For most buyers, the contract of sale is the least exciting part of buying a home and the most important. It’s a dense legal document, but every page matters, and understanding what you’re looking at before you sign can save you thousands of dollars and a great deal of stress.
Here’s a plain-English walkthrough of what’s actually in a NSW contract, and what to check before you commit.
What Is a Contract of Sale?
In NSW, the vendor (seller) is legally required to prepare a contract before a property can be marketed for sale. This is different from some other states, where the buyer’s solicitor drafts the contract. In NSW, you’re reviewing a document the seller’s side has already put together, which is exactly why an independent review matters.
Key Sections of a NSW Contract
Vendor and Property Details
The front page confirms who’s selling, the legal description of the land (the lot and deposited plan number), and the purchase price. It sounds basic, but errors here do happen, particularly with strata or subdivided titles.
Title Details
This section outlines how the property is currently held, whether there are any easements, covenants or rights of way affecting the land, and whether the title is Torrens title (the standard form of ownership in NSW) or something else, such as strata or community title.
Special Conditions
This is where a lot of the real detail sits. Special conditions might cover finance approval timeframes, a building and pest inspection clause, settlement period adjustments, or specific inclusions the agent negotiated verbally. If it was promised, it needs to be written here. A verbal agreement that isn’t in the contract generally isn’t enforceable.
Zoning and Planning Certificates (Section 10.7)
Every NSW contract must include a Section 10.7 planning certificate from the local council. This tells you the property’s zoning, any heritage listings, flood or bushfire risk classifications, and any council orders affecting the land. For buyers looking at newer growth areas or acreage on the edge of town, this section deserves close attention.
Inclusions and Exclusions
The contract lists exactly what’s included in the sale, such as fixed floor coverings, light fittings and built-in appliances, and what’s specifically excluded, such as a dining light the seller intends to take with them. If something you inspected isn’t listed, don’t assume it stays.
Cooling-Off Period
Unless you’re buying at auction, NSW gives residential buyers a statutory five business day cooling-off period after exchange. During this time you can withdraw, though you’ll typically forfeit 0.25% of the purchase price. This period can be waived or reduced with a solicitor’s certificate, which is sometimes used to strengthen an offer.
Common Red Flags to Look For
- Special conditions that favour the vendor heavily, such as short finance clauses that don’t give you enough time to secure approval
- Vague or missing descriptions of inclusions
- Easements or covenants that could affect future renovations, granny flats or subdivision
- A settlement date that doesn’t line up with your own selling or moving plans
- Outstanding rates, water charges or strata levies that aren’t clearly addressed
Why You Should Get a Solicitor or Conveyancer to Review It
Reading the contract yourself is a good start, but it’s not a substitute for professional advice. A solicitor or licensed conveyancer will check the title search, confirm there are no undisclosed encumbrances, review the special conditions against your interests, and can often negotiate amendments before you exchange. This review typically happens before you make an offer, not after, so it pays to organise it early.
How This Fits Into the Buying Process
Understanding the contract is one piece of a longer process that includes arranging finance, getting a building and pest inspection, and preparing for settlement day. Each step protects a different part of your purchase, and skipping the contract review is one of the more common (and avoidable) mistakes buyers make under time pressure.
Frequently Asked Questions
Do I have to sign the contract before making an offer? No. You can review the contract, and have your solicitor review it, before you make a formal offer. It’s generally best to do this early so you’re not rushed once you’ve found the right property.
What happens if I find something wrong in the contract after exchange? Once contracts are exchanged, you’re legally bound, subject to the cooling-off period (if it applies) or any conditions written into the contract. This is why review before exchange is so important.
Is the cooling-off period the same for every purchase? No. Auction purchases in NSW have no cooling-off period. Off-the-plan purchases have different rules under NSW legislation. Always confirm which applies to your specific purchase.
Can I negotiate the special conditions? Yes. Special conditions are negotiable before exchange, and it’s common for a buyer’s solicitor to propose amendments, such as extending the finance clause or adding a specific inclusion.
Who prepares the Section 10.7 certificate? It’s obtained from the relevant local council, in this case Wagga Wagga City Council, and must be included in the contract before the property is marketed.
Ready to Take the Next Step?
Buying a home involves a lot of paperwork, but you don’t have to work through it alone. The team at PRD Real Estate Wagga Wagga can connect you with the right local professionals and guide you through every stage of the process.
Only at PRD. Don’t just put your home on the market, get it the attention it deserves.
