51CManner of reduction of purchase money

51C Manner of reduction of purchase money

(1) The amount by which the purchase money shall be reduced in accordance with these Regulations, except where the reduction arises by reason of the exclusion from transfer to the purchaser of portion of the land sold, or purporting to be sold, shall be determined by agreement between the Custodian and the purchaser, or, in default of agreement, by reference of any difference or dispute as to the amount to two arbitrators for arbitration, one of the arbitrators to be appointed by the Custodian, and one by the purchaser, and such reference shall be deemed to be a submission within the meaning of the laws of the Territory of New Guinea or the Territory of Papua, as the case requires, for the time being in force relating to arbitration.

(2) The amount by which the purchase money shall be reduced by reason of the exclusion from transfer to the purchaser of portion of the land sold or purporting to be sold shall be determined as follows:

(a) In respect of unplanted land so excluded, a reduction shall be made in accordance with the following provisions:

(i) The value of the whole of the unplanted land purporting to be sold to the purchaser shall be deemed to be such sum as bears the same relation to the purchase price payable in respect of the whole of the property as the value placed upon such unplanted land by the Custodian bears to the value placed by him upon the whole of the property prior to the sale thereof;

(ii) The value of the unplanted land determined in accordance with the last preceding subparagraph shall be divided by the total number of hectares of unplanted land purporting to be sold to the purchaser;

(iii) The amount ascertained in pursuance of the last preceding subparagraph shall be multiplied by the number of hectares of unplanted land excluded from transfer to the purchaser and the amount resulting shall be the amount by which the purchase money shall be reduced; and

(b) In respect of planted land so excluded a reduction shall be made in accordance with the following provisions:

(i) The value of the whole of the planted land purporting to be sold to the purchaser shall be determined by deducting the value of the whole of the unplanted land purporting to be sold to the purchaser from the total purchase price payable in respect of the whole of the property;

(ii) For the purposes of the last preceding subparagraph, the value of the unplanted land shall be calculated in accordance with the provisions of paragraph (a) of this subregulation;

(iii) The value determined in accordance with subparagraph (i) of this paragraph shall be deemed to be the value of the coco-nut palms and cocoa trees growing on the planted land;

(iv) Each coco-nut palm and each cocoa tree which is ten or more years old shall be reckoned as one unit and each coco-nut palm and each cocoa tree less than ten years old shall be reckoned as a fraction of a unit, each full year of age being reckoned as one-tenth of a unit;