(1) Where, on first registration of property purchased under the Land Purchase Acts, the Authority is not satisfied that the granting of an absolute or qualified title is warranted, it shall register the property with a possessory title.
(2) Where the property has been acquired in exchange for property registered with a possessory title and the unregistered rights protected by such registration that apply to the property given in exchange are transferred under any provision of the Land Purchase Acts to the acquired property, the registration of the acquired property shall be made with a possessory title.