastructure and planning investigations.

Theories of property and their managerial significance

Property theories explain why legal systems recognise, limit and distribute rights.

The classical liberal or exclusion theory emphasises the owner’s power to exclude others. It supports investment incentives, autonomy and predictable control. Its limitation is that exclusion alone does not explain public regulation, shared resources or the responsibilities attached to ownership.

The bundle-of-rights theory views property as a collection of separable legal incidents. It is particularly useful in transactions because a lease, easement, mortgage or development right can be analysed as a partial allocation of powers rather than as a transfer of the whole asset.

The utilitarian theory justifies property rules by their social consequences, including efficient resource use, investment and reduced conflict. It supports zoning, compulsory acquisition and environmental controls where private use creates wider costs, but it raises difficult questions about who defines social utility and how affected owners are compensated.

The personhood theory links certain property interests to identity, security and dignity. A home may have significance beyond its market value. This perspective informs residential protection, family property, cultural heritage and safeguards against arbitrary displacement.

The social-obligation theory argues that ownership carries responsibilities to neighbours, communities and future generations. It helps explain nuisance law, environmental duties, heritage protection, affordable housing measures and conditions attached to development approvals.

These theories are not mutually exclusive. A planning authority may protect ownership and investment while imposing environmental conditions; a court may enforce exclusion but also recognise access by necessity; a lender may rely on private rights while complying with consumer-protection and insolvency law. Effective real estate management requires recognising these competing rationales rather than treating title as an unlimited command.

Due diligence and professional application

Property-rights analysis should be integrated into the acquisition and development process. A practical review normally includes:

1. identifying the registered owner and tracing authority to transfer;

2. confirming the nature and duration of the estate;

3. reviewing mortgages, charges, tax claims and other encumbrances;

4. mapping easements, covenants, rights of way and service corridors;

5. examining leases, licences, occupiers and renewal or termination rights;

6. checking co-ownership, trust, succession and beneficial interests;

7. comparing title boundaries with the physical survey;

8. investigating airspace, subsurface, environmental and infrastructure constraints;

9. verifying planning, zoning, building and heritage requirements; and

10. assessing priority, registration, consent and completion requirements.

The legal review should be connected to valuation and investment analysis. A restrictive covenant may reduce residual land value; a secure long lease may create predictable income; an unregistered access arrangement may create financing risk; and a short remaining lease may affect exit value. Legal facts must therefore be translated into cash-flow, risk and timing implications.

Digital land registries, geographic information systems, drone surveys, building information modelling and automated document review can improve investigation. Spatial tools can overlay title boundaries, utility corridors, flood zones and planning designations. Artificial intelligence can help identify clauses or inconsistencies, but it cannot replace legal interpretation, verification of authoritative records or professional judgment. Data quality, privacy, cybersecurity and false confidence remain important risks.

Illustrative case study: the constrained urban redevelopment site

Background

A property investment company, Meridian Urban Projects, agrees to acquire an old warehouse site in a city-centre regeneration zone. The registered owner holds a freehold estate. The company’s initial feasibility assumes a mixed-use tower with retail space, offices and residential units.

Situation and problem

During due diligence, the team discovers four issues. First, a neighbouring parcel has a registered right of way across the proposed loading area. Second, a restrictive covenant limits building height and prohibits nuisance-generating industrial use. Third, a utility provider holds an easement for underground infrastructure crossing the site. Fourth, part of the warehouse is occupied under an unregistered agreement described by the seller as a “temporary licence.” The occupant claims exclusive possession and asserts that the arrangement is a lease.

The acquisition agreement contains a short completion period and does not expressly allocate the risk of unresolved rights.

Analysis

The right of way may be essential to the neighbour’s access and cannot be removed merely because the purchaser dislikes its route. The development design must preserve the right, obtain a lawful variation or negotiate relocation. The utility easement may prohibit deep foundations in a defined corridor and may grant access for inspection and repair. Its technical terms must be compared with the proposed basement.

The restrictive covenant may limit height even if planning officers are willing to approve a taller building. Planning permission and private rights are separate constraints. The company should investigate the covenant’s enforceability, beneficiaries, release mechanisms and possible statutory modification.

The alleged licence must be analysed by substance. If the occupant has exclusive possession for a defined term in exchange for payment, a court may characterise the arrangement as a lease despite its label. The occupant’s rights may affect vacant possession, compensation, completion timing and the development programme.

Approach and solution

Meridian commissions a specialist title review, measured survey and utility investigation. It redesigns the loading area to preserve the right of way and negotiates a deed relocating the route subject to the neighbour’s consent and registration. The utility provider confirms the corridor and agrees to a technical protection and access protocol.

