Section 66ZS of the Conveyancing Act 1919 (NSW) regulates vendor rescission under sunset clauses in covered off the plan contracts. In broad terms, the vendor needs the purchaser’s written consent or an order of the Supreme Court. Statutory notice requirements also apply. The protection does not turn every contractual termination right into a sunset clause: finance, planning or other conditions require separate examination.
In Jobema Developments Pty Limited v Zhu [2016] NSWSC 3, the Court refused a developer’s application for leave to rescind. The Court was not satisfied that rescission was just and equitable, even though the developer itself was not found to have acted in bad faith. The decision applied the former s 66ZL. The current sunset protection is in s 66ZS; the old section number should not be cited as though its earlier wording remains the operative rule.
Check the draft plan, disclosure material, completion mechanism, permitted changes and any right to object or rescind. A marketing illustration may not define the finished apartment’s contractual specification. Ask what happens to the deposit, loan approval and foreign investment conditions if completion is delayed. A long construction period can expose a purchaser to changed financial circumstances even where the price remains fixed.
Keep every extension request and explanation for delay. Ask whether the vendor seeks consent, asserts a contractual right or has applied to Court. Those are different positions. Obtain advice before signing a release or accepting cancellation; written consent may affect valuable contractual rights. Buyers funding the purchase from China should also review realistic remittance and finance arrangements before agreeing to a revised completion date.
Author: Davis Kwok
Last updated: October 2026
Jurisdiction: New South Wales, Australia
Disclaimer: This article provides general information only and does not constitute legal, financial or tax advice. The law may change and its application depends on individual circumstances. You should obtain professional advice before acting on the information contained in this article.