Section 172A — Land Transfer Act 1952: Compensation for loss occurring after search and before registration

172A Compensation for loss occurring after search and before registration (1) In this section, unless the context otherwise requires,— First operative period , in relation to any transaction to which this section applies, means the period of 14 days commencing with the 13th day preceding the date on which the transaction is settled Purchase money includes, in relation to any mortgage, the amount to be advanced by the mortgagee in consideration of the grant of the mortgage Search copy , in relation to any grant or certificate of title, means a search copy of that grant or certificate of title prepared and issued by the Registrar under and for the purposes of this section Second operative period , in relation to any transaction to which this section applies, means the period of 2 months commencing with the day after the date on which the transaction is settled Transaction to which this section applies , means any agreement or arrangement entered into in respect of any land subject to this Act whereby one party (in this section referred to as the purchaser) is to acquire or has acquired from the other party (in this section referred to as the vendor) an estate or interest in that land for valuable consideration. (2) For the purposes of this section, except as the parties may expressly agree a transaction is settled when the purchaser pays, gives or otherwise makes available to the vendor the purchase money or other consideration, either in full or to the extent necessary to entitle the purchaser, in terms of the agreement or arrangement relating to the transaction, to call upon the vendor to do everything required of him under that agreement or arrangement to enable the purchaser to register the estate or interest to which the transaction relates. (3) Any purchaser under a transaction to which this section applies who obtains, at any time during the first operative period, a search copy in respect of the land that is the subject of the transaction and who sustains any loss or damage through the registration or lodging under this Act of any instrument or other document relating to that land may bring an action against the Crown for the recovery of damages if— (a) No entry or memorial in the register relating to that registration or lodging appears in the search copy; and (b) The registration or lodging was effected at any time before the expiry of the second operative period or the sooner registration of all instruments and other documents necessary to give effect to the transaction. (4) For the purposes of an action under this section, the Court may, on application made to it in that behalf by the purchaser (whether before or after the expiry of the second operative period), extend the second operative period for such length of time as it thinks just where it is satisfied that the registration of all instruments and other documents giving effect to the transaction have not been registered within that period and that the delay in such registration is attributable otherwise than to the fault of the purchaser, his solicitor, or agents. Section 172A was inserted, as from 1 January 1984, by section 3 Land Transfer Amendment Act (No 2) 1982 (1982 No 115). See clause 2 Land Transfer Amendment Act Commencement Order 1983 (SR 1983/284).