New South Wales Consolidated Acts

CONVEYANCING ACT 1919 - SECT 66ZE

66ZE Consequences of rescission

(1) On service of an effective notice of rescission in accordance with section 66ZD in relation to an option to purchase residential property, the option is to be taken to be rescinded ab initio, but subject to the rights and obligations conferred by this section.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 consideration paid in relation to the option or from any deposit paid in relation to the purchase of the property.

(4) If the consideration or 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 consideration or 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 option,

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(9) Duty ceases to be payable on an option rescinded under this Division, and the provisions of the Duties Act 1997 relating to the refund of any duty paid on a rescinded agreement for the sale of property apply in relation to any duty already paid on the rescinded option.

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