PROPERTY AND LAND SALES

Press, Volume LXXXIII, Issue 25178, 8 May 1947, Page 3

PROPERTY AND LAND SALES

MAGISTRATE’S VIEW OF LEGAL POSITION (P.A.) WELLINGTON. May 7. “In the interests of both the legal profession and the public it is thought advisable to refer to a misstatement made by the president of the New Zealand Institute of Valuers (Mr O. F. Baker, of Christchurch) that, ‘under the Land Sales Act any sale of real estate is subject to the approval of the Local Land Sales Committee with a right of appeal to the Land Sales Court’ which has been published in the Sress,” said the Magistrate (Mr A. A. IcLachlan) before delivering a judgment in the Magistrate’s Court. Mr McLachlan said that under subsection 2 of section 21 of the Land Sales Act the Court retains to itself the duty of both supervising the inquiry conducted by the Land Sales Committee and of pronouncing a consent. The effect of this, together with section 45 of the act, makes a transaction definitely subject to the consent of the Court and not to the committee, whose functions appear to be advisory and who act more as a committee of inquiry under the appropriate act.” “This would not be a vital matter,” said the Magistrate, “except that it has a decided effect on the point of time at which hitherto a conditional contract really becomes a binding one.” After referring to the conditional nature of contracts for the sale of land, or certain leasehold interests in land, until the consent of the Court had «-S en itemed, Mr McLachlan said. Even an agreement for sale and purchase at such a price as shall be determined by the Court is conditional only until the Court determines the price and either party is at liberty to withdraw at any time until the price is fixed, and would not be liable to an action for damages upon withdrawing.