Contract Review Sydney: Can You Ask for Repairs Before Exchange?

Yes. Before exchange in a NSW private treaty sale, a buyer can ask the seller to repair identified defects, reduce the price or accept another negotiated solution. The seller does not have to agree. Any accepted repair obligation should be converted into precise contract wording covering scope, contractor standards, completion dates, evidence, access and the consequences of incomplete work. Sydney strata properties also require the correct responsible party and approval pathway to be identified.

A defect discovered during the purchase of a Sydney property can change the commercial logic of the transaction within hours. A building report identifies moisture near a balcony door. A timber floor moves underfoot. Tiles sound hollow. Paint has been applied over cracking. A laundry floor falls away from the waste. The buyer then asks the apparently simple question: can the seller fix it before exchange?

The answer is yes, but a repair request is not the same as a repair obligation. Before contracts are exchanged, it remains a negotiation. The seller can agree, refuse, offer a price adjustment or propose a narrower scope. The operational challenge is turning a defect identified during due diligence into a clear, measurable and deliverable agreement.

This is where a Sydney pre-exchange contract review must move beyond clause summaries. It should connect the legal wording with the physical condition of the property, the proposed repair method, the settlement program and the party that actually has authority to complete the work.

A Repair Request Is Part of the Offer NSW Government guidance recommends obtaining the sale contract early, having it reviewed by a licensed conveyancer or solicitor and putting offers in writing where possible. Until signed contracts are exchanged, the buyer and seller are generally not legally bound to complete the transaction.

That gives a buyer room to propose terms such as:

The seller repairs an identified defect before exchange. The parties exchange subject to specified work being completed before settlement. The price is renegotiated to reflect the buyer taking responsibility for the work. A documented settlement mechanism is agreed if work remains incomplete. The buyer receives further access for specialist investigation before deciding whether to proceed. None of these outcomes should be assumed. The seller may have competing buyers, limited time, restricted access to trades or little appetite for opening up a building element before sale. A buyer must therefore decide whether the requested repair is essential to proceeding or simply one component of the price negotiation.

The position changes after exchange. Private treaty buyers commonly receive a five-business-day cooling-off period, although it may be waived, reduced or extended. There is no cooling-off period for an auction purchase or an exchange on the same day after the property is passed in. Buyers relying on post-exchange inspections should understand those limitations before signing.

Elyment’s guide to the NSW cooling-off period and post-contract checks explains why due diligence completed before exchange provides stronger decision-making control.

An Inspection Finding Is Not Yet a Repair Scope NSW Government guidance notes that a pre-purchase building report can identify significant defects such as rising damp, structural movement, safety hazards and roof problems. The report can also give a buyer information for negotiating the purchase price.

A report, however, is usually diagnostic rather than a construction specification. It may identify staining, movement or moisture without defining the full rectification method. That distinction matters because a seller may interpret “repair the laundry floor” very differently from the buyer.

Consider a laundry where recently installed flooring moves during the washing machine spin cycle. The visible problem may appear to require only an appliance adjustment. Further investigation could reveal:

An uneven appliance footprint. Weak or poorly bonded self-levelling compound. Movement between flooring layers. Moisture below the finished floor. Incorrect falls near the floor waste. Inadequate support beneath a floating floor system. A combination of appliance installation and substrate defects. A promise to “stabilise the washing machine” may produce a temporary adjustment to the machine’s feet while leaving the defective floor untouched. A more useful scope would identify the location, investigation process, removal requirements, substrate preparation, reinstatement standard and verification method.

Four Commercial Pathways for a Defect Repair negotiations are more effective when the buyer chooses a preferred commercial outcome rather than sending an open-ended demand to the agent.

1. Repair Before Exchange This gives the buyer an opportunity to inspect completed work before becoming contractually committed. It can be suitable for small, visible and quickly verifiable items, such as a damaged door, missing fitting or isolated plumbing repair.

It is less practical where the work requires invasive investigation, strata approval, curing time, engineering input or multiple trades.

2. Repair After Exchange but Before Settlement This pathway can preserve the transaction while giving the seller time to organise the work. The repair obligation should be documented by the parties’ legal representatives rather than left as an informal promise.

The buyer should also consider whether there will be enough time to investigate unexpected conditions. Removing tiles, flooring, cabinetry or wall linings can expose additional defects that were not visible when the original scope was prepared.

3. Price Renegotiation A price adjustment can be cleaner where the buyer intends to renovate immediately after settlement or wants control over the contractor, materials and repair method.

The risk is that an early estimate may understate the true cost. A cracked tile may be a minor replacement issue, or it may indicate movement, waterproofing failure or inadequate substrate preparation. The buyer needs a realistic allowance for investigation, removal, disposal, rectification and reinstatement.

