New South Wales Consolidated Acts

STRATA SCHEMES (LEASEHOLD DEVELOPMENT) ACT 1986 - SECT 38

38 Restrictions on re-entry or forfeiture of lease of lot

(1) Where the lease of a lot is subject to a registered mortgage, charge or covenant charge, a right of re-entry or forfeiture under a provision of the lease for a breach of any covenant, condition or agreement (express or implied) in the lease shall, notwithstanding section 129 (6) of the Conveyancing Act 1919 , not be exercised unless the lessor has served on the mortgagee, chargee or covenant chargee a copy of the notice relating to that breach served on the lessee under section 129 of that Act.

(2) Where a lessor has brought legal proceedings to enforce a right of re-entry or forfeiture under a provision of a lease of a lot, the Supreme Court may, on application by any person claiming as mortgagee, chargee or covenant chargee of the lot make an order:

(a) staying those proceedings on such terms as appear to the Supreme Court to be just and equitable, and

(b) vesting, for the whole of the remaining term of the lease, or any shorter term, the lease of the lot in that person on such conditions as to the execution of any dealing or other document, payment of proper and reasonable rent, costs, expenses, damages, compensation, giving security or otherwise as that Court, having regard to all the circumstances of the case, thinks just and equitable.

(3) An order under subsection (2):

(a) may be made in proceedings for the purpose brought by the person claiming as mortgagee, chargee or covenant chargee, or

(b) where the proceedings brought by the lessor are already in the Supreme Court, may be made in those proceedings.