South Australian Consolidated Acts

FOREST PROPERTY ACT 2000 - SECT 10

10—Variation and revocation of forest property agreement

        (1)         A registered forest property agreement may be varied or revoked—

            (a)         by agreement between—

                  (i)         the owner of the land on which the relevant forest vegetation is situated; and

                  (ii)         if the owner of the land is not the owner of the relevant forest vegetation—the owner of the forest vegetation; and

                  (iii)         if the owner of the forest vegetation is not the owner of the carbon rights—the owner of the carbon rights; or

            (b)         if the forest property agreement provides for unilateral variation or revocation, or variation of revocation in some other way—in accordance with the agreement; or

            (c)         if the transferee under the forest property agreement cannot be found, or has abandoned the exercise of rights under the agreement—by order of the Court.

        (2)         If, however, a forest property agreement takes the form of a declaration of trust, the agreement may only be varied or revoked—

            (a)         with the agreement of all beneficiaries of the trust; or

            (b)         as otherwise provided in the instrument of trust.

        (3)         If the transferee's interest under a registered forest property agreement is subject to a registered encumbrance, the agreement cannot be varied or revoked unless—

            (a)         the holder of the encumbrance consents; or

            (b)         the Court dispenses with the consent on the ground that—

                  (i)         the consent has been unreasonably withheld; or

                  (ii)         there is some other good reason to dispense with it.

        (4)         The variation or revocation of a registered forest property agreement does not take effect under this section unless or until the agreement, order or other instrument of variation or revocation is registered (and until registration the variation or revocation will only have an effect in equity and cannot affect the interests of a purchaser who acts in good faith, for value and without notice).

        (5)         If a forest property (vegetation) agreement is revoked or terminates for some other reason, the property in vegetation to which the agreement related reverts to the owner of the land on which the vegetation is growing.

        (6)         If a forest property (carbon rights) agreement is revoked or terminates for some other reason, the property in the carbon rights reverts to the owner of the relevant vegetation and ownership of the rights will then pass with ownership of the vegetation unless a further forest property (carbon rights) agreement separates ownership of the carbon rights from ownership of the vegetation.