Before you sign a contract for a development site in NSW, there are 3 things to check: what the title allows, what the planning records say, and whether the contract gives you enough time and protection to find out. A block can look perfect for a duplex, granny flat or subdivision and still carry a covenant, easement, hazard or zoning control that stops the plan. Most of these show up in the contract documents or in searches, so they can be checked before you are committed.
I see the same pattern often: the buyer has done the numbers, spoken to a builder and fallen for the block, but nobody has read the title documents with the development in mind. This guide walks through what to look at, and why.
What documents come with a NSW contract for sale?
In NSW the seller must attach certain documents to the contract before it is signed. According to the NSW Government, these include a title search, drainage diagrams, the council planning certificate (issued under section 10.7(2) of the Environmental Planning and Assessment Act 1979), and any registered dealings for easements, restrictions on the use of land or positive covenants.
These documents are the starting point. They tell you what is registered and what council records say, but they do not tell you whether your particular plan will work. That is where a review with your development in mind comes in.
What should I look for on the title?
- Easements: a drainage, sewer or right of way easement can run through the middle of the block, exactly where the second dwelling would go. You generally cannot build over an easement without the consent of whoever benefits from it.
- Restrictive covenants: often found in a section 88B instrument on newer subdivisions. They can limit the number of dwellings, building materials, height or fencing, or prohibit further subdivision altogether.
- Positive covenants: these require the owner to do something, such as maintain an on-site detention tank, and the obligation passes to you.
- Other dealings: caveats, leases, mortgages and other registered interests that need to be dealt with at or before settlement.
- Lot size and shape: the title plan shows the area and dimensions. Planning controls often turn on minimum lot size and width, so these figures matter.
Whether a covenant still binds once development is approved is a technical question. In some cases planning rules can set aside a private covenant for approved development, but not every covenant is caught, so it needs checking site by site.
What does the planning certificate tell me?
The section 10.7(2) planning certificate is issued by council and sets out the matters the regulations require. According to the NSW Government, these cover the zoning, the planning instruments and policies that apply, planning controls, and hazards and risks. Council certificates typically list:
- Zoning: which uses are permitted with consent and which are prohibited.
- Planning instruments: the local environmental plan, development control plan and State policies that apply.
- Heritage: whether the land is a heritage item or in a heritage conservation area.
- Road widening and acquisition: whether part of the land is reserved for a public purpose.
- Hazards: flood, bushfire and other restrictions on development.
- Contributions and contamination: the contributions plans that apply and any contaminated land matters.
A section 10.7(5) certificate adds any other relevant information council chooses to provide. It does not have to be attached to the contract, so the seller may not have ordered one. It can reveal matters the standard certificate does not.
Does the Low and Mid-Rise Housing Policy mean I can build a duplex?
Not automatically. Under the NSW Low and Mid-Rise Housing Policy, dual occupancies have been permitted with consent in R2 zones across NSW since 1 July 2024. A second stage from 28 February 2025 opened up more housing types on residential land within 800 metres walking distance of nominated town centres and stations, with dual occupancy standards in those areas including a minimum lot size of 450 square metres and a minimum width of 12 metres.
The policy does not apply everywhere. It excludes land with a high risk from natural hazards such as bushfire and flood, land containing a heritage item, and some local government areas. And even where the planning rules allow a duplex, a covenant on title may still say otherwise. Planning permission and title restrictions are 2 separate questions, and both need a yes.
What about sewer and water pipes?
The sewer diagram shows where the sewer line runs. In the Sydney Water area, Sydney Water must assess building plans that affect certain pipes or easements before work starts, and councils generally will not issue consent without that approval. A sewer main across the back of the block can change where, or whether, a second dwelling can go. Outside Sydney, the local water authority has its own requirements.
What if the site comes with a development approval?
An approved DA can add real value, but check what it actually approves, the conditions attached to it, the contributions payable, and when it lapses. A consent can lapse if work has not physically started within the period allowed, so the date it was granted matters. Also look at whether the contract passes on the architect's plans and consultant reports. Without the right to use them, you may need to commission new ones.
How do I give myself time to check?
- Before exchange: the simplest protection is to do the checks before you sign anything.
- Cooling-off: a residential contract has a 5 business day cooling-off period from exchange. If you pull out during that time, you pay the seller 0.25% of the price. There is no cooling-off at auction, and it can be waived with a section 66W certificate.
- Special conditions: a buyer can ask for conditions such as a due diligence period. Sellers of development sites often resist conditions tied to a DA outcome.
- Options: a put and call option is common for development sites, giving the buyer time while the land is held at an agreed price. It carries its own duty and deposit implications.
What tax and duty issues come up?
- Transfer duty: payable on the dutiable value, calculated using Revenue NSW rates.
- Foreign buyers: surcharge purchaser duty is currently 9% of the dutiable value, and it applies to vacant land zoned for residential use.
- GST: if the seller is registered and selling in the course of a business, GST may apply. The margin scheme can only be used if both parties agree in writing before settlement, so the contract wording matters.
- SMSF buyers: since 10 August 2026, a new LRBA can only be used to buy business real property. A residential development site bought with borrowed SMSF money raises real issues.
Tax outcomes depend on your circumstances, so speak with your accountant alongside your legal review.
Frequently asked questions
Can I rely on "duplex potential" in the listing?
An agent's description is marketing, not a legal or planning check. Whether a duplex is possible depends on the zoning, lot size and width, hazards and anything registered on title.
Do I need a town planner as well as a solicitor?
They answer different questions. A solicitor reviews the title, contract and planning records for legal restrictions. A town planner advises on whether a specific design is likely to be approved.
Is a section 10.7(5) certificate worth ordering?
It can be. It contains extra information council chooses to share, which may not appear on the 10.7(2) certificate attached to the contract.
How long does a development site legal check take?
Our Development Site Legal Check report is usually ready within 3 business days of the searches arriving. If you already have a contract, our contract review covers the contract terms as well. For a wider list of pre-purchase checks, see our due diligence checklist.
If you are looking at a site and want the title and planning records checked before you sign, get in touch.
This article is general information only and is not legal advice. Your circumstances will differ, so get advice on your specific situation before acting.