Land Act 1958

Any lien or encumbrance of a residence area right shall be discharged—

in the case of an alienation under section 173, prior to the issue of the Crown grant;

in the case of a lease under section 174, prior to the grant of the lease.

Upon the sale of any residence area by the Crown under section 173 or the grant of a purchase lease under section 174 the boundaries thereof may be adjusted to make the same straight or to abut or conform to the boundaries of adjacent land.

Where any detached portion of Crown land lies between and adjoins a residence area and any highway road drain or waterway or where additional Crown land is required and is available to extend a residence area to an adequate size under a planning scheme under the Planning and Environment Act 1987 or a building regulation under the Building Act 1993 or where Crown land adjoining a residence area is available for disposal under this Act and cannot conveniently be disposed of except in conjunction with such residence area such Crown land may be added to the residence area and the whole sold under section 173 or leased under section 174 as one lot.