Disclosure requirement—contract for sale of unconverted lease
10 Disclosure requirement—contract for sale of unconverted lease
This section applies to a contract for the sale of an unconverted lease entered into on or after the application day.
The contract must include a clause stating the following matters—
under this Act, the lease will be cancelled on registration of a deed of grant for the land contained in the lease;
unless the conversion cost is paid to the chief executive before the transfer is registered, the deed of grant will be subject to a charge in favour of the chief executive securing payment of the conversion cost;
if the conversion cost is not paid to the chief executive during the payment period, the chief executive may sell the land.
If the contract does not comply with subsection (2), the buyer may cancel the contract by giving written notice to the seller.
The notice must be given to the seller before settlement is completed under the contract.
If the buyer gives a notice under subsection (3)—
the contract, and any related contract, ends; and
the seller, or the seller’s agent, must immediately return to the buyer any consideration paid under the contract.
In this section—related contract includes—
a contract about the provision of finance to purchase the unconverted lease; or
a contract of insurance relating to premises on the land contained in the unconverted lease.
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