The Law Society of New South Wales and the Real Estate Institute of New South Wales have just released the 2026 edition of the Standard Contract for Sale and Purchase of Land, and practitioners need to act before the 31 May 2026 deadline.
Here to break down what's changed and what you need to know is property specialist, Greg Stilianou. Greg is the Principal Lawyer at Greg Stilianou Legal, and Adjunct Lecturer at the College of Law. Greg walks through what's new in the 2026 edition, why the updates matter, and what practitioners need to do before the deadline to stop using the 2022 edition in time.
Understanding the transition
"The release of the 2026 edition is not just a routine update," Greg explains. "There are some meaningful changes that practitioners need to be across, and the transition period is something that every conveyancing lawyer should have on their radar right now."
The most immediate issue is timing. The 2026 edition may be used immediately, but the 2022 edition can still be used until 31 May 2026. After that date, the new edition is mandatory.
"The key date is 1 June 2026," Greg says. "From that date, all residential contracts and option agreements must use the revised statutory cooling-off notice contained in the 2026 edition. If you are still using the 2022 edition after 31 May, the cooling off notice will be non-compliant, exposing a vendor to risk. If a contract does not contain the correct statement about the cooling off period, a purchaser has the right to rescind at any time before completion."
"It is a relatively minor textual change — the words 'to purchase the property' have been removed from clause 3(d) of the cooling off notice," Greg notes. "But the significance is not in the size of the change. The significance lies in the fact that from 1 June 2026, the new form is mandatory. Practitioners need to audit all their existing vendor client contracts that are with marketing agents, and update them in advance of the 31 May deadline."
More broadly, these updates follow the Conveyancing and Real Property Amendment Act 2025 (NSW), which also resolved uncertainties around put options, highlighted by the Supreme Court’s decision in BP7 Pty Ltd v Gavancorp Pty Ltd [2021] NSWSC 265. As a result of the decision, there was uncertainty as to whether cooling off rights applied to both put options and call options over residential property.
Since that decision, amendments were made to the Conveyancing Act 1919 to include a new definition of ‘option’ (in s 66P) to mean both:
- an option to purchase residential property (call option), and
- an option to compel the purchase of residential property (put option).
The net effect being that there is a cooling off period when an option (call and put) over residential property is entered: s 66ZB. And this required a change to the prescribed form of cooling off notice that appeared in the contract.
What else has changed in the 2026 edition
Beyond the cooling-off notice, the 2026 edition includes a range of legislative and practice updates that reflect changes in the law and the market since 2022.
"There are updates across several areas. Some are minor clarifications, others reflect genuine shifts in the legal landscape," Greg says. "Practitioners should not assume this is just a cosmetic refresh."
One notable addition is a new warning relating to the Anti-Money Laundering and Counter-Terrorism Financing regime.
"From 1 July 2026, tranche 2 entities, including solicitors and licensed conveyancers, will become subject to the AML/CTF Act," Greg explains. "The inclusion of Warning 13 in the contract is a signal to practitioners that this is coming. It is worth starting to think about what compliance will look like for your practice."
Another update relates to a change to the definition of Foreign Resident Capital Gains Withholding percentage. This was to reflect that from 1 January 2025, the withholding rate increased from 12.5% to 15%. Also, the previous $750,000 threshold no longer applies, meaning this now applies to all property.
"These are the kinds of changes that can catch practitioners off guard if they are not paying attention," Greg says. "The contract now reflects the current law, and practitioners need to make sure their advice does too."
The 2026 edition also updates the list of documents on page 4, including revised references to Sydney Water documents to reflect their terminology, corrected references to documents involved in strata schemes to reflect terminology used in legislation, and a new item 58 relating to documents relevant to exclusive supply networks such as embedded electricity networks.
"The addition of item 58 is forward-looking," Greg notes. "It anticipates a potential future change to a vendor’s disclosure obligations, requiring documents in relation to embedded electricity, internet and other similar networks to be attached to the contract. This is particularly relevant for strata schemes and off-the-plan developments, and it is worth being aware of."
“In relation to the list of inclusions on page one of the contract, ‘tv antenna’ has been replaced with ‘internet/TV receiver’, and ‘solar power battery’ has been added. Again, these changes were introduced to modernise the contract to reflect technology terminology.”
Clarifications following recent case law
Two clauses have been updated following commentary in the 2025 Supreme Court of NSW decision of Ahmau Developments Pty Ltd v Preet.
"Justice Parker's comments in that case highlighted some potential overlap between clauses 28.2 and 29.4, and some inconsistency in language across the contract," Greg explains. "The 2026 edition addresses both of those issues directly."
Clause 28, dealing with unregistered plans, and clause 29, dealing with conditional contracts, have been clarified to make clear that clause 29 does not apply where clause 28 already applies.
"This is a practical fix that removes ambiguity," Greg says. "For practitioners working on off-the-plan or unregistered plan transactions, it is a welcome clarification."
The language in relation to the standard of carrying out obligations in clauses 12, 24, 28 and 29 has also been harmonised, replacing the phrase of doing "everything reasonable" with doing "whatever is reasonably necessary."
"It sounds like a small thing, but consistency in contractual language matters," Greg says. "It reduces the scope for argument about what obligations are actually required of the parties."
Practical guidance for legal practitioners
Greg has clear advice for practitioners navigating the transition period.
"Do not wait until May to update your vendor’s contracts," he says. "The 2026 edition is available now, and there is no good reason to keep using the 2022 edition. If you are preparing new contracts, or you have contracts with real estate agents for properties that are still on the market, start transitioning your contract to the latest 2026 edition as soon as possible."
For practitioners who have contracts in progress that were drafted using the 2022 edition and may exchange close to or after 31 May 2026, the Law Society has provided a practical solution.
"The Law Society's Digital Contracts Service platform has a one-page document containing the revised cooling-off notice text," Greg notes. "That allows practitioners to update contracts drafted in the 2022 edition without having to start from scratch. It is a sensible interim measure, but it does require practitioners to be proactive."
Greg also flags the importance of reviewing existing precedents and checklists in light of the other substantive changes.
"Check your precedents are revised to reflect the correct FRCGW threshold and percentage, review how you are advising clients on the AML/CTF changes coming in July 2026, and make sure your document checklists reflect the updated list of documents in the 2026 edition," he advises. "These are not dramatic changes, but they are the kind of details that matter in conveyancing practice."
For a full summary of changes, read the Law Society of New South Wales' factsheet.
Our NSW version of the Essential Guide to Property Transactions bundle course has been updated in 2026 in line with the 2026 Contract of Sale; bringing you current, practical knowledge to support confident and compliant practice in real property transactions.