The company obtains a covenant report and makes the acquisition conditional on either release or satisfactory modification of the height restriction. It also negotiates with the occupier, ultimately agreeing an early surrender and relocation payment after confirming the legal status of the occupation. The sale agreement is amended to require delivery of vacant possession, discharge of specified charges and registration of the agreed easement variation.

Outcome

The revised project has fewer floors than initially modelled and requires additional structural cost near the utility corridor. However, the risks are identified before completion, the purchase price is renegotiated, and the lender accepts the clarified title package. The project remains viable, although its return is lower than the initial feasibility suggested.

Learning points

The case demonstrates that ownership does not equal unrestricted development capacity. Rights benefiting neighbours, utility operators and occupiers may be more important to project value than the headline title description. It also shows why legal due diligence must occur before financial commitments become irreversible, and why private rights, public approvals and physical conditions must be assessed together.

Challenges, risks and common mistakes

A recurring mistake is treating the title register as a complete description of physical reality. Boundaries may be imprecise, rights may arise by implication, occupation may reveal unrecorded interests, and statutory restrictions may appear outside the title record. Another error is relying on document labels rather than legal substance, especially when distinguishing leases from licences or ownership from beneficial ownership.

Other risks include failing to obtain required spousal, trustee, co-owner or lender consent; overlooking renewal or break rights; assuming that a planning approval overrides a restrictive covenant; ignoring compulsory purchase or environmental liabilities; and commissioning a valuation before understanding title constraints. Inadequate communication between lawyers, surveyors, planners, engineers, lenders and asset managers can produce inconsistent assumptions.

Ethically, professionals must disclose material title defects, avoid misrepresenting development potential, protect confidential information and manage conflicts of interest. A manager acting for a fund, lender and developer may face competing duties. Governance systems should define approval authorities, maintain a rights-and-obligations register, record assumptions, and escalate unresolved defects rather than burying them in financial models.

Current developments and best practices

Urban intensification is increasing the importance of air rights, mixed-use vertical ownership, shared infrastructure and complex easements. Renewable-energy projects require careful allocation of surface, subsurface and transmission rights. Climate adaptation is generating new restrictions relating to flood storage, coastal retreat, drainage and environmental conservation. Community and indigenous land rights are also receiving greater legal and policy recognition in many jurisdictions.

Best practice is to treat property interests as an integrated risk system. Maintain a current title plan and rights matrix; link every right to its beneficiary, burdened area, duration and operational consequence; verify instruments against surveys and site inspections; model legal restrictions in development and valuation assumptions; monitor registration and consent deadlines; and obtain jurisdiction-specific advice before signing or marketing an asset.

Chapter Summary

Property is a legally structured relationship, not simply a physical object. Ownership, possession, title and tenure describe different aspects of that relationship. Estates determine duration, with freehold interests generally offering potentially indefinite ownership and leasehold interests granting possession for a defined or recurring period. Co-ownership and trusts divide legal control, beneficial enjoyment and decision-making responsibilities.

Easements, covenants, licences and encumbrances create rights or burdens that can materially affect use, value, financing and development. Airspace and subsurface rights demonstrate that land has vertical as well as surface dimensions, but these rights remain subject to planning, environmental, infrastructure and public-law controls. Property theories—including exclusion, bundle-of-rights, utilitarian, personhood and social-obligation approaches—help explain why ownership is protected yet regulated.

For real estate professionals, the central task is to translate legal interests into practical consequences. Title review, registration analysis, physical surveys, planning investigation, stakeholder consultation and financial modelling should operate together. Sound practice depends on identifying every relevant interest, testing enforceability and priority, obtaining necessary consents, and communicating risks honestly.

Key Terms

Ownership: The legally recognised relationship giving a person specified powers and protections in relation to property.

Possession: Physical control of land combined, where required, with an intention to control it.

Title: The legal basis or evidence of a person’s claim to land.

Tenure: The legally recognised manner in which land is held.

Estate: A legally recognised interest in land measured by duration.

Freehold: An estate of potentially indefinite duration or measured by a life.

Leasehold: An estate granting possession and use for a defined or ascertainable period.

Reversion: The landlord’s interest that remains or returns after a lease ends.

Co-ownership: Ownership of the same land by two or more persons.

Joint tenancy: Co-ownership generally involving survivorship and no separately identified shares while it continues.

Tenancy in common: Co-ownership in distinct shares that may pass by transfer, will or succession.

Trust: An arrangement in which a trustee holds legal title for beneficiaries.

Easement: A limited right to use or benefit from another parcel of land.

Covenant: A promise relating to the use, maintenance or development of land.

Licence: Permission to enter or use land without granting an estate.

