77Right to require conveyance

77 Right to require conveyance (1) A purchaser who is not in default under an instalment contract may serve on the vendor a notice in writing requiring the vendor to convey the land to the purchaser conditionally on the purchaser at the same time executing a mortgage in favour of the vendor, or any other person specified by the vendor, to secure payment of all money that, but for the execution of the mortgage, remains payable by the purchaser under the instalment contract. (2) A vendor who is not in default under an instalment contract may serve on a purchaser a notice in writing requiring the purchaser to accept conveyance of the land from the vendor conditionally on the purchaser at the same time executing a mortgage, or (if it is a reasonable requirement) mortgages, in favour of the vendor or any other person or persons specified by the vendor, to secure payment of all money that, but for the execution of the mortgage or mortgages, remains payable by the purchaser under the instalment Law of Property Act 2000 46 (3) A vendor who requires a purchaser to accept conveyance under subsection (2) is obliged to advance to the purchaser: (a) an amount equal to the duty (if any) payable on the conveyance by the purchaser under the Stamp Duty Act 1978; and (b) an amount equal to the legal costs of preparation, execution and registration of the conveyance payable by the purchaser, but only if the purchaser agrees to the amount so advanced being added to the principal sum secured by the mortgage or, if more than one mortgage, the mortgage specified by the vendor. (4) A mortgage executed under this section is to: (a) contain all terms, powers and covenants on the part of the mortgagor as agreed by the vendor and the purchaser and is to accord with and provide for observance of all obligations of the purchaser under the instalment contract; (b) subject to subsection (7), in the case of the purchaser requiring the vendor to convey the land under subsection (1) – be prepared and registered at the expense of the purchaser; and (c) subject to subsection (7), in the case of the vendor requiring the purchaser to accept conveyance of the land under subsection (2) – be prepared and registered at the expense of the vendor. (5) Duty under the Stamp Duty Act 1978 and the legal costs of preparation, execution and registration of the conveyance of the land to the purchaser are payable by the party or parties in the same way as if the land were being conveyed to the purchaser in consequence of payment in full of the purchase price or other performance of the contract by the purchaser. (6) In the event of the vendor and the purchaser failing to agree: (a) on the terms, covenants and powers to be contained in the mortgage or mortgages; or (b) whether it is reasonable on the part of the vendor to require the purchaser to execute more than one mortgage, Law of Property Act 2000 47 the President of the Law Society, on application by the legal practitioner or conveyancing agent of the vendor or purchaser, is to appoint an independent legal practitioner or conveyancing agent to: (c) settle the mortgage or mortgages and the terms, covenants or powers to be contained in the mortgage or mortgages; or (d) determine the number of mortgages and the land to be made subject to each mortgage, and the mortgage or mortgages settled or determined by the legal practitioner or conveyancing agent, as the case may be, is or are to be taken to have been agreed on by both the vendor and the purchaser. (7) The reasonable costs of settling or determining a mortgage under subsection (6) are to be borne by the vendor and the purchaser in the proportions (if any) as the President of the Law Society thinks appropriate, and the costs are recoverable by the legal practitioner or conveyancing agent in those proportions from the vendor and the purchaser respectively in a court of competent jurisdiction. (8) A person liable for costs because of subsection (7) is entitled to require those costs to be taxed under the Supreme Court Act 1979. (9) If: (a) a notice in writing has been served under this section on a vendor by a purchaser or on a purchaser by a vendor; and (b) the vendor or purchaser fails without lawful excuse to convey or to accept conveyance of the land or to execute an instrument requisite for giving effect to this section, the vendor or purchaser is to be taken to have broken a condition of the contract, and the purchaser or vendor is entitled to all civil remedies accordingly, as the case may be.