Buying Property in NSW? Here’s What You Need to Check Before You Sign

You’ve found the property.

You love the kitchen.

You’ve already worked out where the couch is going.

You’re fairly sure the backyard would look fabulous with a pool.

Excellent.

Now comes the slightly less exciting part: due diligence.

When you’re buying property in NSW, having your contract reviewed by a conveyancer is an important part of your due diligence. But there’s more to buying a property than checking the contract.

Some things are our job. Others require enquiries, inspections or advice from different professionals. And some things are entirely up to you to investigate.

Knowing the difference before you sign can save you a lot of headaches afterwards.

What does your conveyancer actually review?

At MG Conveyancing, we review the Contract for Sale and the documents attached to it, including the title, relevant plans, planning certificate, registered dealings and other disclosure documents.

We explain the contract terms, identify relevant legal issues and, where appropriate, raise enquiries with the Vendor’s solicitor.

For example, if the title discloses an easement or restriction on use, we’ll explain what the contract documents tell us about it.

But here’s where your plans matter.

If you’re buying a property because you want to install a pool, and there’s a drainage easement running straight through your proposed pool location, that’s something worth discussing before exchange.

We can explain the legal documents, but we can’t guarantee that your future plans for the property are achievable.

What pre-purchase enquiries should buyers make?

That depends on the property.

While we review relevant information disclosed in the contract documents, that information isn’t necessarily the whole picture.

Depending on what you’re buying, you should consider making your own enquiries about:

• Building and pest issues: The physical condition of the property, including structural defects and termites.
• Council approvals: Whether additions, extensions or other structures have the necessary approvals.
• Flooding, bushfire and other risks: While some matters may be disclosed in the planning certificate, further enquiries may be necessary.
• Boundaries: Whether fences, buildings and other structures are correctly positioned.
• Surrounding development: Proposed developments nearby that could affect the property.
• Future plans: Whether you can renovate, extend, subdivide or build that pool you’ve already mentally installed.
• Insurance: The availability and cost of appropriate cover.
• Strata properties: The building condition, finances, maintenance history and management of the owners corporation.

Not every enquiry will be necessary for every property, and some matters may already be addressed in the contract documents we review.

We also raise enquiries with the Vendor’s solicitor where appropriate. However, contracts generally contain provisions requiring purchasers to make and rely on their own enquiries about the property.

Reviewing the contract and raising enquiries with the Vendor’s solicitor is not the same as independently investigating or verifying every aspect of the property.

This is why building and pest inspections, Council enquiries, surveys and other specialist advice may be important before you commit to a purchase.

What about buying a strata property?

Strata properties involve another layer of due diligence.

As part of our contract review, we consider the relevant legal documents attached to the contract, including the registered strata plan and by-laws where applicable.

However, MG Conveyancing does not review or provide advice on strata inspection reports.

Strata reports contain information about the owners corporation’s finances, building condition, defects, maintenance, disputes and potential future expenditure. Many of these matters involve building, financial or strata-management considerations outside the scope of conveyancing advice.

Asking your conveyancer to assess the financial health and building condition of a strata scheme is a little like asking your cardiologist to look at your dodgy knee. They may be very good at what they do, but you’ve wandered into the wrong consulting room.

If you’d like assistance understanding your strata report, we can refer you to our strata expert, who offers detailed reviews of existing reports together with a verbal discussion to guide you through the findings.

We recommend obtaining appropriate strata advice before becoming unconditionally bound to purchase.

After all, you’re not just buying an apartment. You’re buying into an owners corporation too.

What about pre-purchase searches in NSW?

You’ll often see references to pre-purchase searches or property searches in NSW, but there isn’t one standard set of investigations suitable for every property.

The Contract for Sale contains prescribed disclosure documents that we review. Additional searches, inspections or specialist advice may be necessary depending on the property and what you intend to do with it.

A purchaser planning to live in an existing house may have very different concerns from someone intending to renovate, subdivide or redevelop.

Tell us what you’re planning, and make sure you undertake the appropriate enquiries before exchange.

The best time to ask questions? Before exchange.

If something matters to your decision to buy a property, don’t assume someone else has checked it.

Ask questions, obtain the appropriate inspections and make any necessary enquiries before you’re legally committed.

At MG Conveyancing, we help purchasers across Sydney and the Central Coast understand their contracts and navigate the legal conveyancing process.

We’ll explain what we find in the documents we’re reviewing, raise appropriate enquiries and let you know when something falls outside our scope.

Because good advice isn’t pretending your conveyancer can investigate everything. It’s making sure you know what we’ve checked, and what you still need to check for yourself.

Still deciding what to offer? Here’s what to check before making an offer on a property.