South Australian Consolidated Acts

SOUTH AUSTRALIAN CO-OPERATIVE AND COMMUNITY HOUSING ACT 1991 - SECT 67

67—Creation of option

        (1)         A charge over real property under this Division also constitutes an option to SAHT to purchase the property in the event of a proposed sale by the co-operative (being an option that prevails over any other option that may exist in relation to the property).

        (2)         If a co-operative proposes to sell real property that is subject to such an option (other than in pursuance of an order under section 66), the co-operative must give SAHT at least two months notice, in writing, of the proposed sale.

        (3)         SAHT must then decide, within the two month period, whether or not to exercise the option.

        (4)         If SAHT decides to exercise the option, the value of the property will be taken to be the current market value of the property.

        (5)         If SAHT decides not to exercise the option, the co-operative may proceed to sell the property on the open market (subject to the charge on the property being discharged by the co-operative on completion of the sale).

        (6)         If SAHT acquires property from a co-operative pursuant to this section, SAHT must, as soon as is reasonably practicable, divest itself of the property.