A Comprehensive Guide for Selling Your Property in NSW

This comprehensive guide will help you understand what is involved in selling a property in NSW and how our team of lawyers can assist you throughout the selling process.

What do I need to include in the contract?

If you are selling a house, you must include the following in the contract:

• Title search confirming ownership of the property

• Deposited plan of the land in which the property is situated

• Planning certificate issued by local council

• Sewer location plan and sewer service diagram showing the location of sewer lines

• Documents creating easements, right of way, restrictions or covenants

• Certificate of registration and compliance/non-compliance for any swimming pools.

  
  

If you are selling a unit, you must include:

• Title search confirming ownership of the property

• Common property title search

• Strata plan showing where the unit, carspace (if any) and storage (if any) is located

• By-laws which affect the strata scheme

• Other documents which affect the strata scheme

• Planning certificate issued by local council

• Sewer location plan and sewer service diagram showing the location of sewer lines

• Documents creating easements, right of way, restrictions or covenants.

Although not compulsory, it may also be helpful to include the following documents if available:

• Survey report

• Building certificate

• Home warranty insurance

• Final Occupation Certificate.

If you are listing the property with a real estate agent, the contract will be sent to them for marketing purposes and then issued to prospective purchasers interested in the property.

Our team of lawyers can prepare the Contract of Sale for you with all the required legal disclosures and special conditions, to ensure the process goes as smoothly as possible.

How can I sell my property?

There are two ways that you can sell your residential property:

1. Private treaty; or

2. Auction.

If you are selling your property by private treaty, the sale price is set through the real estate agent or through an online property service if you are selling the property yourself. Once a price is agreed between you (as the vendor) and the prospective purchaser, negotiations in relation to the property can be done up until the contracts have been signed and exchanged by both parties and the deposit has been paid.

If you are selling your property by auction, prospective purchasers will attend at a specified location and time to bid on the property. A reserve price, which is the lowest amount that you are willing to accept for the property, is set before the auction. If the highest bid is higher than the reserve price, the property is sold to that bidder.

What happens once I've found a buyer and they have signed the contract?

In NSW, exchange of contracts happens when two copies of the contract (one copy signed by you as the vendor and one copy signed by the purchaser) are swapped or “exchanged” and a deposit is paid.

Exchange of contracts can be done either through a property solicitor, conveyancer or the real estate agent. The date of exchange is noted on the front page of each contract.

Is there a cooling off period?

If the property is sold by private treaty, contracts may be exchanged subject to a cooling off period. Purchasers typically have five business days during which they can withdraw from the transaction. The cooling off period can be waived, reduced or extended by negotiation.

It is important to note that if you are selling your property by auction, there is no cooling off period.

What happens after contracts are exchanged?

In NSW, the usual settlement period is 42 days (6 weeks) after contracts are exchanged, but can be made longer or shorter by negotiation. If you, as the vendor, are also purchasing a property at the same time, settlement can also be arranged so that funds from the sale of your existing property can go towards the purchase of your new property.

If there is a mortgage on the property, we will prompt you to sign a discharge authority so that the bank is aware of the sale and upcoming settlement. The bank will confirm the payout figure to pay out the existing loan shortly before settlement and will organise for the mortgage to be discharged on settlement.

A settlement statement will also be prepared and this sets out the final balance payable to you, taking into account any rates, levies or taxes payable as at the date of settlement. We will check these figures and confirm with you that they are correct.

If the property is to be vacant on settlement, you should ensure that your belongings are moved out prior to the settlement date. The purchaser will conduct a final inspection to ensure nothing has been damaged in the property and that all inclusions listed in the contract are still there and intact.

Settlement

This is the final stage of the sale process. At settlement, the purchaser will pay the balance of the purchase price plus any adjustments as required to you as the vendor, and ownership of the property will pass from you as the vendor to the purchaser. In NSW, settlements now take place electronically via PEXA.