What are property searches, and what do they check?
When you buy, your conveyancer orders a set of searches against the property: checks of public and government records that reveal the legal and regulatory facts about the land. These are paper searches, not a physical inspection of the building. They typically include:
- Title search: who legally owns the property and what is registered against it (mortgages, easements, covenants, caveats). This one has its own detail: see what a title search shows.
- Council and rates records: outstanding rates and charges, and any orders, notices or unapproved works the council has on record.
- Water and drainage: connections, and whether a sewer or drainage easement crosses the land.
- Planning and zoning: how the land is zoned, and any overlays or proposed government interests (road or rail acquisition, heritage).
- Flood, bushfire and contamination: whether the property sits on a relevant register or overlay.
- Owners corporation / body corporate certificate (for strata): levies, the state of the funds, special levies, disputes and building issues.
An adverse result is when one of these comes back with something you would rather it did not, and, in some cases, something you may be forced to accept.
What kinds of problems can a search turn up?
Some issues affecting a property may exist that you are unaware of but could be bound by, such as:
- council charges or outstanding rates
- flood-prone land, or a planning overlay that limits use
- utility services not connected
- an easement or covenant that restricts what you can do with the land
- a contamination listing (including issues caused by the manufacture or use of illicit drugs), which can be expensive to rectify
In NSW, these may also include matters recorded on the section 10.7 planning certificate, and adverse affectations such as a proposal by a public authority affecting the land.
In QLD, these may also include rates adjustments and restrictions on the use of the property.
In VIC, these may also include easements affecting the property, and issues with the owners corporation (such as lawsuits and/or combustible cladding).
Common adverse findings and what you can do
| Finding | Where it shows up | Typical remedy | What to do |
|---|---|---|---|
| Unpaid council rates or land tax | Council & rates search | Settlement adjustment | The vendor's outstanding balance is paid from the settlement proceeds |
| An unregistered caveat or third-party claim | Title search | Objection to title | The vendor must clear or withdraw it before settlement |
| An unapproved extension or structure | Council building records | Usually no automatic right to terminate | Negotiate a price reduction, vendor rectification, or an indemnity |
| A proposed road resumption or acquisition | Planning / authority search | Possible termination if it materially affects the land | Act on your conveyancer's advice before any condition deadline |
| An outstanding enforcement or work order | Council requisition search | Rectification or compensation | The vendor complies before settlement, or you negotiate compensation |
Do searches cover the building itself?
Searches tell you the property's legal and regulatory position; they do not tell you whether the building is sound. Physical problems, such as structural movement, timber and pest damage, asbestos, and unapproved or non-compliant building work, are found by a building and pest inspection, not by a search. For those, and for when to bring in a structural engineer or builder, see building and pest inspections.
What should you do when a result comes back adverse?
- Don't let a condition lapse. Search results can be slow to arrive. If you cannot get them before a condition deadline or settlement, you may lose the right to act on them. Tell your conveyancer early so they can chase the results or seek an extension.
- Get it explained. Some adverse results are minor or resolvable; others are deal-changing. Your conveyancer can tell you which, and whether it can be cleared before settlement.
- Consider the flow-on effects. An adverse result can affect the property's valuation and reduce what a lender will advance against it, so it can put your finance at risk, not just the property.
- Decide with advice. Depending on the contract and your rights, the options may be to negotiate, require the seller to resolve it, or terminate. Act on advice before any deadline passes.
Can you get out of the contract? Your remedies depend on the state
What you can actually do about an adverse result, walk away, or accept it and claim compensation, is set by your contract and the disclosure laws in your state. In broad terms:
- NSW. Under section 52A of the Conveyancing Act 1919 and the Conveyancing (Sale of Land) Regulation 2022, the vendor must attach prescribed documents and gives prescribed warranties. If a required document was not attached, or an undisclosed adverse affectation (for example a proposal by a public authority) breaches one of those warranties and you did not know about it, you may have a right to rescind, generally within 14 days of the contract and before completion. Some warranties apply only above a set threshold, so confirm the exact ground and timing with your conveyancer.
- QLD. Under the seller disclosure scheme in the Property Law Act 2023 (in force from 1 August 2025), you can terminate at any time before settlement if the seller did not give the required disclosure statement, or if it was inaccurate or incomplete on a material matter you were unaware of and would not have signed had you known. Whether any other issue lets you terminate or only claim compensation turns on the REIQ contract terms and the Act, so confirm with your conveyancer.
- VIC. The vendor's Section 32 statement must disclose matters affecting the property; if it is missing or materially inaccurate you may be able to withdraw from the sale or take action. Most other adverse results are handled through the contract's conditions rather than an automatic right to rescind.
These are the general positions only. The precise section, threshold and time limit depend on your contract and the current legislation, so act on your conveyancer's advice before any deadline passes.
General information only, not legal advice. Conveyancing law varies by state and changes over time; confirm your situation with a licensed conveyancer or solicitor.
