Plain language law

New Zealand law explained for everyone

Land Transfer Act 2017

Dealings in estates and interests in land - Leases

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

You could also call this:

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

Illustration for Land Transfer Act 2017

You can have a lease that includes a promise to buy the land outright. You can promise to buy the land or have the right to buy it. When you want to buy the land, the owner must transfer it to you if you pay the money and do what the lease says. You must pay the purchase money and do what the lease requires. This is so you can buy the land from the owner. The promise or right to buy the land is considered an interest in the land. This interest in the land is covered by section 51. You should look at this section to understand more about interests in land. It applies to your promise or right to buy the land.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6731239.

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Topics:
Housing and property > Buying and selling homesHousing and property > Renting
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96: Recording of interests when lessee acquires fee simple, or

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

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98: Re-entry by lessor, or

"What happens when a lessor takes back leased land"

Part 3Dealings in estates and interests in land
Leases

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

  1. A registered lease may include—

  2. a covenant by the lessee to purchase the fee simple estate; or
    1. a right for the lessee to purchase the fee simple estate.

      1. The lessor must, when required to do so by the lessee in accordance with the lease, transfer the fee simple estate to the lessee if the lessee—

      2. pays the purchase money; and
        1. performs any covenants and obligations that must be performed under the lease for the lessee to purchase the fee simple.

          1. A covenant or right to which subsection (1) applies is an interest in land to which section 51 applies.

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