New South Wales Consolidated Acts

CONVEYANCING ACT 1919 - SECT 66L

66L Power to rescind contract where land substantially damaged

(1) Where land is substantially damaged after the making of a contract for the sale of the land and before the risk in respect of the damage passes to the purchaser, the purchaser may rescind the contract by notice in writing served on the vendor before the completion of the sale and--

(a) within 28 days after the purchaser first became aware of the damage, or

(b) within such longer period as may be agreed to by the vendor and purchaser.

(2) A notice under subsection (1) which is served--

(a) by a solicitor or an agent acting for the purchaser, or

(b) on a solicitor or an agent acting for the vendor,

shall be deemed to have been served by the purchaser or on the vendor, as the case may be.

(3) A notice under subsection (1) may be served--

(a) in any manner prescribed by section 170, or

(b) in any manner prescribed by the contract to which it relates for the service of notices under that contract.

(4) Where the purchaser rescinds a contract for the sale of land pursuant to the right conferred by subsection (1)--

(a) all money paid by the purchaser under the contract shall be repaid to the purchaser, and

(b) the vendor and purchaser shall be relieved from all liability under the contract, except a liability arising out of a breach of any term or condition contained or implied in the contract occurring before the date of rescission.

(5) Subsection (4) does not affect any provision in a contract relating to an adjustment between the vendor and purchaser where the purchaser has received the benefit of possession of the land.

(6) A purchaser is not entitled to exercise the right conferred by subsection (1) if the damage was caused by a wilful or negligent act or omission on the part of the purchaser.