Contract Review Before Buying Property in NSW: What Your Conveyancer Checks

NSW Government recommends obtaining the Contract for Sale as early as possible and having a licensed conveyancer or solicitor examine it before you commit to buying.

A review allows your conveyancer or solicitor to explain the terms, identify matters that require further investigation and raise proposed changes before you become legally bound.

What Does a Conveyancer Check in a Property Contract?

A conveyancer checks the key financial terms, settlement arrangements, special conditions, title documents, property disclosures and other terms that affect your rights and obligations as the buyer.

Every property is different, but a NSW contract review commonly covers the following areas.

The purpose is straightforward: you should understand what you are agreeing to before you sign.

The Contract Terms That Affect Your Purchase

The contract sets the financial terms, timing, inclusions, possession arrangements and special conditions that govern your purchase.

These terms should match what you believe you have agreed with the seller and should work for your circumstances before you exchange contracts.

Price, Deposit and Settlement

Your conveyancer checks the purchase price, deposit requirements and settlement date recorded in the contract.

The contract specifies how much you are paying, the deposit required and when payments must be made.

Your conveyancer checks whether those terms match what you have agreed and whether anything needs to change before exchange.

NSW residential settlements commonly occur around six weeks after exchange, but the parties can agree to another timeframe. NSW Fair Trading provides further information about contracts, deposits and settlement.

The proposed settlement date should work with your finance, moving arrangements and any related property transaction. If it does not, your conveyancer can raise a different settlement period with the seller’s representative before you commit.

Inclusions, Exclusions and Possession

Your conveyancer checks what comes with the property and whether you will receive vacant possession or take over an existing tenancy.

Do not assume everything you saw during an inspection automatically forms part of the purchase.

The contract can specify which fixtures, fittings, appliances or other agreed items stay with the property and which items the seller will remove.

It should also establish whether you receive vacant possession at settlement or take ownership subject to an existing tenancy.

This is particularly important for investors buying a tenanted property and owner-occupiers expecting to move in immediately after settlement.

Special Conditions

Your conveyancer checks special conditions for additional obligations, changed deadlines and property-specific terms that alter or supplement the standard contract.

Special conditions deserve careful attention because they are often where property-specific requirements and negotiated arrangements appear.

Your conveyancer can explain what those conditions require, identify terms that need clarification and negotiate proposed amendments with the seller’s legal representative before exchange.

What Can the Property Documents Reveal?

The documents in the Contract for Sale can reveal important information about the legal title, registered interests, planning position and other matters affecting the property.

Your conveyancer reviews this material as part of the contract review and identifies issues that require clarification or further investigation.

Title, Easements and Restrictions

The title and registered dealings show the legal property you are buying and any registered interests that affect the land.

The title search and registered plan identify the legal property being sold.

Registered dealings can reveal matters such as easements, restrictions on the use of land and positive covenants.

These interests can affect access, development, building work or how parts of the land may be used.

For example, an easement may give another party rights over part of the property, while a registered restriction may limit particular uses or development.

Your conveyancer can explain what is registered on the title and whether it requires further investigation in light of how you intend to use the property.

Planning and Drainage Information

Your conveyancer checks the planning and drainage information supplied with the contract for matters that need clarification or further enquiry.

NSW residential contracts contain prescribed property information, including relevant planning and drainage documentation.

A contract review does not provide a complete assessment of whether you can undertake a proposed renovation or development.

If you have specific plans for the property, tell your conveyancer so they can identify whether you should make further planning or specialist enquiries before proceeding.

Cooling-Off Periods and Auction Purchases

Your cooling-off rights depend on how you buy the property and what has been agreed before contracts are exchanged.

Most private-treaty residential purchases in NSW have a cooling-off period after exchange. For many transactions, this is five business days, although different rules apply in some circumstances.

The parties can agree to alter the cooling-off period, and a purchaser can waive those rights using a section 66W certificate.

Your conveyancer should therefore establish what cooling-off rights actually apply to your transaction before you exchange contracts.

For the detailed rules, see our guide to the cooling-off period when buying property in NSW.

Buying at Auction Changes the Timing

If you plan to buy at auction, have the contract reviewed before you bid because a successful bidder does not receive the usual cooling-off period.

NSW Government guidance for property auctions recommends reviewing the contract, organising finance and completing appropriate property inspections before bidding.

