15/05/2026
A $6.2 Million Lesson In Property Due Diligence
A Sydney Morning Herald report this week details how buyers of a luxury Sydney property allegedly discovered after exchange that a major apartment development — reportedly 100 to 120 apartments — was proposed for the neighbouring site.
The buyers commenced Supreme Court proceedings alleging they had been misled about the neighbouring development and its likely impact on the property. In a NSW Supreme Court judgment delivered this week, the Court rescinded the sale contract and ordered the return of the purchasers’ $310,000 deposit, finding the property had been misrepresented.
The case is a powerful reminder that in NSW property transactions, due diligence extends well beyond the property itself.
Too often, buyers focus only on:
• building and pest reports
• the contract
• the condition of the property
But nearby developments, rezoning proposals and pending DAs can dramatically affect future value and enjoyment.
For BUYERS:
— Check council DA portals before exchange
— Investigate neighbouring sites
— Ask questions in writing
— Obtain proper legal advice early
For SELLERS & AGENTS:
Be careful with representations made about surrounding developments. Misleading statements or inaccurate assurances can expose parties to serious disputes and legal liability.
The reality:
A property purchase is often the biggest financial decision people make. Due diligence means investigating not only the property — but also what may soon surround it.
Before you exchange contracts, make sure you know what’s being built over the fence!
