(1) In this section
—
lease includes an agreement whether made orally or
in writing for the leasing or subleasing of land and includes a licence or
arrangement for the use of land;
lessor and lessee mean the parties to a lease and
their respective successors in title.
(2) If payment of a
rate or service charge imposed in respect of any land is due and payable,
notice may be given to the lessee of the land requiring the lessee to pay to
the local government any rent as it falls due in satisfaction of the rate or
service charge.
(3) The local
government is to give to the lessor a copy of the notice with an endorsement
that the original of it has been given to the lessee.
(4) The local
government may recover the amount of the rate or service charge as a debt from
the lessee if rent is not paid in accordance with the notice.
(5) Where an amount is
paid under this section to the local government —
(a) the
payment discharges the payer from any liability to any person to pay that
amount as rent; and
(b)
where as between a lessor and lessee the lessor is liable to pay the rate or
service charge, the amount paid may be set off by the lessee against the rent
payable to the lessor; and
(c) if
the amount exceeds the rent due, or if there is no rent due, the amount may be
set off by the lessee against accruing rent, or the balance recovered from the
lessor in a court of competent jurisdiction.
(6) To the extent that
an agreement purports to preclude a lessee from setting off or recovering
payments made to a local government under this section, the agreement is of no
effect.