Section 112 Property and Conveyancing Law of the Western Region of Nigeria 1959

Section 112 of the Property and Conveyancing Law of the Western Region of Nigeria 1959 is about Realization of leasehold mortgages. It provides as follows:

(1) Where a term of years absolute has been mortgaged by the creation of
another term of years absolute limited thereout or by a charge by way of legal
mortgage and the mortgagee sells under his statutory or express power of sale
(a) the conveyance by him shall operate to convey to the purchaser not only the
mortgage term, if any, but also (unless expressly excepted with the leave of the court) the leasehold reversion affected by the mortgage, subject to any legal mortgage having priority to the mortgage in right of which the sale is made and to any money thereby secured, and thereupon;

(b) the mortgage term, or the charge by way of legal mortgage and any subsequent
mortgage term or charge, shall merge in such leasehold reversion or be extinguished unless excepted as aforesaid;

and such conveyance may, as respects the leasehold reversion, be made in the name of the estate owner in whom it is vested.

Where a licence to assign is required on a sale by a mortgagee, such licence shall
not be unreasonably refused.

(2) Where any such mortgagee obtains an order for foreclosure absolute, the order
shall, unless it otherwise provides, operate (without giving rise to a forfeiture for want of a licence to assign) to vest the leasehold reversion affected by the mortgage
and any subsequent mortgage term in him, subject to any legal mortgage having
priority to the mortgage in right of which the foreclosure is obtained and to any
money thereby secured, and thereupon the mortgage term and any subsequent
mortgage term or charge by way of legal mortgage bound by the order shall, subject
to any express provision to the contrary contained in the order, merge in such
leasehold reversion or be extinguished.

(3) Where any such mortgagee acquires a title under the Limitation Law, he or the
persons deriving title under him, may by deed declare that the leasehold reversion
affected by the mortgage and any mortgage term affected by the title so acquired
shall vest in him, free from any right of redemption which is barred, and the same
shall (without giving rise to a forfeiture for want of a licence to assign) vest
accordingly, and thereupon the mortgage term, if any, and any other mortgage term
or charge by way of legal mortgage affected by the title so acquired shall, subject to
any express provision to the contrary contained in the deed, merge in such leasehold reversion or be extinguished.

(4) Where the mortgage includes fixtures or chattels personal, any statutory power
of sale and any right to foreclose or take possession shall extend to the absolute or
other interest therein affected by the charge.

(5) In the case of a sub-mortgage by subdemise of a term (less a nominal period)
itself limited out of a leasehold reversion, the foregoing provisions of this section
shall operate as if the derivative term created by the sub-mortgage had been limited
out of the leasehold reversion, and so as (subject as aforesaid) to merge the principal mortgage term therein as well as the derivative term created by the sub-mortgage and to enable the sub-mortgagee to convey the leasehold reversion or acquire it by foreclosure, vesting, or otherwise as aforesaid.

(6) This section takes effect without prejudice to any encumbrance or trust affecting
the leasehold reversion which has priority over the mortgage in right of which the
sale, foreclosure, or title is made or acquired, and applies to a mortgage whether
executed before or after the commencement of this Law, and to a mortgage term
created by this Law, but does not apply where the mortgage term does not comprise
the whole of the land included in the leasehold reversion unless the rent (if any)
payable in respect of that reversion has been apportioned as respects the land
affected, or the rent is of no money value or no rent is reserved, and unless the
lessee’s covenants and conditions (if any) have been apportioned, either expressly
or by implication, as respects the land affected.