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Statutes of Newfoundland 1994


CHAPTER 27

CHAPTER 27

AN ACT TO AMEND THE LEASEHOLDS IN
ST. JOHN'S ACT

(Assented to December 16, 1994)

Analysis

PART I

1. S.5 Amdt.
Lease considered renewed

PART II

2. S.2 Amdt.
Interpretation

3. S.2.1 Added
City to acquire freehold

4. S.3 Amdt.
Modern lease

5. S.4 Amdt.
Ancient lease in residential use

6. S.5 Amdt.
Lease considered renewed

7. S.5.1 Added
Statutory lien

8. S.13 Amdt. and S.13.1 Added
13. Appointment of

arbitrator
13.1 Sections to apply to commercial use

9. S.14 Amdt.
Attorney for absentee landlord

10. S.18 Amdt.
Referral to arbitrator

11. S.18.1 Added
Appraisal

12. S.19 R&S
Arbitration procedures

13. S.20 Amdt.
Disposal of money award

14. S.20.1 Added
Payment into court

15. S.21 Amdt.
Landlord improvements

16. S.22 Amdt.
Form of reference and hearing

17. S.23 Amdt.
Apportionment of rent

18. Commencement

Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows:


PART I

RSN 1990 cL-10 as amended

1. Subsection 5(1) of the Leaseholds in St. John's Act is amended by deleting the figure "1994" and by substituting the figure "1995".

PART II

2. (1) Paragraph 2(1)(a) of the Act is repealed and the following substituted:

(a) "ancient lease" means a lease of vacant land within the city that was made before August 2, 1921 and includes an extension of an original lease whether the extension is expressed to be an extension or not of that original lease;

(2) Paragraph 2(1)(b) of the Act is amended by deleting the phrase "section 13" and substituting the phrase "subsection 13(1)".

(3) Subsection 2(1) of the Act is amended by deleting the word "and" at the end of paragraph (g), by deleting the period at the end of paragraph (h) and substituting a semicolon and the word "and" and by adding the following immediately after paragraph (h):

(i) "residential arbitrator" means an arbitrator appointed under subsection 13(2).

(4) Subsection 2(2) of the Act is repealed and the following substituted:

(2) The expression "within the city" refers to the boundaries of the city as they exist on the date this Part comes into force.

(5) Subsection 2(4) of the Act is repealed.

3. The Act is amended by adding immediately after section 2 the following:

City to acquire freehold

2.1 (1) After the commencement of this section all the right, title and interest of a lessor in any land subject to an ancient or a modern lease not in commercial use within the city shall vest in the city.

(2) The city shall compensate a lessor in

(a) an amount of money equal to 40 times the annual rent for an ancient lease; or

(b) an amount of money equal to 20 times the annual rent for a modern lease; and

(c) an amount of money for arrears of annual rent not to exceed 10 years of arrears.

(3) Before the city compensates a lessor for the title to land under subsection (2), the lessor shall give the city

(a) particulars of his or her estate and interest in the land;

(b) title deeds, plans and other documents in his or her possession or available to him or her relating to the title to the land; and

(c) other information that the city requests in connection with the land, the title to the land and his or her interest in it or in connection with his or her claim.

(4) Nothing contained in this Act shall be considered to require the city to make or arrange for the payment of compensation until the time that the lessor has established his or her title to the reasonable satisfaction of the city.

4. Section 3 of the Act is amended by adding after the phrase "to the lessor" the phrase "or to the city".

5. Paragraph 4(1)(a) of the Act is amended by deleting the word "lessor" and substituting the word "city".

6. Section 5 of the Act is amended by adding immediately after subsection (1) the following:

(1.1) Notwithstanding subsection (1), a lease under subsection (1) shall be considered to be extended until the later of December 31, 1995 or until the lessee acquires the freehold interest in the lease from the city.

7. The Act is amended by adding immediately after section 5 the following:

Statutory lien

5.1 (1) Where land vests in the city under section 2.1, the compensation that the city has paid the lessor under subsection 2.1(2) shall attach to the land whether in the hands of the lessee or in the hands of another person to whom the land may come by conveyance, foreclosure, devolution at law, or otherwise except by sale for taxes or for an amount paid by the city to the lessor.

