The moment you sign a Contract of Sale in New South Wales, the purchase becomes legally binding.
Before you sign, there are ten crucial checks to ensure you are fully apprised of your rights and obligations. Skipping any one can cost you thousands, or your entire deposit.
You should firstly be aware of whether a cooling-off period applies to your purchase. The cooling-off period is the time in which you can rescind the contract (after signing occurs) and forfeit only a nominal portion of the deposit.
- A NSW private treaty buyer will generally (unless stated otherwise) have a 5 business day cooling-off period, but rescinding within this period forfeits 0.25% of the purchase price.
- A section 66W certificate signed by your solicitor waives cooling-off and should never be signed before your finance, inspections and searches are complete.
- There is no cooling off period if the property is purchased at auction.
Why pre-signing due diligence is critical
Buying property is the largest purchase most people ever make, and the contract locks in every term, risk and obligation for the rest of the transaction. There is no general right to rescind a contract once signed, beyond the cooling-off period (if applicable). Defects discovered after signing become your problem, not the vendor’s.
1. Get your finance pre-approval in writing
There is a real difference between an indicative quote from a mortgage broker and a formal written pre-approval from a lender.
- An indicative quote is a rough estimate based on numbers you have told the lender and is not a commitment.
- A formal pre-approval, sometimes called conditional approval, means the lender has verified your income, credit history and serviceability, and has agreed to lend you a specified amount subject to an acceptable valuation and final sign-off.
Signing a contract on the strength of an indicative quote is risky. If your lender later declines the loan, or values the property below the purchase price, you may lose your deposit and face damages. Get formal written pre-approval before you sign, and confirm how long it remains valid. Pre-approvals typically last 90 days.
2. Have a solicitor or conveyancer review the contract before you sign
This is the single most important item on the list. The Contract of Sale is drafted by the vendor’s lawyer to protect the vendor’s interests, and special conditions, disclosure gaps or unusual clauses can shift risk onto you without you realising.
A NSW solicitor or licensed conveyancer will confirm the prescribed disclosure documents are attached, identify unusual or unfair special conditions, flag encumbrances, easements or restrictions, explain settlement and default terms, and negotiate amendments with the vendor’s representative on your behalf. You should engage a solicitor before you make an offer and email them the contract the moment the agent provides it, allowing 24 to 72 hours for a proper review.
3. Commission a building and pest inspection
A building and pest inspection is not legally required in NSW, but skipping it is a common and expensive mistake. A building inspection by a licensed builder, architect or surveyor identifies structural defects, roof and plumbing issues, moisture, rising damp and visible safety problems. A pest inspection identifies active termites, borers and timber damage, and is often bundled with the building inspection.
For Camden and the wider Macarthur region, pest inspections are particularly important; bushland-adjacent suburbs and older timber homes can carry real termite risk. You should book inspections before signing or make the contract subject to a satisfactory inspection as a special condition. Expect to pay around $500 to $800 combined.
4. Request a strata inspection report (if applicable)
If you are buying a unit, townhouse or any strata-titled property, a strata inspection report is essential. It reviews the last 3 to 5 years of owners’ corporation records and tells you the current quarterly levies, the balance of the sinking (capital works) fund, whether special levies are planned or likely, major defects or disputes, building insurance status, and the bylaws including pet, parking and renovation restrictions.
A strata report can reveal a building where an imminent $25,000 special levy is about to land in every owner’s inbox; that is information you want before you sign, not after. Order a strata report through a specialist provider, usually for $250 to $400.
5. Check the section 10.7 planning certificate
The section 10.7 planning certificate is issued by the local council under section 10.7 of the Environmental Planning and Assessment Act 1979 (NSW). It discloses zoning and permitted land uses, heritage listings, bushfire and flood classification, coastal hazards, contaminated land records, and road widening or resumption proposals.
A section 10.7(2 and 5\) certificate is preferred for thorough due diligence. Ask your solicitor to flag any zoning, flood or bushfire classifications that could affect the property’s use, insurance or future value.
6. Verify pool compliance and smoke alarm certificates
Under the Swimming Pools Act 1992 (NSW), any NSW property with a pool or spa pool cannot be sold without a valid certificate of compliance (valid 3 years), a certificate of non-compliance (which triggers a 90-day buyer rectification obligation after settlement), or a relevant occupation certificate issued within the last 3 years.
Compliant pool barriers must be a minimum of 1.2 metres high with self-closing and self-latching gates and no climbable objects within 900mm. If the contract includes a certificate of non-compliance, you take on the rectification cost and responsibility, which can run into thousands of dollars and should be raised as a negotiation point before signing.
Every NSW residential property must also have working smoke alarms compliant with Australian Standard AS 3786\. Verify the alarms are installed, positioned correctly and within their 10-year expiry.
