Buying property in NSW is a significant financial commitment. Before you sign, a professional contract review gives you a clear picture of what you are agreeing to, what risks may be hidden in the fine print, and where there is room to negotiate better terms.
A contract review is not just a formality. It is your opportunity to understand every obligation, identify potential problems, and protect your investment before exchange.
This guide explains what a thorough contract review covers and why it matters for every property buyer in NSW.
Key Takeaways
- A contract review examines the full Contract for Sale, including pricing, settlement terms, special conditions, and title details
- Your solicitor checks that the vendor has met all legal disclosure requirements under NSW law
- The review identifies risks such as unusual clauses, encumbrances, zoning issues, and strata concerns
- Finance and loan conditions are assessed to make sure they align with your lender’s requirements
- Your solicitor may recommend amendments to reduce risk and clarify your obligations before you exchange
What Does a Contract Review Cover?
Examination of Contract Terms
Your solicitor will review the full Contract for Sale and confirm the accuracy of the details that form the foundation of your purchase. This includes:
- Purchase price and deposit amount
- Settlement period (commonly 42 days in NSW)
- Inclusions and exclusions (such as fixtures, fittings, and appliances)
- Whether the property is sold with vacant possession or subject to an existing tenancy
- Special conditions that may affect your rights or obligations
- Cooling-off rights, which generally provide 5 business days unless waived by a section 66W certificate
These details may seem straightforward, but small errors or unfavourable terms can have serious financial consequences if they are not picked up early.
Risk Assessment
A professional review goes beyond the basics. Your solicitor will look for potential risks that may not be immediately obvious, including:
- Unusual clauses, penalties, and default interest provisions
- Title issues and encumbrances, such as easements, covenants, and caveats
- Planning and zoning concerns identified through the section 10.7 certificate
- Strata and off-the-plan matters, including by-laws, levies, building defects, variations to plans, and sunset clauses
Understanding these risks before exchange allows you to make informed decisions about whether to proceed, negotiate, or walk away.
Compliance Checks
The vendor is required by law to include certain documents and disclosures with the Contract for Sale under the Conveyancing (Sale of Land) Regulation 2022. Your solicitor will verify that these requirements have been met, including:
- Title searches, plans, sewer diagrams, and planning certificates
- Pool compliance certificates (if relevant), approvals, and occupation certificates
- GST withholding notices and foreign resident CGT clearance certificates
- Land tax adjustments and FIRB approval (if applicable)
Missing or incomplete disclosures can create problems after exchange and may give you grounds to rescind the contract in certain circumstances.
Finance and Loan Conditions
If you are relying on a loan to complete your purchase, the contract review will also consider your finance arrangements. Your solicitor will:
- Check that any finance clause aligns with your lender’s requirements and approval timeframe
- Review provisions for valuation access, insurance, and stakeholder deposit arrangements
- Negotiate cooling-off rights before your finance or due diligence is complete
Getting this right protects your deposit and prevents you from being locked into a purchase before your funding is confirmed.
Negotiation Recommendations
Based on the review, your solicitor may recommend amendments to the contract to better protect your interests. Common recommendations include:
- Limiting one-sided requisition restrictions
- Preventing early release of your deposit to the vendor
- Adjusting default interest or defect rectification provisions
- Adding due diligence or finance conditions where they are needed
- Clarifying how settlement adjustments will be calculated
These amendments are typically negotiated with the vendor’s solicitor before exchange. A well-negotiated contract reduces the chance of disputes later and gives you greater certainty about what you are committing to.
Settlement Procedures
Your contract review will also outline what happens between exchange and settlement, including:
- E-conveyancing through PEXA (verification of identity, authorisations, and duty stamping)
- Transfer duty timing and settlement adjustments for council rates, water rates, strata levies, and land tax (if applicable)
- GST withholding and clearance requirements
- Risk allocation (the vendor typically bears risk until completion)
Understanding these obligations early means there are no surprises as settlement day approaches.
Why a Contract Review Matters
A professional contract review reduces uncertainty, identifies negotiation opportunities, and helps you move toward settlement with confidence. It is one of the most practical steps you can take to protect your property investment.
At & Legal, our property law team provides expert guidance across residential, strata, and off-the-plan transactions in NSW. Whether you choose our Essential, Premium, or Elite conveyancing package, you will receive a thorough contract review tailored to your purchase.
Contact us today to discuss your property purchase.
Frequently Asked Questions
When should I have my contract reviewed?
As soon as you receive the Contract for Sale and before you exchange. If you are buying at auction, we strongly recommend having the contract reviewed before auction day, as there is no cooling-off period for auction purchases.
What is a section 66W certificate?
A section 66W certificate waives your cooling-off rights. Your solicitor should only advise you to sign one once all inspections are complete and your finance is unconditionally approved.
Can a contract review uncover hidden costs?
Yes. Your solicitor will look for clauses that may shift costs to you, such as additional fees, maintenance obligations, or unfavourable settlement adjustments that are not immediately obvious.
How long does a contract review take?
Most reviews are completed within 1 to 2 business days, though complex contracts (such as off-the-plan purchases) may take longer. It is worth allowing enough time for your solicitor to request and negotiate amendments before you exchange contracts.
Do I need a contract review if I am buying a new build?
Yes. Off-the-plan and new build contracts often include complex special conditions around sunset clauses, plan variations, and defect rectification that require careful review.
Is a contract review included in conveyancing fees?
At & Legal, a contract review is included as part of our conveyancing packages. It is one of the first steps we take when you engage us for your property purchase.