What to check in a NSW contract for sale before you sign

The front page

The front page sets out the main terms. Check each of these:

1. The names of the buyer and the seller. Your name must be exactly as it will appear on the title.
2. The property address and title reference.
3. The price.
4. The deposit amount and when it is due.
5. The settlement date, or the number of days after exchange.
6. Whether the property is sold with vacant possession or subject to a tenancy.
7. The inclusions and exclusions, such as floor coverings, blinds, light fittings and appliances.

If any item is wrong or missing, it should be corrected before you sign.

The documents the seller must attach

A residential contract must have these documents attached:

1. A copy of the title search, the registered plan, and dealings recorded on the title, such as easements.
2. A drainage diagram.
3. A current zoning certificate from the council, known as a section 10.7 certificate.
4. A statement of the buyer's cooling-off rights in the required form.

If the property has a swimming pool or spa, a pool certificate must also be attached, unless an exception applies.

If a required document is missing, the buyer may be able to withdraw within 14 days of exchange, unless the matter has settled.

We check that each document is there, and we read what each one shows.

What the attached documents tell you

The title search shows who owns the land and what is registered against it, such as a mortgage, easement or covenant.

The plan shows the boundaries of the land.

The zoning certificate shows how the land is zoned under the council's planning rules.

An easement or covenant may limit what you can build, or allow someone else to use part of the land.

The special conditions

The seller's solicitor adds special conditions to the standard form.

These can change your rights and duties in important ways. Read them with your solicitor. Look for conditions about:

1. Late settlement and what you must pay if you settle late.
2. The deposit, including whether a lower deposit or a deposit bond is accepted.
3. The condition of the property and any work the seller will or will not do.
4. Your right to make requisitions or claims.
5. Early access, if you need it before settlement.

Only a solicitor or licensed conveyancer can change the contract. The agent cannot.

Strata and tenancies

For a unit or townhouse in a strata scheme, the contract should include the titling information for the scheme.

Before you sign, check the strata records or obtain a strata report. Look at the levies, the scheme's finances, defects, and planned works.

If the property is tenanted and you want to live in it, the tenancy terms in the contract matter. Check them before you sign.

Land tax

Check the contract for a condition about how land tax is adjusted between buyer and seller.

Revenue NSW advises buyers to review the contract, especially any land tax adjustment condition, before signing.

Where buyers get caught

Signing with the wrong name.

The buyer named in the contract is the person who is buying. Check the names, and how you will hold the property if you buy with another person, before you sign.

Missing an excluded item.

If the item is not listed as an inclusion, you may not get it.

Not reading the special conditions.

The special conditions can shift risk to the buyer. They are as binding as the rest of the contract.

Assuming the agent's description is in the contract.

What the agent said is not a term of the contract unless it is written in it.

Common questions