South Australian Consolidated Acts

FOREST PROPERTY ACT 2000 - SECT 8

8—Dealing with interest of transferee

        (1)         The transferee under a forest property agreement may, subject to the terms of the agreement, assign, mortgage or charge the interest conferred by a forest property agreement.

        (2)         The following consents are required for a transaction under this section—

            (a)         if the transaction relates to the interest conferred by a forest property (vegetation) agreement—

                  (i)         the owner of the land must consent to the transaction; and

                  (ii)         if the ownership of carbon rights is separated from ownership of the vegetation under a forest property (carbon rights) agreement—the owner of the carbon rights must also consent; and

                  (iii)         in the case of an assignment—the holder of any registered encumbrance over the land, and the holder of any registered mortgage or charge over the vegetation, must consent to the transaction; and

            (b)         if the transaction relates to the interest conferred by a forest property (carbon rights) agreement—

                  (i)         the owner of the relevant vegetation must consent to the transaction and, if that person is not the owner of the land, the owner of the land must also consent; and

                  (ii)         in the case of an assignment—the holder of any registered encumbrance over the land, and the holder of any registered mortgage or charge over the vegetation or the carbon rights, must also consent to the transaction.

        (3)         However, the Court may dispense with a consent under subsection (2) on the ground that—

            (a)         the consent has been unreasonably withheld; or

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

        (4)         A transaction under this section is ineffective unless the consents required under this section have been obtained or dispensed with.

        (5)         A transaction under this section affecting the interest conferred by a registered forest property agreement may also be registered under this Act and, unless or until registered, any interest conferred by the transaction is equitable only and therefore liable to be defeated by a purchaser who acquires an interest in the subject matter of the transaction in good faith, for value and without notice of the transaction.

        (6)         If the transferee under a forest property agreement assigns its interest under the agreement, and the assignment is registered, the assignee succeeds at law to all the rights and obligations of the transferee under the agreement (and references in this Act to the transferee are to be read as references to the assignee).