Contract Review Before You Sign: What a Conveyancer Checks

Reviewed by Brenda Gately, Licensed Conveyancer (NSW Licence No. 05006556, AIC member) — 36 years' experience.

A contract review before you sign tells you what you are actually buying: what the title says, what the planning certificate discloses, which easements or covenants run with the land, what is included in the sale, and which special conditions shift risk onto you. In NSW every residential property must have a contract before it can be marketed — so it exists, and you can have it reviewed, before you commit to anything.

Once contracts are exchanged, your position is largely fixed. Everything you might have negotiated — a longer settlement, a repair, a condition — has to be raised while you still have the option of walking away. That is what makes the review the highest-value half hour in the whole purchase.

Get the contract before you make an offer

In NSW a residential property cannot be advertised for sale without a contract of sale in existence. Ask the agent for it early. There is no cost, no obligation, and no reason for an agent to refuse.

At auction this is not optional. There is no cooling-off period when the hammer falls, so the review, your finance and your inspections all have to be finished before you raise your hand.

What we actually check

The title and the plan

Who owns the land, whether the boundaries match what you have been shown, and whether anything is registered against the title — a mortgage to be discharged, a caveat, a lease, a right of way. We check that what is on the title is what is being sold.

The planning certificate (section 10.7)

Issued by the council, this is the document that tells you what the land can legally be used for and what restricts it: the zoning, whether development consent would be needed for what you have in mind, and whether the land is affected by flooding, bushfire, landslip, road widening or acquisition proposals.

It is where "we'll knock out the back wall and extend" quietly becomes a problem. A heritage listing or a flood affectation does not necessarily stop a purchase, but you should know about it before you pay for it, not after.

Easements, covenants and restrictions

An easement gives someone else a right over part of your land — a drainage line, a shared driveway, a right of access for a neighbour. A covenant restricts what you may do: minimum build costs, materials, no second dwelling, sometimes no fencing above a certain height.

These run with the land, so they bind you and everyone after you. A sewer easement through the middle of the back yard rules out the pool. A covenant can rule out the granny flat. Neither is visible at an inspection.

Inclusions and exclusions

The contract lists what stays. Dishwashers, light fittings, blinds, heaters, TV brackets and garden sheds are the usual arguments. If it is not ticked in the contract, it is not yours, whatever the agent said at the open home.

The special conditions

This is the part that matters most and gets read least. The front of a NSW contract is standard; the special conditions at the back are drafted by the vendor's representative and they can change your position substantially.

Common ones worth knowing about:

• Shortening or removing the cooling-off period. See our guide to the cooling off period nsw property rules before agreeing to this.
• Penalty interest on late settlement — check the rate, and what counts as your delay.
• Restrictions on making requisitions or claiming compensation for defects found later.
• The property sold "as is", with the vendor not responsible for anything the inspection finds.
• Deposit released early to the vendor before settlement.
• Vendor's right to rescind in defined circumstances.

None of these are automatically unreasonable. But each one is a shift of risk toward you, and each is negotiable while you are still deciding.

The settlement period

Six weeks is typical in NSW, but it is set by the contract and it should match your finance and your moving plans. If you need longer — or the vendor needs a delayed settlement to buy elsewhere — that is negotiated now, not later.

Strata documents, if it is an apartment

A contract for a strata lot must include certain prescribed documents. We read those, and tell you what a separate strata report is likely to add — the owners corporation's finances, special levies and defect history sit in its records rather than in the contract.

What happens when the review finds something

Usually not a disaster. Most findings become one of three things: a clause negotiated out or amended, a price adjustment, or a piece of information you factor into your decision.

Occasionally it is a reason to walk. An unapproved structure that the council will require to be removed, an easement that defeats the reason you wanted the property, a covenant that blocks the build — better found now than after exchange.

What a review does not cover

A contract review is a legal review of documents. It is not a building inspection, a pest inspection, or a valuation. It will not tell you the roof needs replacing. Book those separately — and ideally before exchange, or at the latest during the cooling-off period.

Getting help

Send us the contract before you sign it. Brenda will read it, explain it in plain English, tell you what is ordinary and what is worth negotiating, and quote a fixed fee for the transfer if you go ahead. If you are comparing conveyancers in Sydney, ask each of them whether a pre-purchase contract review is included.

Request a Free Quote or call (02) 8815 8148.

Frequently asked questions

Can I get the contract before I make an offer?

Yes. A residential property in NSW cannot be marketed without a contract of sale, so it already exists. Ask the agent — there is no cost and no obligation.

What is a section 10.7 planning certificate?

A council-issued certificate setting out the zoning, what consents apply to the land, and whether it is affected by flooding, bushfire, landslip or road proposals. It is the document that tells you what you can and cannot do with the property.

What is the difference between an easement and a covenant?

An easement gives someone else a right over part of your land, such as drainage or access. A covenant restricts what you may do on it, such as building materials or a second dwelling. Both run with the land and bind future owners.

Can special conditions be negotiated?

Yes, before exchange. Special conditions are drafted by the vendor's representative and are routinely amended — but only while you still have the option of walking away.

Does a contract review include a building inspection?

No. A contract review examines the legal documents. Building, pest and strata inspections are separate and should be booked before exchange, or at the latest during the cooling-off period.