Victorian Consolidated Legislation

Sale of Land Act 1962 - SECT 29H

Purchaser may call for a transfer on giving a mortgage back

29H. Purchaser may call for a transfer on giving a mortgage back



(1) A purchaser under a terms contract who is not in default under the
contract may require the vendor to convey or transfer the land to the
purchaser freed and discharged from all mortgages.

(2) The power under subsection (1) may be exercised at any time after
acceptance of title and before payment in full of the purchase money.

(3) A requirement under subsection (1) must be made by written notice served
on the vendor.

(4) The power to require the vendor to convey or transfer land is conditional
on the purchaser at the same time executing a mortgage or morgages in favour
of the vendor, or any other person the vendor requires, to secure the payment
of all money that would have become payable by the purchaser under the
contract if the mortgage had not been executed.

(5) If land sold under a terms contract is subject to a mortgage or mortgages
and the terms and conditions of the mortgage or mortgages are not more onerous
than the terms and conditions under the contract, the vendor may comply with a
requirement under subsection (1) by transferring the land subject to the
existing mortgage or mortgages.

(6) The power of the vendor under subsection (5) is conditional on the
purchaser executing a mortgage to secure the amount that should be payable to
the vendor having regard to the liabilities to be assumed by the purchaser
under the existing mortgage or mortgages.

(7) This section applies to a terms contract entered into before or after the
commencement of Part 6 of the Consumer Credit (Victoria) and Other Acts
Amendment Act 2008.