LAW OF PROPERTY AMENDMENT ORDINANCE

LAW OF PROPERTY AMENDMENT ORDINANCE

CHAPTER 24.

LAW OF PROPERTY AMENDMENT.

To amend the laiv of property in relation to covenants and
conditions in leases, and in relation to sales of reversions.

[23rd September, 1873.]

1. This Ordinance may becited as the Law of Property
Amendment Ordinance.

2. Where any licence to do any act the doing of which
without such licence would create a forfeiture or give a right
to re-enter, under a condition or power reserved in any lease,
is given to any lessee or his assigns, every such licence shall,
unless otherwise expressed, extend only to the permission
actually given, or to any specific breach of any proviso or
covenant made or to be made, or to the actual assignment,
underlease, or ;Other matter thereby specifically authorized
to be done, but not so as to prevent any proceeding for any
subsequent breach (unless otherwise specified in such
licence); and all rights under covenants and powers of
forfeiture and re-entry contained in the -lease shall remain
in full force and virtue, and shall be available as against any
subsequent breach of covenant or condition, assignment,
underlease, or other matter not specifically authorized or
made dispunishable by such licence, in the same manner as
if no such licence had been given ; and the condition or right
of re-entry shall be and remain in all respects as if such
licence had not been given, except in respect of the particular
matter authorized to be done.

3. Where in any lease there is a power or condition
of re-entry on assigning, or underletting, or doing any other
specified act without licence, and a licence is given to one
of several lessees or co-owners to assign or underlet his share
or interest or to do any other act prohibited to be done with-
out licence, or is given to any lessee or owner, or any one
of several lessees or owners, to assign or underlet part only
of the property or to do any other such act as aforesaid in
respect of part only of the property, such licence shall not
operate to destroy or extinguish the right of re-entry in case
of any breach of the. covenant or condition by the co-lessee





or owner of the other shares. or interests in the property or
by the lessee or owner of the rest of the property, as the
case,may be, over or in respect of such shares or interests
or remaining property, but such right of re-entry shall
remain in full force over or in respect of the shares or
interests or property not the subject of such licence.

4. Where the reversion upon the lease is. severed and
the rent or other reservation is legally apportioned, the
assignee of each part of the reversion shall, in respect of
the apportioned rent or other reservation allotted or belong-
ing to him, have and be entitled to the benefit of all condi-
tions or powers of re-entry for non-payment of the original
rent or other reservation, in like manner as if such
conditions or powers had been reserved to him as incident
to his part of the reversion in respect of the apportioned rent
or other reservation allotted or belonging to him.

5. The Supreme Court shall have power to relieve
against a forfeiture fbr breach of a covenant or condition
to insure against loss or damage by fire, where no loss or
damage by fire has happened, and the breach has, in the
opinion of the court, been committed through accident or
mistake or otherwise without fraud or gross negligence, and
there is an insurance on foot at the time of the application
to the court in conformity with the covenant to insure, on
such terms as to the court may seem fit.

6. The Supreme Court, where such relief is granted,
shall direct a record of such relief having been granted to
be made by indorsement on the lease or otherwise.

7. The Supreme Court shall not have power to relieve
the same person more than once in respect of the same
covenant or condition ; nor shall it have power to grant any
relief where a forfeiture under the covenant in respect of
which relief is sought has been already waived out of court
in favour of the person seeking the relief.

8. The person entitled to the benefit of a covenant on
the part of a lessee or mortgagor to insure against loss or
damage by fire shall, on loss or damage by fire happening,





have the same advantage from any then subsisting insurance
relating to the building covenanted to be insured which has
been effected by the lessee or mortgagor in respect of his
interest tinder the lease or in the property or by any person
claiming under him, but not effected in conformity with the
covenant, as he would have from an insurance effected in
conformity with the covenant.

9. Where, on the bona fide purchase of a leasehold
interest under a lease containing a covenant on the part of
the lessee to insure against loss or damage by fire, the pur-
chaser is furnished with the written receipt of the person
entitled to receive the rent, or his agent, for the last payment
of rent accrued due before the completion of the purchase,
and there is subsisting at the time of the completion of the
purchase an insurance in conformity with the covenant, the
purchaser or any person claiming under him shall not be
subject to arty liability, by way of forfeiture or damages
or otherwise, in respect of any breach of the covenant com-
mitted at any time before the completion of the purchase of
which the purchaser had not notice before the completion
of the purchase; but this provision is not to take away any
remedy which the lessor or his legal representatives may
have against the lessee or his legal representatives for breach
of covenant.

10. Nothing in the foregoing provisions shall affect the
provisions of the Crown Rights (Re-entry) Ordinance.

11. No purchase, made bona fide and without fraud or
unfair dealing, of any reversionary interest in property of
any kind within the Colony shall be opened or set aside
merely on the ground of undervalue. For the purpose of
this section, 'purchase' shall include every kind of contract,
conveyance, or assignment under or by which any beneficial
interest in any kind of property may be acquired.
Originally 11 of 1873. Fraser 2 of 1873. 3 of 1886. Short title. Restriction on effect of licence to alienate. 22 & 23 Vict. C. 35, s. 1. Restricted operation of partial licence. 22 & 23 Vict. C. 35, s. 2. Apportionment of conditions of re-entry in certain cases. 22 & 23 Vict. C. 35, s. 3. Relief against forfeiture for breach of convenant to insure in certain cases. 22 & 23 Vict. C. 35, s. 4. Record of relief. 22 & 23 Vict. C. 35, s. 6. Lessor or mortgagee to have benefit of informal insurance. 22 & 23 Vict. c. 35, s. 7. [s. 8 cont.] Protection of purchaser against forfeiture under covenant for insurance against fire in certain cases. 22 7 23 Vict. C. 35, s. 8. Saving. (Cap. 126). Purchase of reversion not voidable for undervalue. 31 & 32 Vict. C. 4, s. 1. 3 of 1886, ss. 2, 3.

Originally 11 of 1873. Fraser 2 of 1873. 3 of 1886. Short title. Restriction on effect of licence to alienate. 22 & 23 Vict. C. 35, s. 1. Restricted operation of partial licence. 22 & 23 Vict. C. 35, s. 2. Apportionment of conditions of re-entry in certain cases. 22 & 23 Vict. C. 35, s. 3. Relief against forfeiture for breach of convenant to insure in certain cases. 22 & 23 Vict. C. 35, s. 4. Record of relief. 22 & 23 Vict. C. 35, s. 6. Lessor or mortgagee to have benefit of informal insurance. 22 & 23 Vict. c. 35, s. 7. [s. 8 cont.] Protection of purchaser against forfeiture under covenant for insurance against fire in certain cases. 22 7 23 Vict. C. 35, s. 8. Saving. (Cap. 126). Purchase of reversion not voidable for undervalue. 31 & 32 Vict. C. 4, s. 1. 3 of 1886, ss. 2, 3.

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