13Instalment contract to contain implied term for assurance of lot to purchaser

13 Instalment contract to contain implied term for assurance of lot to purchaser

13 Instalment contract to contain implied term for assurance of lot to purchaser

(1) Notwithstanding any stipulation therein, an instalment contract shall be deemed to contain a stipulation entitling the purchaser by notice in writing served on the vendor to require the vendor to do all such things and to execute all such instruments as may be necessary effectively to assure to the purchaser the lot comprised in the instalment contract for the interest therein specified if at the time of the execution of such instruments the purchaser—

(a) shall have paid not less than fifteen per centum of the purchase money, or

(b) shall have received a notice referred to in section 14 (1) and shall, within a period of twenty-eight days after receiving such notice, have served on the vendor a notice in writing informing the vendor that the purchaser proposes to exercise the purchaser’s rights conferred by the stipulation implied by this section,

and shall, at the time of the execution by the vendor of such instruments, have executed a mortgage back to the vendor or to such mortgagee as the vendor may have directed which shall—

(i) secure payment of the purchase money owing under the instalment contract at the date of the mortgage by instalments of the same amounts and payable at the same time as the remaining instalments payable under the instalment contract,

(ii) be in the form, or one of the forms, of mortgage annexed to the trust deed relating to the subdivision in which the lot is included, and

(iii) be prepared and completed by or on behalf of the mortgagee at the expense of the mortgagor, which expense shall not in any case exceed the amount prescribed by any General Order made under section 206 of the Conveyancing Act 1919 for the time being in force.

(2) Nothing in subsection (1) prevents any mortgage referred to in that subsection from—

(a) containing provisions for securing the payment of the purchase money owing under the instalment contract at the date of the mortgage different from those referred to in subsection (1) (i), or

(b) being in a form different from the form, or one of the forms, of mortgage annexed to the trust deed,

where the vendor and purchaser have so agreed.