Subdiv 7Charges on land

Subdivision 7—Charges on land 172—Application of Subdivision This Subdivision applies with respect to charges for the purposes of a scheme initiated under Subdivision 2. 173—Creation of charge (1) The Minister may impose a charge under this Subdivision over land within a designated growth area or declared project area (as the case requires). (2) The Minister may impose a charge over land with or without the agreement of the owner of the land. (3) For the purpose of the imposition of a charge, the Minister may deliver to the Registrar‑General a notice, in a form determined by the Registrar‑General— (a) setting out or incorporating the terms of the charge; and (b) setting out the real property over which it exists; and (c) requesting the Registrar‑General to note the charge against the relevant instrument of title or, in the case of land not under the provisions of the Real Property Act 1886, against the land. (4) The Registrar-General must, on receipt of a notice under subsection (3), in relation to the real property referred to in the notice, enter an appropriate notation in accordance with the notice. (5) When an entry is made under subsection (4), a charge over the real property is created. (6) The terms and conditions of the charge may be varied— (a) by the Minister after consultation with the owner of the land to which the charge relates (and with or without the agreement of the owner of the land); or (b) on account of a periodic review under section 169(2)(a); or (c) in circumstances prescribed by the regulations. (7) A variation under subsection (6) will be effected in a manner determined by the Minister after consultation with the Registrar‑General. (8) The Minister must, when payments under a charge have been made and paid in full, by further notice to the Registrar‑General under this section, cancel the charge. 174—Ranking of charge (1) While a charge exists over real property, the Registrar‑General must not register an instrument affecting the property unless— (a) the instrument was executed before the charge was created or relates to an instrument registered before the charge was created; or (b) the instrument is an instrument of a prescribed class; or (c) the Minister consents to the registration in writing; or (d) the instrument— (i) is expressed to be subject to the charge; and (ii) is not a conveyance that relates to the transfer or sale of the real property to a purchaser who intends to occupy the real property for residential purposes; or (e) the instrument is a duly stamped conveyance that relates to the transfer or sale of the real property under section 175. (2) An instrument registered under subsection (1)(a), (b) or (c) has effect, in relation to the charge, as if it had been registered before the charge was created. (3) If an instrument is registered under subsection (1)(e), the charge will be taken to be cancelled and the Registrar‑General must make the appropriate entries to give effect to the cancellation. 175—Enforcement of charge (1) If a person fails to comply with the terms and conditions of a charge, the charge may be enforced as follows: (a) the Minister must, by notice in the Gazette, inform the person of the breach and give the person at least 1 month to remedy the breach; (b) if the person does not remedy the breach within the time allowed in a notice under paragraph (a), the Minister may proceed to have the land to which the charge relates sold. (2) The sale will be by public auction (and the Minister may set a reserve price for the purposes of the sale). (3) If, before the date of such an auction, the outstanding amount of the charge and the costs incurred by the Minister in proceeding under this section are paid to the Minister, the Minister must call off the auction. (4) The requirement to sell at auction does not apply in any circumstances prescribed by the regulations. (a) an auction fails; or (b) an auction is not required under subsection (4), the Minister may sell the land by private contract for the best price that the Minister may reasonably obtain. (6) Any money required by the Minister in respect of the sale of land under this section will be applied as follows: (a) firstly—in paying the costs of the sale and any other costs of a prescribed kind; (b) secondly—in discharging any liabilities secured by instrument registered before the charge was created, or that is taken to have such effect by virtue of section 174; (c) thirdly—in discharging the amount or amounts secured by the charge; (d) fourthly—in discharging any other liabilities secured by registered instruments; (e) fifthly—in discharging any other liabilities that exist in relation to the land of which the Minister has notice; (f) sixthly—in payment to the owner of the land. (7) The title obtained under the sale of the land will be free of— (a) any charge under this Subdivision; and (b) all other liabilities discharged under subsection (6); and (c) any other liability that may exist on account of any mortgage, charge or encumbrance. (8) If land is sold, an instrument of transfer or conveyance in pursuance of the sale executed by the Minister will, on registration or enrolment, operate to vest title to the land in the person named in the transfer or conveyance. (9) If it is not reasonably practicable to obtain the duplicate certificate of title to land that is sold in pursuance of this section (or other relevant instrument), the Registrar‑General may register a transfer or conveyance despite the non‑production of the duplicate (or instrument), but in that event will cancel the existing certificate of title for the land and issue a new certificate in the name of the transferee.