Proposed changes seek to clarify terms contract provisions in Victoria

Is your contract for the sale of land a terms contract? It might be, if proposed changes to the Sale of Land Act 1962 currently before the Victorian Parliament pass.

The amendments in the Consumer Affairs Legislation Further Amendment Bill 2014 (Vic) seek to clarify when a contract for the sale of land in Victoria is a terms contract. A terms contract has a number of consequences for the parties including, in certain circumstances, an obligation on the vendor to discharge any mortgage within 90 days of the date of the contract and, more generally, a right for the purchaser to call for an early transfer, subject to granting a mortgage back to the vendor (or to any other person the vendor requires). As a result, these proposed changes will have practical and important implications for vendors and purchasers of land in Victoria.