17.
| (1) Where an application has been made under this Law for the purchase of a house, and the Commissioner is satisfied-
the Minister may, on being so notified by the Commissioner, by Order (hereinafter referred to as a " vesting Order ") vest such house in the Commissioner with effect from such date as may be specified therein. | | (a) that such house is situated in an area which in his opinion will not be required for slum clearance, development or redevelopment or for any other public purpose; | | |
| | (b) that it is feasible to alienate such house as a separate entity; and | | |
| | (c) that the applicant is in a position to make the purchase, | | |
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| (2) As soon as may be after a house is vested in the Commissioner under subsection (1), the Commissioner shall enter into an agreement with the applicant for the sale of such house to the applicant, subject to the following conditions: -
| | (a) that the applicant shall pay to the Commissioner a lump sum or on rent purchase terms or in such instalments as may be determined by the Commissioner, the amount determined under this Law as the price payable for such house to the former owner and an additional sum of five per centum of such amount to cover the costs incurred by the Commissioner; | | |
| | (b) that until the amount payable as the price of such house is finally determined under this Law, the applicant shall make to the Commissioner a monthly payment of an amount not less than the monthly rent payable for such house, which payment shall be set off against the amount payable as the price of such house; | | |
| | (c) that the applicant shall be responsible for the repairs to, and the maintenance of, the house and shall insure the house against loss or damage by fire, civil commotion and riot and pay all rates and taxes due to any local authority; and | | |
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| (3) Where the applicant fails to comply with any of the aforesaid conditions, the agreement shall be deemed to be null and void and the applicant shall pay to the Commissioner such costs as may have been incurred by the Commissioner in respect of the application. |
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| (4) The provisions of subsections (2) and (3) shall mutatis mutandis apply in the case of the sale of a house to a tenant who accepts the offer made under section 12 and in the case where the Commissioner proposes to sell any house vested in him under this Law to any other person. |
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Sri Lanka Consolidated Acts