sec.161Application of div 3

### sec.161 Application of div 3 This division applies if— the seller under a relevant contract is a property developer; and the relevant contract provides for the payment by the buyer under the relevant contract of an amount (a part payment ) for the purchase of property; and the buyer is not entitled under the relevant contract to receive a registrable instrument of transfer of the property in exchange for the part payment. a deposit payable under the relevant contract However, this division does not apply if the part payment is secured by a prescribed guarantee. In this section— prescribed guarantee means a written guarantee— given by a financial institution, for the buyer, in favour of the seller; and under which the financial institution is bound to pay, on demand, to the buyer the amount of the guarantee (whether or not the guarantee secures other obligations). (sec.161-ssec.1) This division applies if— the seller under a relevant contract is a property developer; and the relevant contract provides for the payment by the buyer under the relevant contract of an amount (a part payment ) for the purchase of property; and the buyer is not entitled under the relevant contract to receive a registrable instrument of transfer of the property in exchange for the part payment. a deposit payable under the relevant contract (sec.161-ssec.2) However, this division does not apply if the part payment is secured by a prescribed guarantee. (sec.161-ssec.3) In this section— prescribed guarantee means a written guarantee— given by a financial institution, for the buyer, in favour of the seller; and under which the financial institution is bound to pay, on demand, to the buyer the amount of the guarantee (whether or not the guarantee secures other obligations). - (a) the seller under a relevant contract is a property developer; and - (b) the relevant contract provides for the payment by the buyer under the relevant contract of an amount (a part payment ) for the purchase of property; and - (c) the buyer is not entitled under the relevant contract to receive a registrable instrument of transfer of the property in exchange for the part payment. - (a) given by a financial institution, for the buyer, in favour of the seller; and - (b) under which the financial institution is bound to pay, on demand, to the buyer the amount of the guarantee (whether or not the guarantee secures other obligations).