The courts have said that where time is no longer ‘of the essence’ an offended party must make time of the essence before they can rescind. General condition 35 of the LIV Contract, previously general condition 28 in the prescribed contract, permits a notice of this type. It does not need to specify the consequences if the default is not remedied to satisfy any obligation to give notice of the default.Ī default notice is often called a rescission notice when it contains details of the default but also states, where permitted by the contract, that unless the default is remedied, reasonable costs are paid and interest is paid within the time specified, the contract is at an end.

See our FAQ about the sunset of the regulations.Ī default notice must specify the particulars of the default and give the offending party time to remedy the default - usually 14 days. This condition was formerly general condition 27.1 in the prescribed contract in the Estate Agents (Contracts) Regulations 2008 (Vic). The relevant condition in the Law Institute of Victoria contract of sale of land Copyright August 2019 (LIV contract) is general condition 34.

Under most contracts of sale a party is usually required to provide a written default notice before they are entitled to exercise any rights arising from the other party’s default. A practitioner acting for a vendor contacted LPLC seeking guidance on how to prepare a default notice for a breach of a sale of land contract by a purchaser and what the difference was between a default notice and the rescission notice.

Default notice sample