27Lease of certain association property

27 Lease of certain association property

27 Lease of certain association property

(1) An association may grant a lease of land forming part of its association property if—

(a) the land is not all of its association property, and

(b) the lease is registered under the Real Property Act 1900.

(2) The lease—

(a) must be accompanied by a certificate (an association certificate) in the approved form, and

(b) must not be registered unless—

(i) the initial period has expired, or

(ii) the grant of the lease has been authorised by the Tribunal.

(3) The association certificate must be under the seal of the association and be to the effect that—

(a) execution of the lease was authorised by special resolution, and

(b) any interest in the land has been released if—

(i) the lease has not been made subject to the interest, and

(ii) the interest is not a statutory interest or an interest recorded in the Register, and

(iii) the association has notice of the interest, and

(c) any by-law restricting the use of the association property no longer affects the interest passing under the lease.

(4) An association may by special resolution accept a surrender of, or exercise a right of re-entry under, a lease granted by it under this section.

(5) In this section—

grant a lease includes grant a sublease or transfer a lease, but only if the sublease or transfer is not in contravention of the lease.