New South Wales Consolidated Acts

CONVEYANCING ACT 1919 - SECT 66V

66V Consequences of rescission

(1) On service of an effective notice of rescission in accordance with section 66U in relation to a contract for the sale of residential property, the contract is to be taken to be rescinded ab initio, but subject to the rights and obligations conferred by this section.

(2) The purchaser forfeits 0.25 per cent of the purchase price of the property to the vendor.

(3) The amount forfeited may be recovered from any deposit paid under the contract.

(4) If the deposit is insufficient, the balance of any amount forfeited may be recovered from the purchaser as a debt in any court of competent jurisdiction.

(5) The balance of the deposit remaining after deduction of any amount forfeited is payable to the purchaser.

(6) Subject to subsection (7), neither the vendor nor the purchaser is liable to pay any other sum for damages, costs or expenses.

(7) Either party is entitled to make a claim for--

(a) such compensation, adjustment or accounting as is just and equitable between the vendor and purchaser where the purchaser has received the benefit of possession of the property, or

(b) the payment of damages, costs or expenses arising out of a breach of any term, condition or warranty contained or implied in the contract (other than a term, condition or warranty referred to in section 52A),

but not so as to affect rights and obligations arising under this Division.

(8) The vendor may agree to waive any rights regarding forfeiture under this section.

(9) Duty ceases to be payable on a contract rescinded under this Division, and any duty already paid on it is refundable under the Duties Act 1997 .

(10) In this section,
"deposit" includes any amount paid by the purchaser in relation to the contract or on account of the purchase price of residential property.