(b.) Occupation with Right of Purchase.

Lands selected on this tenure are held under a license for twenty-five years. At any time subsequent to the first ten years, and after having resided and made the improvements hereinafter described, the licensee can, on payment of the upset price of the land, acquire the freehold. If the land be not purchased, the license may be exchanged for a lease in perpetuity.

The rent is 5 per cent, on the cash price of the land; a half-year's rent has to be paid in with the application, if surveyed land, which represents the half-year's rent due in advance on the 1st day of January or July following the selection. If the land is unsurveyed, the cost of survey is to be deposited, and is credited to the selector as so much rent paid in advance, counted from the 1st day of January or July following thirty days' notice of the completion of survey.

Residence and improvement of the land are compulsory, as hereinafter described.