HOME BUILDING ACT 1989 - SECT 7D
Interests in land under contract
HOME BUILDING ACT 1989 - SECT 7D
Interests in land under contract
7D Interests in land under contract
(1) A contract does not give the holder of a contractor licence or any other
person a legal or equitable estate or interest in any land, and a provision in
a contract or other agreement is void to the extent that it purports to create
such an estate or interest.
(2) Accordingly, the holder of a contractor
licence or any other person may not lodge a caveat under the Real Property
Act 1900 in respect of an estate or interest prohibited by subsection (1).
(3) However, subsection (1) does not apply to a provision in a contract that
creates a charge over land if--
(a) the land the subject of the charge is land
on which the contract work is, or is to be, carried out, and
(b) the charge
is in favour of the holder of a contractor licence who is a party to the
contract, and
(c) the charge is created to secure the payment to the holder
of the contractor licence by another party to the contract of money due under
the contract, but only if a court or tribunal has made an order or judgment
that such payment be made, and
(d) in the case of a charge over land under
the Real Property Act 1900--the party to the contract against whom the
judgment or order is made is the registered proprietor of the land.
(4) A
charge referred to in subsection (3) over land under the
Real Property Act 1900ceases to operate if the party to the contract against
whom the judgment or order is made ceases to be the registered proprietor of
the land so charged.