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Legislative Assembly for the ACT: 2000 Week 6 Hansard (25 May) . . Page.. 1769 ..
MR HUMPHRIES (continuing):
A major initiative in this bill is the facilitation of extensions of lease terms by surrender of a crown lease and grant of a new lease over the land to the lessee. The government has adopted the surrender and regrant mechanism as the most effective way of extending the term of a crown lease and to make that process as easy as possible for leaseholders this bill contains provisions to ensure that interests noted on the title at the time the old lease is surrendered will be carried forward and noted on the title relating to the replacement lease.
Existing provisions about the continuation of mortgages and subleases after a lease is surrendered and a new lease is granted in its place are clarified. Those provisions apply to crown leases as well as general leases. New provisions to carry forward other interests, including easements, caveats and writs, are included in the bill. This will ensure that lessees and holders of interests in leased land are not disadvantaged by the surrender and regrant process.
The bill includes provisions to allow a mortgagor of property to apply for a court order to sell the property. Everywhere else in Australia this power is already given by legislation. It appears to be rarely used, but it is something which becomes more relevant in a falling property market. If a mortgagor has little equity in a mortgaged property and the value of the property is falling, it is possible that the mortgagor may see the amount owed become more than the amount which could be obtained by sale of the property. Sometimes in such a situation the mortgagee refuses to allow the mortgagor to sell because the whole of the debt will not be repaid by the sale. For many reasons, including the desire to halt the increase in the debt, the mortgagor may want to sell. These new provisions allow the mortgagor to ask the Supreme Court to examine the situation and, if the court thinks it is just to do so, make an order that the property be sold.
The bill clarifies the position relating to land which is subdivided into unit titles. It amends the Land Titles (Unit Titles) Act 1970 to make it clear that if there was an easement over other land for the benefit of the subdivided land then the benefit of that easement passes to all the units on the unit title plan. Great practical importance is attached to this when unit developments are involved. If a block has access to the street by way of a driveway on an easement over the block next door, then when the first block is subdivided into units and several townhouses are built on it the owners of the townhouses will need to have the same right to use the driveway as the owner of the original block had before it was subdivided. This bill ensures that such is the clear result.
Other provisions in the bill make minor technical and housekeeping changes which are necessary to keep this legislation up to date. They include clarifying the Registrar-General's power to note miscellaneous interests created by other legislation and the removal of redundant provisions. I commend the bill to the Assembly.
Debate (on motion by Mr Quinlan ) adjourned.
MR HUMPHRIES (Treasurer, Attorney-General and Minister for Justice and Community Safety) (11.06): Mr Speaker, I present the Victims of Crime (Financial Assistance) Amendment Bill 2000 (No 2), together with its explanatory memorandum.
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