Victorian Consolidated Legislation

Sale of Land Act 1962 - SECT 26

Application of deposit moneys where contract rescinded

26. Application of deposit moneys where contract rescinded



(1) Notwithstanding sections 24 and 25, where in a transaction for the sale of
land-

   (a)  the vendor rescinds the contract as the result of a default by the
        purchaser, the vendor shall be immediately entitled to be paid the
        deposit moneys in his own right; or

   (b)  the purchaser rescinds the contract as the result of a default by the
        vendor, the purchaser shall be entitled to the immediate return of the
        deposit moneys.

(2) Nothing in subsection (1) shall limit or affect the power of the court-

   (a)  to order the repayment of the deposit moneys (whether that order is
        made pursuant to section 49(2) of the Property Law Act 1958 or
        otherwise); or

   (b)  to relieve a purchaser against forfeiture of the deposit.