Buying Property in NSW

Before You Sign a Contract

 

Before committing to a property purchase, it is important to understand the terms of the Contract for Sale and any special conditions that may apply.

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Key matters to consider include:

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• The purchase price and deposit amount

• Settlement timeframe

• Cooling-off rights

• Special conditions and exclusions

• Penalties for late settlement or breach

 

A contract should always be reviewed carefully before exchange to ensure you understand your obligations and any associated risks.

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Cooling-Off Periods

 

In NSW, most residential property purchases include a cooling-off period after exchange (unless waived).

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During this time, a buyer may rescind the contract, subject to forfeiting a small percentage of the purchase price. Cooling-off rights do not apply in all situations, including at auction or where a waiver is signed.

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Understanding whether a cooling-off period applies is essential before proceeding.

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Deposits

 

A deposit is usually paid on exchange of contracts and is typically held in trust until settlement.

Important points to understand:

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• The standard deposit is often 10%, but variations can apply

• Early release of deposit funds may be requested by the seller

• Deposit funds are generally protected under NSW legislation

 

Buyers should ensure deposit arrangements are clearly documented in the contract.

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Ownership Structure

 

When buying property in NSW, buyers must decide how ownership will be recorded on the title. This decision has legal, financial and estate planning implications and should be considered carefully before exchange.

 

The most common ownership structures are:

 

Joint Tenants

Joint tenants own the property together in equal shares. If one owner passes away, their interest automatically transfers to the surviving owner(s), regardless of any will.

 

This structure is commonly used by spouses or long-term partners purchasing together.

 

Tenants in Common

Tenants in common each own a defined share of the property, which may be equal or unequal. Each owner’s share forms part of their estate and can be dealt with under a will.

 

This structure is often used where buyers are:

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• Contributing different amounts

• Investing together

• Purchasing with family members or business partners

 

Company or Trust Ownership

In some cases, property may be purchased in the name of a company or trust. This can have different tax, asset protection and lending implications and typically requires additional consideration.

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Choosing the correct ownership structure is important, as changes after settlement can be costly and may attract additional duties or fees.

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Searches and Enquiries

 

Property searches provide important information about the property and any restrictions or issues affecting it.

Common searches may include:

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• Council certificates

• Water authority information

• Title searches

• Strata records (for apartments and townhouses)

 

Search results help buyers make informed decisions and identify potential concerns before settlement.

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Finance and Settlement Preparation

 

Once contracts are exchanged, buyers must ensure finance approval is finalised and settlement preparations are completed on time.

This includes:

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• Coordinating with lenders and brokers

• Finalising loan documentation

• Preparing settlement figures

• Arranging transfer duty and registration

 

Settlement typically occurs electronically through platforms such as PEXA.

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Settlement Day

 

Settlement is the final stage of the purchase, where ownership of the property is transferred and funds are exchanged.

After settlement:

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• The property is legally yours

• Keys are released via the agent

• Ownership records are updated

 

Buyers should ensure insurance arrangements are in place prior to settlement.

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Off-the-Plan Purchases

 

Buying off-the-plan involves purchasing a property before it is built or completed.

Additional considerations include:

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• Long settlement timeframes

• Sunset clauses

• Variations to plans or finishes

• Financing over an extended period

 

Off-the-plan contracts often contain more complex terms and should be reviewed carefully.

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Getting the Right Advice

 

Every property purchase is different. Understanding the process and seeking appropriate advice early can help prevent delays, disputes and unexpected costs.

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If you have questions about buying property in NSW, professional advice can help clarify your position and guide you through the process.

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Important Note

 

The information provided on this page is general in nature and does not constitute legal or conveyancing advice. For advice specific to your circumstances, professional guidance should be obtained.