Realestate Lens — Contract Risk Report
42 Example Street, Newtown NSW 2042
Off-the-plan apartment, 2 bed / 1 bath · Contract for Sale of Land (NSW) — Off-the-Plan
Vendor: Sample Developments Pty Ltd · Purchase price: $895,000
Generated in 58 seconds
Overall risk
High caution
2 high · 2 medium · 2 low
Key dates
| Cooling-off period | 5 business days from exchange | 0.25% forfeiture if exercised |
| Deposit due | 10% on exchange | Released to vendor early — see Risk #4 |
| Finance condition | Not included | Buyer assumes finance risk |
| Settlement | On notice, 14 days after registration | No fixed date — risk for buyer planning |
| Sunset date | 31 December 2028 | ~3 years from exchange — see Risk #1 |
True cost summary
Purchase price
$895,000
Stamp duty (NSW, OO)
$35,790
Estimated strata levies
$5,760 / year
Total to settle
~$933,140
Findings & risks
#1. Sunset clause favours the vendor
High riskFound in: Special Condition 14 (page 47)
The contract allows the vendor to rescind if registration is not achieved by 31 December 2028 — but the buyer cannot rescind on the same date. NSW reform requires written buyer consent for vendor sunset rescission, but the clause omits the prescribed buyer protections.
Recommendation: Discuss with your solicitor whether to negotiate symmetrical sunset rights and a deposit-with-interest clause.
#2. Vendor variation rights — material changes permitted
High riskFound in: Special Condition 22 (page 51)
The vendor reserves the right to change unit dimensions by up to 5%, alter fixtures, and substitute materials with no requirement to consult the buyer. This is broader than the standard NSW disclosure requirement.
Recommendation: Ask your solicitor to negotiate a 'material adverse change' threshold (e.g. 2% area change) that triggers a buyer rescission right.
#3. Strata levies higher than disclosed estimate
Medium riskFound in: Strata Schedule (annexure C)
Estimated quarterly admin fund levy is $1,180 — 38% higher than the average for comparable Inner West buildings. Capital works fund estimate appears low at $260/quarter.
Recommendation: Request a copy of the proposed strata budget and 10-year capital works plan before exchange.
#4. Early deposit release to vendor
Medium riskFound in: Special Condition 8 (page 39)
The deposit is paid into the vendor's working account on exchange rather than being held in the agent's trust account. If the development fails to complete, recovery becomes a creditor claim.
Recommendation: Consider a deposit bond or insist the deposit be held in trust until registration.
#5. Section 10.7 planning certificate disclosed
Low risk / informationalFound in: Annexure D
Section 10.7(2) and (5) certificate is attached. Property is in a residential zone (R3), no contamination flags, no heritage overlay. No compulsory acquisition proposals on record.
Recommendation: No action required — this is a normal, healthy disclosure.
#6. Cooling-off period present and statutory
Low risk / informationalFound in: Front of contract
Standard 5 business day cooling-off applies. 0.25% of purchase price (~$2,237) forfeited if exercised. No s66W certificate has been issued, so cooling-off has not been waived.
Recommendation: Use the cooling-off window for a final solicitor review and any building/strata report follow-up.
Take to your solicitor
- Can the sunset date be brought forward, and can we secure a symmetrical buyer rescission right?
- What is the trigger for a 'material adverse change' to unit dimensions, and can it be capped at 2%?
- Is the vendor's track record on prior projects (delivery on time, defect rectification) acceptable?
- Should we use a deposit bond instead of releasing 10% cash to the vendor's working account?
- Are there any caveats, easements or covenants on the parent title that survive subdivision?
- What is the strata manager's contact, and can we review the proposed strata budget before exchange?
What looks healthy
- Statutory cooling-off period present and not waived
- Section 10.7 certificate attached with no contamination or compulsory acquisition flags
- Stamp duty correctly itemised at $35,790 (NSW, owner-occupier, no concession)
- Vendor disclosure compliant with section 52A Conveyancing Act
This is not legal advice. Realestate Lens is a first-pass risk assessment designed to help you ask better questions of your solicitor or conveyancer. Always have a qualified Australian legal practitioner review your contract before exchange. See the AI vs solicitor comparison for what we do and don’t cover.