67Right to rescind on destruction of or damage to dwelling

67 Right to rescind on destruction of or damage to dwelling house (1) In a contract for the sale of a dwelling house if, before the date of completion or possession (whichever first occurs), the dwelling house is so destroyed or damaged that it is unfit for occupation as a dwelling house, the purchaser may, at the purchaser's option, rescind the contract by notice in writing given to the vendor or the vendor's legal practitioner or conveyancing agent not later than that date of completion or possession. (2) On rescission of a contract under this section: (a) money paid by the purchaser is to be refunded to the purchaser; and (b) documents of title or transfer are to be returned to the vendor, and the vendor alone is entitled to the benefit of a insurance policy relating to the destruction or damage of the dwelling house, subject to the rights of a person entitled to the insurance policy because of an encumbrance over or in respect of the land. (3) In this section, sale of a dwelling house means the sale of: (a) improved land the improvements on which consist wholly or substantially of a dwelling house; or (b) a unit within the meaning of the Unit Titles Act 1975, a building lot within the meaning of that Act or a lot under Part IVB of that Act; or (c) a unit as defined in section 37 of the Unit Title Schemes Act 2009. (a) applies only to contracts for the sale of dwelling houses made after the commencement of this Act; and (b) has effect despite any term of a contract for the sale of a dwelling house to the contrary.

Law of Property Act 2000 40