Abolition of instalment purchase or rental purchase arrangements
6 Abolition of instalment purchase or rental purchase arrangements
A contract for the sale of land or a business that provides for the payment of part of the purchase price of the land or business (except a deposit) before the date of settlement is void.
Money paid under a contract that is void under subsection (1) may be recovered by action in any court of competent jurisdiction.
A contract under which a person has—
a right or obligation to purchase land; but
an obligation to pay rent in respect of a period of occupation of the land of more than 6 months before the right is exercised or the purchase completed, is voidable at any time at the option of that person.
A person will not be taken to have elected to affirm a contract that is voidable under subsection (2a) by reason of a payment made under the contract.
If a person avoids a contract that is voidable under subsection (2a), the person may, by action in any court of competent jurisdiction, recover any amount paid under the contract in excess of what would have been fair market rent for any period for which the person has occupied the land under the contract.
In this section—
deposit means an amount paid by a purchaser in a lump sum, or in not more than three instalments, towards the purchase price of land or a business before the date of settlement;
rent includes any amounts payable in respect of a right to occupy land.
This section does not apply in relation to—
a contract for the sale of land by the South Australian Housing
Trust; and
a contract for the sale of land by a body specified by regulation;
and
a contract for the sale of land of a kind prescribed by the regulations.
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