Section 10.7 Certificates and Contract Clauses: What They’re Really Telling You
Your contract comes with a planning certificate and a handful of clauses that can sound alarming on first read. Here’s what the ones we see most often actually mean.
What are the clauses and certificates in my NSW contract really telling me?
Mostly, that something is known about the land or the sale, not that something is wrong with it. The Section 10.7 planning certificate discloses planning controls and risks such as mine subsidence or bushfire-prone land, and special conditions like “subject to existing tenancy” or a probate clause mainly change what happens after you sign. This page covers the ones we’re asked about most, with a link to our full guide on each.
At a glance
- What is a Section 10.7 certificate? A council certificate attached to every NSW contract that sets out the zoning, planning controls and known risks affecting the land.
- Is a mine subsidence district a red flag? No. It’s common across the Hunter, there’s a compensation scheme, and it mainly adds an approval step for future building work.
- What does bushfire-prone land change? Building standards for future work, and often your insurance premium. Get a quote before you exchange.
- What does “subject to existing tenancy” mean? The tenant stays after settlement and their lease passes to you, so you can’t move in straight away.
- What is a probate clause? The seller is an estate, and the clause sets a timeframe for probate and title transfer to be completed.
What is a Section 10.7 planning certificate, and why is it in my contract?
A Section 10.7 planning certificate, issued by the local council under the Environmental Planning and Assessment Act 1979, is attached to every NSW contract of sale. It sets out the zoning of the land and any planning controls, restrictions or known risks that affect it: heritage listings, flood controls, road widening proposals, and the two we’re asked about most, mine subsidence and bushfire-prone land. It exists so you aren’t relying on the seller’s word for what can be done with the property.
Read our full guide to the Section 10.7 planning certificate.
My certificate says the property is in a mine subsidence district. Should I be worried?
Not on its own. Large parts of the Hunter Region sit within a mine subsidence district, and there’s a statutory compensation scheme under the Coal Mine Subsidence Compensation Act 2017 if damage does occur. The practical impact is on future building work: renovations, extensions and new structures need Subsidence Advisory NSW approval before council signs off.
Read our full guide to buying in a mine subsidence district.
In plain English
A mine subsidence district isn’t a warning that something is wrong with the land today. It’s a standing note that there’s a history of underground mining nearby, so there’s a compensation scheme and an extra approval step if you ever build.
It also says the land is bushfire-prone. What does that actually change?
Bushfire-prone mapping is common across Lake Macquarie and the Hunter, especially near bushland reserves. It means future building work has to meet bushfire construction standards, and home insurance can cost more or be harder to find. We suggest every buyer gets an insurance quote before they exchange, while it can still shape the decision.
“Most of what’s on a planning certificate is a standard disclosure about the land, not a reason to walk away from the property.”
What does “subject to existing tenancy” mean in my contract?
The property is rented and the tenant’s lease continues after settlement. The lease terms carry over to you as the new landlord, you receive the rent from settlement, and you can’t move in or ask the tenant to leave early just because you now own it. If you plan to move in on settlement day, check for this clause before you commit.
I’ve seen a probate clause in a contract. What is that?
It means the seller is an estate: the owner has passed away and the property is being sold under their Will. Before settlement, probate has to be granted and the executor recorded on the title. The clause sets a timeframe for that, often six months, and if it isn’t met either party can end the contract and the deposit is refunded. It protects both sides rather than signalling a problem.
Should I get a strata report if I’m buying a unit or apartment?
Yes, every time. A strata report shows the building’s capital works fund, whether owners are up to date on levies, big expenses coming up, past defects or disputes, the by-laws, and the insurance and claims history. You’re buying into the whole building’s finances, not just your four walls.
We read every certificate and special condition in your contract before you exchange, and explain anything unusual in plain English.
The short version
A planning certificate and special conditions exist to inform you, not scare you off. Mine subsidence and bushfire-prone status are common, well understood risks across our area. Tenancy and probate clauses describe what happens after you sign in a specific situation. If you’re buying strata, get the strata report. And if anything in your contract reads unclearly, send it to us before you sign.
Got a certificate or clause you’d like explained?
Talk to Justin, Julie, Amanda or Nicole. Send it through and we’ll tell you exactly what it means for your purchase.
