Victorian Current Acts Victorian Current Acts(1) A person (the vendor ) must not sell to another person (the purchaser ) an option to purchase land under a land banking scheme, except as provided for in this section.
(2) Subsection (1) does not apply to—
(a) an option to purchase land under a land banking scheme that is a registered managed investment scheme; or
(b) an option to purchase land under a land banking scheme where the option is a financial product issued by the holder of an Australian financial services licence.
(3) The money payable by the purchaser for the option must be paid to a legal practitioner, conveyancer or licensed estate agent acting for the vendor, to be held on trust for the purchaser until the earlier of—
(a) the registration of a plan of subdivision in respect of the land or the lot; or
(b) the expiry of the date by which the option must be exercised.
(4) The agreement between the vendor and the purchaser in respect of an option to purchase land under a land banking scheme must provide that the money paid by the purchaser for the option is to be held on trust in accordance with subsection (3).
(5) The agreement in respect of the option to purchase may be rescinded by the purchaser if subsection (3) or (4) is not complied with.
(6) The vendor must notify the purchaser of the registration of a plan of subdivision in respect of the land under a land banking scheme.
(7) Despite anything to the contrary in the agreement in respect of the option to purchase, the agreement expires if the event triggering the purchaser's right to exercise the option does not occur within 5 years of the entering into of the agreement.
(8) The purchaser is entitled to the immediate return of any money paid under the agreement in respect of the option to purchase if—
(a) the purchaser rescinds the agreement under subsection (5) or otherwise; or
(b) the agreement has expired under subsection (7) or otherwise; or
(c) the event triggering the purchaser's right to exercise the option does not otherwise occur.
S. 29WI inserted by No. 14/2019 s. 22.