§§ 5, 6.

Conditions affecting small hold

ings.

is a "full fair rent" is determinable by the county council itself. See sub-sect. 5. This is of great importance, for by making the council the sole judge of what is a full fair rent it enables them to avoid losses which would otherwise fall on the rates or the Exchequer, if too small a figure were taken. There is, however, no provision for a sinking fund to recoup the capital expenditure which will have been incurred on acquiring the land, but as the "full fair rent" is to be estimated on the footing of the landlord doing all structural repairs to buildings, and under the conditions attaching under sect. 6, after sale of a small holding, such repairs must be borne by the purchaser, there would seem to be a small margin available towards a sinking fund. The small holder purchasing his holding by paying for a period of sixty years the full fair rent, must make payment of the first half-yearly instalment on completion of the purchase. The Act does not appear to compel councils to sell small holdings ou these terms, but merely empowers them to do so, though it is evidently intended that they should exercise such power.

(2) The terminable annuity is to be secured by a charge on the holding in favour of the council, which may be in the form of a charge by deed by way of legal mortgage under sect. 87 of the Law of Property Act, 1925. The first instalment must be paid on completion.

(3) Except as to the first instalment, which is payable on completion, payment of the terminable annuity may be postponed by the county council for a term not exceeding five years, but only in consideration of capital expenditure by the purchaser which increases the value of the holding. It would seem, though this is not quite clear, that the capital expenditure need not necessarily have taken place before the agreement to postpone payment of the annuity and that the postponement may be in consideration of an agreement to make the capital expenditure. But in any case there is an obligation on the council to make terms in this respect which will protect them from incurring loss.

6.-(1.) A small holding sold by a county council under this Act, shall for a term of forty years from the date of the sale, and thereafter so long as the holding remains charged with the terminable annuity, be held subject to the following conditions:-1

(a) Any periodical payments due in respect of the terminable annuity shall be duly made:2

(b) The holding shall not be divided, sold, assigned, let, or sub-let without the consent of the county council:3

(c) The holding shall be cultivated by the owner or occupier as the case may be, in accordance with

§ 6.

the rules of good husbandry as defined in the Agricultural Holdings Act, 1923,4 and shall not 13 & 14 be used for any purpose other than agriculture: 5 Geo. 5, c. 9. (d) Not more than one dwelling-house shall be erected on the holding unless, in the opinion of the council, additional accommodation is required for the proper cultivation of the holding:

(e) Any dwelling-house erected on the holding shall
comply with such requirements as the county
council may impose for securing healthiness and
freedom from overcrowding:

(f) Any dwelling-house or other building erected on
the holding shall be kept in repair and insured
against fire by the owner to the satisfaction of
the county council, and the receipts for
premiums produced when required by them:
(g) No dwelling-house or building on the holding shall
be used for the sale of intoxicating liquors:
(h) In the case of any holding on which, in the
opinion of the county council, a dwelling-house
ought not to be erected, no dwelling-house shall
be erected on the holding without the consent
of the county council:

Provided that a county council may, if they think fit, subject, in the case of a holding in respect of which a contribution is payable by the Minister, to the consent of the Minister, as respects the whole or any part of the holding, either at the time of the sale or subsequently, and either without consideration or for such consideration as they think fit, relax or dispense with any of the above conditions.

§ 6.

The Minister may, in giving his consent to any such relaxation or dispensation, impose such terms as he thinks fit, including a requirement as to the consideration to be charged, and the application thereof in whole or in part in satisfaction of any contributions payable by him under this Part of this Act.

(2.) If any such condition is broken, the council may, after giving the owner an opportunity of remedying the breach (if it is capable of remedy), either take possession of the holding or order the sale of the holding without taking possession.6

(3.) If, on the decease of the owner while the holding is subject to the conditions imposed by this section, the holding would, by reason of any devise, bequest, intestacy, or otherwise, become subdivided, the council may require the holding to be sold within twelve months after such. decease to some one person, and if default is made in so selling the holding, the council may either take possession of the holding or order the sale of the holding without taking possession.6

(4.) A small holding let by a county council shall be held subject to the conditions on which it would under this section be held if it were sold, except so far as those conditions relate to the terminable annuity and to repairs. and insurance against fire; and, if any such condition or any term of the letting is broken, the council may, after giving the tenant an opportunity of remedying the breach (if it is capable of remedy), determine the tenancy.7

(1) This section imposes conditions imposed upon purchasers of small holdings similar, but with several additions, to those in the repealed sect. 12 of the Act of 1908. The minimum period is now forty years instead of twenty years as under the repealed section. See the Land Registration (England) Rules relating to the sale by county councils of small holdings, post, p. 205.

