---
title: "Check what must be refunded when a contractual rescission is used"
url: "https://ailawframework.com/practice/residential-conveyancing-and-property/check-what-must-be-refunded-when-a-contractual-rescission-is-used"
type: "task"
site: "AI Law Framework"
id: "A9-OB20261022-18"
practice_area: "Residential Conveyancing & Property"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Check what must be refunded when a contractual rescission is used

> Record the clause or legislation that expressly gives the right, whether completion has occurred, and the deposit and other money paid. Note whether the purchaser has been in possession.…

Canonical page: https://ailawframework.com/practice/residential-conveyancing-and-property/check-what-must-be-refunded-when-a-contractual-rescission-is-used  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Residential Conveyancing & Property](https://ailawframework.com/practice/residential-conveyancing-and-property.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Record the clause or legislation that expressly gives the right, whether completion has occurred, and the deposit and other money paid. Note whether the purchaser has been in possession. Do not write the notice of rescission. |
| What the lawyer must review | The lawyer decides whether an express right exists and writes the notice. It can be exercised only by serving a notice before completion, despite a claim, requisition, arbitration, litigation, mediation, negotiation, or possession. Normally the deposit and any other money paid by the purchaser must be refunded. A party can claim a reasonable adjustment if the purchaser has been in possession, and can claim damages, costs or expenses for a breach. A party will not otherwise be liable for damages, costs or expenses. This is rescission under an express right. It is not termination for the purchaser's essential default. Confirm the printed edition. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Lawyer review required**

The responsible lawyer decides the right exists and writes the notice. The deposit is refunded.

- What the AI does: Record the clause or legislation that expressly gives the right, whether completion has occurred, and the deposit and other money paid. Note whether the purchaser has been in possession. Do not write the notice of rescission.
- What the lawyer does: The lawyer decides whether an express right exists and writes the notice. It can be exercised only by serving a notice before completion, despite a claim, requisition, arbitration, litigation, mediation, negotiation, or possession. Normally the deposit and any other money paid by the purchaser must be refunded. A party can claim a reasonable adjustment if the purchaser has been in possession, and can claim damages, costs or expenses for a breach. A party will not otherwise be liable for damages, costs or expenses. This is rescission under an express right. It is not termination for the purchaser's essential default. Confirm the printed edition.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. The right must be express, in the contract or in legislation, and the notice must be served before completion.
2. The deposit and other money paid by the purchaser are refunded. Possession supports an adjustment, not a refusal of the refund.
3. Damages are limited to a breach. Do not treat this as termination for essential default.

## Notes

- These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.

## Sources

- [Law Society of NSW and REINSW contract, 2022 edition sample, clause 19](https://www.lawsociety.com.au/sites/default/files/2022-09/Sample%20with%20watermark_2022%20Land%20Contract_0.pdf) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/residential-conveyancing-and-property/check-what-must-be-refunded-when-a-contractual-rescission-is-used/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*