Selling Property in NSW: Contract & Conveyancing Guide

Selling residential property in New South Wales requires a properly prepared contract, clear transaction terms and careful management from marketing through to settlement. Russell Kelly & Associates assists vendors with contract preparation, negotiation, conveyancing and settlement.

Prepare the Contract Before Marketing

A residential property generally cannot be advertised for sale in NSW until a contract for sale has been prepared and made available. Preparing the contract involves obtaining and reviewing the title search, deposited or strata plan, planning certificate, drainage information and other prescribed documents.

The contract should accurately identify the property, the parties, the proposed inclusions and exclusions and any special conditions relevant to the sale.

Tell Your Solicitor About Property Issues Early

Vendors should disclose relevant information before the contract is finalised. Matters may include renovations or structures, swimming pools, leases or occupancies, easements, notices, strata issues, outstanding work, solar arrangements or items that will be removed before settlement.

Early instructions allow the contract and transaction strategy to be prepared with those circumstances in mind.

Negotiating the Sale Terms

A buyer may request amendments following legal review. These can concern the deposit, settlement period, inclusions, access before settlement, adjustments, finance or due-diligence conditions and other special terms.

Requested changes should be considered before exchange so the vendor understands their effect and the contract accurately records the agreement.

Exchange and Cooling-Off Period

The parties are not ordinarily bound until signed contracts are exchanged. A residential buyer purchasing by private treaty usually receives a five-working-day cooling-off period, although it may be waived, shortened or extended. A vendor does not receive an equivalent cooling-off right after exchange.

There is generally no cooling-off period for a buyer who purchases at auction or exchanges contracts on the same day after the property is passed in.

Deposit and Settlement Arrangements

The contract records the deposit and settlement date. If a buyer proposes a deposit below ten per cent or another arrangement, the legal and practical consequences should be considered before the vendor agrees.

Between exchange and settlement, the conveyancing work can include responding to requisitions, arranging mortgage discharge, calculating settlement adjustments, addressing title matters and preparing for electronic settlement.

Tax and Withholding Considerations

Depending on the property and transaction, the vendor may need to consider an ATO clearance certificate, foreign-resident capital-gains withholding, GST withholding or other taxation issues. Appropriate legal, taxation and accounting advice should be obtained early where these matters may apply.

Preparing for Completion

Before settlement, the property should be prepared in accordance with the contract, including agreed inclusions, vacant possession where required and arrangements for keys and access. The buyer will commonly conduct a final inspection shortly before settlement.

How Russell Kelly & Associates Can Assist

We can prepare the contract for sale, advise on disclosure and transaction requirements, negotiate proposed amendments, manage the conveyancing process and complete settlement.

Read more about our Property Law and Conveyancing services, deposits below ten per cent, ATO clearance certificates and withholding, and the NSW Government selling-property guidance.

Selling Property in NSW: Frequently Asked Questions

When should the contract for sale be prepared?

The contract should be prepared before a residential property is offered for sale. Early instructions also allow disclosure documents and any property-specific issues to be considered before marketing and negotiations progress.

Does a property seller have a cooling-off period after exchange?

No equivalent cooling-off right generally applies to the vendor after contracts are exchanged. Proposed conditions and amendments should therefore be considered carefully before exchange.

Must the buyer pay a ten per cent deposit?

A ten per cent deposit is common, but a buyer may propose a lower deposit or another arrangement. The legal and practical consequences should be considered before the vendor agrees to change the deposit terms.

What happens between exchange and settlement for the seller?

The conveyancing work can include arranging mortgage discharge, responding to requisitions, calculating settlement adjustments, addressing title matters and preparing for electronic settlement. The property must also be prepared in accordance with the contract, including agreed inclusions and vacant possession where required.

This information is general in nature and does not constitute legal or taxation advice. The requirements and consequences of a sale depend on the property, contract and vendor’s circumstances.