PROPERTY LAW ACT 1974 - SECT 88 Application of proceeds of sale

PROPERTY LAW ACT 1974 - SECT 88

88 Application of proceeds of sale

(1) Subject to this section, the money arising from sale, and which is in fact received by the mortgagee, shall be held by the mortgagee in trust to be applied by the mortgagee—

(a) firstly, in payment of all costs, charges and expenses properly incurred by the mortgagee as incident to the sale, or any attempted sale, or otherwise; and

(b) secondly, in discharge of the mortgage money, interest and costs, and other money (if any) due under the mortgage; and

(c) thirdly, in payment of any subsequent mortgages or encumbrances;

and the residue (if any) of the money so received shall be paid to the person entitled to receive or entitled to give receipts for the proceeds of sale of the mortgaged property.

(2) However, if the money arises from the sale of mortgaged freehold property that has been disclaimed under the Bankruptcy Act 1966 (Cwlth) , section 133 (1) or the Corporations Act , section 568 (1) , the residue of the money mentioned in subsection (1) must be paid into court.

(3) The money that is in fact received by a mortgagee arising from sale in the exercise of the power conferred under the Mineral Resources Act must, subject to subsection (1) (a) and (b) , be dealt with as provided under that Act.

(4) The proceeds of sale arising from a sale by a mortgagee in the exercise of the power conferred by the Land Act shall be disposed of as provided in that Act.