Land Titles Act 1925

Whenever an action is brought against a registered proprietor in either of the last 2 cases excepted in section 152, if the defendant or any person through whom he or she claims has made improvements on the land since obtaining a registered title thereto, then, whether he or she admits or denies the plaintiff’s title, he or she may plead the fact of the improvements being made, and may set a value thereon, and also on the land as distinct therefrom, and also give evidence thereof at the trial.

If the court finds for the plaintiff or the plaintiff’s title is admitted, the court must assess the value of the claimed improvements, and must also separately assess the value that the land would have had if the improvements had not been made.

No writ of possession shall issue in any such case unless the plaintiff first pays into court for the use of the defendant the value of the improvements so assessed, deducting only the costs (if any) to which he or she is entitled in the action.

If the plaintiff fails to make that payment within 3 months after verdict, the judgment to which he or she is entitled shall thereafter be limited to the sum separately assessed, as the value of the land together with costs of suit, and the defendant shall upon satisfaction thereof be entitled to retain the land and improvements.

In every case in which the defendant is entitled to indemnity from the Territory, the Territory shall be made a codefendant, and may defend the action either severally or jointly, or may leave the defence wholly to the Territory, as he or she thinks fit.

In no case shall the Territory be liable to the principal defendant for any greater damages than he or she actually sustains as the result of the action, after using all reasonable diligence in the defence thereof.