9Receipts for certain preliminary deposits to indicate that sale is by instalment contract

9 Receipts for certain preliminary deposits to indicate that sale is by instalment contract

9 Receipts for certain preliminary deposits to indicate that sale is by instalment contract

(1) Where a vendor or the vendor’s agent accepts a preliminary deposit in connection with the sale of a lot in a subdivision and such preliminary deposit is paid pursuant to an agreement (whether oral or in writing or partly oral and partly in writing), implementation of which would necessitate the vendor and purchaser entering into an instalment contract, the vendor or the vendor’s agent accepting the preliminary deposit shall upon doing so give to the person paying the preliminary deposit a receipt on which are endorsed the words “sale by instalment contract”.

(2) Where a vendor or the vendor’s agent gives to a person paying a preliminary deposit a receipt on which are required to be endorsed the words “sale by instalment contract”, the vendor—

(a) shall within seven days after the preliminary deposit was paid pay the amount of the preliminary deposit to the trustee under the trust deed relating to such subdivision and either—

(i) tender to the purchaser for execution by the purchaser a copy of an instalment contract for the sale and purchase of the lot in connection with the sale of which the preliminary deposit was paid, such contract having annexed thereto or endorsed thereon an undertaking by the vendor that the vendor will refund to the purchaser an amount, not exceeding an amount stated in the undertaking, for the reasonable costs incurred by the purchaser as a client of a solicitor or conveyancer in procuring such advice relating to the proposed transaction and the provisions of this Part as the solicitor or conveyancer is obliged, upon an examination of the contract and the particulars of title given to the purchaser by the vendor, to furnish to the purchaser, as the client of the solicitor or conveyancer, or

(ii) authorise such trustee to refund to the purchaser the amount of the preliminary deposit and notify the purchaser in writing that the vendor is unwilling or unable to execute such an instalment contract, and

(b) where the vendor tenders to the purchaser a copy of the instalment contract in accordance with paragraph (a) (i), shall not, for the prescribed period, sell or cause to be sold the lot comprised in the instalment contract to any person other than the purchaser except where the purchaser and the vendor have agreed in writing that the vendor is not required to comply with the requirements of section 10 (2) and the vendor has authorised such trustee to refund to the purchaser the amount of any preliminary deposit paid by the purchaser.