(2) In addition to the remedies for non-payment of the terminable annuity given by this section the county council may avail themselves of the remedies by distress, entry, etc. given

in respect of annual sums charged on land by sect. 121 of the Law of Property Act, 1925.

(3) This clause will prevent the purchaser of a small holding selling or mortgaging it by demise without the council's consent, though a charge by way of legal mortgage or equitable mortgage would appear not to be forbidden. It is assumed that the word divided" refers to a division in interest or property, not to physical division by fencing, though this is not quite clear.

66

(4) The "Rules of good husbandry are defined in sect. 57 of the Agricultural Holdings Act, 1923, as follows:

66 6

'Rules of good husbandry' means (due regard being had to the character of the holding) so far as is practicable having regard to its character and position

(a) the maintenance of the land (whether arable, meadow,
or pasture), clean and in a good state of cultivation
and fertility, and in good condition; and

(b) the maintenance and clearing of drains, embankments,
and ditches; and

(c) the maintenance and proper repair of fences, stone
walls, gates, and hedges; and

(d) the execution of repairs to buildings, being repairs

which are necessary for the proper cultivation and
working of the land on which they are to be
executed; and

(e) such rules of good husbandry as are generally recog-
nised as applying to holdings of the same character
and in the same neighbourhood as the holding in
respect of which the expression is to be applied:
"Provided that the foregoing definition shall not imply an
obligation on the part of any person to maintain or clear
drains, embankments, or ditches, if and so far as the execu-
tion of the works required is rendered impossible (except
at prohibitive or unreasonable expense) by reason of sub-
sidence of any land or the blocking of outfalls which are not
under the control of that person, or in its application to
land in the occupation of a tenant imply an obligation on
the part of the tenant-

(i) to maintain or clear drains, embankments, or ditches,
or to maintain or properly repair fences, stone walls,
gates, or hedges where such work is not required
to be done by him under his contract of tenancy; or
(ii) to execute repairs to buildings which are not required
to be executed by him under his contract of
tenancy."

§§ 6, 7.

Recovery of possession and disposal

of small holdings.

(5) See the definition of the Act of 1908, ante, p. 86.

66

agriculture" in sect. 61 (1) of

(6) The county council have power (but are not compelled) to order a sale of the holding (1) on breach of any of the conditions in sub-sect. 1, but only after giving the owner an opportunity of remedying the breach if it is capable of remedy; (2) if on the decease of the owner, while the conditions still apply to the holding, the holding would become sub-divided under his will or intestacy and default is made by the persons entitled to sell at the request of the council. It appears to be contemplated that the sale should be made by the person or persons entitled to the holding upon an order of the council, but if the council have taken a legal charge to secure the balance of purchase they would themselves be able to sell as mortgagees. The proceeds of sale will be dealt with as directed by sect. 8 (1). If an order of the court for a sale is obtained and the person entitled refuses or neglects to convey to the purchaser, a vesting order may be obtained under the Trustee Act, 1925 (15 Geo. 5, c. 19), s. 47. When a sale takes place under this section it does not appear that the sale must be subject to the restrictions affecting the first sale, i.e., to a person who will himself cultivate the holding. If the council take possession of the holding the whole interest of the owner will vest in the council under sect. 7 of this Act.

(7) A holding let by a county council will be held subject to clauses (b), (c), (d), (e), (g) and (h), whether or not expressly mentioned in his lease or tenancy agreement.

7.-(1.) Where a county council take possession of a small holding under the last foregoing section, all the estate, right, interest, and claim of the owner in or to the small holding shall, subject as in this section mentioned, vest in and become the property of the county council, and the county, council may either retain the small holding under their own management or sell or otherwise dispose of it as they think expedient.1

(2.) Where a county council take possession of a small holding as aforesaid they shall, save as hereinafter mentioned, pay to the owner either

(a) such sum as may be agreed upon; or

(b) a sum equal to the value of the interest in the small holding at the disposal of the county council,