How to Sell Property in NSW: A Comprehensive Legal Guide

1 April 2025

3. Comprehensive Legal Support:

Solicitors can provide support for all aspects of your sale, including ensuring that you comply with all legal obligations and offering advice on property law, contract law, and taxation. If you’re concerned about things like Capital Gains Tax (CGT), your solicitor can help you navigate these complex matters, while a conveyancer may not be able to provide the same level of advice.

4. Representing You in Legal Disputes:

In the unlikely event of a legal dispute arising during the property sale process (such as a buyer backing out after the cooling-off period, breach of contract, or termination of contract), a solicitor is qualified to represent you at arbitration or in court if necessary. Conveyancers are not lawyers and cannot represent you in legal proceedings should they arise.

How to Prepare Your Property for Sale

A key legal requirement in NSW is the Contract for Sale of Land, which must be prepared before your property can be marketed or sold. This Contract sets out the terms of the sale, including the price, settlement date, and any relevant conditions that apply to the property sale.

 

In NSW, it’s mandatory to provide a Contract to the buyer before you list your property. The Contract must contain crucial details, such as:

  1.  Property description - location, boundaries, and any structures on the property.
  2. Title information - the ownership status of the property, confirming your right to sell the property.
  3. Disclosure documents – dealings, plans, relevant details on zoning, diagrams, restrictions, and any unpaid land tax.

Marketing Your Property for Sale

Once your Contract is ready, you are able to list and start marketing your property. When you start receiving offers for your property, it’s important to evaluate each one carefully. If you’ve listed your property through an Agent, they will handle the negotiations. Whether you're selling by private treaty or auction, it’s essential to communicate with potential buyers and negotiate the best possible price for your property.

 

In NSW, when you accept an offer, a cooling-off period typically applies (5 business days). During this time, the buyer can withdraw their offer, but they may forfeit part of their deposit if they decide not to proceed.

Selling property in NSW can be an exciting yet complex process, particularly if you're unfamiliar with the legal requirements. Whether you're selling your first home or an investment property, it’s important to understand the steps involved and comply with NSW real estate and conveyancing laws. This guide outlines everything you need to know about selling property in NSW, including key legal considerations and tips for a successful sale.

 

Before listing your property for sale, it's essential to understand the legal framework governing property transactions in NSW. The sale of property in NSW is primarily regulated by the Real Property Act 1900, Conveyancing Act 1919 and Conveyancing (Sale of Land) Regulation 2022, which outline the processes for transferring property ownership.

Should I use a qualified Solicitor or Conveyancer to sell my house? 

While not a legal requirement, hiring a solicitor or conveyancer in NSW is strongly recommended when selling or buying property. These professionals help you:

  1.  Draft and review the Contract for Sale of Land.
  2. Ensure that all necessary disclosure documents (e.g. dealings, zoning certificates, diagrams, property certificates) are included.
  3. Handle the legal process of property settlement.

 

Working with an experienced solicitor or conveyancer ensures that you comply with legal obligations and reduces the risk of costly mistakes during the sale of your property. While both solicitors and conveyancers handle the legal process of property transactions, there are some important differences between the two professions. Here’s why a solicitor might be the better choice for your property sale:

1. Broader Legal Expertise:

Solicitors are fully qualified lawyers, meaning they have extensive legal training that allows them to offer comprehensive legal advice, not just for the sale of property, but for other legal issues that may arise. For example, if there are complexities surrounding the ownership of the property, tax issues, or disputes that could affect the sale, a solicitor can provide expert legal advice and representation. Conveyancers, on the other hand, typically specialize in property transactions and may not have the legal expertise to handle more complicated issues.

2. Handling Complex Transactions:

If your property sale involves unique circumstances, such as disputes with co-owners, unusual title issues, or the need to navigate through complicated conditions or deeds, a solicitor’s broader legal knowledge and experience can be invaluable. They can help interpret contracts, mediate disputes, and provide a higher level of legal insight than a conveyancer might be able to offer.

Executing the Contract for Sale of Land

Once both you and the buyer have agreed on the terms of the sale, the Contract for Sale of Land is signed and dated, which is known as “exchanged”. In NSW, this is a legally binding agreement that outlines the sale’s terms, including the price and settlement date.

 

If the buyer requires finance for the purchase, they will need to secure loan approval before the Contract becomes unconditional. This approval must be obtained within the timeframe specified in the Contract, typically before the cooling-off period expires. The standard cooling-off period is 5 business days after the date of exchange, however, parties can agreed to 10 business days or they can extend the cooling-off period if the buyer requires more time to obtain finance approval.

 

If a buyer does not require a cooling-off period, a solicitor or conveyancer may sign a document known as a Section 66W Certificate waiving the cooling-off period, which makes the Contract unconditional and binding on both parties.

Settlement of the Sale

The settlement is the final stage in selling your property. It’s when the buyer transfers the agreed amount to you, and ownership is officially transferred. In NSW, settlements typically occur 42 days after the Contract is signed, but this can be adjusted depending on the agreement.

 

Your solicitor or conveyancer will handle the legal aspects of the settlement, ensuring the title transfer is registered with NSW Land Registry Services (NSW LRS).

Capital Gains Tax (CGT) Considerations

As a seller, you may be required to pay Capital Gains Tax (CGT) on the sale of your property, especially if the property isn’t your principal place of residence (ie. home). The tax rate depends on various factors, including whether the property was an investment property or a second home.

 

You should consult your Accountant to understand your CGT obligations and explore strategies for reducing your tax liability.

Final Steps and Moving Out

Once settlement is completed, the buyer will take legal ownership of the property, and you’ll need to vacate the premises. Ensure that any outstanding bills (utilities) and insurances are settled up until the settlement date.

Conclusion

Selling property in NSW requires careful planning and adherence to legal obligations. By working with professionals like solicitors, conveyancers, and real estate agents, you can ensure that the sale process is efficient and legally compliant.

 

If you are considering selling property in NSW, consulting with a qualified legal professional at Hanna Lawyers will help you navigate the process and protect your interests every step of the way. Check out our fixed fees for sale of property and contact us today to start the process.

Disclaimer: This article is for general informational purposes only and should not be considered legal advice. If you’re dealing with a legal issue, it’s recommended that you seek advice from a qualified lawyer to understand your specific circumstances.