The complete due diligence checklist for buying a new-build home in NSW

Quick answer: Do not treat a newly completed home as automatically lower risk. Check four independent areas before exchange: construction quality, planning and certification compliance, legal accountability, and financial recoverability. A building inspection alone does not cover all four.

What to request before exchange: risk-rated list

Priority measures urgency of verification, not the probability the property is defective. A missing document is a reason to investigate and obtain advice; it is not automatic proof of an unlawful build.

1. Start with the parties: who is selling and who built it?

Ask your solicitor to verify the vendor's legal name against title, the sale contract and ASIC. Determine whether it is a single-project company or part of a group. Request the builder's exact company name, ABN/ACN and NSW licence details. If the developer and builder are different, understand the legal and contractual relationship. Ask what rights a subsequent owner will have and whether a parent guarantee exists.

NCAT specifically warns that incorrect business names can create delays or unenforceable orders. NCAT. See developer SPVs.

2. Separate construction checks from approval checks

Commission an independent inspection with a written scope: roof and drainage, wet-area waterproofing indicators, balconies, external cladding, retaining walls, cracking, basement or subfloor conditions and defects requiring intrusive or specialist investigation. Ask expressly what was not inspected. A standard report cannot prove concealed work is sound.

Separately, engage a planner or appropriately qualified professional to compare the as-built house with the approved documents and DA conditions. Ask about site levels, setbacks, landscaping, retaining walls, stormwater detention, any subdivision conditions and modified approved plans. NSW pre-purchase guidance.

3. Understand occupation certificates and subdivision status

Obtain all issued occupation certificates, not a salesperson's summary. Check whether a partial OC is valid for the part being sold and what later certification or works remain. A property with no common garden might still have legally important strata or community title obligations; inspect the deposited plans, ownership rights and by-laws rather than relying on the appearance of standalone dwellings.

Read about partial OCs and DA conditions.

4. Treat the insurance certificate as something to verify

Check the builder's name, cover provider, work scope, property and policy number. Confirm whether construction-period or warranty-period arrangements apply. HBC does not usually pay simply because a trading builder refuses to rectify. SIRA.

Read the HBC insurance guide.

5. Inspect swimming pool compliance independently

A pool can be sold with a non-compliance certificate in many transactions. Check the full inspection report, non-climbable zones, fencing and any climbable raised beds. Price the required work before settlement. NSW Government.

Read the pool guide.

6. Questions to send to the selling agent and developer

Please provide the exact legal identities and ACNs of the vendor, developer and licensed builder; the HBC insurance certificate and details; all development consents, approved plans and modifications; all occupation certificates issued (including partial certificates); outstanding consent conditions or council orders; any pool certification and inspection report; and details of known defects, rectification work and warranties. Please identify any works still to be completed and who is contractually obliged to complete them.

Request written answers, original document copies and independent verification. The question list does not override statutory disclosure requirements or your solicitor's advice.

7. Decision matrix: accept, investigate or walk away?

Likely manageable: isolated and priced minor defects, clear documents, stable responsible parties and enforceable rectification arrangements.

Further investigation needed: missing certificates, incomplete planning file, conflicting legal identities, unexplained construction changes, high-cost waterproofing or retaining-wall concerns, or an SPV without clear protections.

Do not proceed without urgent professional advice: substantial unresolved structural risks, serious pool-safety hazards, potentially unlawful occupation, unexplained claims that required insurance was not obtained, or material DA discrepancies that cannot be remedied on acceptable terms.

The above is a decision aid, not a diagnosis or legal clearance.

Frequently asked questions

What is the most important document when buying a newly built NSW home?

There is no single document. The decisive evidence comes from matching the contract and responsible legal parties with the approvals, all occupation certificates, insurance, and independent condition assessment.

Is a building inspection enough for a new build?

No. A conventional inspection may identify visible defects, but may not audit DA compliance, builder insurance, company structure or concealed waterproofing and structural work.

Should I buy a new duplex on strata title?

It can be suitable, but review deposited plans, scheme rules, common property or services and long-term responsibility. Freestanding appearance does not make it Torrens title.

Can a seller refuse to provide construction contracts?

Some documents may be confidential or unavailable. Refusal is not necessarily improper, but it may leave uncertainty about work scope and builder responsibility. Ask your lawyer how to manage the risk.

Can I negotiate repairs before settlement?

Potentially, through appropriately drafted contractual arrangements, settlement conditions, price changes or other security. These mechanisms require legal advice and agreement, not just an informal promise.

Is a new home with an SPV seller automatically high risk?

No. Consider the total evidence, including the builder, continuing obligations, insurance and guarantees.

Related reading

The NSW hidden-cost iceberg · SPV accountability · Data and risk factors · Pool compliance.

This checklist supports—not replaces—independent conveyancing, planning, engineering and insurance due diligence.