(1)A tenant by occupancy who wishes to assign the tenancy shall, subject to this section, give the first option of taking the assignment of the tenancy to the owner of the land.

(2)Subject to subsection (8), a tenant by occupancy who purports to assign the tenancy by occupancy without giving the first option of taking the assignment of the tenancy to the owner of the land commits an offence and is liable, on conviction, to a fine not exceeding ninety-six currency points or to imprisonment for a term not exceeding four years, or both; and the transaction shall be invalid and the tenant shall forfeit the right over the land and the land shall revert to the registered owner.

(3)The owner of land who wishes to sell the reversionary interest in the land shall, subject to this section, give the first option of buying that interest to the tenant by occupancy.

(4)Any offer made under this section shall be on a willing buyer willing seller basis.

(5)Where an option to buy is offered to any party under subsection (1) or (2), the party who makes the offer must set out the terms of the offer with sufficient detail and clarity for the party to whom the offer is made to understand the offer and make an appropriate response to it.

(6)A party to whom an offer to buy is made under subsection (1) or (2) shall, within three months after the receipt of the offer, either refuse the offer or make such a response as will enable meaningful negotiations to take place between the parties.

(7)Either party to the negotiations to which subsection (6) refers may, at any time after three months have elapsed since the negotiations commenced, refer the matter to the mediator for him or her to assist the parties to reach an agreement.

(8)Where the mediator is unable, after three months of negotiations, to assist the parties to reach an agreement on the option to buy, he or she shall make a declaration to that effect; and the party who made the offer of the option to buy shall thereupon be enabled to assign the tenancy by occupancy or, as the case may be, sell the reversionary interest free of the option to buy, to such other person as he or she thinks fit.

(9)Subject to this section, a change of ownership of title effected by the owner by sale, grant and succession or otherwise shall not in any way affect the existing lawful interests or bona fide occupant and the new owner shall be obliged to respect the existing interest.