Victorian Consolidated Legislation

Sale of Land Act 1962 - SECT 29F

Purchaser may avoid prohibited terms contract

29F. Purchaser may avoid prohibited terms contract



(1) Except where otherwise expressly provided, if a terms contract is entered
into in contravention of this Act-

   (a)  the contract is voidable by the purchaser at any time before
        completion of the contract; and

   (b)  if the contract is avoided, a person is entitled to recover any money
        paid by that person under that contract.

(2) A terms contract is not voidable by the purchaser if a court is satisfied
that-

   (a)  the vendor has acted honestly and reasonably and ought fairly to be
        excused for the contravention; and

   (b)  the purchaser is substantially in as good a position as if all the
        relevant provisions of this Act had been complied with.

(3) Despite subsection (1), if a terms contract is entered into in
contravention of this Act and is avoided by the purchaser before the
completion of the contract, the purchaser is liable to pay an occupation rent
for the period during which the purchaser was-

   (a)  in actual possession of the land; or

   (b)  entitled to the receipt of the rents and profits of the land.