New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) Where the lessor has purchased or acquired (whether by operation of law or otherwise) the stratum estates in leasehold in all the units shown on the unit plan, or all the proprietors of all the units shown on the plan have purchased or acquired (whether by operation of law or otherwise) the reversionary estate in the whole of the land, the provisions of this section shall apply.
(2) In the case where the lessor has purchased or acquired the stratum estates in leasehold in all the units shown on the plan, those estates shall not merge with the lessor's reversionary estate in the land unless and until the lessor deposits with the Registrar a declaration that it is his intention that such merger should occur.
(3) In the case where all the proprietors of all the units shown on the plan have purchased or acquired the reversionary estate in the whole of the land, that estate shall not merge with the stratum estates in leasehold in these units unless and until—
(a) that reversionary estate is purchased or acquired by those proprietors in shares proportional to the unit entitlement of their respective units; and
(b) the registered proprietors deposit with the Registrar a declaration that it is their intention that such merger should occur.
(4) The effect of a merger in any case to which this section applies shall be:
(a) in any case where the lessor has purchased or acquired the stratum estates in leasehold in all of the units shown on the plan, to vest the stratum estate in freehold in each of the units in the lessor; or
(b) in any case where all the registered proprietors of the stratum estates in leasehold in all of the units shown on the plan have purchased or acquired the reversionary estate in the land, to vest the stratum estate in freehold in each of the units in the person who immediately before the merger was the proprietor of that unit.
(5) On the deposit of any declaration under subsection (2) or paragraph (b) of subsection (3), the Registrar, if he is satisfied that the stratum estates in leasehold in all of the units shown on the plan have merged under the provisions of this section with the reversionary estate in the land, shall—
(a) note on the supplementary record sheet a memorial of the merger;
(b) cancel the certificate of title in respect of the stratum estate in leasehold in each of the units, and issue a certificate of title in respect of the stratum estate in freehold in each of the units to the person entitled thereto in accordance with the provisions of subsection (4);
(c) cancel the lease; and
(d) cancel the lessor's certificate of title.
(6) For the purposes of subsection (5) the outstanding copy of the lease and of every such certificate of title shall be delivered to the Registrar at the time of the deposit of the declaration.
