🚫 Rescinding a Contract for Sale of Land – Why It’s Not So Simple
Buying or selling property is often one of the biggest financial decisions you’ll ever make. But what happens when things go wrong — when the deal falls apart due to default, delay, or even deception?
At Renee Roumanos Legal, we regularly help clients navigate these situations with care, clarity, and strategic legal advice. One of the most powerful remedies available in such cases is rescission — but it’s far from straightforward.
âť“ What Is Rescission?
In simple terms, rescission is the cancellation of a contract, bringing it to an end and restoring the parties (as much as possible) to their original positions.
In the context of property, rescission can occur where:
A party has breached an essential term of the contract;
There has been a serious delay or failure to settle;
One party has repudiated the contract by refusing to perform;
There has been misleading or unconscionable conduct;
The contract includes a specific clause allowing rescission after default.
But make no mistake — rescinding a contract is not a casual process. It’s governed by a mix of contract law, common law, equitable principles and strict procedural steps.
⚖️ Common Scenarios Where Rescission Arises
At Renee Roumanos Legal, we’ve recently dealt with situations like:
Strata units being sold without proper disclosure — including lack of insurance
Vendors failing to settle on time due to financing or title issues
Purchasers walking away after fraudulent misrepresentation
Developers breaching key obligations under the Strata Schemes Management Act 2015 (NSW)
Deliberate delay tactics that amount to repudiation
In these cases, timing, communication and legal positioning are everything. One wrong move, or premature termination, and you could be the party found in breach.
⏰ Time Is (Legally) of the Essence
In most NSW contracts, a clause makes time “of the essence”. This means deadlines — particularly the settlement date — are strictly enforceable.
If the other party fails to settle on time, and time is essential, you may be entitled to serve a notice to complete and then a rescission notice. But if you delay, waive your rights, or misstep, you risk losing your right to rescind.
The High Court made this clear in Tanwar Enterprises Pty Ltd v Cauchi — even a one-day delay may justify rescission, if time is of the essence and no equitable excuse applies.
🛑 Why It's Risky Without Legal Advice
Rescission comes with real legal and financial consequences:
You may forfeit or lose your deposit
You may be sued for loss of bargain damages
If you wrongly rescind, you may be seen as the defaulting party
You may also lose any equitable interest in the property
This is why property disputes should never be treated lightly — or left to amateurs.
đź’Ľ How We Can Help
At Renee Roumanos Legal, we assist clients across NSW and Australia-wide with:
Reviewing and advising on contract breaches and delays
Preparing and serving valid notices to complete or rescission notices
Advising on rights to rescind vs rights to damages or specific performance
Negotiating mutual rescission where appropriate
Acting swiftly in the event of vendor or purchaser default
We act for both vendors and purchasers, always ensuring your rights are protected — and your position is legally sound before any major step is taken.
🙋‍♀️ Final Word from Renee
I genuinely love the detail and strategy behind property law. I’ve seen too many transactions fall apart due to misinformation, poor communication or missing key deadlines.
That’s why I say: conveyancing is not just form-filling — it’s legal risk management.
So, if you’re facing a potential dispute or default in your property transaction, don’t go it alone. Let us step in early and guide you through it with clarity and confidence.
📞 Get in touch today. We offer responsive, jargon-free advice and we’re here when it matters most.
Renee Roumanos Legal
Your trusted partner in property law – doing law differently.
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