Part 9Rights of persons acquiring etc. in good faith

Leases

88I1Acquisition from assigner without valid title

1

This section applies where a person (“A”), who is not the tenant under a registered lease but—

a

is shown in the title sheet as tenant, and

b

is in possession of the subjects of the lease,

purports to assign the lease.

2

The assignee (“B”) acquires the lease provided that the conditions in subsection (3) are met.

3

The conditions are that—

a

the subjects of the lease have been in the possession, openly, peaceably and without judicial interruption—

i

of A for a continuous period of at least 1 year, or

ii

of A and then of B for periods which together constitute such a period,

b

at no time during that period did the Keeper become aware that the register was inaccurate as a result of A (or B) not being the tenant,

c

B is in good faith,

d

the lease is extant,

e

B would have acquired the lease had A been tenant when the lease was assigned,

f

at no time during the period mentioned in paragraph (a) was the title sheet subject, by virtue of section 67, to a caveat relevant to the acquisition by B, and

g

the Keeper warrants (or is to be taken to warrant) A's title.

4

The date on which the lease is acquired by virtue of subsection (2) is—

a

where subsection (5) applies, the date on which the deed of assignation is registered,

b

where subsection (6) applies, the date on which the period of possession mentioned in that subsection expires.

5

This subsection applies where, as at the date of registration, the subjects of the lease have been in the possession, openly, peaceably and without judicial interruption—

a

of A for a continuous period of at least 1 year, or

b

of A and then of B for periods which together constitute such a period.

6

This subsection applies where there is a continuous period of possession such as is mentioned in subsection (5) but that period, though it commences before registration on the application of B, does not expire until a date later than the date of registration.