That leaves much less room to address a contractual issue after the auction.

Do not plan to win the auction and then use the following few days to decide whether you are comfortable with the contract.

Strata, Building and Pest Checks Are Separate Due Diligence

A legal contract review does not replace a strata search, building inspection or pest inspection.

Your conveyancer reviews the legal documents and contractual position. Other investigations answer different questions about the property.

For a strata property, your conveyancer can review documents such as the strata plan and by-laws supplied with the contract. A separate strata search can go further by examining the owners corporation’s finances, insurance, meeting records, planned works, building defects, legal matters and disputes.

NSW Government guidance on buying a strata property explains the importance of reviewing the strata scheme’s records before purchasing.

This information can help you assess the financial position of the scheme and the possibility of significant future expenditure or additional levies.

Likewise, a building or pest inspection examines the property’s physical condition, not its legal documentation.

A contract review cannot tell you whether the building is structurally sound, whether termites are present or whether a strata scheme is financially healthy. Those questions require separate investigations.

Depending on the property, a buyer may therefore need:

contract review + property searches + strata due diligence where relevant + building and pest inspections.

Each process answers a different question.

What About Finance?

Your property contract does not automatically protect you if your finance is declined or delayed.

NSW Government recommends arranging finance pre-approval before making an offer and having the necessary financial arrangements in place before exchange.

If you specifically negotiate a finance condition into the contract, your conveyancer can review its wording and explain the deadlines and obligations it creates.

Your lender decides whether to approve the loan. Your conveyancer advises you on the contractual consequences of your finance position.

If your finance remains uncertain, tell your conveyancer before signing.

What Happens After the Contract Review?

After reviewing the contract, your conveyancer explains any issues and helps you decide whether to proceed, request changes or complete further enquiries before exchange.

The review might lead you to proceed with the contract as drafted, request amendments, ask further questions, negotiate a different settlement period, complete additional searches or inspections, finalise finance or decide not to proceed.

If changes are required, your conveyancer can raise them with the seller’s solicitor or conveyancer before exchange.

Once you decide to proceed, the transaction moves into the broader conveyancing process.

See our guide to buying property in NSW for what happens from exchange through to settlement.

Get Your Contract Reviewed Before You Commit

Getting the Contract for Sale reviewed before you commit gives you time to understand the terms, investigate issues and request changes before you become legally bound.

The best time to identify an issue with a property contract is before the purchase progresses beyond the point where you can easily address it.

If you are buying property in Sydney, Coutts’ property conveyancing team in Sydney can assist with contract review and manage the transaction through to settlement.

Who checks a contract before buying a house in NSW?

A licensed conveyancer or solicitor can check a Contract for Sale before you buy a house in NSW.

They can explain the terms, review the property documentation and identify matters that require further investigation before you commit.

Should I get a contract reviewed before signing?

Yes, where possible, have the contract reviewed before you sign or otherwise become legally committed to the purchase.

NSW Government recommends having the contract examined by a licensed conveyancer or solicitor before committing to a property purchase.

What does a conveyancer check in a property contract?

A conveyancer checks the financial terms, settlement arrangements, special conditions, title documents and other legal information affecting the purchase.

This can include the deposit, inclusions, easements and restrictions, planning information, cooling-off arrangements and property-specific conditions.

How long does a contract review take?

The time required for a contract review depends on the contract, property and issues identified.

If you have an auction, offer deadline or proposed exchange approaching, send the contract to your conveyancer as early as possible rather than assuming it can be reviewed immediately.

Do I need a contract review before an auction?

Yes, you should arrange the contract review before bidding at a NSW property auction.

A successful bidder does not receive the standard cooling-off period, so you should understand the contract before auction day.

Does a contract review include a building and pest inspection?

No, a contract review does not include a building or pest inspection.

A conveyancer reviews the legal contract and property documents, while building and pest inspections assess the physical condition of the property.

Is a strata report part of a contract review?

No, a full strata search is separate from the legal review of the Contract for Sale.

Your conveyancer can review strata documents included in the contract, while a separate strata search examines the owners corporation’s records in much greater detail.

Can my conveyancer negotiate changes to the contract?

Yes, your conveyancer can propose and negotiate changes to the contract before exchange.

The seller must agree to the proposed amendments before they become part of the contract.