THE EMERGENCY LAWS

New Zealand Herald, Volume LXIX, Issue 21245, 27 July 1932, Page 14

THE EMERGENCY LAWS

RENT AND INTEREST CASES LEGAL ADVICE TO READERS MANY PROBLEMS CONSIDERED Although the provisions of the National Expenditure Adjustment Act as to reduction of rent and interest have been m force as from April 1 last, the Hbbald continues to receive, from corresponden s in both town and country, inquiries as to the exact effect of these provisions in particular cases. All such letters of inquiry are referred to an Auckland barrister for consideration and a number of his replies are published to-day, as follows: "Country Inquirer."—lf the landlord o contention as to the rental previously obtainable is correct, it does not look asi it vou will be entitled to any substantial reduction, though your contract comes within the scope of the Act. All I can advise you to do is to assess the rent which you consider would have been payable under your present lease, if it had been executed on January 1, 1930, and reduce this hypothetical rent by 20 per cent. If the result is less than you are now paying, reduce your rent to this new figure, and leave it to the landlord to apply to the Court to have your figures upset. It certainly looks as if you are paying too much, bufc the Act gives you no more remedy than I have outlined above. "Society."—(l) There is no simple accurate method" for making this calculation, so far as I know. (2) will have to ascertain from the society- what rate you are really paying: their tables will tell accurately. I think that the rate you are paying exceeds 5 per cent. You will be entitled to a reduction of the interest payable so as to bring it down to 5 per cent —the part of the instalment which consists of principal will remain payable as at present. (3) In computing the reduction you would have to assume that interest would be charged at the old rate up to April 1, and thereafter at the reduced rate: then credit against the total so payable £62 14s already paid, and divide thy balance by the number of instalments still payable, "T.C.R." —It is impossible from your letter to arrive at an accurate estimate of your position. The question is really outside the scope of this s column; but in any case the facts given in your letter are not sufficient for me to advise. You should see a solicitor and put the documents be-, fore Jiim. "Ten Years' Subscriber."—Yours is a question of arithmetic, not of law, and some hundred or more calculations would be involved in arriving at the answer. Press for a small reduction, and if any concession is granted take it. It seems to mo that the total reduction obtainable would at the most be only a matter of a couple of pounds. Mortgagors and Their Problems. "Wiss" (Tauranga) writes: "I have a mortgage on my farm and am now three months in arrears with the half-yearly interest. I have informed my mortgagee that I have every prospect of paying same, but can get no grace. He has now served me with a notice to the effect that he is enforcing his power to sell. Do you think that this is in order and what steps should I take to protect myself?" Answer. —This matter is urgent, since if you are served with a notice under the Mortgagors' Relief Acts you have only a month within which to object. See your solicitor immediately and get him to lodge an objection in the Court at once. The cost of the whole proceeding will bo small, and it is important to you to have tho notice brought before the Court at .once, as otherwise you will lose the protection of the Act. If you are farming your property properly, you should have ! a good case for protection. "Subscriber." —If the mortgage pro- | vided for payment of £7OO on a certain j date, you may sue now by bill writ for j the £7OO and interest. To enforce your i judgment, however, you will have to give i the mortgagor notice under the Mortj gagors' Relief Acts, for under these Acts it is impossible to exercise powers of sale, or to issue execution, without first giving the mortgagor tho requisite notice. In order to save expense, you will probably bo wise to give the month's notice first, and then, if the mortgagor does not lodge objection, to issue a writ. See your solicitor and instruct him to take this course. I take it from your letter that your mortgagor is a substantial man; if his circumstances are not such as to enable him to pay the £7OO, it is little use going to the trouble and expense of Court proceedings. But 1 presume that you have already fully considered this aspect of the matter. "Old Subscriber."—You are entitled to no reduction. Your rat© is already below 5 per cent, and this is the minimum rate to which interest is conipulsorily reduced under tho Act. Landlord and Tenant "Puzzled" (Mount Eden). —In your case it looks as if you are entitled to a reduction to 26s—this will be the figure to which your rent will reduce if you can show that 32s 6d was the rent on January 1, 1930. My advice is simply to credit yourself with 13 weeks' rent at 4s per week, and notify your landlord that in future yon arc paying 265, and that in accordance with tho statement of account (which you will enclose) you claim to be paid two weeks in advance. You cannot claim for more than three months back, although by statute the reduction operated from April ] last. Of course, before doing so you will do well to reflect as to whether it may not be better business to. agree with your landlord rather than run the risk of having your tenancy determined and being forced to move. "Waikato." —(1) I cannot tell definitely from your letter whether you are entitled to any reduction, but probably you are not. Tho board will tell you if you writo to them. (2) Your tenant may recover by action in Court a refund of any moneys paid in excess, in the particular circumstances mentioned by you, but not in respect of any moneys paid more than three months beforo tho date when he commences his action. "Anxious."—(l) Yes, ho can claim; but not in respect of any payment made more than three months beforo the date when he commences an action to recover. (2) It- may be that ho is entitled to more notice, but if you want to eject him you will bo wise if you see your solicitor and find out your exact position. 1 would certainly refuse to pay any refund until the place has been vacated, and you would have a counterclaim for any damago done. "Lux."—(l) Tho new rent will bo 24s per week. (2) Yes, you may recover by action in Court any moneys paid not more than three months beforo tho commencement of the action. (3) Tho balance of your letter has reference to qnostions quite outsido the scopo of this column.