92Land, &c., not to be transferred while subject to mortgage, &c.

92 Land, &c., not to be transferred while subject to mortgage, &c.

(1)  In this section –

transfer includes conveyance, assignment and surrender.

(2)  While any land, or land and residential premises, is or are subject to a contract of sale, mortgage, or other security, in accordance with this Act –

(a) a transfer of the land or the land and residential premises; or

(b) a transfer of any estate or interest in the land or the land and residential premises –

is of no force or effect and must not be registered in the Land Titles Office or Registry of Deeds.

(3)  Subsection (2) does not apply in relation to a transfer if the transfer –

(a) arises through the operation of any law relating to bankruptcy; or

(b) is made to a devisee by a person acting in the capacity of executor or administrator of the purchaser or borrower; or

(c) is made with the consent in writing of Homes Tasmania.

(4)  Homes Tasmania must not consent under subsection (3)(c) to a transfer, of land or land and residential premises, or of any estate or interest in the land or the land and residential premises, unless –

(a) the proposed transferee is an eligible person and the consent is on the conditions determined by Homes Tasmania; or

(b) the proposed transferee is not an eligible person, the transfer occurs within 5 years after the sale and transfer or the making of the advance and it is proved to the satisfaction of Homes Tasmania that refusal to consent to the transfer would inflict great hardship; or

(c) the proposed transferee is not an eligible person, the transfer occurs after the sale or transfer or the expiry of 5 years after the making of the advance and the consent is given on the conditions that Homes Tasmania determines.

(5)  In dealing with applications for consent to any transfer, Homes Tasmania must, as between 2 alternative transferees, one of whom is an eligible person and the other is not, give preference, as far as reasonably practicable, to the former.