Victorian Current Acts Victorian Current Acts(1) A trustee for sale or a trustee having a power of sale may sell land on terms of deferred payment.
(2) The terms of deferred payment may provide that the purchase money shall be paid by instalments.
(3) The terms upon which land is sold shall, in addition to such other provisions as the trustee may deem proper, include provisions for giving effect to the following—
(a) that the part of the purchase money to be paid by way of deposit shall not be less than the sum which a person acting with prudence would, if the land were his own, have accepted in the circumstances in order to sell the land to the best advantage, and in any case shall not be less than one-tenth of the purchase money;
(b) that the balance of the purchase money shall be payable by such instalments and shall bear interest payable half-yearly or oftener on the amount from time to time unpaid at such rate as a person acting with prudence would, if the land were his own, have accepted in the circumstances in order to sell the land to the best advantage, and in any case the whole purchase-money shall be payable within a period not exceeding ten years from the date of sale;
(c) that if any instalment or interest or part thereof is in arrear and unpaid for six months, or for such less period as may be specified, the whole of the purchase money shall become due and payable;
(d) that the purchaser shall maintain and protect the property, and keep all buildings (if any) thereon insured against loss or damage by fire to the full insurable value thereof.
(4) (a) Notwithstanding that the land has been sold on terms of deferred payment, the trustee may at any time after two-fifths of the purchase money has been paid convey the land and take a mortgage back to secure payment of the balance of the purchase money and interest with or without the security of any other property, and such mortgage shall include provisions to the like effect as those set out in subsection (2) of section eleven of this Act.
(b) The trustees shall not be bound to obtain any report as to the value of the land or other property to be comprised in such mortgage, or any advice as to the making of the loan, and shall not be liable for any loss which may be incurred by reason only of the security being insufficient at the date of the mortgage.
(5) Where the sale is made under order of the Court, the provisions of this section shall apply unless the Court otherwise directs.
No. 5770 s. 18.