Found 5 relevant pages. The strongest matches explain what “complying development certificate” means, where the buyer risk sits, and how the clause plays out in real contracts.

Frequent Risk Signals

• Unapproved structures: If a property has been significantly renovated but the Contract for Sale does not include a valid Complying Development Certificate or DA, the local council can legally force you to demolish the illegal works at your own expense, easily costing upwards of $20,000.
• Lender rejection: Banks often refuse to finance a property if their valuer discovers uncertified structures, creating a severe buyer's risk where you could lose your 10% deposit if you cannot secure funding to complete the settlement.
• Voided insurance: Home and contents insurance policies in New South Wales typically exclude coverage for damages caused by or to uncertified building works, leaving you completely financially exposed in the event of a fire, storm damage, or structural collapse.
• Inherited legal liability: Under New South Wales law, compliance orders and fines apply to the current owner of the land; if you settle without verifying the certificate, you inherit the vendor's legal liabilities and face potential council fines of up to $3,000 for non-compliance.
• Private certifier errors: Sometimes a Complying Development Certificate is issued by a private certifier who failed to properly check boundary setbacks or easements, meaning you could face sudden legal disputes with neighbours that cost tens of thousands of dollars in litigation.
• Missing occupation certificates: A Complying Development Certificate is only the initial approval to build; if the vendor never obtained the final Occupation Certificate upon completion, you cannot legally inhabit that part of the dwelling, drastically reducing the property's rental yield and resale value.