Land And Conveyancing Law Reform Act 2009

113.

Exercise of leasing powers.

113.— (1) A lease to be granted under section 112 shall—

( a) reserve the best rent which can reasonably be obtained, taking into account any premium or other capital sum paid by the lessee and other relevant circumstances, and

( b) be otherwise granted on the best terms that can reasonably be obtained and accord with good commercial practice,

and execution of the lease by the lessor shall be sufficient evidence of execution and delivery of the lease.

(2) A purported lease which fails to comply with subsection (1) is void.

(3) A duplicate of a lease granted in accordance with subsection (1) shall be executed by the lessee and delivered to the lessor.

(4) In the case of a lease by the mortgagor, the mortgagor shall, within one month after making the lease, deliver to the mortgagee or, where there are more than one, the mortgagee first in priority, a copy of the lease duly executed by the lessee.

(5) Failure by the mortgagor to comply with subsection (4) does not affect the validity of the lease.

(6) Where a premium or other capital sum is paid by the lessee and the lease is granted by—

( a) the mortgagor, it, or, where it exceeds the mortgage debt, so much of it as is required for the purpose, shall be applied in or towards discharge of that debt, whether or not the date for redemption has arrived,

( b) the mortgagee, it shall be applied in accordance with section 107 as if it comprised the proceeds of a sale.