What is conveyancing in NSW?
Conveyancing is the legal process of transferring ownership of real property from one person to another. In New South Wales every residential property sale must go through this process, and the law requires specific documents to be prepared, checked, and exchanged before a sale is valid.
What conveyancing involves
In NSW, conveyancing covers everything that happens between agreeing to buy or sell a property and the legal transfer of ownership being registered. That includes:
- Preparing and reviewing the contract of sale
- Conducting property searches (title, planning, drainage, environmental, and more)
- Negotiating any special conditions or amendments to the contract
- Exchanging contracts (the point at which both parties become legally committed)
- Managing the settlement process and transfer of funds
- Registering the transfer of title with NSW Land Registry Services
The governing legislation for property transfers in NSW is the Conveyancing Act 1919 (NSW). The rules for contracts of sale are set out in the Conveyancing (Sale of Land) Regulation 2022.
Who can do conveyancing in NSW
Two types of professional can handle conveyancing in NSW:
Licensed conveyancers
A licensed conveyancer holds a licence issued by NSW Fair Trading under the Conveyancers Licensing Act 2003 (NSW). Their work is limited to conveyancing and property-related transactions. They are specialists in this area and typically charge less than a solicitor for a standard residential transaction.
Solicitors (lawyers)
A solicitor admitted to the NSW Supreme Court can also handle conveyancing. Their advantage is that they can advise on broader legal issues connected to the transaction (such as family law or estate matters), whereas a licensed conveyancer cannot give general legal advice outside property transactions.
For most straightforward residential purchases and sales, a licensed conveyancer provides the same practical outcome at lower cost. If your transaction is complicated or involves legal disputes, a solicitor may be more appropriate.
See our detailed comparison: Conveyancer vs solicitor: which do you need?
The key stages
A standard NSW residential property transaction moves through these stages:
- Pre-contract (vendor's solicitor/conveyancer prepares the contract) The vendor is required by the Conveyancing (Sale of Land) Regulation 2022 to attach prescribed documents to the contract before it can be offered for sale. These include the title search, zoning certificate (s10.7), and drainage diagram.
- Pre-exchange due diligence (buyer) The buyer's conveyancer reviews the contract, conducts additional searches, and negotiates any special conditions. This is the stage to raise any issues before you are legally committed.
- Exchange of contracts Both parties sign identical copies of the contract and they are formally "exchanged". At this point both parties become legally bound to complete. The buyer typically pays a deposit (commonly 10% of the purchase price, though this is negotiable).
- Cooling-off period For most private treaty sales in NSW, the buyer has a 5 business day cooling-off period after exchange to pull out of the contract. If the buyer withdraws during this period they forfeit 0.25% of the purchase price. There is no cooling-off period for properties purchased at auction or where the buyer waives their rights (a "66W certificate").
- Pre-settlement The buyer's conveyancer prepares the transfer documents, arranges any mortgage, and conducts a final title search. Both sides confirm settlement figures (adjustments for rates, water, strata levies, and so on).
- Settlement Funds are transferred electronically (most settlements now take place on the PEXA electronic settlement platform). Ownership passes, and the transfer is registered with NSW Land Registry Services.
How long does conveyancing take in NSW?
The time between exchange and settlement is set by agreement in the contract. The most common settlement period in NSW is 42 days (6 weeks) after exchange, but it can range from 14 days to several months depending on what both parties need.
Total time from offer accepted to settlement (including pre-exchange due diligence) is typically 4 to 8 weeks for a straightforward private treaty sale, though delays from finance approvals, search results, or negotiated conditions can extend this.
See our detailed guide: How long does conveyancing take in NSW?
What does conveyancing cost in NSW?
Conveyancing fees in NSW have two components:
- Professional fees: the conveyancer's or solicitor's charge for their services. Licensed conveyancers typically charge less than solicitors for a standard residential transaction. Fees vary depending on the complexity of the transaction and which professional you engage.
- Disbursements: the out-of-pocket costs your conveyancer pays on your behalf: searches (title, planning, drainage), title registration fees, PEXA fees, and similar. These are in addition to the professional fee.
The single largest cost in most NSW property purchases is not the conveyancing fee but transfer duty (commonly called stamp duty), which is paid to Revenue NSW and scales with the purchase price. First home buyers buying a property for $800,000 or less may be eligible for a full transfer duty exemption under the First Home Buyers Assistance Scheme (thresholds current as at 1 July 2023).
See our detailed breakdown: How much does conveyancing cost in NSW?
Can you do your own conveyancing in NSW?
Technically, NSW does not require you to use a licensed professional for your own property purchase or sale. However, in practice almost all buyers and sellers use a conveyancer or solicitor because:
- Mistakes in the process can result in losing your deposit, being liable for breach of contract, or delays in title registration.
- Most lenders require a solicitor or conveyancer to act on their behalf even if you do not engage one for yourself.
- Electronic settlement through PEXA requires a licensed practitioner to be your "subscriber".
- The Conveyancing (Sale of Land) Regulation 2022 imposes prescribed content requirements on contracts that vendors must prepare correctly before the property can be offered for sale.
For most people, the cost of a licensed conveyancer is modest relative to the risks of a DIY approach on a property transaction.
Next steps
If you are buying or selling property in NSW and want to understand your options:
- Conveyancer vs solicitor: which do you need?
- Do I need a conveyancer?
- How much does conveyancing cost in NSW?
- The NSW conveyancing process: step by step
- Cooling-off period in NSW: how it works
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Conveyancing Explained provides general information about property transactions in New South Wales. It is not legal advice and does not create a client relationship. For advice on your situation, engage a licensed NSW conveyancer or a solicitor.