Vendor fails to settle

I would be grateful for any help.

We exchanged on a house in Sydney NSW in late May 2013. The settlement date was 23/7/13. However the vendor was unable to settle because they had failed to remove a right of way from the title. It appears they did nothing for about six weeks after exchange and have subsequently made very little effort to retrieve the titles (in particular the neighbour's title) to make the changes. It is now almost three weeks and nothing is happening. We have sold and moved out of our house and are now in furnished accomodation and all our stuff is in storage. Apart from the angst his is costing us about $2000 per week.

We have asked our lawyer to rescind but there is apparently a clause in the contract that if changes need to be made to the title the vendor has six months grace…….i.e. it looks like we are stuck in limbo for another three months…….and then the vendor can rescind without penalty anyway!

I suspect that the vendor has found another buyer and is just dragging this out.

Can anyone help……we would be happy just to get out with our deposit!?

Thanks in advance