Extension of Act to agreements for sale and purchase of land, and to leases containing a purchasing clause
16 Extension of Act to agreements for sale and purchase of land, and to leases containing a purchasing clause
The provisions of Divisions 1 and 4 of this Part of this Act shall extend and apply, mutatis mutandis, to an agreement for the sale and purchase of land (including exchange) existing at the commencement of this Act, and to a lease of land containing a compulsory purchasing clause existing at such commencement.
The court, on application by the lessee, may determine that under the circumstances of the case some or all of the provisions of the said Divisions shall apply to a lease of land containing an optional purchasing clause existing at the commencement of this Act, and such provisions shall then so apply.
For the purposes of this Part of this Act an agreement for the sale and purchase of land and a lease of land containing a compulsory purchasing clause, respectively, shall be deemed to be a mortgage of such land by the purchaser to the vendor to secure payment of the unpaid purchase-money and interest thereon, and fulfilment of the conditions set forth in the agreement.
For the purposes of this Part of this Act a lease of land containing an optional purchasing clause shall on any application to the court under the provisions of this Part of this Act be dealt with by the court as if the lessee had already notified his exercise of an option to purchase under an optional purchasing clause, and as if the lessor were mortgagee and the lessee were mortgagor of the land, and as if the rent reserved by the lease were interest and the agreed purchase-money were principal-moneys secured.
The term of the lease may, if necessary, be extended by the court for the purpose of giving effect to this provision.
Nothing in this section contained shall affect any reduction of rent made by or under the provisions of the Reduction of Rents Act 1931.
Nothing in this section or section nine of this Act contained shall prevent the lessor or other the person entitled to the rent of the premises comprised in any such lease from suing for and recovering any rent payable thereunder.
In this section an agreement for the sale and purchase of land means in any case in which land is not the whole of the subject-matter of the sale an agreement in which the land comprised is, as at the date of the contract, at least one-half in value of the property the subject-matter of the sale.
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