MORTGAGED LAND

Poverty Bay Herald, Volume LIX, Issue 17956, 7 December 1932, Page 7

MORTGAGED LAND

NEW LEASING POWERS MEASURE BEFORE HOUSE (Parliamentary Reporter.) WELLINGTON, this day. Power for a mortgagee in possession to grant a lease of the whole or any part of mortgaged land is contained in the Property Law Amendment Bill, which was introduced into the House by Governor-General’s Message and read a first time. It is provided that a mortgagee in possession of any land shall, as against every subsequent encumbrancer, and as against the mortgagor, have power to grant a lease of the whole or any part for any term not exceeding seven years. No such lense is binding upon a prior oncurbranccr except so far as he has consented to it. Leases made under the bill are to be made to take effect not later than six months after the date on which they were made, j The bill lays it down that every lease shall reserve the best rent that jean reasonably be obtained, and shall contain a covenant by the lessee for ’ tho payment of rent and a condition j of re-entry on rent not being paid in the specified time, not exceeding 30 days. j Provision is included empowering a ' mortgagee and a mortgagor to enter into an agreement to confer on the mortgagee further powers of leasing provided the rights of other interested mortgagees arc preserved. Mortgagees in possession are not to make a Je::s“ for a longer period, or on other com'!' tions, than would have been within the power of the mortgagor to make. While a mortgagee is in possession of land subject to the Land Transfer Am he is to be entitled to sue upon the covenants of every lease affecting the land, or any part of it, for the pur poses of tho bill. A first mortgagee is deemed to be in possession of such land if be is entitled to enter into possession of it, or to bring an action for possession,