New South Wales is building again. The state recorded 49,303 new home completions in 2025–26 – the highest annual total since 2020–21 and a 16% jump on the year before, according to the Australian Bureau of Statistics.    

That means more buyers are signing up for homes that are freshly finished or near completion.

Buying new has obvious appeal. Modern design, lower maintenance, more energy efficiency and the chance to be the first to live there. But the legal landscape is different from buying an established home, and it’s important to understand what protections you have and where the gaps are. 

What is an occupation certificate?

In NSW, a new building can’t lawfully be occupied until a principal certifier issues an occupation certificate. This confirms the building is suitable to occupy and consistent with its development approval. 

An occupation certificate is important, but it is not a guarantee of quality. It doesn’t guarantee that the property is free from defects or that every aspect of the construction has been completed to the buyer’s satisfaction.

If you’re buying off the plan, your contract should make completion conditional on the certificate being issued, and your lawyer should check this before you sign. But you may also consider arranging an independent building inspection before settlement.

What warranties protect buyers of new homes?

Under the Home Building Act 1989 (NSW), residential building work is generally covered by statutory warranties. 

These warranties require builders to meet certain standards, including that:

• Work is carried out with due care and skill.
• Materials are suitable and, unless otherwise specified, new.
• Work complies with relevant laws and building requirements.
• The home is reasonably fit for occupation when the work involves constructing a dwelling.

These warranties last six years for major defects – serious problems with elements such as structure, waterproofing or fire safety – and two years for other defects, generally from completion. Importantly, they can extend to subsequent owners, not just the person who originally contracted the builder.

For houses and low-rise work over $20,000, builders are also required to take out Home Building Compensation Fund cover, which can help if the builder dies, disappears or becomes insolvent. Buildings over three storeys aren’t covered by that scheme. Instead, under the Strata Building Bond and Inspections Scheme, developers must lodge a building bond worth 2% of the contract price to help fund defect repairs. 

Why is a new-build contract different from an established home?

When you buy an established home, you’re buying something you can inspect. The contract mainly deals with title, price, settlement and what’s already there. 

A new-build or off-the-plan contract must describe something that may not yet exist. That means plans, specifications, finishes schedules and, for strata, a draft strata plan and by-laws. In NSW, off-the-plan contracts must come with a disclosure statement and carry a 10-business-day cooling-off period, and the law limits how developers can use sunset clauses to end the contract. Developers must also tell you about material changes, which may give you the right to rescind or claim compensation. 

It’s very important to read the fine print closely. Terms about changes to the design, finish dates, fixing defects and deposits can put more risk on you as the buyer. And if you’re buying a house-and-land package, you may sign two contracts – one for the land and one with the builder – and each has its own rules.

Get legal advice before signing

A brand-new home may come with statutory protections, but these don’t eliminate every risk. The contract still determines many of the buyer’s rights and obligations, particularly around delays, defects and settlement.

A property lawyer can review the contract, explain your rights and flag terms that leave you exposed. 

Buying a newly built home in NSW? Outwest Legal can review your contract, explain your rights and assist with the conveyancing process from exchange through to settlement. Contact us today.