Queensland Consolidated Acts
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PROPERTY LAW ACT 1974 - SECT 88
Application of proceeds of sale
88 Application of proceeds of sale
(1) Subject to this section, the money arising from sale, and which is in fact
received by the mortgagee, shall be held by the mortgagee in trust to be
applied by the mortgagee—
(a) firstly, in payment of all costs, charges and
expenses properly incurred by the mortgagee as incident to the sale, or any
attempted sale, or otherwise; and
(b) secondly, in discharge of the mortgage
money, interest and costs, and other money (if any) due under the mortgage;
(c) thirdly, in payment of any subsequent mortgages or encumbrances; and
the residue (if any) of the money so received shall be paid to the person
entitled to receive or entitled to give receipts for the proceeds of sale of
the mortgaged property.
(2) However, if the money arises from the sale of
mortgaged freehold property that has been disclaimed under the
Bankruptcy Act 1966 (Cwlth) , section 133 (1) or the Corporations Act ,
section 568 (1) , the residue of the money mentioned in subsection (1) must be
paid into court.
(3) The money that is in fact received by a mortgagee
arising from sale in the exercise of the power conferred under the Mineral
Resources Act must, subject to subsection (1) (a) and (b) , be dealt with as
provided under that Act.
(4) The proceeds of sale arising from a sale by a
mortgagee in the exercise of the power conferred by the Land Act shall be
disposed of as provided in that Act.
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