Statutory right to rescind contract remained available to buyer subject to specific performance decree

The aftermath of the Queensland floods of January 2011 continues to be played out in the courts. The effect of the floods on such a large scale has awakened the use of some statutory provisions that have not previously been litigated .Section 64 of the Property Law Act 1974 (Qld) is such a section. A version of this provision appears as s 34 of the Sale of Land Act 1982 (Vic). Broadly speaking, these sections permit a buyer of a dwelling house which has been damaged or destroyed between contract and completion to rescind the contract and recover their deposit provided that the rescission notice is given prior to "the date of completion or possession". The Court of Appeal decision of Dunworth v Mirvac Queensland Pty Ltd [2011] QCA 200 appears to be the first litigation upon the application of the section since it came into force in 1975.