A Comprehensive Guide to Selling 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?

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

• Title search confirming ownership of the property

• Deposited plan of the land where the property is situated

• Planning certificate issued by the local council

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

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

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

  
  

If you are selling a unit, the required documents include:

• Title search confirming ownership of the property

• Common property title search

• Strata plan showing where the unit, car space (if any), and storage (if any) are located

• By-laws that affect the strata scheme

• Other documents that affect the strata scheme

• Planning certificate issued by the local council

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

• Documents creating easements, rights 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. It will then be issued to prospective purchasers interested in the property.

Our team of lawyers can prepare the Contract of Sale for you, ensuring that all required legal disclosures and special conditions are included. This preparation will help make the process go as smoothly as possible.

How Can I Sell My Property?

You have two primary methods for selling your residential property:

1. Private treaty

2. Auction

   
   

Selling by Private Treaty

If you are selling your property by private treaty, the sale price is set through the real estate agent or an online property service, especially if you’re selling the property yourself. Once a price is agreed upon between you (the vendor) and the prospective purchaser, further negotiations can take place until both parties sign and exchange the contracts, and the deposit is paid.

Selling by Auction

If you choose to sell your property by auction, prospective purchasers will attend a specified location and time to bid on the property. Before the auction, a reserve price — the lowest amount you are willing to accept — is set. If the highest bid exceeds the reserve price, the property is sold to that bidder.

What Happens Once I've Found a Buyer?

In NSW, the exchange of contracts occurs when two copies of the contract—one signed by you as the vendor and one signed by the purchaser—are swapped or “exchanged," accompanied by a deposit payment.

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

Is There a Cooling-Off Period?

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

It's crucial to note that if you are selling your property through an auction, there is no cooling-off period available.

What Happens After Contracts Are Exchanged?

In NSW, the usual settlement period is 42 days (about six weeks) following the exchange of contracts. This period can be extended or shortened through negotiation. If you, as the vendor, are purchasing a property simultaneously, arrangements can be made so that the funds from selling your existing property contribute to the purchase of your new property.

If a mortgage exists on the property, we will prompt you to sign a discharge authority to notify the bank about the sale and upcoming settlement. The bank will provide the payout figure to settle the existing loan shortly before the settlement and will organize the mortgage's discharge on that date.

A settlement statement will be prepared. This document outlines the final balance payable to you, factoring in any rates, levies, or taxes due as of the settlement date. We will review these figures with you to ensure their accuracy.

If the property is to be vacant on the settlement date, make sure your belongings are moved out before that day. The purchaser will conduct a final inspection to confirm that nothing has been damaged and that all inclusions listed in the contract are still present and undamaged.

Settlement

Settlement is the final stage of the sale process. At this time, the purchaser will pay the balance of the purchase price, along with any required adjustments, to you as the vendor. Ownership of the property will then transfer from you to the purchaser.

In NSW, settlements are now conducted electronically through PEXA. With the right preparation and guidance from our team, the selling process can be straightforward and efficient for all parties involved.

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