Land Transfer Act 2017

Dealings in estates and interests in land - Leases

96: Recording of interests when lessee acquires fee simple

You could also call this:

"What happens to lease interests when you buy the land you're leasing?"

When you buy the land you are leasing, you can ask the Registrar to note that the lease and the land ownership are now the same. You can also ask the Registrar to record any interests that affected the lease on the record of title for the land. This includes interests that benefited the lease, but only if the owner of the affected land agrees. When the transfer of the land to you is registered, the record of title for the land will be subject to the same interests that affected the lease. It will also have the benefit of the interests that the lease had, if the owner of the affected land agrees. If the owner does not agree, those interests will end and not be recorded on the record of title. Any interests that already affected the land will take priority over the interests that came from the lease. The interests that came from the lease will have the same priority as they did before. This rule does not apply if you are leasing land under the Land Act 1948.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731238.

This page was last updated on 24 December 2025 — View changes

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95: Registration of interests on replacement lease, or

"What happens to interests when a new lease replaces an old one"

97: Covenant by or right for lessee to purchase fee simple estate, or

"A lease can include a promise or right to buy the land outright from the owner."

Part 3Dealings in estates and interests in land
Leases

96Recording of interests when lessee acquires fee simple

This section applies if the lessee under a registered lease of land acquires the fee simple estate in the land.
The lessee may apply to the Registrar to—
note the merger of the fee simple and leasehold estates; and
record on the record of title for the fee simple estate—
1. all registered or noted interests to which the lease was subject; and
2. all registered or noted interests of which the lease had the benefit immediately before registration of the transfer, if the registered owner of the burdened land consents.

On registration of the transfer of the fee simple estate in the land to the lessee or to his or her personal representative, and the noting of the merger, the record of title of the fee simple estate—
becomes subject to all registered or noted interests to which the lease was subject immediately before registration of the transfer; and
has the benefit of all registered or noted interests of which the lease had the benefit immediately before registration of the transfer and to which the registered owner of the burdened land has consented.

If the registered owner of burdened land referred to in subsection (3)(b) does not consent to a registered or noted interest referred to in that paragraph, the interest terminates on registration of the transfer of the fee simple estate and noting of the merger, and must not be recorded on the record of title of the fee simple estate.
Interests to which the fee simple estate is subject immediately before registration of the transfer of the fee simple estate take priority over the interests referred to in subsection (3).
The interests referred to in subsection (3) have, as between themselves, the same priority they had immediately before the registration of the transfer.
This section does not apply to a lease of land under the Land Act 1948.

Compare

s 118A