When a property with an onsite sewage management system is sold in NSW, the registration of that system does not automatically transfer, but the obligations certainly do. The new owner inherits all maintenance and compliance obligations that came with the property’s Council approval, including any ongoing servicing requirements, pump-out schedules, and restrictions on land use near the system.
Understanding what you are taking on before you buy, and what you need to disclose before you sell, protects both parties.
How Septic Systems Are Registered in NSW
Port Macquarie Hastings Council maintains an Onsite Sewage Management (OSM) register for properties within the LGA that have an approved onsite sewage management system. The register records:
- Property address and lot/DP identifier
- System type (conventional septic, AWTS, biofilter, composting, holding tank)
- Tank size and installation date
- Land application area type and location
- Original approval conditions
- Service provider (for AWTS systems)
- Service history (dates and results of quarterly services for AWTS)
- Any notices to comply or outstanding issues
The register is a property-based record, not an owner-based record. When ownership changes, the register entry stays with the property.
What Sellers Must Disclose
Under NSW conveyancing law, sellers must include a Section 10.7 Planning Certificate (formerly Section 149) with the contract of sale. This certificate, issued by Port Macquarie Hastings Council, includes a notation if the property is on the OSM register.
The 10.7 certificate tells buyers:
- Whether the property is on the OSM register
- The system type registered
It does not tell buyers:
- Whether the system is currently functioning correctly
- When it was last serviced or pumped out
- Whether it is compliant with its approval conditions
- Whether there are any outstanding notices or defects
This gap is where buyers can be caught out. A property shown on the OSM register as having “an AWTS system” could be an AWTS that has been serviced quarterly for 10 years and is in excellent condition, or one that hasn’t been touched for three years and is technically in breach of its approval conditions.
The seller’s agent should also disclose any known defects, in NSW, sellers cannot mislead buyers about known material defects in the property. A known failing septic system is a material defect.
What Buyers Should Do
If you are buying a property on septic in the Port Macquarie, Wauchope, Camden Haven, or Mid North Coast region:
1. Request full service records Ask the selling agent or vendor to provide the complete service history for the system. For AWTS systems, this means all quarterly service reports. For conventional systems, it means pump-out records.
2. Commission a pre-purchase septic inspection This is the most important step buyers can take. A pre-purchase septic inspection by an independent qualified provider gives you:
- Current condition of the tank and treatment system
- Current condition of the land application area
- Assessment of whether service records match actual system condition
- Identification of any non-compliance with current requirements
- Assessment of how long before major expenditure (pump-out, repair, or replacement) is likely
We take enquiries for pre-purchase inspections across the Port Macquarie Hastings LGA. Reports are typically available within 24-48 hours of the inspection.
3. Check Council’s OSM register Contact Port Macquarie Hastings Council’s environmental health team and ask for the registered details of the system at the property. They can tell you the system type, original approval conditions, and whether there are any outstanding compliance notices on the property.
4. Understand your ongoing obligations Find out before settlement:
- When the tank was last pumped out (for conventional systems)
- When the AWTS was last serviced (for AWTS systems)
- What the approval conditions require in terms of service frequency
- Whether there is an active service agreement in place
What Sellers Should Do
1. Get the system serviced and pumped out before listing A system that has been serviced recently is in a better condition to inspect than one that hasn’t been touched for years. Buyers who commission a pre-purchase inspection on a recently serviced AWTS or recently pumped conventional septic will receive a better report.
2. Have records available Organise all service records, pump-out receipts, the original Council approval, and any compliance correspondence into a file. Buyers and their solicitors will ask for this, and having it ready signals well-maintained ownership.
3. Disclose known issues If the system has a known fault, a recurring alarm issue, or has been flagged by a service provider as needing work, disclose this. Hiding known material defects creates legal risk post-settlement.
4. Check for outstanding compliance notices Contact Council before listing to confirm there are no outstanding notices to comply attached to your property’s OSM registration. An outstanding notice that appears on the 10.7 certificate is a red flag for buyers and their solicitors.
After Settlement: Steps for New Owners
Once you become the new owner of a property with a registered septic system:
1. Notify your AWTS service provider If the property has an AWTS with a service agreement, contact the service provider and update the ownership records. The service reports will now be issued in your name.
2. Set up your own service agreement If the previous owners did not have a formal service agreement, set one up immediately. See our septic maintenance agreement guide.
3. Book an initial inspection (if you didn’t do a pre-purchase inspection) Understanding the current state of the system from day one allows you to plan for maintenance costs and address any issues before they become serious problems.
4. Confirm your Council notification obligations Some councils require new owners to notify them of ownership changes affecting properties on the OSM register. Contact Port Macquarie Hastings Council’s environmental health team to confirm.
Special Case: AWTS Properties
For properties with AWTS systems, the change of ownership has more immediate practical implications:
- The quarterly servicing obligation begins immediately with the new owner
- If the previous owner’s service contract has lapsed, the new owner is immediately in non-compliance
- AWTS service reports are lodged with Council, if Council checks the register and sees a gap in reports corresponding to a change of ownership, they may issue a notice to improve
Do not let a change of ownership create a service gap for an AWTS property. Either transfer the existing service agreement or arrange a new one to cover the property from day of settlement.
Buying at Auction
Properties sold at auction in NSW are sold unconditionally, there is no cooling off period and no opportunity to make enquiries after the hammer falls. If you are bidding on a property at auction that is on septic, you must complete all your due diligence (including the pre-purchase inspection) before auction day.
FAQ
Does the Council OSM registration fee transfer on sale? No, there is typically no transfer fee for the OSM registration itself. The new owner simply inherits the existing registration. However, if the new owner needs to modify the approved system or address non-compliance, separate fees apply.
What if the property I’m buying has no record of a septic approval? This is a red flag. Properties not connected to sewer that have no record of an approved septic system may have an unapproved system or one installed under an old, now-lapsed approval. An inspection to identify what’s actually on the property, followed by engagement with Council to determine the compliance pathway, is essential before purchase.
The vendor says the septic “works fine” but there are no service records, what do I do? Don’t rely on verbal assurances. “Works fine” is not a compliance statement. Book a pre-purchase inspection and request Council’s OSM register record independently. A system that “seems fine” to an owner can have significant underlying issues that only a proper inspection reveals.
Can I renegotiate the purchase price if the pre-purchase inspection shows issues? In most cases yes, during the cooling-off period (if you purchased by private treaty). This is one of the most practical reasons to commission an inspection quickly after exchange rather than before, it gives you documented evidence to support a price renegotiation or request for vendor repair.
Do I have to tell Council when I become the new owner of a septic property? The legal obligation varies. It is good practice to contact Council’s environmental health team and update the ownership records so that any compliance correspondence comes to the correct person. Check with Council for their current procedure.
Buying or selling a property with a septic system in the Port Macquarie or Hastings region? Book a pre-purchase inspection or contact us for advice on maintenance obligations from day one.