Western Australian Current Acts

SALE OF LAND ACT 1970 - SECT 13B

13B .         Requirement for future lot contract to include vendor’s condition

        (1)         A future lot contract must include the condition (the vendor’s condition ) that before the close of the period specified in subsection (2), the vendor will become, or will be entitled to become, the proprietor of the lot or lots to which the contract relates.

        (2)         The period referred to in subsection (1) is —

            (a)         the period of 6 months beginning with the day on which the future lot contract is executed by the parties or, if the parties execute the contract on different days, the later of those days; or

            (b)         any other period that the parties may specify in the future lot contract or in a variation to that contract as the applicable period for the purposes of subsection (1).

        (3)         If a future lot contract does not include the vendor’s condition required under subsection (1) —

            (a)         the contract is illegal and void; and

            (b)         the purchaser may recover from the deposit holder specified in the contract or from any other person to whom the deposit was paid —

                  (i)         any deposit or other amount paid by the purchaser under the contract; and

                  (ii)         if applicable, any interest accrued on the deposit or other amount.

        (4)         For the purposes of subsection (1), a vendor is entitled to become the proprietor of the lot or lots to which the future lot contract relates if the vendor is entitled to be registered as proprietor of that lot or those lots under one or more registrable instruments or under one or more applications made under the Transfer of Land Act 1893 which have been lodged with the Registrar of Titles.

        (5)         An instrument or application that was at the relevant time lodged as described in subsection (4) but was defective is to be taken to give as good an entitlement to be registered as proprietor as it would give had there been no defect in the instrument or application if —

            (a)         the instrument has subsequently been registered or the application granted without having been returned by the Registrar of Titles or having been withdrawn from the registration process; or

            (b)         the Registrar of Titles certifies in writing that the defect was not of a substantial nature and that it has been remedied.

        (6)         A vendor who enters into a future lot contract that does not include the vendor’s condition required under subsection (1) commits an offence.

        Penalty for this subsection: a fine of $100 000.

        [Section 13B inserted: No. 38 of 2016 s. 8.]