4. Acceptance With a Defined Renovation Plan Some buyers proceed without requesting vendor work because the defect sits within a larger renovation program. This can be commercially sensible where floors, kitchens, bathrooms or finishes are already scheduled for removal.

The buyer should still understand whether the defect affects safety, structural performance, water ingress, common property, insurability, finance or the feasibility of the planned renovation.

The Repair Clause Is Also a Delivery Plan A well-constructed repair agreement answers operational questions before trades arrive. Vague phrases such as “make good”, “repair as required” or “fix before settlement” can leave both parties with different expectations.

Clause component: Defect identification Question that should be answered: What exact defect and location are covered? Why it matters operationally: Prevents unrelated damage or symptoms from being confused with the agreed work. Clause component: Scope Question that should be answered: What must be removed, repaired, replaced and reinstated? Why it matters operationally: Distinguishes a cosmetic patch from complete rectification. Clause component: Performance standard Question that should be answered: What result must the repair achieve? Why it matters operationally: Creates a measurable outcome rather than relying only on appearance. Clause component: Contractor Question that should be answered: Must the work be completed by a licensed, insured or suitably qualified contractor? Why it matters operationally: Reduces the risk of rushed owner-performed work or an unsuitable trade. Clause component: Approvals Question that should be answered: Are strata, council, certifier or building management approvals required? Why it matters operationally: Prevents unauthorised work from creating a new compliance issue. Clause component: Timing Question that should be answered: When must the work start and be completed? Why it matters operationally: Allows for access, material lead times, curing and verification before settlement. Clause component: Evidence Question that should be answered: Are invoices, photographs, warranties, certificates or test results required? Why it matters operationally: Provides a record where finished surfaces later conceal the work. Clause component: Inspection rights Question that should be answered: Can the buyer or an independent consultant inspect before and after completion? Why it matters operationally: Allows the result to be checked before the transaction reaches settlement. Clause component: Incomplete work Question that should be answered: What happens if the work is late, defective or only partly completed? Why it matters operationally: Prevents the parties from trying to invent a remedy on settlement day. The legal representative should decide how any obligation is expressed in the contract. The contractor or technical consultant should define the physical scope and verification requirements. Combining those functions reduces the gap between what the contract says and what the repair team actually delivers.

The Seller May Not Control the Defect in a Strata Property Repair requests become more complex in Sydney apartment transactions because the seller may not own or control the affected building element.

NSW strata guidance distinguishes between items maintained by an individual lot owner and common property maintained by the owners corporation. The exact boundary can depend on the registered strata plan, applicable legislation, by-laws and the history of alterations.

Issues frequently requiring closer responsibility checks include:

Balcony membranes and tiled surfaces. External windows and doors. Concrete slabs and structural walls. Pipes travelling through common property. Water ingress affecting more than one lot. Previously renovated bathrooms or laundries. Flooring changes subject to acoustic by-laws. A seller cannot necessarily promise that an owners corporation will complete work by the buyer’s preferred date. Even where the seller agrees to lodge a request, the work may require committee approval, quotations, access coordination, engineering advice, a special resolution or funding from the administrative or capital works fund.

Before requesting an apartment repair, the buyer’s team should establish:

Which building element is defective. Whether it is lot property or common property. Whether the seller previously altered it. Whether an insurance claim or defect process already exists. Whether the owners corporation has approved work. Who will pay. Whether the proposed completion date is realistic. A coordinated residential conveyancing review should connect the contract, strata records, inspection findings and settlement timetable rather than considering each document in isolation.

Repairs Can Disrupt the Settlement Program Repair clauses are often drafted as though work can be completed at any point before settlement. In practice, physical works have dependencies.

A flooring or moisture-related repair may require:

Access approval from the owner, tenant or building manager. Protection of lifts, corridors and common areas. Removal of furniture, appliances or existing finishes. Controlled demolition or flooring removal. Assessment of the newly exposed substrate. Moisture, adhesion or flatness testing. Grinding, adhesive removal or floor levelling. Waterproofing, curing or drying time. Reinstallation of finishes and fixtures. Cleaning and waste removal. Independent verification before settlement. Rushing this sequence to meet a settlement date can create the precise type of concealed defect the buyer was trying to avoid. A repaired surface may look complete while moisture, poor bonding or inadequate preparation remains below it.

The contract timeline should therefore be tested against a realistic work program. If a wet-area floor must be removed, prepared, levelled and reinstated, a promise to finish two days before settlement may provide no meaningful opportunity for curing, testing or reinspection.