7. Review the vendor disclosure documents
Under section 52A of the Conveyancing Act 1919 (NSW) and the Conveyancing (Sale of Land) Regulation 2022 (NSW), the vendor must attach prescribed documents to the contract before you sign.
| Document | What it tells you |
| Title search | Ownership, mortgages, caveats, easements |
| Deposited or strata plan | Boundaries, dimensions, unit layout |
| Section 10.7 planning certificate | Zoning, heritage, flood, bushfire |
| Sewer diagram (Sydney Water) | Sewer line position, easements |
Documents creating easements or covenants must also be included where they affect the property, along with the pool compliance certificate where applicable. A missing prescribed document gives you a 14-day right of rescission to void the contract and recover your deposit. Ask your solicitor to confirm every prescribed document is attached and current.
8. Understand the cooling-off period and what voids it
NSW law gives private treaty residential buyers a 5 business day cooling-off period starting from the day you receive a signed copy of the contract. During this period, you can rescind, but you forfeit 0.25% of the purchase price. On a $900,000 purchase that is $2,250; on $1.5 million it is $3,750.
Cooling-off does not apply at auction (including exchanging on auction day if passed in), where the buyer’s solicitor signs a section 66W certificate waiving cooling-off, where the purchase is made by exercising an option, or where the land is rural and larger than 2.5 hectares. Do not sign a 66W before your finance, inspections and searches are complete; it removes your legal safety net entirely.
9. Calculate total costs including stamp duty
The purchase price is not your total cost.
NSW transfer duty (stamp duty) 2026
Stamp duty uses a progressive scale, with premium property duty applying above the $3.872 million threshold for 2025 to 2026\. On a $900,000 home the standard transfer duty is approximately $35,000; on a $1.5 million home it is around $67,000. Use the Revenue NSW transfer duty calculator to confirm the exact amount.
First Home Buyers Assistance Scheme (2026)
Eligible first home buyers receive a full exemption on existing or new homes up to $800,000, concessional duty between $800,001 and $1,000,000 (phasing out progressively), a full exemption on vacant land up to $350,000, and concessional duty on vacant land between $350,001 and $450,000. You must be 18 or older, an Australian citizen or permanent resident, have never owned residential property in Australia, and live in the property as your principal place of residence for at least 12 continuous months, moving in within 12 months of settlement.
Foreign buyer surcharge and ban
Foreign persons pay an additional 9% surcharge purchaser duty on residential property, on top of standard transfer duty. A nationwide ban also prohibits foreign investors, including temporary residents, from purchasing established dwellings from 1 April 2025 until at least 31 March 2027, with limited exemptions for new dwellings and vacant land. FIRB approval is required before signing any eligible purchase.
Other costs to plan for include conveyancing fees of $1,500 to $3,500, loan establishment and mortgage registration fees, council and water rates adjustments at settlement, Lender’s Mortgage Insurance if your deposit is under 20%, and moving costs and any urgent repairs.
10. Raise requisitions and negotiate special conditions
Before you sign, your solicitor should prepare requisitions on title: formal questions to the vendor’s solicitor confirming the title is clean, no undisclosed interests exist, and the property will be delivered as described.
You may also want to negotiate special conditions before signing, such as subject to finance so the contract falls over without penalty if formal finance approval is declined, subject to satisfactory building and pest inspection, subject to the sale of your existing property, an extended settlement of 60 or 90 days instead of the standard 42, inclusion of fixtures and chattels confirming exactly what stays, or vendor repairs before settlement. Most agents will present the contract as standard and discourage amendments. Special conditions are negotiable, and a good solicitor will draft them to protect your position.
Red flags to watch for
The most common warning signs include the agent pressuring you to sign today with claims of multiple offers, the vendor asking you to sign a section 66W certificate before your finance and inspections are complete, missing prescribed vendor disclosure documents, a certificate of non-compliance for the pool with no price adjustment or vendor repair, “as is, where is” or other special conditions heavily favouring the vendor, and a strata report showing a low sinking fund balance combined with pending capital works.
Off-the-plan contracts and extra considerations
Off-the-plan contracts add complexity. Sunset clauses let the contract be rescinded if the lot is not registered by a specified date; under the Conveyancing Act 1919 (NSW), developers cannot automatically terminate and must give 28 days’ written notice and obtain buyer consent or a Supreme Court order. Valuation at settlement (not exchange) means a falling market can shift your loan-to-value ratio. Variations from marketing material can occur in finishes, layout and common property. Settlement may be 1 to 3 years away, so finance pre-approval will expire and need to be reconfirmed.
Speak with Family Focus Legal
At Family Focus Legal, our conveyancing team guides NSW property buyers through every one of these 10 steps. We review your contract, raise requisitions, negotiate special conditions, and protect your position from offer through to settlement. A 30-minute contract review can save you tens of thousands of dollars.
Visit our office at 74 John Street, Camden NSW 2570, phone (02) 4655 4224, or contact Family Focus Legal to arrange your contract review.
