(1)  Where, at the expiration of the term of a settlement lease, the lessee has failed to exercise the right to purchase the holding under that lease pursuant to section 35 , TDR may require the lessee to purchase that holding.

(2)  Where, pursuant to subsection (1) , TDR requires a lessee to purchase a holding under a settlement lease, it shall, by notice in writing, inform the lessee accordingly and the lessee is deemed to have exercised his right of purchase in accordance with section 35 .