Selling Property in NSW

Selling a property involves legal, financial and practical considerations that should be carefully managed from the outset. Understanding the process can help ensure a smooth transaction and minimise the risk of delays or disputes.

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This page provides general information for property sellers in New South Wales, outlining key stages of the sale process and important matters to be aware of.

Preparing a Contract for Sale

 

Before a property can be marketed, a Contract for Sale must be prepared.

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The contract typically includes:

• Title details

• Prescribed disclosure documents

• Special conditions

• Fixtures and inclusions

• Sale price and settlement terms

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Accurate preparation of the contract is essential, as errors or omissions can lead to delays or complications later in the transaction.

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Disclosure Obligations

 

Sellers in NSW are required to disclose certain information about the property before exchange.

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Disclosure may include:

• Planning and zoning information

• Council and water authority certificates

• Strata records (for strata properties)

• Notices or restrictions affecting the property

 

Failure to properly disclose required information may give a buyer the right to rescind the contract.

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Exchange of Contracts

 

Exchange occurs when both parties sign identical contracts and the buyer pays the agreed deposit.

 

At exchange:

• The contract becomes legally binding

• Settlement dates are fixed

• Cooling-off rights may apply (unless excluded)

 

Once exchanged, both parties are committed to proceeding in accordance with the contract terms.

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Cooling-Off Periods

 

Most residential sales in NSW include a cooling-off period unless the property is sold at auction or the buyer waives this right.

 

During the cooling-off period:

• A buyer may rescind the contract

• A penalty applies if the buyer withdraws

• Certain conditions may still be negotiated

 

Understanding whether a cooling-off period applies is important when planning the sale timeline.

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Deposits and Trust Money

 

Deposits are usually held in trust following exchange and form part of the purchase price at settlement.

 

Important considerations include:

• Standard deposit amounts

• Requests for early release of deposit funds

• Trust account requirements under NSW legislation

 

Deposit handling must comply with strict regulatory requirements.

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Preparing for Settlement

 

In the period leading up to settlement, sellers must ensure all contractual obligations are met.

 

This may include:

• Arranging mortgage discharge

• Finalising adjustments for council rates and water usage

• Coordinating with lenders and agents

• Ensuring the property is vacant if required

 

Settlement is usually completed electronically through PEXA.

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Settlement Day

 

On settlement day:

• Ownership of the property transfers to the buyer

• Sale proceeds are distributed

• Mortgage discharges are completed

• Title records are updated

 

Once settlement is complete, the transaction is finalised.

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Selling Investment or Tenanted Property

 

Additional considerations apply when selling an investment or tenanted property, including:

• Existing lease arrangements

• Notice requirements

• Tenant access and rights

• Vacant possession clauses

 

Understanding these obligations can help prevent disputes and delays.

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Getting the Right Advice

 

Every property sale is unique. Having a clear understanding of your legal obligations and the sale process can help ensure a successful outcome.

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Professional advice can assist in navigating complex issues and ensuring compliance at each stage of the transaction.

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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.