Buying a property is one of the biggest financial decisions you’ll ever make. While finding the right home is exciting, signing a Contract of Sale without understanding its contents can lead to unexpected costs, legal disputes, or settlement delays.
Every property transaction is different, and contracts often contain clauses that may not be obvious to buyers. That’s why having an experienced conveyancer review the contract before you sign is one of the smartest steps you can take.
Here are ten common red flags every property buyer should watch for before exchanging contracts.
1. Unapproved Building Works
The property may include renovations, extensions, decks, pergolas, or swimming pools that were completed without council approval.
If these works are not compliant, the you may become responsible for obtaining approvals or rectifying the issues after settlement.
A conveyancer can identify missing approvals by reviewing the contract and relevant property documents.
2. Easements That Restrict Your Property
Many buyers overlook easements because they are buried within the contract documentation.
An easement may allow utility providers, neighbours, or local authorities legal access across part of your land. This can affect future renovations, fencing, landscaping, or extensions.
Understanding these easements before purchase helps you avoid costly surprises later.
3. Special Conditions That Favour the Seller
Not every Contract of Sale is standard.
Some contracts include special conditions that may:
- Limit your rights
- Reduce the seller’s obligations
- Change important settlement terms
- Transfer additional risks and obligations to you.
These clauses should always be reviewed before signing.
4. Short Settlement Deadlines
Settlement periods can vary significantly between transactions.
If the settlement date is unusually short, you may struggle to finalise finance, complete inspections, or arrange insurance and moving services.
Reviewing the timeline early helps avoid unnecessary pressure and potential breach of contract.
5. Missing Property Disclosures
NSW property contracts must include certain documents and disclosures.
If important information is missing, you may not receive a complete picture of the property’s legal status.
Examples include:
- Deposited plans
- Sewer diagrams
- Planning certificates
- Title searches
A thorough contract review helps ensure nothing essential has been overlooked.
6. Flood, Bushfire or Environmental Risks
Some properties are located within areas affected by:
- Flood zones
- Bushfire-prone land
- Coastal erosion
- Environmental restrictions
These risks can affect insurance premiums, future development opportunities, and ongoing maintenance costs.
Property searches completed during conveyancing help identify these issues before settlement.
7. Strata Issues for Apartments and Townhouses
If you’re purchasing a strata property, don’t rely solely on appearance. Whilst the property can look very nice, clean and well maintained on the surface, there can be underlying problems that you would not be aware of without reviewing the strata records via a strata report.
Reviewing strata records can reveal:
- Large upcoming special levies
- Building defects
- Ongoing legal disputes
- Financial problems within the owners corporation
- Poor maintenance history
Understanding the financial health of the strata scheme is just as important as inspecting the property itself.
8. Outstanding Council or Government Notices
A property may be subject to notices issued by local councils or government authorities.
These could relate to:
- Illegal structures
- Fire safety requirements
- Required repairs
- Future infrastructure projects
Ignoring these notices can result in significant expenses after settlement.
9. Boundary or Encroachment Problems
Fences, garages, sheds, retaining walls, or driveways don’t always sit within legal property boundaries.
Boundary disputes can become expensive if discovered after settlement.
Professional searches and contract reviews help identify potential encroachments before ownership changes.
10. Finance Clauses and Cooling-Off Considerations
Many buyers assume they can withdraw from a purchase if finance is declined.
However, this isn’t always the case.
Understanding the following rights and obligations is essential before signing any agreement.
- Cooling-off rights
- Deposit obligations
- Finance conditions
- Contract deadlines
Obtaining legal advice early reduces the risk of costly mistakes, stress and disappointment.
Why a Professional Contract Review Matters
Property contracts are legal documents designed to protect all parties involved in the transaction.
A property contract and be anywhere between 50 – 5000 pages within which even one sentence on any of the pages may have a detrimental effect on you as the buyer.
As a qualified, experienced NSW conveyancer with proven processes and procedures, we will carefully review the contract, explain complex legal terms in plain English, identify potential risks, and advise you before you become legally committed so that you can make a really good and informed decision.
This small investment can save thousands of dollars by helping you avoid unexpected legal issues or costly disputes after settlement.
Final Thoughts
Every property purchase is unique, and even experienced buyers can overlook important contract details.
Before signing a Contract of Sale, ensure you understand exactly what you’re agreeing to. A professional contract review provides confidence, protects your interests, and helps your property transaction proceed smoothly.
Whether you’re buying your first home, upgrading, or investing, obtaining expert conveyancing advice before exchanging contracts is one of the best decisions you can make.
Need Your Contract Reviewed?
If you’re buying property in NSW, the team at Strictly Conveyancing can review your Contract of Sale, explain your legal obligations, identify potential risks, and guide you through every stage of the conveyancing process with confidence.
Contact us today to arrange a professional contract review before you sign.
