A property with a swimming pool or spa cannot be legally sold in NSW without a Certificate of Compliance or Certificate of Non-Compliance attached to the Contract. Failure to attach the appropriate Certificate allows the purchaser to rescind the Contract at any time within 14 days of exchange. However if either Certificate is attached, what are the consequences?
Certificate of Compliance
This Certificate can be issued by the local Council or a private certifier. An assessment of the pool or spa will consider a number of safety items such as the surrounding fence and the closure of the gate to ensure children cannot enter without adult supervision. The issuing of such a Certificate will give a purchaser comfort that all is in order.
Certificate of Non-Compliance
This Certificate will identify any defects that must be rectified in order to meet safety standards. It will have a marked effect on the transaction as follows:
* The owner of the property will have to rectify the defects and obtain a Certificate of Compliance and, in the case of a purchaser, within 90 days from the date of settlement otherwise fines and enforcement action can be pursued;
* Rectification costs can be many thousands of dollars. This should be determined before entering into the Contract as it may affect the price a purchaser is willing to pay;
* Alternatively, a purchaser might want to negotiate a clause into the Contract requiring the vendor to undertake the work before settlement; and
* The purchaser will have the most leverage before exchange to determine the most beneficial way forward.
This is one issue where guidance from a solicitor will ensure that the correct path is taken in order to avoid a costly error!
September 2026