The NSW conveyancing process: step by step

Whether you are buying or selling, understanding each step of the NSW conveyancing process helps you know what to expect, what questions to ask, and what happens if something goes wrong. Here is the process in plain English, from offer accepted to keys in hand.

Overview: the key stages

A standard NSW residential property transaction moves through six main stages: pre-contract preparation, pre-exchange due diligence, exchange, cooling-off, pre-settlement, and settlement. Each stage has specific obligations for both buyer and seller, and each involves your conveyancer or solicitor.

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.

Step 1: Offer and acceptance

For buyers

When your offer is accepted by the vendor, you have reached in-principle agreement but you are not yet legally committed to anything. In NSW, there is no binding contract until contracts are exchanged. Before exchange, either party can walk away without legal consequence (though this can have reputational costs in practice).

At this point, you should:

• Engage your conveyancer or solicitor immediately (if you have not already)
• Request a copy of the contract of sale from the selling agent
• Finalise your mortgage pre-approval if you need finance
• Arrange any building and pest inspection you want to have conducted before exchange

For sellers

As a seller, you should have engaged your conveyancer or solicitor before the property went to market. Under the Conveyancing (Sale of Land) Regulation 2022, the contract of sale with all prescribed documents must be available before you can advertise the property for sale or take a deposit. The agent cannot conduct an auction or take a deposit without a compliant contract.

Step 2: Pre-exchange (due diligence)

For buyers

Your conveyancer reviews the contract of sale and advises you on:

• Any unusual or onerous special conditions in the contract
• The title: registered proprietor, easements, covenants, caveats, or other encumbrances
• The results of searches: planning certificate (section 10.7), drainage diagram, and any other searches they conduct
• Strata records (if applicable): levies, by-laws, pending special levies, defect claims
• Any disclosure obligations the vendor has not met

This is also the time to negotiate any amendments to the contract (such as changes to the settlement period, deposit amount, or special conditions like a subject-to-finance clause). Once contracts are exchanged, the terms are fixed.

Your conveyancer will also advise on transfer duty and whether any exemption or concession applies. See our guide: Stamp duty in NSW explained.

For sellers

Your conveyancer manages any negotiations with the buyer's conveyancer over contract amendments. Once both parties agree on terms, you proceed to exchange.

Step 3: Exchange of contracts

Exchange is the critical moment in the NSW conveyancing process. Both parties sign identical copies of the contract and these are exchanged (typically by the respective conveyancers or agents). From this point, both parties are legally committed to complete the transaction on the agreed terms.

At exchange:

• The buyer pays the deposit, typically 10% of the purchase price (though this is negotiable; a 5% deposit is sometimes agreed, particularly for first home buyers)
• The settlement date is fixed (the agreed period, most commonly 42 days after exchange)
• The cooling-off period begins (for private treaty sales; there is no cooling-off period at auction)

Step 4: Cooling-off period

For most private treaty sales in NSW, the buyer has a 5 business day cooling-off period after exchange to withdraw from the contract. If the buyer withdraws during this period, they forfeit 0.25% of the purchase price to the vendor but recover the rest of their deposit.

The cooling-off period does not apply to:

• Properties purchased at auction
• Contracts where the buyer has provided a "66W certificate" (a certificate from their solicitor or conveyancer waiving the cooling-off period)
• Certain other specific circumstances under the Conveyancing Act 1919 (NSW)

See our detailed guide: Cooling-off period in NSW: how it works

Step 5: Pre-settlement

In the weeks between exchange and settlement, your conveyancer works through a series of preparatory steps:

For buyers

• Transfer duty: your conveyancer submits the duty assessment to Revenue NSW and advises you of the amount to pay and the due date.
• Settlement adjustments: your conveyancer calculates the adjustments to the purchase price for items like council rates, water rates, and strata levies. These are apportioned as at the settlement date: if the vendor has paid council rates for the full quarter and settlement is mid-quarter, the buyer reimburses the vendor for their share.
• Final searches: a final title search is conducted just before settlement to confirm the title is clear and no new encumbrances have been registered.
• Settlement figures: your conveyancer calculates the final amount payable at settlement (purchase price, less deposit already paid, plus or minus adjustments) and coordinates with your lender to ensure funds are available.
• Pre-settlement inspection: you are entitled to a pre-settlement inspection of the property. This is typically done in the day or two before settlement to confirm the property is in the same condition as at exchange and any agreed inclusions are present.

