In New South Wales, standard contracts rarely include "subject to finance" or "subject to building and pest" conditions, so the protection you might expect from them usually isn't there. Instead, purchasers complete their due diligence — finance, building and pest inspection, strata or community-title review — before exchanging, or during the cooling-off period, and exercise their rescission rights in that window if needed, rather than relying on a contract condition afterwards.
How to protect yourself: the NSW due-diligence sequence
Because the protection usually isn't written into the contract, the safe approach is to do your checks before you are bound. The typical sequence:
- Before exchange. Have your conveyancer or solicitor review the contract (title, the section 10.7 planning certificate, and a strata report if applicable), arrange your building and pest (or strata) inspection, and obtain formal, unconditional finance approval from your lender.
- At exchange — two ways it can happen.
- With a cooling-off period: you exchange, pay the initial 0.25% deposit, and have a short statutory cooling-off window (5 business days for private-treaty sales) to finish any outstanding checks and rescind for a 0.25% penalty if something turns up.
- Unconditional (auction or a Section 66W certificate): there is no cooling-off — it never applies at auction, and outside auction your solicitor or conveyancer can sign a Section 66W certificate that waives it. The contract binds the moment you exchange, so all your due diligence must be finished first.
- After exchange. Pay the balance of the 10% deposit as the contract requires, then move straight into settlement preparation — in a standard NSW contract there are no finance or building-and-pest condition deadlines left to satisfy.
The two NSW exchange pathways
| Exchange pathway | Deposit at exchange | Right to rescind? |
|---|---|---|
| Standard exchange (with cooling-off) | 0.25% initial deposit | Yes — 5 business-day cooling-off window; forfeit 0.25% if you rescind |
| Unconditional (Section 66W or auction) | Full 10% deposit | No — binding the moment you exchange |
What a Section 66W certificate does. It is a certificate signed by your solicitor or licensed conveyancer confirming you waive your cooling-off rights. Vendors often ask for one (or you offer it) to make an offer more competitive — but it removes your safety net entirely, so only give one once your contract review, inspections and finance are genuinely locked down.
If you do have a condition to satisfy in your specific contract, the same general principle applies: take genuine, diligent steps to satisfy it, and if issues significantly affect the property's value or condition, negotiate with the other party or exercise your right to rescind. Failing to comply can still result in forfeiture of your deposit or other penalties.
General information only — not legal advice. Conveyancing law varies by state and changes over time; confirm your situation with a licensed conveyancer or solicitor.