Buying a property in New South Wales.
What happens from your offer to your keys, and what we do at each step.
You have found a property.
The agent has sent you a contract.
Before you sign it, you should know what it says.
A NSW purchase, in order
- Before you signContract reviewWe read the contract and tell you what it says.
- Day 0ExchangeContracts are swapped. Both sides are bound. The deposit is paid.
- 5 business daysCooling-off endsAt 5pm on the fifth business day, for most residential purchases.
- About 6 weeksSettlementDone electronically. The title moves to your name.
Settlement is usually about 6 weeks after exchange unless another date is agreed. No cooling-off period applies at auction.
Before you sign the contract
The seller must have the contract ready before the property is advertised. The agent can send it to you.
It must include the title search, the registered plan, the drainage diagram, the council zoning certificate (section 10.7) and a statement of your cooling-off rights.
If a required document is missing, a buyer may be able to withdraw within 14 days of exchange, unless the matter has settled.
We read the contract and its special conditions, and we tell you:
- What you are agreeing to.
- What is missing.
- What should be changed before you sign.
Exchange of contracts
Exchange is the point when the buyer and seller each sign and the contracts are swapped.
From exchange, both of you are bound.
A deposit is paid on exchange. It is usually 10% of the price. A lower deposit, such as 5%, can be agreed with the seller.
The cooling-off period
For most residential purchases, you have 5 business days after exchange to change your mind.
The period ends at 5pm on the fifth business day.
If you withdraw, you must pay the seller 0.25% of the price. On a $1,000,000 property, that is $2,500.
There is no cooling-off period:
- When you buy at auction.
- When you exchange on the same day as the auction, after the property is passed in.
- When you waive it with a 66W certificate.
What a 66W certificate means for you
Sometimes a seller asks the buyer to waive the cooling-off period. This is done with a 66W certificate.
The certificate is signed by your own solicitor. It cannot be signed by a solicitor acting for the seller.
Before signing it, your solicitor must explain the contract to you, what the certificate is, and what it means to give it to the seller.
Once it is given, you are bound on exchange with no right to cool off.
Do not agree to waive the cooling-off period until we have reviewed the contract.
Between exchange and settlement
We order searches and check the title.
We keep your finance approval date in view.
We prepare the transfer and deal with the seller's solicitor.
We tell you when each step is done.
Transfer duty
The buyer pays transfer duty (also called stamp duty).
It must be paid by settlement, or within 3 months of signing the contract, whichever comes first.
If you are buying off the plan, you may be able to defer payment. See our Off-the-Plan page.
Settlement day
All NSW settlements are done electronically.
Settlement is usually about 6 weeks after exchange, unless another date is agreed.
On settlement, the balance is paid, the title moves to your name, and you collect the keys.
Where buyers get caught
Paying an expression of interest deposit and thinking the property is yours
An expression of interest deposit does not secure the property. The seller can keep negotiating with other buyers until contracts are exchanged. The deposit must be refunded if the property is sold to someone else.
Signing before finance is ready
Once contracts are exchanged, you are bound. Have finance approved before you exchange, and know the date your lender needs.
Leaving the inspection until it is too late
If a building and pest report is done after the cooling-off period ends, and it finds a problem, you are already bound. If you withdraw inside the period, 0.25% of the price goes to the seller.
Buying a unit without reading the strata records
The strata report shows the scheme's finances, defects, planned works, disputes and whether a special levy is coming. Low levies today can mean a steep rise later.
Relying on the agent
The agent acts for the seller, not for you. Only a solicitor or licensed conveyancer can change the terms of the contract.
Unpaid land tax on the property
Unpaid land tax is a charge on the land. If it is not paid at settlement, the new owner can be made to pay it. We check the clearance certificate before settlement.
Common questions
Can I withdraw after I sign?
Usually yes, during the 5 business day cooling-off period, on payment of 0.25% of the price. Not if you bought at auction or gave a 66W certificate.
Do I need to pay a 10% deposit?
10% is usual. A lower deposit, such as 5%, can be agreed with the seller.
Who pays the stamp duty?
The buyer pays transfer duty. It is due by settlement or 3 months after the contract, whichever comes first.
What if I am buying at auction?
There is no cooling-off period at auction. Send us the contract before auction day so we can review it.
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