How much does buying property in NSW actually cost? The complete breakdown

Buying property in NSW costs more than the purchase price and the deposit. Once you add stamp duty, conveyancing, searches, inspections, and government charges, the total out-of-pocket cost on top of your deposit can range from $2,000 to $70,000 depending on the price and whether you are a first home buyer. Use the estimator below to calculate your full budget from the purchase price.

Total property purchase cost estimator (NSW buyer)

Enter your expected purchase price to see a budget breakdown: transfer duty, licensed conveyancer and solicitor fees shown separately, and typical disbursements. All figures are estimates only.

The two parts of every conveyancing quote

Every conveyancing quote should separate two things:

1. Professional fee: the conveyancer's or solicitor's charge for their time and expertise. This is negotiated with the professional directly and varies between practices.
2. Disbursements: the third-party costs your conveyancer pays on your behalf (searches, registry fees, PEXA fees, etc.). These are largely fixed by government and third-party providers, not by the conveyancer.

A quote that shows only a professional fee and not disbursements is incomplete. Always ask for a total estimate that includes both.

Buyer costs

As a buyer in NSW, the costs you should budget for include:

• Conveyancer or solicitor professional fee: for a standard residential purchase, licensed conveyancers tend to charge less than solicitors. Complex transactions (off-the-plan, strata with issues, unusual contract conditions) cost more. Ask for a fixed-fee quote where possible. See our dedicated guide to conveyancing fees in NSW for fee ranges by transaction type and what to ask when comparing quotes.
• Disbursements: searches and registration costs (see the disbursements section below). As a buyer, your main disbursements are the searches your conveyancer orders to check the property's status and history.
• Transfer duty: paid to Revenue NSW based on the higher of the purchase price or the property's market value. This is by far the largest transaction cost for most buyers. See the transfer duty section below.
• Lender's legal costs: if you have a mortgage, your lender appoints its own legal representative and passes those costs to you. These are separate from your own conveyancer's fee and appear on your settlement statement.
• Building and pest inspection: not a conveyancing fee, but a related cost that most buyers incur before committing. This is arranged independently of your conveyancer.
• Strata inspection report: for strata (unit/apartment) purchases, a strata inspection of the owners corporation records is advisable and involves a separate cost.

Seller costs

As a seller in NSW, your conveyancing costs include:

• Conveyancer or solicitor professional fee: sellers engage a professional to prepare the contract of sale, manage the pre-exchange process, and attend to settlement.
• Disbursements: preparing the contract of sale requires the vendor to obtain prescribed documents under the Conveyancing (Sale of Land) Regulation 2022 (title search, section 10.7 certificate, drainage diagram, and others). These are part of the seller's disbursements.
• Discharge of mortgage costs: if you have an existing mortgage on the property, your lender will charge a discharge fee to release the security at settlement. This is paid to the lender, not to your conveyancer.
• Agent's commission: real estate agent commission is a separate and usually larger cost for sellers. It is not part of conveyancing.

Sellers in NSW are not liable for transfer duty on a straightforward sale of residential property. Capital gains tax implications (if applicable) are a separate tax matter to discuss with your accountant.

What disbursements typically include

Disbursements vary depending on the property and what searches are ordered. Common items include:

• Title search: ordered through NSW Land Registry Services, confirms the registered proprietor, encumbrances, easements, and any caveats on the title.
• Section 10.7 planning certificate: issued by the relevant local council, shows the zoning, restrictions, and overlays affecting the land. Required for vendor's contracts. See our guide: What is a section 10.7 certificate?
• Drainage diagram: obtained from Sydney Water or the relevant water authority, shows the location of the sewerage connection.
• PEXA fees: the electronic settlement platform charges fees for each settlement workspace. These are charged to both sides of the transaction.
• Title registration fee: paid to NSW Land Registry Services to register the transfer of title. The fee scales with the purchase price.
• Strata owners corporation certificate: for strata properties, confirms levies, any special levies, and the financial position of the strata scheme.
• Other council and utility searches: some conveyancers order additional searches (heritage, contamination, roads). Ask what searches are included in your quote.

NSW Land Registry Services publishes its current fee schedule at nswlrs.com.au/services/fees-payments/fees.

Transfer duty (stamp duty): the biggest cost for buyers

Transfer duty is paid by the buyer to Revenue NSW and is calculated on the higher of the contract price or the property's market value. It is assessed under the Duties Act 1997 (NSW) and applies to most property purchases.

Transfer duty is a graduated rate: the higher the property price, the higher the effective rate. For most residential properties in Sydney, it represents a significant cost that should be budgeted for well before exchange of contracts. Revenue NSW provides an online transfer duty calculator where you can estimate the exact amount for any purchase price.

Transfer duty is typically due within three months of the date of the contract. Your conveyancer will advise you on the exact amount and timing.

First home buyer exemptions and concessions

If you are buying your first home, you may be eligible to pay no transfer duty, or a reduced amount, under the First Home Buyers Assistance Scheme (FHBAS). As at 1 July 2023, the thresholds are:

• Full exemption: properties valued at $800,000 or less (new and existing homes)
• Concessional (reduced) duty: properties valued above $800,000 and below $1,000,000
• No exemption: properties valued at $1,000,000 or more

For vacant land, separate thresholds apply: full exemption up to $350,000, concession from $350,001 to $449,999.

Eligibility conditions include: neither you nor your spouse or de facto partner has previously owned residential property in Australia, you must be an Australian citizen or permanent resident, and you must occupy the property as your principal place of residence within 12 months of settlement and for at least 12 continuous months.

See our detailed guide: First home buyer NSW: stamp duty exemptions, grants and schemes

What affects the total conveyancing cost?

The variation in quotes between different professionals reflects several real factors:

• Property type: a strata apartment involves more searches (strata records, owners corporation certificate, by-laws) than a freehold house. Strata generally costs more.
• Transaction complexity: off-the-plan purchases, properties with special conditions, easements, caveats, or heritage overlays require more work.
• Purchase price: some professionals charge a percentage of the property value rather than a flat fee, which means higher-priced properties cost more.
• Buyer or seller: sellers typically pay slightly more because they are responsible for preparing the contract of sale (which requires ordering the prescribed documents before the property can be marketed).
• Licensed conveyancer vs solicitor: solicitors generally charge more for the same transaction than licensed conveyancers. See our comparison: Conveyancer vs solicitor.
• Location of the professional: city-centre firms in the Sydney CBD may charge more than regional or suburban practices.

How to compare quotes honestly

When getting quotes, ask each professional for a written breakdown that separates:

1. Their professional fee (what they charge for their time)
2. An itemised estimate of disbursements (with each search or fee listed separately)
3. Whether the quote is fixed or subject to variation for additional work
4. What is NOT included (some quotes exclude certain searches or legal correspondence)

A quote that looks cheaper at first glance may have lower disbursement estimates. Ask the same questions of each provider and compare like for like. The cheapest professional fee is not always the cheapest total.

Frequently asked questions