Victorian Consolidated Legislation

Sale of Land Act 1962 - SECT 31

Power of purchaser to terminate a contract for sale of land

31. Power of purchaser to terminate a contract for sale of land



(1) This section applies to a contract for the sale of land other than-

   (a)  land used primarily for industrial or commercial purposes; and

   (b)  land which is more than 20 hectares and is used primarily for farming-

together with chattels (if any).

(2) Where a purchaser under a contract for the sale of land signs that
contract he may at any time before the expiration of three clear business days
after he has signed the contract give notice to the vendor that he wishes to
terminate the contract and where he has signed that notice and given it in
accordance with the provisions of this section the contract shall be
terminated.



(3) A notice under subsection (2) shall be given to the vendor or his agent or
left at the address for service of the vendor specified in the contract or the
address of his agent within three clear business days after the purchaser has
signed the contract.

(4) Where a contract for the sale of land has been terminated in accordance
with the provisions of this section the purchaser shall be entitled to the
return of all moneys paid by him under that contract except for the sum of
$100 or 0·2 per centum of the purchase price (whichever is the greater) which
may be retained by the vendor.

(5) This section does not apply to a contract for the sale of land where-

   (a)  the sale is by publicly advertised auction;

   (b)  the land is sold-

   (i)  within three clear business days before the day on which a publicly
        advertised auction for the sale of that land is to be held;

   (ii) on the day on which a publicly advertised auction for the sale of that
        land is held; or

   (iii) within three clear business days after the day on which a publicly
        advertised auction for the sale of that land was held;

   (c)  the vendor and purchaser have previously entered into a contract for
        the sale of the same land in substantially the same terms;

   (d)  the purchaser is an estate agent within the meaning of the
        Estate Agents Act 1980 or a corporate body; or

   (e)  the purchaser has sought and received independent advice from a legal
        practitioner before signing the contract.



(6) A contract to which this section applies shall contain a conspicuous
notice advising the purchaser that he may before the expiration of three clear
business days after he signs the contract give notice that he wishes to
terminate the contract.

(7) Where a contract to which this section applies does not contain the notice
required by subsection (6) the purchaser may rescind that contract at any time
before he becomes entitled to possession or to the receipt of rents and
profits.

(8) Any provision in the contract or in any other document whereby any right
conferred by this section on the purchaser is excluded, modified or restricted
shall be void and of no effect.

Division 2-Vendor's statements