How To Prepare A Contract For Sale In NSW: Key Clauses & Legal Must-have

Gathering the Essential Documentation Before Drafting the Contract

Accurate and complete documentation is the foundation of a compliant contract for sale. Sellers must provide certain prescribed documents that support key disclosures and legal transparency. Missing documents can delay the process or create complications later in the transaction.

• A copy of the current title search to confirm ownership and reveal registered interests such as easements or mortgages
• A zoning certificate (Section 10.7) issued by the local council, outlining how the land can be used
• A sewer diagram to show how the property connects to sewer infrastructure
• Copies of documents revealing restrictions, rights of way or covenants affecting how the land can be used
• A planning certificate and any required documents for properties affected by heritage listings or bushfire zones.

Defining the Parties, Property Description & Sale Price Clearly

Accuracy is vital when recording the names of the parties involved, property details, and price. Errors in these basic elements can lead to delays or, in some cases, contractual disputes. Warland Solicitors will help check that the correct legal names and property descriptions are used throughout.

• Include the full legal names of the vendor and purchaser, including any middle names or company details if applicable
• List the street address and the legal lot and deposited plan number from the title deed
• Set out the agreed purchase price, including how the deposit is to be paid and when it is due
• Outline any holding deposit already paid before contract exchange, if relevant

Inclusions, Exclusions & Fixtures: Clarity for Both Vendor & Buyer

Clear instructions about what stays with the property and what the seller is taking can help avoid confusion or disputes. While some items like ovens or dishwashers are commonly included, others may be subject to negotiation.

• Specify built-in appliances such as cooktops, ovens, rangehoods or integrated dishwashers
• Clarify any removable items that will be excluded, such as wall-mounted televisions, pot plants or outdoor furniture
• Note items often disputed at settlement, such as curtains, remote-controlled garage doors, or garden sheds
• Where items are excluded, make it clear in writing to avoid misunderstandings at the final inspection

Mandatory Disclosure & Compliance Under NSW Law

NSW legislation requires vendors to provide a series of disclosures in the contract. These help buyers make informed decisions and reduce legal risks post-sale. Failing to include certain documents can give buyers the right to rescind the contract.

• Section 10.7 certificate showing zoning, development controls and planning constraints
• Details of any unregistered or off-title interests that could affect the buyer's future use of the property
• Sewerage diagram to show how wastewater is managed on the property
• Swimming pool certificate of compliance or non-compliance, where applicable
• Disclosure of any dealings such as caveats, covenants, easements or rights of carriageway not yet registered

Key Standard Clauses & Settlement Timing

A standard NSW contract for sale includes clauses that apply in most property transactions. These clauses cover general rights and responsibilities, settlement arrangements and what happens if issues arise before completion.

• Settlement usually takes place 42 days after exchange unless otherwise agreed in writing
• The vendor agrees to maintain the property in the same condition it was in at exchange, subject to fair wear and tear
• The purchaser must complete final payment on or before settlement day, including adjustments for rates and levies
• Both parties are bound by standard clauses unless changes are made using special conditions

Special Conditions & Tailoring the Contract to Specific Circumstances

Standard clauses don’t suit every transaction. Sometimes, additional terms are negotiated to reflect unique conditions, such as early possession or repairs before settlement.

• Occupancy allowed before settlement (under licence)
• Sale subject to the buyer obtaining finance or selling another property
• Seller to complete specified repairs before settlement
• Tenant’s lease to continue post-settlement if selling an investment property
• Numerous other special conditions that protect the seller when selling the property.
• When purchasing, Warland Solicitors can, in most cases, negotiate or alter the special conditions of our clients.

Exchange, Cooling-Off Period & What Happens Next

Exchange is a significant step in the sale process. It’s when both parties sign and swap identical copies of the contract, locking in the agreement. In most private sales, a cooling-off period follows unless waived by the buyer’s legal representative.

• The agent usually requests that the buyer pay 0.25% of the purchase price on exchange as a holding amount. This alone does not secure the contract.
• A five-business-day cooling-off period applies in most NSW residential contracts, unless waived with a certificate
• If the buyer withdraws during the cooling-off period, they forfeit the 0.25% deposit.
• After cooling off, both parties are fully committed and must proceed to settlement unless agreed otherwise.
• Balance of agreed deposit (5%, 10% or other) to be paid on or before cooling off period expires. 

Preparing for Settlement & Concluding the Sale

Several administrative and financial steps are required to finalise the sale, leading up to settlement. Solicitors coordinate these activities on the vendor’s behalf.

• Arrange final figures for council and utility rate adjustments
• Prepare discharge of any existing mortgage
• Coordinate signing of transfer documents and other required forms
• Book in settlement with banks and other parties involved
• Handover of keys once settlement is confirmed

Get Support With Conveyancing in Newcastle Today

At Warland Solicitors & Conveyancing, we support clients across Newcastle in preparing contracts for sale that comply with NSW legislation. If you're selling a property and would like assistance navigating your legal obligations, we’re here to help. Give us a call today to help guide you through the sale process with clear, step-by-step support that aligns with your goals.