NSW Contract for Sale Changes 2026: What Property Buyers, Sellers and Practitioners Need to Know
The Law Society of New South Wales has released the updated 2026 Edition of the Contract for the Sale and Purchase of Land, introducing several important legislative, compliance and practical changes affecting NSW property transactions.
While many of the amendments are administrative or terminology updates, there are several significant changes that property lawyers, conveyancers, buyers and sellers should be aware of — particularly surrounding cooling off rights, AML compliance and foreign resident withholding obligations.
At Renee Roumanos Legal, we are always closely monitoring updates impacting NSW conveyancing practice so we can continue protecting our clients and supporting smoother property transactions.
1. Major Change to the Cooling Off Notice
The most important amendment relates to the statutory cooling off notice following the commencement of the Conveyancing and Real Property Amendment Act 2025 (NSW).
From:
📅 1 June 2026
all residential contracts and option agreements exchanged in NSW must contain the updated cooling off notice wording.
The amendment removes the words:
“to purchase the property”
from clause 3(d) of the cooling off notice.
Although seemingly minor, the change resolves uncertainty surrounding put option arrangements identified in recent Supreme Court proceedings.
Practitioners should ensure they are using the correct updated contract version moving forward.
2. AML/CTF Changes Are Coming
A brand-new warning has been added to the contract regarding Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations.
This reflects the upcoming tranche 2 AML reforms commencing:
📅 1 July 2026
These reforms will impact:
solicitors
licensed conveyancers
estate agents
other designated service providers
This is one of the most significant compliance shifts the conveyancing industry has seen in years and will likely increase identity verification, source of funds investigations and compliance obligations across transactions.
3. Foreign Resident Capital Gains Withholding Changes
The contract has also been updated to reflect changes to the Foreign Resident Capital Gains Withholding Tax (FRCGWT) regime.
Importantly:
the withholding rate has increased from 12.5% to 15%
the previous $750,000 threshold has been removed
This means the regime may now apply to ALL property transactions unless an appropriate clearance certificate is obtained.
This is a critical risk area that buyers and sellers should not overlook.
4. Modern Property Inclusions Updated
The standard inclusions section has also been modernised. The contract now:
replaces “TV antenna” with “internet/TV receiver”
adds “solar power battery” as a standard inclusion.
This reflects the changing nature of modern homes and increasing use of technology and solar infrastructure.
5. New Embedded Network Disclosure Reference
A new disclosure item has been added relating to:
“documents relevant to an exclusive supply network”.
This anticipates growing disclosure obligations concerning embedded electricity networks and utility infrastructure.
As developments and strata schemes become increasingly complex, disclosure obligations continue to expand.
6. Greater Flexibility for Electronic Transactions
The 2026 Edition also reflects the continued evolution toward digital conveyancing and electronic contracting.
Clause 20 has been amended to remove the requirement that parties agree “in writing” to electronic contract formation methods.
This provides greater flexibility for electronic transactions and reflects modern conveyancing practice.
7. Other Administrative and Clarification Updates
Additional changes include:
updated Sydney Water terminology
updated government department references
removal of outdated First Home Buyer Choice references
clarification around unregistered plans and conditional contracts
consistency amendments to contractual language.
Final Thoughts
The 2026 Contract Edition reflects a broader trend we are seeing across the conveyancing industry:
greater regulation
increased compliance obligations
evolving digital practice
heightened practitioner risk
Conveyancing is no longer simply “paperwork”.
It is a highly technical, high-risk area of law requiring careful legal advice, risk management and up-to-date knowledge.
At Renee Roumanos Legal, we remain committed to staying ahead of legislative and practical changes to ensure our clients receive clear, practical and protective legal guidance throughout their property journey.
If you are buying, selling or navigating a property transaction in NSW and need assistance, our team is here to help.
⚖️ Renee Roumanos Legal
📍 Oran Park, NSW
📞 02 9054 1311
🌐 Renee Roumanos Legal
