Victorian Consolidated Legislation

Sale of Land Act 1962 - SECT 29O

Exception if mortgage to be discharged

29O. Exception if mortgage to be discharged



(1) Section 29M does not apply to the sale of land under a terms contract if
the contract provides that-

   (a)  any mortgage affecting the land sold is to be discharged as to that
        land before the purchaser becomes or on the purchaser becoming
        entitled under the contract to possession or to the receipt of the
        rents and profits; and

   (b)  the deposit and all other money payable under the contract (other than
        any money payable in excess of the amount required to discharge the
        mortgage) are to be paid to a legal practitioner, conveyancer or a
        licensed estate agent to be applied in or towards discharging the
        mortgage.

(2) If a terms contract provides for the matters in subsection (1) and the
mortgage is not discharged within 90 days of the making of the contract and
the purchaser is not in default under the contract-

   (a)  the contract is voidable by the purchaser at any time before the
        mortgage is discharged; and

   (b)  if the contract is avoided, the purchaser is entitled to recover all
        money paid under the contract.