How Do I Consolidate Two State Leases Into One?

Part XIX of the Land Act 1996 is the mirror image of subdivision. Where Part XVIII turns one lease into many, Part XIX turns many into one — and it works the same way, by surrender and re-grant.

Section 131(1) — who may apply

Section 131(1)

Where a person is the lessee of adjoining land under two or more State leases, he may apply to the Minister for the grant to him of a new lease of all the land included in the leases.

Two requirements, both strict:

The same person must be the lessee of all of them. Leases held by different entities — even related companies — cannot be consolidated until they are in one name, which itself requires approval of a controlled dealing.
The land must adjoin. Separate parcels across town cannot be consolidated into a single lease.

Section 131(2) — what the application must contain

The application shall:

(a) be written;
(b) be accompanied by a plan showing the land desired to be included in the new lease; and
(c) where any part is within a physical planning area, be accompanied by planning permission for the consolidation under the Physical Planning Act 1989.

Section 131(3) — the same limit on refusal

The Minister may approve or refuse — but where the application is accompanied by planning permission for the consolidation, he shall not refuse the application for any physical planning reason.

As with subdivision, once the planning authority has approved, the Minister cannot revisit the planning merits. A refusal must rest on some other ground.

Sections 131(4) and (5) — approval, and what you must do

The Minister shall notify the decision in writing, and on approval shall specify:

(a) the reservations, covenants, conditions and provisions he thinks necessary for the new lease; and
(b) the fees and deposit payable for the grant.

The lessee must then have:

(a) paid all rent due under each of the leases of the respective lands to be included;
(b) accepted the reservations, covenants, conditions and provisions specified; and
(c) paid the fees and deposit for the grant of the new lease.

Every lease must be clean

Paragraph (a) requires rent paid under each of the leases. One parcel in arrears blocks the whole consolidation. Check the rent position on every title — and remember the gazetted arrears list under section 83(7) and (8) is prima facie evidence that rent is due and unpaid.

Read the specified conditions before accepting

A consolidated lease is a new lease with the conditions the Minister specifies. Where the leases being merged had different purposes, different improvement conditions and different expiry dates, the new lease must resolve all of that. Points to check before you accept:

The purpose clause. Consolidating a business lease with a residence lease produces one purpose for the whole. Confirm it covers everything you actually do.
The improvement conditions for the consolidated area, and the time allowed.
The term. Where the leases expire on different dates, establish what expiry date the new lease carries.
The rent on the consolidated parcel, and when the unimproved value is next re-assessed.

No advertisement, and no third parties

Under section 69(2)(j), a new lease granted under section 110, 130 or 131 is exempt from advertisement. Consolidation does not put your land back on the market.

Separately, section 69(2)(e) allows the Minister to exempt land from advertisement where it adjoins land owned by the applicant and is required to bring the holding up to a more workable unit — provided the claims of other neighbouring landowners are considered and their views taken into account. That is the route for acquiring an adjoining parcel you do not yet hold, before consolidating.

Why consolidate

One title instead of several — simpler to mortgage, transfer, insure and administer.
A building across a boundary. Development straddling two parcels is far cleaner on one title.
One set of conditions and one expiry date, rather than several running out of step.
A workable unit — particularly for agricultural and pastoral holdings assembled over time.
Preparation for redevelopment, often followed by a fresh subdivision on a better layout.

The sequence in practice

Confirm the leases adjoin and are all held by the same lessee.
Clear the rent on every lease, and address any unmet improvement conditions — by performance, or by a section 118(2) application.
Obtain planning permission for land in a physical planning area.
Lodge the written application with the plan.
Review the specified conditions, then accept and pay the fees and deposit.
Surrender and take the new lease, then register it under the Land Registration Act.
Deal with mortgagees — each existing security must be discharged or transferred onto the new title, and lenders will need to consent.

Sources

Land Act 1996 — ss 69, 83, 110, 118, 121, 129–131; Parts XVIII and XIX
Land Registration Act (Chapter 191)
Survey Act — PacLII 1986 Revised Edition

The Physical Planning Act 1989 is not carried in the PacLII databases, so no direct link is given here rather than an unverified one.

Check the section yourself

Before relying on anything here, read the current text of the Land Act 1996 and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.