Part 9Rights of persons acquiring etc. in good faith

Leases

88Acquisition 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.