Updated 23 October 2026
What Property Buyers Need to Know About the Contract for Sale #2: What should I check in the property title?
Before buying property in New South Wales, check who owns it, exactly which land is included and what rights or restrictions affect it. A property title search is an essential starting point, but the entries must be read alongside the registered plan, supporting documents and contract for sale.
Overlooking those details can leave you with a home you cannot extend as intended, access rights that do not meet your needs, or a settlement delayed by an unresolved claim. The safest approach is to have the contract and title reviewed before exchange, while there is still an opportunity to investigate and negotiate.
1. Check the owner and the seller
Compare the registered proprietor on the title search with the seller named in the contract. Check spelling, all co-owners and whether the owner is an individual or a company. For a company, confirm its legal name, Australian Company Number and current company information, together with the authority of the people signing.
ASIC explains that a company is a separate legal entity. A director or shareholder does not personally own the company's land. Some sellers, including executors or mortgagees exercising a power of sale, may properly sell in another capacity. Any difference requires an explanation and supporting authority.
Christine on catching an AI contract error
I had a client who used AI to prepare a contract for sale. The draft named the client personally as the seller, but the property belonged to their company. We caught the mismatch and corrected the seller details before the contract went out to prospective purchasers.
It is an easy distinction to miss when you think of the property as “mine”. Legally, though, you and your company are different people. The first page of a contract can look perfectly professional while naming the wrong seller. That is why I want to see the title and ownership documents before a contract is circulated.
A wrong seller name can create serious problems with authority, enforceability and settlement. It does not automatically invalidate every contract: the effect depends on the wording and circumstances. Catching the problem early meant this client could have the draft corrected before buyers relied on it.
2. Match the land to the property you inspected
Check the title reference, lot number and deposited or strata plan against the contract. A street address is not a substitute for the legal land description. Confirm that every intended parcel is included, particularly where a home, garage or adjoining strip occupies separate lots.
Compare the plan with the physical property. A fence, driveway or shed may not follow the legal boundary. If there is uncertainty about an encroachment or the area being sold, obtain survey advice. Legal Aid NSW explains the role of a registered surveyor in establishing boundaries.
3. Read the documents behind every relevant title entry
An easement can give someone rights over land, such as access or drainage. A restriction may limit building or land use, while a positive covenant can impose obligations. Ask for the actual registered instrument and plan, and have their effect on your intended use explained. A brief title description rarely answers every practical question.
The NSW Government's sales contract guidance identifies required attachments, including a title search, drainage diagrams, planning certificate and relevant registered dealings. Requirements depend on the property and transaction. A stack of attachments is only useful if someone checks what they say.
For a shared driveway, establish who can use it, the route and any maintenance obligations. For a drainage easement, investigate its location before planning a pool or extension. Do not assume a neighbour's informal permission gives you a permanent legal right, or that a council approval removes a private restriction.
A real case about the limits of an easement
In Westfield Management v Perpetual Trustee (2007), Westfield owned Sydney's Skygarden property, which benefited from a registered right of way beneath the neighbouring Glasshouse site. After acquiring nearby properties, Westfield sought to use that access for a larger redevelopment.
The High Court held that the easement's terms did not permit the proposed access through Skygarden to the additional properties. Westfield's appeal was dismissed. Acquiring the neighbouring sites did not expand the rights granted by that particular instrument.
For a residential buyer, the lesson is straightforward: a title entry mentioning access does not establish that it supports every proposed use. Check the land that benefits, the permitted route and the instrument's wording before committing to a purchase.
4. Identify mortgages caveats and settlement requirements
A mortgage on the seller's title is common. Your representative should confirm arrangements for discharging it at settlement, rather than assuming it will disappear. Distinguish interests that must be removed from those you agree to accept, such as an existing easement.
A caveat can prevent registration of specified dealings while a claimed interest is unresolved. It is not itself a court finding that the caveator owns the property. Ask what must happen for the transfer to proceed and whether removal arrangements are satisfactory. The Registrar General's dealing descriptions explain mortgage discharges and caveat withdrawals.
5. Check strata parking storage and common property
For an apartment or townhouse, check the strata plan, by-laws and relevant title information. Establish whether parking and storage are part of your lot, separate lots included in the sale, or common property subject to use rights. Painted numbers and an agent's description do not establish ownership.
The NSW Government's strata buying guide, updated on 1 April 2026, reports more than 85,000 strata schemes in NSW. It explains how plans identify ownership and unit entitlements. That figure shows the scale of strata ownership; it is not a measure of title defects.
A strata records inspection is a separate check. It can help identify disputes, proposed works and financial obligations that a title search alone will not reveal. Review these findings before deciding whether the property suits your plans.
6. Check planning and building matters separately
A registered title does not certify that an extension was approved or that the building is sound. Review the planning certificate, relevant council records and appropriate building and pest reports. Tell your solicitor about intended renovations, subdivision or business use so the investigation addresses your actual plans.
The Law Society of NSW's buying guidance explains contract documents and pre-purchase checks. Investigate before bidding at auction, where there is generally no cooling-off period. If a defect emerges after exchange, obtain prompt advice about the contract and any remedy; cancellation or compensation is not automatic.
7. Use current records and check again before settlement
NSW abolished paper certificates of title on 11 October 2021. Existing certificates ceased to have legal effect, and the Torrens Title Register remains the authoritative record of registered ownership and interests. Finding an old deed in a drawer does not replace obtaining current title information.
Arrange updated searches before settlement and investigate new entries. Identity and authority checks also matter: the Registrar General's guidance requires electronic conveyancing subscribers to take reasonable steps to verify identity and the client's right to deal. Matching a name on a title is only part of that process.
Make a short list of features essential to your purchase. If rear vehicle access, a second dwelling or exclusive use of a courtyard drives your decision, say so before the review. Your representative needs those instructions to judge whether a restriction is acceptable. Resolve material questions in writing and have any negotiated protection included in the contract, rather than relying on a conversation at the open home.
Before proceeding, ask your solicitor to explain who is selling, what land you will receive, which interests will remain and whether unresolved issues affect your plans. Keep the written advice and relevant documents. Contact CM Lawyers for a contract and title review before you exchange or bid, so important discrepancies can be addressed at the right stage.
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