A Final Inspection Is Not a Technical Commissioning Process NSW Government guidance recommends conducting a final inspection on or near settlement day to check that the property remains in the same condition as it was at exchange.

That inspection remains important, but it should not be treated as the only verification process for agreed repair work. A standard walkthrough may confirm that a wall has been painted or a tile replaced. It may not reveal:

Whether a leak source was repaired. Whether damaged material was removed or covered. Whether the correct primer or membrane was used. Whether the floor has adequate flatness and rigidity. Whether moisture remains below a finished surface. Whether an electrical or plumbing repair was certified. Whether strata approval was obtained. Where the repair will be concealed, the contract review should consider staged evidence. This may include photographs before reinstatement, contractor invoices, test results, warranty documents and an inspection before the final finish is installed.

When Vendor-Organised Repairs Can Be the Wrong Outcome A seller and buyer do not always have the same objective. The seller usually wants the work completed quickly, economically and without delaying settlement. The buyer wants a durable repair that will not disrupt ownership or a planned renovation.

Those incentives can produce different specifications. A seller may reasonably select a compliant but basic finish. The buyer may be expecting a premium material, broader replacement area or a repair compatible with a future design scheme.

Buyer-controlled work after settlement may be preferable where:

The existing finish will be removed during renovation. The defect requires invasive investigation. Matching materials are unavailable. The buyer wants one contractor to provide an integrated warranty. The repair affects adjoining flooring, joinery or painting. The buyer needs to coordinate strata approvals. The likely repair method may change once demolition begins. The buyer should obtain sufficient technical information and cost allowances before accepting responsibility. A price reduction based only on a visible symptom may not cover the underlying work.

A Practical Pre-Exchange Workflow Document the defect. Obtain a building, pest, strata or specialist report with photographs and a clear location reference. Classify the risk. Separate safety, structural, moisture, termite and compliance risks from cosmetic deterioration. Identify responsibility. Confirm whether the seller, owners corporation, insurer, builder or another party controls the repair. Develop a preliminary scope. Ask an appropriate contractor or consultant what investigation, removal, preparation and reinstatement may be required. Select the commercial outcome. Decide whether to request repair, negotiate the price, seek further access or proceed with an allowance. Document the agreement. Ask the buyer’s conveyancer or solicitor to convert the agreed outcome into appropriate contract wording. Plan verification. Set inspection dates, evidence requirements and a process for dealing with incomplete or expanded work. What the Contract Review Should Answer Before exchange, the buyer should be able to answer more than “has the seller agreed to fix it?”

Is the repair request written into the transaction documents? Is the defect described precisely enough to avoid disagreement? Does the seller have authority to arrange the work? Are approvals, licences or specialist reports required? Does the timeframe accommodate investigation and curing? Can the buyer inspect concealed work before it is covered? What evidence must be delivered? What happens if the repair exposes a larger defect? What happens if the work is incomplete at settlement? Would a price adjustment give the buyer better control? Buyers should also distinguish repair obligations from the items physically included in the sale. Elyment’s analysis of fixtures, inclusions and exclusions in a NSW contract for sale explains why an item remaining at the property is a different issue from an obligation to repair or replace it.

The Strongest Negotiation Is One That Can Be Delivered Asking for repairs before exchange is common and commercially legitimate. The more important issue is whether the proposed solution can be performed, verified and enforced without destabilising the transaction.

In Sydney’s compressed property market, buyers are often asked to make decisions before complete quotations, strata approvals or invasive investigations are available. A disciplined contract review should identify that uncertainty rather than disguising it with broad repair language.

The goal is not to convert every inspection issue into a seller-funded project. It is to ensure that the buyer understands the condition being acquired, the party responsible for the work, the cost and sequencing risk, and the contractual protection available if the agreed outcome is not delivered.

Review the contract, physical defect and proposed repair pathway before exchange.

Request a Contract and Repair Scope Review

NSW Property Guidance Referenced NSW Government: Guidance on Making an Offer NSW Government: Guidance on Pre-Purchase Inspection Reports NSW Government: Guidance on Contracts, Cooling-Off Periods and Settlement NSW Government: Guidance for Strata Property Buyers NSW Government: Strata Repairs and Maintenance Guidance Law Society of NSW: Guidance for Property Buyers Elyment Links Referenced Elyment: Pre-Exchange Contract Review Elyment: NSW Cooling-Off Period and Post-Contract Checks Elyment: Residential Conveyancing Elyment: Fixtures, Inclusions and Exclusions in a NSW Contract for Sale Elyment: Contact This article provides general information about NSW property transactions and project coordination. It is not legal, engineering, building or financial advice. Contract amendments and repair obligations should be reviewed by an appropriately qualified NSW solicitor or licensed conveyancer.