29FPurchaser may avoid prohibited terms contract

29F Purchaser may avoid prohibited terms contract

(1) Except where otherwise expressly provided, if a terms contract is entered into in contravention of this Act—

S. 29F(1)(a) amended by No. 14/2019 s. 21(1).

(a) the contract is voidable by the purchaser at any time before completion of the contract by giving a signed written notice to the vendor; and

(b) if the contract is avoided, a person is entitled to recover any money paid by that person under that contract.

(2) A terms contract is not voidable by the purchaser if a court is satisfied that—

(a) the vendor has acted honestly and reasonably and ought fairly to be excused for the contravention; and

(b) the purchaser is substantially in as good a position as if all the relevant provisions of this Act had been complied with.

S. 29F(2A) inserted by No. 14/2019 s. 21(2).

(2A) Subsection (2) does not apply if the land that is the subject of the contract is residential land (other than residential land that is agricultural land), the sale price of which is less than the prescribed amount.

S. 29F(3) amended by No. 14/2019 s. 21(3).

(3) Despite subsection (1), if a terms contract is entered into in contravention of this Act and is avoided by the purchaser before the completion of the contract, the purchaser is liable to pay a fair market rent for the period during which the purchaser was—

(a) in actual possession of the land; or

(b) entitled to the receipt of the rents and profits of the land.

S. 29G inserted by No. 6/2008 s. 33.