Transfer, subdivision, and mortgage of leases or licences

89 Board to consent to dealings with leases or licences

(1)

A lessee or licensee, or the sub-lessee of any lease or licence, shall not transfer, sublease, or otherwise dispose of his interest, or any part thereof, in the land subject to the lease or licence without the consent of the Board. Notwithstanding the provisions of any lease or licence, the consent of the Board shall not be required to a mortgage of any interest therein.

(2)

The Board shall at all times have power, in the public interest and in its discretion, to refuse any application for consent whatsoever, or to grant its consent subject to such conditions as it thinks fit.

(3)

No transfer, sublease, or other disposition of any lease or licence shall be valid unless all the conditions, whether expressed or implied, on which the lease or licence was granted (including the condition for the payment of rent) shall have been complied with up to the date of transfer, sublease, or other disposition.

(3A)

Subject to sections 71, 90, 91A, and 97 and to subsection (3B), no person shall be entitled to acquire, obtain, or hold, by transfer, sublease, or otherwise in any manner, any interest, or any part thereof, in any land that is subject to a lease or licence, unless it is exclusively for his own use or benefit.

(3B)

Subject to subsection (2), the Board may consent to the transfer, sublease, or other disposal, to trustees of any interest, or any part thereof, in any land subject to a lease or licence if the beneficiaries are children or grandchildren of the transferor, sub-lessor, or disposer, and the Board is satisfied that—

(a)

there is to be no change in the occupation and management of the land concerned; or

(b)

the beneficiaries of the trust concerned, or some of them, are not of full age, and it is probable that they will farm the land concerned on reaching full age.

(4)

Where any lessee or licensee has transferred all his interest in his lease or licence by a legal transfer with the consent of the Board, the person to whom the lease or licence has been so transferred shall have all the rights and privileges of and be subject to the same obligations as the original lessee or licensee, and the former lessee or licensee shall thereupon cease to be liable for any subsequent breach of any covenant, condition, or obligation (expressed or implied) in the lease or licence.

(4A)

Where any lessee or licensee has agreed by an agreement for sale and purchase consented to by the Board to transfer at a future date his interest in his lease or licence, then, so long as the agreement for sale and purchase continues in force, both the lessee or licensee and the person to whom he has agreed to transfer his interest shall jointly have all the rights and privileges of the lessee or licensee under the lease or licence, and shall be jointly and severally liable to the Crown for the observance and performance of all the covenants, conditions, and obligations in the lease or licence:

provided that so long as the agreement continues in force the condition as to residence (expressed or implied) in the lease or licence shall be deemed to be complied with if performed by the purchaser under the agreement for sale and purchase.

(5)

With every application for consent to transfer, sublease, or otherwise dispose of an interest there shall be paid such fee as may be prescribed (see section 184A).

Compare: 1924 No 31 ss 88(d), 90(1)(a), 268; 1925 No 15 s 68; 1926 No 49 s 3(3)(a)

Section 89(1): replaced, on 1 December 1961, by section 3(1) of the Land Amendment Act 1961 (1961 No 86).

Section 89(3): amended, on 1 December 1961, by section 3(2)(d) of the Land Amendment Act 1961 (1961 No 86).

Section 89(3A): inserted, on 14 October 1981, by section 3(1) of the Land Amendment Act 1981 (1981 No 44).

Section 89(3B): inserted, on 14 October 1981, by section 3(1) of the Land Amendment Act 1981 (1981 No 44).

Section 89(4): replaced, on 2 October 1958, by section 2 of the Land Amendment Act 1958 (1958 No 72).

Section 89(4A): inserted, on 2 October 1958, by section 2 of the Land Amendment Act 1958 (1958 No 72).

Section 89(5): amended, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section 89(5): amended, on 1 December 1961, by section 3(2)(d) of the Land Amendment Act 1961 (1961 No 86).