Quick Answer
Before exchanging contracts on any New South Wales property, obtain a Current Title or State Lease search from official property records to confirm the legal owner and identify encumbrances. For strata apartments, add the strata plan and by-laws. For torrens title homes, check for easements and restrictive covenants. Old system land requires extra verification. A Current Title search via TitleFinder costs $74.50 AUD.
Know Your Title Type
NSW operates three distinct title systems, each demanding different due diligence.
Torrens Title: The standard for most freestanding homes. The register guarantees ownership, but easements and covenants burdening the land still bind you.
Strata Title: Applies to apartments and townhouses. You own your lot but share common property. The title shows unit entitlements and current by-laws, but does not reveal special levies or defects in common areas—you need additional strata records for that.
Old System: Pre-1862 land not converted to Torrens. Ownership relies on a chain of deeds rather than a single guaranteed title. If the property is old system, engage a solicitor to verify the chain before proceeding.
What the Current Title Shows
A Current Title search extracts the most recent folio from official property records. It displays:
- Registered Proprietors: Confirms the seller legally owns the property. Mismatches between the contract and the title require immediate investigation.
- Encumbrances: Mortgages, easements, restrictive covenants, and leases registered against the title. These transfer to you unless discharged before settlement.
- Caveats: Claims by third parties asserting an interest (unpaid creditors, ex-spouses, business partners). A caveat blocks settlement until removed.
- Title References: Volume and folio numbers or lot/plan details needed for further searches.
Strata Apartments: Extra Checks
Strata purchases carry unique risks invisible on a standard title search.
Order the Strata Plan to verify lot boundaries, car space allocation, and unit entitlement percentages (which determine your levy contributions). The title references the plan number, but you must order the graphical plan separately to see exact dimensions.
Check the By-laws referenced on the title. These rules may prohibit pets, short-term letting, or specific renovations. Also request the strata inspection report (not part of the title) to identify special levies for imminent lift replacements or facade repairs.
Torrens Title Risks: Easements and Covenants
For freestanding homes, the critical risks hide in the dealings.
Easements grant neighbours or utilities rights to use part of your land. A drainage easement might prevent you building a pool over that strip. An access easement could allow the neighbour to drive through your driveway.
Restrictive Covenants dictate what you can build. Common in new estates and older suburbs, they may mandate specific building materials, roof colours, or minimum floor areas. Check the dealing number referenced on the title and order the instrument creating the covenant to read the exact restrictions.
Caveats appear as warnings on the title. If the seller’s former business partner has lodged a caveat claiming a share of the proceeds, settlement stalls until they consent or a court orders removal.
Old System Land
If the title search reveals "Old System" or references deeds rather than a folio, proceed with caution. These properties lack the statutory guarantee of Torrens title. You must trace every transfer back to the original Crown grant to ensure no break in the chain. Do not exchange until a solicitor certifies good title.
Supporting Documents: When to Order Plans and Dealings
The Current Title provides references, but sometimes you need the underlying instruments.
| Document | When You Need It | What It Reveals |
|---|---|---|
| Deposited Plan (DP) or Strata Plan | Verifying exact boundaries, easement locations, or lot size | Survey dimensions, easement footprints, common property schedules |
| Section 88B Instrument | Easements benefit or burden the lot | Terms of use, maintenance obligations, width of rights of way |
| Dealing Documents | Covenants, mortgages, or releases noted on title | Full text of restrictions or discharge evidence |
Buyer Due Diligence Checklist
- Order a Current Title or State Lease search ($74.50) to verify the seller and spot encumbrances.
- Cross-check proprietor names with the contract of sale.
- Note all easement and covenant dealing numbers; order instruments if building or renovating is planned.
- For strata: obtain the strata plan and current by-laws. Verify car space and storage allocations match the contract.
- Search for caveats; ensure the seller can provide clear transfer.
- If "Old System" appears, engage a solicitor to verify the deed chain before exchanging.
- For torrens title homes: check the deposited plan for easement locations that restrict building.
- Confirm mortgages will be discharged at settlement (usually handled by the seller's solicitor, but verify on the title).
Frequently Asked Questions
How long is a title search valid?
Official records update daily. A search is a point-in-time snapshot. Most buyers order a fresh search immediately before settlement to capture any new caveats or mortgages lodged between exchange and completion.
Can I identify boundary disputes with a title search?
A Current Title shows the legal description but not physical boundaries. Order the Deposited Plan to see surveyed dimensions. If the fence line deviates from the plan by significant metres, investigate further with a surveyor before committing.
What is the difference between a caveat and an easement?
An easement is a permanent property right (like a shared driveway) that runs with the land and binds future owners. A caveat is a temporary claim against the title, usually reflecting a personal dispute or unpaid debt, preventing sale until resolved.
This guide provides general due diligence steps and does not replace legal advice. For complex Old System titles or disputed caveats, consult a NSW solicitor.
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.