PROPERTY LAW

Rotorua Morning Post, Volume 2, Issue 399, 7 December 1932, Page 5

PROPERTY LAW

("Post" Special Commissioner)

amending act POWER GIVEN MQRTGAGEE TO GRANT LEASE OF LAND INTRODUCED IN HOUSE

Wellington, Tuesday. Power for the mortgagee. in possession to grant a lease of the whole cr any part of the mortgaged land is contained in the Property Law Amendment Bill which was introduced into the House of Representatives to-day hy Governoi*- General' s message. The bill was read a first time. It is provided that the mortgagee in possession of any land shall, as against every subsequent encumbrance, and as against the mortgagor, have power to grant a l'aase of the whole or any part of the mortgaged land for any term not exceeding seven years. No such lease is to be binding upon the prior encumbrancer 'except insofar as he has consented to it. Leases made under the _bill, are 'to be made to take effect not later than fix months after the date on which they were made. The bill lays it down that every lease shall reserve the best rent that an reasdnahly be obtained and shall ontain a ccvenant hy the lessee for ■: he payment of rent with the right * f re-entry on the rent not being paid in a specified time not exceeding 30 days. Provision is included empower.'ng the mortgagee and the mortgagor lo enter into an agreement to confer cn the mortgagee. further powers of easing* provided the rights of other aterested mortgagee-, s are preserved. Mortgagees in possession are not to "iake a lease for a longer period or n other conditions than it would have l een within the power of the mortgagor to make. While the mortgagee is in possession of any land subject to the Land Transfer Act, 1916, he is to be entitled to sue upon the covenants of every lease affecting the land -or any part of it. For the purposes of the '411, the first mortgagee of any land s to be deemed to be in possession of ijueh land if he is entitled to 'enter nto possession of it or to bring an action for possession.