The NSW Government’s latest round of property disclosure reforms came into effect this month, and they’re already creating friction in the market. After years of incremental changes, we now have a significantly expanded list of mandatory disclosures that must be provided before contract exchange.

The most significant addition is the requirement to disclose any material facts about neighbourhood development applications within 200 metres of the property. This includes DAs that have been lodged but not yet determined. In practice, this means vendors need to conduct council searches more frequently and update disclosure documents right up until exchange.

I’ve already seen deals delayed because a DA was lodged during the marketing period and the vendor’s solicitor insisted on updated disclosures. It’s creating an administrative burden that’s particularly challenging for properties in high-growth areas where DA activity is constant.

The building defects disclosure requirements have also been tightened. Previously, vendors could rely on a building inspection report conducted within six months. Now, for apartments built in the last 15 years, a specific waterproofing and defects inspection is required, and it must be less than three months old at the time of contract.

This is driving up pre-sale costs for apartment vendors. The specialized inspections typically cost between $800 and $1,200, depending on the property size and complexity. For vendors who decide not to proceed with a sale, that’s money they can’t recover.

The strata disclosure requirements now mandate inclusion of any ongoing legal disputes between the owners corporation and individual lot owners, not just disputes involving the building as a whole. This has caught some agents off guard, particularly in older buildings where interpersonal disputes are more common.

From a buyer’s perspective, these reforms are positive. More information means fewer surprises post-settlement. But the timing and scope of some disclosures is creating practical challenges that the legislation didn’t fully anticipate.

The 200-metre DA disclosure requirement is particularly problematic. In dense urban areas, there could be a dozen active DAs within that radius at any given time. Expecting vendors to monitor and disclose all of them is unrealistic, yet the legislation makes non-disclosure a potential breach of contract.

I’ve been recommending that vendors engage their solicitor earlier in the process, ideally before commencing marketing. The cost of early legal engagement is offset by the reduced risk of delays or contract rescission due to disclosure failures.

For agents, these reforms mean more time spent coordinating between vendors and their legal representatives. The days of preparing a contract package in a few days are gone. Now we’re looking at one to two weeks from instruction to marketing, assuming no complications.

The government’s intention is to reduce post-contract disputes and increase buyer confidence. Those are worthwhile goals. But the implementation has created a compliance burden that’s disproportionately affecting smaller transactions and vendors who can least afford the additional costs and delays.

What’s particularly frustrating is that much of this information could be centralized and made publicly accessible through government portals. Instead of requiring each vendor to commission multiple searches and reports, buyers could access standardized information directly. Some states are moving in this direction, but NSW is still relying on a document-heavy, vendor-funded disclosure model.

There’s talk of a digital disclosure platform being developed, but no concrete timeline. Until then, we’re managing these requirements with spreadsheets and manual coordination.

For anyone listing property in NSW, my advice is to budget both time and money for the disclosure process. It’s no longer a formality—it’s a substantive part of the transaction that requires professional management. The upfront investment in proper disclosure reduces risk significantly and helps maintain transaction momentum once you’ve found a buyer.

The reforms will likely be refined over time as practical issues emerge. For now, we’re adapting and building the additional compliance work into our standard processes.