PROPERTY LAW BILL (LETTERS FROM THE NEW ZEALAND LAW SOCIETY AND MR. T. F. MARTIN RELATIVE TO THE).

Appendix to the Journals of the House of Representatives, 1905 Session I, A-07

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1905. NEW ZEALAND.

PROPERTY LAW BILL (LETTERS FROM THE NEW ZEALAND LAW SOCIETY AND MR. T. F. MARTIN RELATIVE TO THE).

Laid on the Table of the House of Representatives by Leave.

Supreme Court Library, Wellington, 13th October, 1905. Sin, — lie Property Law Bill. I am directed by the President of the New Zealand Law Society to inform you that a meeting of the Council of that society was held last night, when the above proposed measure, which had been in the hands of members of the Council several days, was discussed at considerable length. The meeting was representative, delegates from the following District Law Societies being present—namely, Auckland, Canterbury, Hawke's Bay, Nelson, Otago, Southland, Taranaki, and Wellington. The following resolutions were adopted, copies of which I was instructed to forward you: " That the Honourable the Attorney-General be informed that this Council regrets that it finds i( impossible within the time available to fully consider and report upon the Bill." " The Bill in its various forms has been previously reported upon by the several District Law .Societies, but none of the societies have had the opportunity of considering it in its present form." ' The Council's attention has been called to some clauses and provisions apparently requiring amendment, and it respectfully recommends the Government to postpone the measure till next session." "The Council respectfully submit to the Government that a statute consolidating the law of property should be the subject of a report by a special Royal Commission of experts according to the English precedents. They would remind the Government that the original Conveyancing Ordinance of this colony was founded upon the report of the Imperial Royal Commission on Real Property." I have, &c, F. Harbison, Secretary New Zealand Law Society. The Hon. Colonel Albert Pitt, Attorney-General, Wellington.

27, Featherston Street, Wellington, 14th October, 1905. Sir, — Re Property Law Bill. You asked me this morning to express my opinion upon the above Bill, which I have the honour to do below. By request of the Chairman of the Joint Statutes Revision Committee, I appeared before that body in the sessions of 1903, 1904, and 1905, and gave evidence on the Bill in the forms in which it was cast from time to time. You were so good as to send me after last session a print of the Bill as amended by the Joint Statutes Revision Committee, and in the interval between that and the present session I carefully read every line of the Bill in its then shape. As a result of that perusal I returned to you in July last the said print Bill, with a number of suggested amendments made therein, accompanied by a memorandum in which I pointed out that there were certain further English enactments that I thought suitable to the conditions of the colony, and that had not been reproduced in the Bill. These suggested amendments and the said memorandum were dealt with by the Joint Statutes Revision Committee (or a sub-committee of that body), at whose sittings I was present, and the Bill was thereupon reported, with amendments and additions. I think it well at this point to give, in broad outline, a description of the contents of the measure:— 1. It re-enacts the Property Law Consolidation Acts of 1883, 1885, and 1895, with amendments.

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2. It repeals the sections relating to forfeiture of leases contained in "The Supreme Court Act, 1882," and " The Law Amendment Act, 1904," and the section relating to attorneys in " The Married Women's Property Act, 1884," and replaces them with clauses framed on modern English lines. 3. It re-enacts the provisions of " The Mortgages of Land Act, 1901," with amendments. 4. It expressly repeals certain English statutes of Henry VIII. and William IV., not at present applicable to the circumstances of the colony. 5. It includes the substance of a number of provisions taken from " The English Vendor and Purchaser Act, 1874," and " The English Conveyancing Act, 1881." These Acts were passed at Home with a view to shortening conditions of sale and deeds by implying in them such clauses as were found by long experience to have become usual, and to be accepted by both sides in transactions. The'clauses this implied have, as you are aware, the same relation to deeds as what are termed " machinery clauses " have to Bills. 6. The Bill contains several improvements in the laws relating to real and personal property, among which are — (a.) Mortgages: A mortgagee accepting interest on an overdue mortgage may not call up without giving three months' notice (clause 69). (b.) The power of a mortgagee to consolidate two mortgages against a mortgagor is taken away as to future mortgages (clause 74). At present a person buying an equity of redemption is liable to have to pay off also a mortgage on another property of which he had no notice. («.) A mortgagee selling under the Registrar of the Supreme Court must value his security, and the mortgagor may at anytime before actual sale redeem on paying either the amount of the valuation or the amount of principal and interest due and expenses (clause 79). (d.) On a fire happening, if the mortgagee applies the insurance moneys in repayment of part of the mortgage debt the mortgagor is to have the right to pay off the balance within two months (Third Schedule, paragraph 5). («.) Incumbered Estates: When an incumbered estate is sold, the Supreme Court may authorise the payment into Court of a sum of money sufficient to answer all incumbrances, and give a clear title to the purchaser (clause 109). (/.) The doctrine of "constructive notice" is modified in accordance with the English Conveyancing Act of 1882 (clause 113). 7. In my opinion, the measure in question is a distinct improvement in the law, and will have beneficial results. One effect of the Bill will be to shorten legal instruments. This should be so especially in the case of mortgages. Another advantage is that, so far as the circumstances of the colony will allow, the Bill tends to assimilate the laws of real property and conveyancing with those in force in England. I consider, moreover, that the Bill is a safe one. Every care was taken by the Statutes Revision Committee to closely examine all clauses that seemed in any way dangerous, and a number of clauses were rejected on the ground of the possibility of litigation or injustice arising therefrom. On the whole I have personally no hesitation in saying that I think the Bill is a good, safe, and workable measure. I have, &c, T. F. Martin. The Hon. the Attorney-General, City.

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