56Rent-to-buy arrangements

56 Rent-to-buy arrangements

old rent-to-buy arrangement means an arrangement entered into before the commencement of section 22 of the 2019 Act and in force immediately before that commencement, that would, if it were entered into on or after that commencement, be a rent‑to-buy arrangement to which Division 5 of Part I applies.

(2) Despite the commencement of section 22 of the 2019 Act, Division 5 of Part I as inserted by that section does not apply to an old rent-to-buy arrangement.

(3) A purchaser under an old rent-to-buy arrangement may apply to a court or to VCAT to terminate any contract that is part of the arrangement.

(4) In any proceeding on an application under subsection (3), the court or VCAT may order that any contract that is part of the arrangement is terminated.

(5) The court or VCAT must not make an order under subsection (4) unless the court or VCAT is satisfied that—

(a) at the time the contract was entered into, there was a reasonable prospect that the purchaser would not be able to—

(i) make or, at any time, continue to make the payments required under the contract; or

(ii) obtain, on reasonable terms, the finance necessary to complete the contract; or

(b) the purchaser no longer occupies the land purchased under the contract because the purchaser could not afford the payments required under the contract.

(6) In addition to subsection (5), the court or VCAT must not make an order under subsection (4) unless the court or VCAT is satisfied that it is just and equitable for the contract to be terminated.

(7) In addition to an order made under subsection (4), in any proceeding on an application under subsection (3), the court or VCAT may make an order providing for all or any of the following—

(a) that the purchaser is relieved of any liability under the contract, including any liability for breach of any term or condition of the contract;

(b) that the vendor must repay to the purchaser the whole or any part of the payments made by the purchaser under the contract, except for a sum that represents fair market rent for any period for which the purchaser was in possession of the land.

(8) The court or VCAT must not make an order under subsection (7) if the court or VCAT is satisfied that the order—

(a) would result in undue financial hardship for the vendor; or

(b) would otherwise not be just and equitable taking into account—

(i) all the circumstances of the matter; and

(ii) the nature and extent of any other person's or body's interest in the land.

S. 57 inserted by No. 14/2019 s. 28.