Victorian Consolidated Legislation

Property Law Act 1958 - SECT 50

Discharge of incumbrances by the Court on sales or exchanges

50. Discharge of incumbrances by the Court on sales or exchanges



(1) Where land subject to any incumbrance, whether immediately realizable or
payable or not, is sold or exchanged by the Court, or out of court, the Court
may, if it thinks fit, on the application of any party to the sale or
exchange, direct or allow payment into court of such sum as is hereinafter
mentioned, that is to say-

   (a)  in the case of an annual sum charged on the land, or of a capital sum
        charged on a determinable interest in the land, the sum to be paid
        into court shall be of such amount as, when invested in Government
        securities, the Court considers will be sufficient, by means of the
        dividends thereof, to keep down or otherwise provide for that charge;
        and

   (b)  in any other case of capital money charged on the land, the sum to be
        paid into court shall be of an amount sufficient to meet the
        incumbrance and any interest due thereon-

but in either case there shall also be paid into court such additional amount
as the Court considers will be sufficient to meet the contingency of further
costs, expenses and interest, and any other contingency, except depreciation
of investments, not exceeding one-tenth part of the original amount to be paid
in, unless the Court for special reason thinks fit to require a larger
additional amount.

(2) Thereupon, the Court may, if it thinks fit, and either after or without
any notice to the incumbrancer, as the Court thinks fit, declare the land to
be freed from the incumbrance, and make any order for conveyance, or vesting
order, proper for giving effect to the sale or exchange, and give directions
for the retention and investment of the money in court and for the payment or
application of the income thereof.

(3) The Court may declare all other land (if any) affected by the incumbrance
(besides the land sold or exchanged) to be freed from the incumbrance, and
this power may be exercised either after or without notice to the
incumbrancer, and notwithstanding that on a previous occasion an order,
relating to the same incumbrance, has been made by the Court which was
confined to the land then sold or exchanged.

(4) On any application under this section the Court may, if it thinks fit, as
respects any vendor or purchaser, dispense with the service of any notice
which under this Act or otherwise would apart from this subsection be required
to be served on the vendor or purchaser.

(5) After notice served on the persons interested in or entitled to the money
or fund in court, the Court may direct payment or transfer thereof to the
persons entitled to receive or give a discharge for the same, on such terms as
to delivering up of deeds or other documents or on such other terms as the
Court thinks fit, and generally may give directions respecting the application
or distribution of the capital or income thereof.

(6) This section shall apply to sales or exchanges whether made
before or after the commencement of this Act, and to incumbrances whether
created by statute or otherwise.

Conveyances and other Instruments