Buying Property in NSW
What a Contract Review Should Actually Check
A contract review is not a search for obvious blank spaces. Its value lies in comparing the legal title, the vendor’s disclosure and the special conditions with what the buyer believes they are purchasing and intends to do with it.
Title and registered interests. The title search identifies the registered owner and dealings such as mortgages, easements, restrictions on use, covenants and caveats. Each relevant dealing should be obtained and read. A one-line title notation may conceal building setbacks, drainage rights, access obligations, maintenance contributions or restrictions affecting redevelopment.
Plan, boundaries and services. The deposited plan should be compared with fences, garages, pools and other improvements. A drainage diagram does not prove that every structure is approved or clear of sewer infrastructure. Depending on the property, a survey, building and pest report, strata inspection, sewer diagram or council-record search may be warranted.
Planning and intended use. A zoning certificate provides important statutory information but is not a development feasibility opinion. If the buyer intends to add a dwelling, operate a business, rebuild, subdivide or use the property for short-term accommodation, those assumptions should be tested before exchange.
Special conditions. Vendor-drafted conditions often adjust the standard form. They may limit objections to title and defects, permit delayed settlement, impose default interest and legal costs, shift land-tax or compliance risk, authorise release of the deposit, require acceptance of unapproved structures or restrict requisitions. What looks “standard” may be the most commercially important part of the contract.
Finance and timing. In a private-treaty residential purchase, a five-business-day cooling-off period usually applies unless excluded, extended or waived. There is generally no cooling-off period at auction. A section 66W certificate waives the cooling-off protection; it does not make finance unconditional or cure defects. The finance, valuation, inspection and advice timetable should be realistic before the buyer commits.
Settlement and ownership. Confirm the purchaser’s correct legal name, ownership shares, tenancy choice, deposit arrangements and proposed settlement date. Consider duty, first-home or foreign-purchaser issues, loan documentation, verification of identity and source-of-funds requirements early. Last-minute changes to the purchaser or ownership structure may require vendor consent and create duty or finance consequences.
The best review ends with decisions, not a data dump: what is acceptable, what requires a search or expert report, what should be amended, and what is serious enough to delay or avoid exchange. The contract should be tested against the buyer’s plan for the property—not merely against the fact that the property exists.
Sources: NSW Government — Contracts and deposits when buying property; Conveyancing Act 1919 (NSW); NSW Registrar General — Guidance for practitioners
Disclaimer: This article provides general information only and is not legal, financial, planning or tax advice. It does not create a solicitor-client relationship.
