sale of land act 2016

Amendments to the Sale of Land Act 2016 and the Property Law Act 1958

The Consumer Acts and Other Acts Amendment Act 2016 No 23 (Vic) was assented to on 10 May 2016. This act updates both the Sale of Land Act 1962 and the Property Law Act 1958 to amend anomalies in these Acts. These amendments will come into effect on 1 June 2016.

Sections 29W(1), (2), (3) & (4a) of the Sale of Land Act will apply to conveyancers as well as legal practitioners. This means that the same restrictions that apply to legal practitioners in relation to acting for both the vendor and the purchaser under a terms contract also apply to conveyancers. This includes the restriction that legal practitioners whose principal place of business is within a 50 kilometre radius of the intersection of Elizabeth and Bourke Streets in Melbourne must not act for both vendor and purchaser under a terms contract.

Section 42(3) of the Property Law Act now means that the same conditions that apply to legal practitioners in relation to the payment by a purchaser of costs and expenses under a contract for the sale of land apply to conveyancers.

The current s 42(3) is:

No contract of sale relating to land shall contain a clause or condition stipulating for the payment by the purchaser to the vendor or to the legal practitioner of the vendor of any costs and expenses except-

(a) costs and expenses incurred by the vendor by reason of default on the part of the purchaser in respect of the observance or performance of any of the terms or conditions of the contract;

(b) such costs and expenses as are payable by the purchaser pursuant to-

(i) conditions of sale of land not under the operation of the Transfer of Land Act 1958 which conditions are adopted pursuant to section forty-six of this Act; or

(ii) conditions to the like effect of sale of such land; and

(c) costs and expenses of perusal and obtaining the execution and registration of any conveyance transfer or other assurance of any land being part only of the land which is the subject-matter of such contract of sale.


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