(2) Where the city has paid compensation to the lessor under subsection 2.1(2), the city may give the lessee a written notice requiring the lessee to reimburse the city within 120 days of the date of the notice for the amount of money the city paid to the lessor.

(3) Where the lessee does not reimburse the city within the time stated in subsection (2), the amount of money paid by the city to the lessor becomes a debt owing by the lessee to the city.

(4) The provisions of section 281 of the City of St. John's Act shall apply, with the necessary changes, to this section.

(5) The city shall require a lessee of an ancient or modern lease not in commercial use who wishes to obtain a tax certificate to purchase the freehold title to the land in the amount set out in section 3 or paragraph 4(1)(a) and to pay an amount for arrears of annual rent not to exceed 10 years before issuing a tax certificate to the lessee.

8. (1) Section 13 of the Act is amended by being renumbered as subsection 13(1) and by inserting immediately after the words "under this Act" the words "concerning land that is being occupied for a commercial use".

(2) Section 13 of the Act is further amended by adding the following immediately after subsection (1):

(2) The Minister of Justice shall appoint a person to be the residential arbitrator to resolve disputes that may arise between the city and a lessor in connection with ancient and modern leases that are not in commercial use.

Sections to apply to commercial use

13.1 Sections 14 to 18.1 inclusive shall apply only to a lease of land that is being occupied for a commercial use.

9. Subsection 14(1) of the Act is amended by deleting the phrase "before December 1, 1977" and the commas before and after that phrase.

10. Subsection 18(1) of the Act is repealed and the following substituted:

Referral to arbitrator

18. (1) A person to whom a notice is sent under section 16 may apply to the arbitrator on the grounds that the lease is not current because at the time the lessee gave notice of his or her intention to exercise the right conferred by this Act to purchase the freehold there was no building on the land.

11. The Act is amended by adding immediately after section 18 the following:

Appraisal

18.1 (1) Where the parties to an ancient lease of land that is being occupied for a commercial use are unable to agree on a price for the land, the parties shall not apply to the arbitrator and shall each obtain an appraisal of the value of the land.

(2) Where the appraisals

(a) are within 15% of one another the average of the 2 appraisals shall be the purchase price; and

(b) differ by more than 15% an appraisal shall be carried out by a 3rd appraiser selected by the Registrar of the Supreme Court and the average of the 2 appraisals that are closest to each other in value shall be the purchase price.

12. Section 19 of the Act is repealed and the following substituted:

Arbitration procedures

19. The provisions of the Arbitration Act relating to arbitration apply to all arbitrations by the arbitrator or the residential arbitrator in respect of matters referred to him or her under subsection 13(2), section 16 or 18 in so far as those provisions do not conflict with this Act.

13. (1) Subsection 20(1) of the Act is amended by deleting the word "act" and substituting the word "Act".

(2) Subsection 20(2) of the Act is amended by inserting immediately after the words "freehold by" the phrase "either the city or".

(3) Subsection 20(3) of the Act is amended by deleting the words "this section or subsection 15(1)" and substituting the words "this section, subsection 15(1) or section 20.1".

14. The Act is amended by adding the following immediately after section 20:

Payment into court

20.1 Where the city receives an amount of money from a lessee for a conveyance of a freehold under this Act and the lessor is not known or is known but cannot be found, the city shall pay the money into the Supreme Court.

15. Section 21 of the Act is amended by inserting immediately after the phrase "the arbitrator" the words "or the residential arbitrator".

16. (1) Subsection 22(1) of the Act is amended by adding immediately after the phrase "the arbitrator" the words "or the residential arbitrator".

(2) Subsection 22(2) of the Act is further amended by adding immediately after the word "arbitrator" wherever it appears the words "or the residential arbitrator".

17. Subsection 23(2) of the Act is amended by adding immediately after the word "arbitrator" the words "or the residential arbitrator".

Commencement

18. Part II of the Act shall come into force on a date to be proclaimed by the Lieutenant-Governor in Council.

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