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PROPERTY LAW ACT 1958 - THIRD SCHEDULE

Third Schedule—General conditions of sale of land

Sch. 3 cl. 1 amended by No. 35/1996 s. 453(Sch. 1 item 68.4(a)).

1.     The muniments of title in respect of the land sold shall be produced on demand to the purchaser or his legal practitioner who shall within twenty-one days from the day of sale deliver to the vendor or his legal practitioner in writing all requisitions or objections (if any) on or to the title or concerning any matter appearing in the particulars or conditions. If the vendor fails to produce such muniments of title on demand such twenty-one days shall not commence to run until production thereof. All requisitions or objections not included in any such writing so delivered shall be deemed waived by the purchaser and in default of such requisitions (if none) and subject to such (if any) as are so delivered the purchaser shall be deemed to have accepted title.

Sch. 3 cl. 2 amended by No. 35/1996 s. 453(Sch. 1 item 68.4(a)).

2.     If the purchaser within the said twenty-one days makes any such requisition or objection as aforesaid which the vendor is unable or unwilling to remove or comply with the vendor or his legal practitioner (whether or not he has attempted to remove or comply with the same and notwithstanding any negotiation or litigation in respect thereof) may give to the purchaser or his legal practitioner notice in writing of the vendor's intention to rescind the contract at the expiration of seven days unless such requisition or objection is withdrawn and if such notice is so given and the requisition or objection is not withdrawn within such seven days the contract shall thereupon be rescinded and the vendor shall repay to the purchaser all deposit and other moneys received by him or his agent on account of the purchase money but without interest costs or damages and the same shall be accepted by the purchaser in full satisfaction of all claims.

Sch. 3 cl. 3 amended by Nos 10167 s. 3(1), 50/2011 s. 46(Sch. item 13).

3.     No omission from the particulars or mistake in the description measurements or area of the land hereby sold shall invalidate the sale unless the vendor rescinds pursuant to the last preceding Condition but if notified to the other party not less than three days before the day fixed for completion or within twenty-one days of the day of sale (whichever is the earlier) the same shall be the subject of compensation to be paid or received by the vendor as the case may require and to be assessed in case the parties differ by an arbitral tribunal consisting of a panel of 2 arbitrators in accordance with the provisions of the Commercial Arbitration Act 2011 and this Condition shall in that event be deemed to be a submission to arbitration within that Act.

Sch. 3 cl. 4 amended by No. 9967 s. 11.

4.     If either party defaults in payment of any money under this contract then interest at a rate two per cent higher than the rate for the time being fixed under section 2 of the Penalty Interest Rates Act 1983 in lieu of any rate named in the contract and computed upon the money overdue during the period of default shall be paid on demand made by the offended party without prejudice to any other rights of the offended party.

5.     Time shall be of the essence of this contract. However if either party defaults under this contract the offended party shall not be entitled to exercise any of his rights arising out of the default other than his right to sue for money then owing until he has served the offender with a written notice specifying the default and his intention to exercise his rights unless the default is remedied and the proper legal costs occasioned by the default and any interest demanded are all paid within fourteen days of service of the notice and the offender fails to comply with the notice.

6. (1)     Where the default has been made by the purchaser and is not remedied all monies unpaid under this contract shall become immediately payable and recoverable at the option of the vendor.

(2)     If the notice also states that unless the default is so remedied the contract will be rescinded pursuant to this condition then if the default is not so remedied the contract shall thereupon be rescinded.

(3)     Where the contract is rescinded and the notice is given by—

(a)     the purchaser, he shall be repaid any money together with any interest and costs payable under this contract and these shall be a charge on the land until payment.

(b)     the vendor, then an amount equal to one tenth of the price ("the security") shall be forfeited to the vendor as his absolute property and he may recover possession of the land and at his option may within one year of the date of rescission either—

(i)     retain the land and sue for damages for breach of contract; or

(ii)     resell the land in such manner as he sees fit and recover any deficiency in the price on the re-sale and any resulting expenses by way of liquidated damages.

In addition to the security the vendor may retain any part of the price paid to him pending the determination of damages and may apply that money in satisfaction or part satisfaction of those damages.

Sch. 3 cl. 7 amended by No. 35/1996 s. 453(Sch. 1 item 68.4(a)).

7.     If either party rescinds this contract pursuant to the last preceding Condition then that party or his legal practitioner may notify the stakeholder accordingly whereupon the stakeholder shall pay the moneys so held to the person giving the notice. The parties hereby each appoint the other as their lawful attorney for this purpose and absolve the stakeholder from any liability for complying with such notice.

8.     The land sold is purchased subject to the reservations exceptions and conditions (if any) contained in the Crown grant.

Sch. 3 cl. 9 amended by Nos 88/2005 s. 117(Sch. 2 item 4), 38/2023 s. 15.

9.     All rates, taxes (other than tax payable under the Land Tax Act 2005 and tax payable under a notice of assessment issued on or before the date of the contract in respect of a liability arising under the Windfall Gains Tax Act 2021 ), assessments, fire insurance premiums and other outgoings in respect of the said land shall be paid by the vendor and borne by the purchaser as from the date on which he becomes entitled to possession and the same shall if necessary be apportioned between the vendor and purchaser and the rent (if any) shall be also apportioned on the same day and the balance paid or received as the case may require. In calculating the apportionment any personal statutory benefit available to any party shall be disregarded. The vendor must not require the purchaser to pay any amount for or towards tax for which the vendor is or may become liable under the Land Tax Act 2005 or for which the vendor is liable under a notice of assessment issued on or before the date of the contract in respect of a liability arising under the Windfall Gains Tax Act 2021 .

