Quick Answer
To read a NSW title search, check the First Schedule for the current owner and the Second Schedule for encumbrances. A covenant is a written restriction on the property's use listed in the Second Schedule. To understand the exact restrictions, you must order the referenced dealing or instrument number from official property records to read the full covenant text.
What a NSW Title Search Shows
When you order a Current Title / State Lease search through TitleFinder for $74.50 AUD, you receive the official property records folio. This document has three main sections:
- Header: Lists the volume and folio numbers, lot and plan details, and local government area.
- First Schedule: Names the registered proprietor (owner) and how they hold the title.
- Second Schedule: Lists all title encumbrances NSW properties carry, including easements, covenants, caveats, and mortgages.
If the Second Schedule is blank, the property has no registered encumbrances. If it contains entries, that is where your due diligence begins.
Understanding Covenants on a Property Title in New South Wales
A covenant is a binding agreement written into the title that dictates what the owner can or cannot do with the land. When looking at covenants property title New South Wales records, you will usually see a brief description in the Second Schedule, such as "Restriction as to user" or "Building covenant". However, the title folio only shows the registration number. To read the actual rules, you must order the specific dealing or instrument referenced.
Restrictive Covenants
These limit what you can build or do. Common examples include limits on building height, exterior materials, or the requirement to build a fence of a specific type. They bind current and future owners.
Positive Covenants
These require the owner to perform an action, like maintaining a shared driveway or drainage infrastructure. In NSW, positive covenants generally do not run with the land automatically unless specific statutory provisions apply, but you still need to identify them during your search.
Other Title Encumbrances NSW Buyers Must Check
Covenants are just one type of encumbrance. When learning how to read title search NSW records, watch for these entries:
- Easements: Rights for others to use part of your land. Common easements include rights of way (shared driveways) or drainage easements for water and sewerage. The title folio lists the easement, but you need the deposited plan to see the physical location marked on the survey.
- Caveats: A formal notice that someone else claims an interest in the property. A caveat stops the owner from dealing with the property until the claim is resolved. You must investigate who lodged it and why before proceeding.
- Mortgages: Shows a lender has a registered interest. At settlement, this needs to be discharged by the vendor.
Property Types and Specific Risks
The type of property changes what you need to look for in official property records.
Torrens Title Homes
Most standard houses in NSW are Torrens title. The title guarantees your ownership subject to the encumbrances listed. Read the Second Schedule carefully for covenants that restrict building extensions, secondary dwellings, or specific land uses.
Strata Apartments
For strata apartments, the individual lot title is less informative than the strata plan and by-laws. The lot title might have minimal encumbrances, but the by-laws contain the actual covenants restricting renovations, pet ownership, or parking. Always order the strata records alongside the title search.
Old System Land
Before the Torrens system, land was held under Old System title. If you encounter Old System land, the title is based on a chain of historical documents rather than a single government-guaranteed folio. Tracing covenants and encumbrances requires examining decades of conveyances. You will likely need a qualified conveyancer to establish a clear 30-year chain of title.
How to Read a Title Search: Practical Checklist
- Verify the Register: Ensure the volume/folio matches the contract for sale.
- Identify the Owner: Confirm the First Schedule names the seller exactly.
- Scan the Second Schedule: Note every easement, covenant, caveat, and mortgage.
- Order Instrument Text: For every covenant, order the dealing or instrument number to read the full restrictions.
- Check the Plan: Order the deposited plan to locate easement boundaries on the survey map.
- Match to Property Type: For strata, order by-laws. For old system land, prepare for historical title tracing.
Comparison: Covenants vs Other Encumbrances
| Encumbrance Type | What It Does | Where to Read Details |
|---|---|---|
| Covenant | Restricts use or requires maintenance | Order the registered dealing/instrument |
| Easement | Grants access rights over the land | Order the deposited plan or s88B instrument |
| Caveat | Claims an unregistered interest, blocks dealing | Order the caveat document |
Frequently Asked Questions
Can I remove a covenant from a NSW title?
Removing a covenant is difficult. You usually need to apply to the relevant court or negotiate with the beneficiaries of the covenant. It is a legal process, not an administrative one. You must assess the covenant's impact before you commit to the purchase.
What is the difference between a section 88B instrument and a covenant?
A section 88B instrument is a document that typically creates easements, restrictions on the use of land (restrictive covenants), and positive covenants at the same time a new deposited plan is registered. The term refers to the statutory tool used to register these encumbrances onto the title.
Do covenants expire in NSW?
Some covenants have sunset clauses or specific expiry dates written into the original instrument. However, many restrictive covenants run in perpetuity unless removed. Check the dealing text for any time limits.
Disclaimer: This article provides general information for property due diligence. It does not constitute legal advice. Always consult a qualified conveyancer or solicitor regarding your specific transaction.
Order the right TitleFinder document
Use this guide as a reference, then order the actual record that answers your question:
- NSW Title Search — $69.90
- NSW Imaged Deposited Plan — $85.90
- NSW Imaged Documents — $91.80
If you are unsure, start with the current title search, then add the plan or instrument if the title points to one.
Need the title search? Use the TitleFinder product links above to order the current title, plan, instrument or state-specific property record you actually need.