New South Wales Consolidated Acts

HOME BUILDING ACT 1989 - SECT 7D

7D Interests in land under contract

(1) A contract does not give the holder of a contractor licence or any other person a legal or equitable estate or interest in any land, and a provision in a contract or other agreement is void to the extent that it purports to create such an estate or interest.

(2) Accordingly, the holder of a contractor licence or any other person may not lodge a caveat under the Real Property Act 1900 in respect of an estate or interest prohibited by subsection (1).

(3) However, subsection (1) does not apply to a provision in a contract that creates a charge over land if--

(a) the land the subject of the charge is land on which the contract work is, or is to be, carried out, and

(b) the charge is in favour of the holder of a contractor licence who is a party to the contract, and

(c) the charge is created to secure the payment to the holder of the contractor licence by another party to the contract of money due under the contract, but only if a court or tribunal has made an order or judgment that such payment be made, and

(d) in the case of a charge over land under the Real Property Act 1900 --the party to the contract against whom the judgment or order is made is the registered proprietor of the land.

(4) A charge referred to in subsection (3) over land under the Real Property Act 1900 ceases to operate if the party to the contract against whom the judgment or order is made ceases to be the registered proprietor of the land so charged.