Conveyancing Act 1919 No 6
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the contract is to be taken to be rescinded ab initio, but subject to the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
(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
(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
(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
but not so as to affect rights and obligations arising under this
(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(9) Duty ceases to be payable on a contract rescinded under this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
(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.