10.     Subject to the purchaser obtaining the consent of the fire insurance company, paying such apportioned premium as aforesaid, and accepting title in fact or by implication, the vendor shall hold the existing policy of insurance for himself and in trust for the purchaser and all other persons having an insurable interest and to the extent of such respective interests.

Sch. 3 cl. 11 amended by Nos 10087 s. 3(1)(Sch. 1 item 192), 52/1994 s. 97(Sch. 3 item 24).

11.     After the settlement date, so long as any purchase or other moneys remain owing by the purchaser to the vendor—

(a)     the purchaser shall at his own cost insure and keep insured in the names of the vendor and the purchaser and every other person having an insurable interest in some insurance office to be approved by the vendor all buildings now erected or hereafter to be erected on the said land and shall deliver the policy and annual premium receipt to the vendor. Such policy shall be for the full insurable value inclusive of the policy in the last preceding Condition mentioned. Upon default herein by the purchaser the vendor may pay any renewal premium or (as the case may be) may effect such insurance and pay any premium and any money so paid by him shall be payable to him by the purchaser on demand;

(b)     the purchaser shall keep all such buildings and all fencing in tenantable repair;

(c)     neither the purchaser nor any transferee or sub‑purchaser of the said land shall alter the construction of such buildings or in any way pull down or remove the same or any part thereof without the consent in writing of the vendor first obtained;

(d)     the purchaser shall in relation to the said land comply with and observe all statutory provisions and all regulations and by-laws thereunder from time to time in force which are binding upon owners or occupiers of land and which relate to the prevention or destruction of pest animals noxious weeds or diseases of vegetation or vines;

(e)     the vendor may enter upon the said land twice in every year at a reasonable time of the day and view the condition thereof and of any buildings thereon.

12.     Upon payment of all purchase and other moneys payable by the purchaser under the contract the vendor shall execute a proper assurance to the purchaser of the land sold and deliver to the purchaser the muniments of title unless the land sold is under mortgage. If other land or interest are then comprised therein such muniments of title in the possession of the vendor as relate to other land property or interests may be retained by the vendor but he shall by the conveyance or other assurance give an acknowledgement and undertaking pursuant to section 64 of the Property Law Act 1958 . Such assurance shall be prepared by or on behalf and at the expense of the purchaser. The delivery of such document shall not by itself be deemed acceptance of title.

Sch. 3 cl. 13 amended by No. 35/1996 s. 453(Sch. 1 item 68.4(b) (i)(ii)).

13.     Any demand, notice or document by any party to this contract may be made or given by the legal practitioner for that party and shall be sufficiently served or delivered if served or delivered personally or if posted by prepaid post addressed either to the party to be served or his legal practitioner at their respective addresses as named in the contract or if served in any other manner authorized by the Supreme Court Rules for service of documents upon parties or their legal practitioners.

14. (a)     Where the consent or licence of any person or body is required to the sale, the vendor shall at his own expense apply for and use his best endeavours to obtain such consent or licence. If such consent or licence is not obtained by the date upon which the purchaser becomes entitled to possession of the land sold or to the receipt of the rents and profits thereof as the case may be (in these Conditions called "the settlement date") the contract shall be null and void and all moneys paid hereunder by the purchaser shall be refunded to him.

(b)     If the land sold is leasehold, the rent and other monetary obligations payable by the vendor (except capital payments payable under any Crown lease) shall be adjusted between the parties in the same manner as is provided by these Conditions for the adjustment of rates. The purchaser shall indemnify the vendor against all claims in respect of all the obligations under the said lease which are to be performed after the settlement date.

15.     The purchaser shall assume liability for compliance with any notices or orders relating to the property sold (other than those referring to apportionable outgoings) which are made or issued on or after the day of sale but the purchaser shall be entitled to enter on the property sold (without thereby being deemed to have accepted title) at any time prior to the settlement date for the purpose of complying with any such notice or order which requires to be complied with before the settlement date. The purchaser may also inspect the condition of the property and the chattels at any reasonable time during the period of seven days preceding the settlement date.

Sch. 3 cl. 16 amended by No. 11/2001 s. 3(Sch. item 59.2).

16.     Any payment due under this contract may be made or tendered either in cash or by a draft or cheque drawn on account of an authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth.

17. (1)     If the purchaser is not in default in any respect under the contract, at any time after acceptance of title and before payment in full of the purchase money the vendor shall on the request of the purchaser convey the land to the purchaser by a proper assurance prepared by and at the expense of the purchaser, the purchaser simultaneously with such conveyance re-conveying the land to the vendor by way of mortgage to secure payment of all moneys thereafter to become payable by the purchaser pursuant to the contract.

(2)     Such mortgage shall contain power of sale and re‑entry and all such other powers in favour of the mortgagee and all such covenants on the part of the mortgagor as are usual in mortgages and fully accord with and provide for the observance of all obligations of the purchaser pursuant to the contract and shall at the cost of the purchaser be prepared and registered in the office of the Registrar-General and until the mortgagor becomes entitled to a re-conveyance the mortgagee may retain all muniments of title of the land.

Sections 76, 77.



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