Whether purchasing your first home or selling an investment property, navigating the property market in New South Wales can be exciting and overwhelming. From contract preparation to settlement day, understanding the legal and procedural steps is essential to ensuring a smooth transaction. Here, our conveyancing and property lawyers at Szabo & Associates Solicitors explain what you need to know when buying or selling property in NSW.
The Legal Framework
A well-defined legal process governs property transactions in NSW. All contracts for the sale of land must be in writing and include key disclosures as required by the Conveyancing Act 1919. Buyers and sellers have legal obligations that they must meet before, during, and after the transaction.
Buying Property in NSW
When buying property, you must do your due diligence before signing a contract. This includes:
- Reviewing the contract for sale: Your solicitor or conveyancer should carefully review the agreement, including any special conditions, zoning restrictions, and inclusions or exclusions.
- Obtaining pre-purchase reports: Building, pest, and strata reports help you understand the property’s condition and any potential issues.
- Finance and pre-approval: Securing financing before making an offer gives you confidence and negotiating power. Once signed, most contracts are unconditional, so having your funding in place is essential.
Buyers in NSW may also benefit from a 5-business-day cooling-off period, allowing them to withdraw from the contract with a small penalty. However, this can be waived if the buyer’s solicitor signs a Section 66W certificate.
Selling Property in NSW
Sellers must prepare a valid contract of sale before listing the property on the market. This contract must include:
- A copy of the title deed
- Zoning certificate from the local council
- Drainage diagram and property certificate
- Details of any restrictions, covenants, or easements
Failure to include these documents may delay the sale or expose the seller to legal risk. A solicitor or conveyancer will ensure the contract complies with all disclosure requirements. The buyer typically pays a deposit once an offer is accepted and contracts are exchanged. Settlement usually occurs four to six weeks after the exchange.
Key Considerations for Both Parties
There are several important considerations for buyers and sellers, including the following:
- Transfer duty: Buyers must pay stamp duty within three months of the exchange. First home buyers may be eligible for concessions under the First Home Buyer Assistance Scheme.
- Adjustments: Council rates, water charges, and strata levies are adjusted between the buyer and seller on settlement.
- Electronic conveyancing: NSW now uses the PEXA platform for most property transactions, streamlining the settlement process and improving efficiency.
Get Legal Guidance from Szabo & Associates Solicitors
Property transactions are significant financial decisions. Engaging our experienced conveyancing and property lawyers ensures compliance with the law, protects your interests, and helps prevent costly mistakes.
Navigating the legal landscape of buying and selling in NSW does not have to be daunting. Contact Szabo & Associates Solicitors today to schedule a consultation. We can help facilitate a smooth and legally sound property transaction, whether you are buying your dream home or selling an investment property.
