Buying property in Sydney involves a series of important inspections, settlement steps and legal checks. This guide outlines what to review at each stage, so you can proceed with a clear checklist before signing anything.
Pre-Purchase Inspections
Before you commit to a property, arrange the inspections that match the property type and your own risk tolerance.
- Building and pest inspection: check for structural issues, termite activity, water damage and major defects.
- Strata report (for apartments or townhouses): review financials, meeting minutes, special levies and building defects.
- Survey or boundary check: confirm the title boundaries, easements and encroachments if there is any doubt.
- Services and utilities: test or verify water, electricity, gas, drainage and internet connections where accessible.
- Local area review: check zoning, flood or bushfire overlays, planned infrastructure and neighbourhood factors that affect your use of the property.
Legal Checks Before Exchange
Have your solicitor or conveyancer complete the following legal due diligence before you exchange contracts.
- Contract review: read the sale contract, special conditions and any unusual clauses that vary the standard terms.
- Title search: confirm the registered owner, any covenants, easements, caveats or other encumbrances on title.
- Zoning and planning certificate: check council zoning, heritage listings, contamination notices and development restrictions.
- Strata or community scheme disclosure: if applicable, review the by-laws, levies, insurance and sink fund position.
- Foreign investment or ownership restrictions: verify whether any approval or exemption applies to you as a buyer.
- Finance clause: confirm whether the contract includes a finance condition or whether you must have unconditional approval ready.
Settlement Process
Settlement is the final transfer of ownership and payment. Expect these steps in the standard process.
- Pre-settlement inspection: re-inspect the property shortly before settlement to check it is in the agreed condition.
- Adjustments: confirm council rates, water, strata levies and other outgoings are adjusted between the parties at settlement.
- Funds preparation: arrange the balance of purchase funds and loan drawdown with your lender in time for settlement.
- Document signing: sign the transfer and any remaining documents required by your conveyancer or lender.
- Electronic settlement: most NSW settlements are completed electronically through PEXA, with funds and title exchanged at the scheduled time.
- Collection of keys: after settlement is confirmed, collect keys and take possession as set out in the contract.
Final Checklist Before You Buy
Before you proceed to exchange or settlement, tick off each of these items.
- Inspections completed and reports reviewed with no unresolved major issues.
- Contract and title searches cleared by your legal representative.
- Finance formally approved and loan documents signed.
- Deposit funds available and transfer method confirmed.
- Insurance arranged from the date required by the contract.
- Settlement date and location confirmed, and final inspection booked.
FAQ
What inspections should I do before buying a Sydney property?
At minimum, complete a building and pest inspection. For strata properties, add a strata report. Depending on the property, also consider a survey, services check and local area review.
What legal checks are required before signing a contract?
Have your solicitor or conveyancer review the contract, complete a title search, check zoning and planning certificates, and verify any strata or community scheme disclosures.
How does settlement work in Sydney?
Settlement is the transfer of ownership and payment. Standard steps include a pre-settlement inspection, adjustments for rates and levies, funds preparation, document signing, electronic settlement and key handover.
When should I arrange my building and pest inspection?
Arrange it as early as possible after the property is identified, and always before exchange of contracts unless the sale is by auction and you choose to inspect before bidding.