For sellers

• Discharge of mortgage: if you have an existing mortgage, your conveyancer coordinates with your lender to arrange the discharge at settlement. The lender must release the mortgage and update the title.
• Settlement adjustments: your conveyancer prepares the settlement adjustment figures and reviews the buyer's calculations.
• Title transfer documents: your conveyancer prepares the transfer of land document that will register the new owner's name at NSW Land Registry Services.

Step 6: Settlement

Settlement is the day ownership legally passes from vendor to buyer. In NSW, most settlements now take place electronically on the PEXA electronic settlement platform. On settlement day:

1. Both conveyancers are logged into the PEXA workspace with the agreed settlement figures, transfer documents, and incoming and outgoing mortgage documents.
2. The buyer's bank releases the loan funds electronically into the PEXA workspace.
3. At the agreed settlement time, PEXA simultaneously: transfers the purchase price funds to the vendor (after discharging any existing mortgage), pays any other amounts (such as transfer duty, agent commission if applicable, adjustments), and lodges the transfer of land document with NSW Land Registry Services.
4. Once PEXA confirms settlement has completed, the agent releases the keys to the buyer.

Settlement typically takes between 15 minutes and an hour if everything is in order. Delays can occur if any party is not ready (funds not in place, documents not signed, last-minute queries from a lender).

Step 7: Post-settlement

After settlement:

• NSW Land Registry Services processes the transfer and issues an updated record of the title showing the new owner. This usually takes a few business days to reflect on the register.
• Revenue NSW confirms the transfer duty has been paid and notes the duty endorsement on the transfer document.
• The buyer's lender registers the new mortgage on the title (if applicable).
• The real estate agent releases the deposit funds to the vendor (less commission) after settlement, subject to the terms of their agreement.

The process from the seller's side

Sellers follow a slightly different sequence because they are responsible for preparing the property for sale:

1. Engage a conveyancer or solicitor
2. Conveyancer prepares the contract of sale with prescribed documents (title, s10.7 certificate, drainage diagram, and any strata or other required attachments)
3. Property is listed for sale; contract available to prospective buyers
4. Offer accepted; negotiate and agree on any contract amendments
5. Exchange contracts; buyer pays deposit
6. Cooling-off period (buyer's right, not seller's)
7. Pre-settlement: coordinate mortgage discharge, review adjustment figures
8. Settlement: receive purchase price funds (net of mortgage discharge and adjustments)
9. Post-settlement: agent pays balance of deposit and commission; notify council, water authority, and strata (if applicable) of ownership change

Typical timeline

For a standard private treaty residential sale in NSW:

• Offer to exchange: 1 to 4 weeks (depends on finance approval, inspection results, and negotiation of contract conditions)
• Exchange to settlement: most commonly 42 days (6 weeks), though 28 days or longer periods are also common depending on what buyer and seller need
• Total offer to settlement: typically 6 to 12 weeks for a straightforward transaction

Off-the-plan purchases can have settlement periods of 12 to 36 months or longer, depending on the development.

What can delay or derail a transaction

Most property transactions proceed without significant issues, but common causes of delay include:

• Finance not approved in time: if a buyer has not obtained formal mortgage approval before exchange (or has a subject-to-finance condition), delays in the lender's assessment can push back settlement.
• Title issues: a caveat, undisclosed easement, or lender's requirement for additional searches can delay settlement while it is resolved.
• Strata issues: a special levy, outstanding work orders, or defects in the strata records can require negotiation between the parties.
• Lender delays: banks do not always move at the pace of the conveyancing timeline. A lender's delay in providing settlement funds is one of the most common causes of last-minute postponements.
• Pre-settlement inspection issues: if the property is not in the agreed condition at the pre-settlement inspection, the buyer may have grounds to delay settlement or claim compensation.
• Chain transactions: if the seller is simultaneously purchasing another property, both transactions need to settle on the same day. Any issue in either transaction can affect both.

Your conveyancer manages these issues as they arise. Most delays are resolved without the transaction falling over, but early communication with your conveyancer is essential if anything changes in your circumstances.

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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.