Encumbrance: A burden or claim affecting land, such as a mortgage, easement or covenant.

Mortgage or charge: A security interest in land securing repayment of a debt.

Airspace right: A legally recognised interest or permission concerning usable space above land.

Subsurface right: A right concerning materials, structures, resources or uses beneath the surface.

Beneficial interest: The right to enjoy economic benefits from property, whether or not legal title is held.

Review Questions

Short Answer Questions

1. Distinguish ownership, possession and title.

2. What is the difference between a freehold estate and a leasehold estate?

3. Define an easement and give two practical examples.

4. How does a trust separate legal ownership from beneficial ownership?

5. What is an encumbrance, and why is it relevant to real estate finance?

Long Answer Questions

1. Explain the bundle-of-rights approach and apply it to a commercial lease.

2. Compare joint tenancy and tenancy in common, including their implications for succession and management.

3. Discuss the legal and commercial significance of restrictive and positive covenants.

4. Analyse the relationship between private property rights and public planning regulation.

5. Explain how airspace and subsurface rights can affect urban development projects.

Analytical / Application Questions

1. A purchaser acquires a site subject to an access easement, a utility corridor and an alleged licence granted to an occupier. Design a due-diligence plan and explain how each interest could affect value and development.

2. Two investors contribute unequal amounts to a property, but only one is registered as owner. Analyse the possible legal and beneficial interests and identify governance measures that should have been adopted.

3. A proposed tower complies with zoning rules but violates a registered height covenant. Advise the developer on the issues requiring investigation before proceeding.

22. Multiple Choice Questions with Answers

Question 1

Which statement best describes the bundle-of-rights approach to property?

A. Land can only be owned in its entirety by one person

B. Property consists of separable rights and powers that may be allocated among different parties

C. Physical possession always prevails over registered title

D. Public regulation has no effect on private ownership

Correct Answer: B. Property consists of separable rights and powers that may be allocated among different parties

Question 2

A tenant occupies premises for ten years under a written agreement and pays rent. The landlord retains the interest that follows expiry of the term. That retained interest is the:

A. Easement

B. Licence

C. Reversion

D. Beneficial interest

Correct Answer: C. Reversion

Question 3

Which feature most strongly distinguishes a lease from a licence?

A. The document is titled “lease”

B. The occupier pays money

C. The arrangement grants exclusive possession for a term, subject to applicable law

D. The property is used for business purposes

Correct Answer: C. The arrangement grants exclusive possession for a term, subject to applicable law

Question 4

Under a tenancy in common, a co-owner’s share generally:

A. Automatically passes to surviving co-owners on death

B. Cannot be transferred or inherited

C. Is a distinct share capable of passing by transfer or succession

D. Belongs to the landlord until partition

Correct Answer: C. Is a distinct share capable of passing by transfer or succession

Question 5

Which interest normally benefits one parcel of land by granting a limited use over another parcel?

A. Easement

B. Life estate

C. Periodic tenancy

D. Mortgage reversion

Correct Answer: A. Easement

Question 6

A restrictive covenant is most likely to:

A. Require the owner to pay a secured debt

B. Limit a specified use or development of land

C. Transfer exclusive possession for a fixed term

D. Create automatic ownership in a neighbour

Correct Answer: B. Limit a specified use or development of land

Question 7

Why should a real estate manager investigate an alleged “temporary licence” occupied exclusively by a person who pays regular consideration?

A. The arrangement may be characterised in substance as a lease

B. A licence always gives the occupier freehold title

C. Payment automatically invalidates the arrangement

D. Exclusive possession eliminates all statutory duties

Correct Answer: A. The arrangement may be characterised in substance as a lease

Question 8

Which statement about planning permission and private covenants is most accurate?

A. Planning permission automatically cancels restrictive covenants

B. A restrictive covenant automatically cancels planning permission

C. They are separate sources of constraint and both may need to be satisfied

D. Neither affects development value

Correct Answer: C. They are separate sources of constraint and both may need to be satisfied

Question 9

In the illustrative redevelopment case, the underground utility easement was important primarily because it could:

A. Convert the freehold into a joint tenancy

B. Restrict foundations, excavation and access arrangements

C. Guarantee approval for a taller building

D. Remove the neighbouring access right

Correct Answer: B. Restrict foundations, excavation and access arrangements

Question 10

Which is the best professional response when the title register and physical occupation appear inconsistent?

A. Ignore the occupation because registration is always complete

B. Rely only on the seller’s description

C. Investigate the discrepancy through documents, site inspection and appropriate legal advice

D. Complete immediately and resolve it after development

Correct Answer: C. Investigate the discrepancy through documents, site inspection and appropriate legal advice