Property Due Diligence Checklist: What to Check Before You Buy

Due diligence simply means doing your homework before signing a contract. In property, that means checking the legal title, the planning rules, any environmental risks, and the physical condition of the building — before you hand over your deposit.

A standard real estate inspection shows you what a property looks like. Due diligence tells you what you are actually buying — the rights, restrictions, and risks that come with the land and building.

The first thing to check is who legally owns the property and whether the title is clean. Your solicitor or conveyancer will order a title search from NSW Land Registry Services. This confirms the owner, any mortgages over the property, and whether there are easements or covenants registered on the title.

An easement gives someone else a right to use part of your land — for example, a neighbour's right to run a sewer pipe through it, or a utility company's right of access. Easements stay with the land when it changes hands, so it is important to know what you are taking on.

A covenant is a legal restriction on what you can do with the land — for example, a rule that says you cannot build anything taller than one storey. These are also registered on the title and are binding on future owners.

Zoning tells you what the land can be used for under NSW planning law. It affects whether you can build a second dwelling, run a home business, subdivide the block, or make significant changes to the building. Before you buy, check the property's zoning via the NSW Planning Portal.

Zoning is set in each council's Local Environmental Plan (LEP). The LEP lists permitted uses for each zone, plus development standards like minimum lot sizes and maximum building heights. If you have specific plans for a property — like adding a granny flat or converting it to a dual occupancy — check those plans are allowed before you exchange contracts.

DueDili shows the zoning and key planning controls for NSW addresses. Use it as a starting point, then verify with your council if you have specific development plans.

NSW has significant flood risk in many areas, from coastal catchments to inland river systems. A property in a flood planning area may face restrictions on building work, higher insurance costs, or requirements to build above a certain floor height.

Check the property's flood classification through the NSW Planning Portal or your council's flood maps. For current flood warnings and historical data, the NSW State Emergency Service (SES) publishes flood intelligence for many catchments.

DueDili pulls flood overlay data from the NSW Planning Portal and displays it for each address. For a full picture, also ask your conveyancer to obtain a Section 10.7 planning certificate from the council — this is a legal document that discloses all planning restrictions, including flood constraints.

A building and pest inspection is carried out by a licensed inspector who physically examines the property. They look for structural defects, water damage, substandard work, and evidence of pest activity (particularly termites, which are common in NSW).

The cost of an inspection is small compared to the cost of missing a major defect. Look for inspectors who hold a contractor licence from NSW Fair Trading or are members of a recognised industry body such as the Master Builders Association or the Australian Institute of Building Surveyors (AIBS). Note that timber pest inspections require a separate licence from building inspections — when booking, confirm the inspector is qualified for both. Ask for a written report that you can review before committing to a purchase.

If you are buying an apartment, townhouse, or villa under strata title, there is an additional layer of due diligence. You should obtain and review the strata records before exchanging contracts.

Key things to check in the strata records:

• Levies: What are the levy amounts and payment frequency? Are there any special levies planned for upcoming repairs?
• Capital works fund: Does the owners corporation have enough money set aside for major maintenance? A low fund can mean a special levy is coming.
• Outstanding work orders or disputes: Are there unresolved defects or legal disputes between lot owners?
• By-laws: What are the rules about pets, renovations, parking, or short-term rental?

A strata search (also called a strata inspection report) is usually prepared by a specialist strata search company. Your conveyancer can order one.

Council rates are an ongoing cost of owning property. The amount depends on the land value (set by the NSW Valuer General) and the council's ad valorem rate. Different council areas have very different rate levels, so it is worth checking before you buy.

Ask the selling agent for a recent rates notice, or check with the council directly. For areas where DueDili has rates data, you can see the rate-in-the-dollar and minimum rate on the address report.

Some developments also carry infrastructure contributions or Section 7.11 levies — charges to fund local roads, parks, and services. Your conveyancer will check for these on the title.

DueDili aggregates data from multiple NSW Government sources into a single report for any NSW address. In one place you can check:

• Zoning and planning controls
• Flood overlay classifications
• School quality (ICSEA) for nearby schools
• Crime percentile for the council area
• Short-term rental (STRA) rules
• Council rates (where available)
• Heritage listings
• Public transport access

Use DueDili as part of your due diligence — not as a replacement for professional advice or official certificates. Run a free report for any NSW address.