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SALE OF LAND ACT 1962 - SECT 27

Release of deposit moneys in certain circumstances

S. 27(1) amended by Nos 35/1996 s. 453(Sch. 1 item 73.7), 75/2006 s. 192(Sch.  2 item 5.8).

    (1)     Where a legal practitioner, conveyancer or estate agent is holding deposit moneys as a stakeholder under section 24, the purchaser may by authorization in writing empower the legal practitioner, conveyancer or estate agent (as the case may be) to release those deposit moneys to the vendor in his own right or as the vendor directs.

    (2)     Subsection (1) shall only operate—

        (a)     where the contract is not subject to any condition enuring for the benefit of the purchaser; and

        (b)     where the purchaser has accepted title or may be deemed to have accepted title.

S. 27(3) amended by No. 42/1989 s. 4(b).

    (3)     An authorization in writing shall not be effective unless and until the vendor has given the purchaser a notice in writing setting out—

S. 27(3)(a) substituted by No. 42/1989 s. 4(b).

        (a)     if there is a mortgage over the land which is the subject of the transaction, the particulars specified in Schedule 1; and

S. 27(3)(b) repealed by No. 42/1989 s. 4(b).

    *     *     *     *     *

S. 27(3)(c) amended by No. 42/1989 s. 4(c).

        (c)     particulars of any caveat lodged under the Transfer of Land Act 1958 in respect of the land which is the subject of the transaction—

and the purchaser has given notice under subsection (4) that he is satisfied with those particulars.

    (4)     Where the purchaser is satisfied—

        (a)     that the particulars provided under paragraphs (a) and (c) of subsection (3) are accurate; and

S. 27(4)(b) amended by No. 48/1991 s. 56(3).

        (b)     that the particulars provided under paragraph (a) of subsection (3) indicate that the purchase price is sufficient to discharge all mortgages over the property—

he shall give the vendor notice in writing to that effect within 28 days of receiving the particulars.

    (5)     A notice in writing under subsection (4) stating that the purchaser is satisfied with the particulars shall be deemed to be the authorization required by subsections (1) (2) and (3).

    (6)     Where the purchaser is not satisfied with the particulars he shall within 28 days of receiving them give notice in writing stating that he is not satisfied with the particulars and giving the reasons why he is not satisfied.

    (7)     Where the purchaser fails to give a notice under either subsection (4) or (6) within the time limited by the subsection he shall—

        (a)     be deemed to be satisfied with the particulars provided; and

        (b)     be deemed to have given the authorization required by subsection (1).

    (8)     Where a vendor knowingly or recklessly supplies false information to the purchaser regarding any particulars required to be given under subsection (3)—

S. 27(8)(a) amended by No. 9858 s. 4(2).

        (a)     he shall be guilty of an offence against this Act and liable to a penalty of not more than 50 penalty units; and

        (b)     the purchaser shall be entitled to rescind the contract for the sale of the land and recover the deposit moneys.

S. 27(9) amended by No. 9688 s. 2.

    (9)     Where an estate agent is empowered to pay deposit moneys to the vendor pursuant to subsection (1) the estate agent may retain out of the deposit moneys an amount equal to the commission and any auction expenses that he is or will become entitled to and any other moneys that he is or will become entitled to by law in relation to the transaction.

    (10)     Notwithstanding section 2(1) of this Act, for the purposes of this section "mortgage" means a charge or lien on land for securing money or money's worth.

S. 27(11) amended by Nos 10216 s. 7, 53/1988 s. 45(Sch. 2 item 66) (as amended by No. 47/1989 s. 19(zf)), 35/1996 s. 453(Sch. 1 item 73.7), 75/2006 s. 192(Sch.  2 item 5.8).

    (11)     This section shall not operate to authorize the release of deposit moneys which are being held by a legal practitioner, conveyancer or estate agent under section 9AA.

New s. 28 inserted by No. 9423 s. 2(2), substituted by No. 9471 s. 7.



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