Selling property in NSW: a plain-English guide
Selling a property in NSW involves more legal obligation than most sellers expect. The seller must prepare a legally compliant contract of sale before the property can be marketed, attach mandatory disclosure documents, and coordinate settlement through the PEXA electronic platform. This guide explains the process, your disclosure obligations, seller costs, and what happens at each stage.
This guide provides general information only. It is not legal advice. For advice specific to your sale, engage a licensed NSW conveyancer or solicitor.
The seller's conveyancing process: overview
For a seller in NSW, conveyancing begins before the property is listed, not after an offer is accepted. The contract of sale must be prepared and ready before any buyer can sign. This is a key difference from buying: the seller's work starts earlier.
- Instruct a conveyancer or solicitor to prepare the contract of sale and attach mandatory disclosure documents.
- List the property. The signed contract must be available for inspection before exchange.
- Accept an offer and exchange contracts. At exchange, the buyer pays the deposit (typically 10%) and both parties are legally committed.
- Settlement period. Usually 42 days. Your conveyancer prepares the transfer documents and coordinates with the buyer's conveyancer and (if applicable) your lender to discharge any mortgage.
- Settlement day. Funds transfer electronically via PEXA. Title transfers. Keys are released.
Preparing the contract of sale
Under the Conveyancing (Sale of Land) Regulation 2022, a contract of sale for residential property in NSW must include several prescribed documents attached before the buyer signs. A contract without these attachments is incomplete and gives the buyer rights that can complicate the sale.
Your conveyancer or solicitor will obtain these searches, prepare the contract, and advise on any matters disclosed by the searches that may affect the sale price or a buyer's willingness to proceed.
Mandatory seller disclosures in NSW
NSW does not use a separate vendor disclosure form. Instead, disclosure is embedded in the contract of sale through mandatory attachments. Standard prescribed documents include:
- Title search from NSW Land Registry Services (LRS) confirming you hold title and showing any encumbrances, easements, or covenants.
- Section 10.7 zoning certificate from the local council under the Environmental Planning and Assessment Act 1979. The (2) certificate gives basic zoning; the (5) certificate gives additional information and is usually preferred by buyers.
- Drainage diagram from the relevant water authority (Sydney Water or Hunter Water).
- Swimming pool compliance certificate (if a pool exists on the property), under the Swimming Pools Act 1992.
- Smoke alarm and loose-fill insulation disclosures where applicable.
For strata properties, additional strata records (strata plan, by-laws, levies, and recent AGM minutes) must be attached. For off-the-plan sales, additional obligations apply under the Conveyancing (Sale of Land) Amendment Act 2019.
This disclosure-by-attachment approach is a NSW-specific structure. If you are selling in Victoria instead, the seller's obligations work quite differently: see selling property in Victoria: costs and the Section 32 you must provide.
Exchange of contracts
Exchange is the point at which both parties sign identical copies of the contract and swap them. After exchange, both buyer and seller are legally bound. The buyer pays the deposit (usually 10% of the purchase price) into a trust account held by the agent or the buyer's solicitor.
Cooling-off period: For private treaty sales, the buyer has a 5 business day cooling-off period after exchange during which they can withdraw and receive their deposit back, minus a 0.25% penalty. The seller has no equivalent right to withdraw after exchange. Auction sales have no cooling-off period.
Between exchange and settlement
During the settlement period, your conveyancer will:
- Obtain a mortgage discharge authority from your lender (if a mortgage is registered) and book the settlement with the lender
- Prepare the transfer form (the document that formally transfers title to the buyer)
- Liaise with the buyer's conveyancer to agree settlement arrangements
- Prepare the settlement statement showing how sale proceeds are distributed (purchase price minus deposit already received, minus mortgage payout, minus agent commission, minus conveyancing costs)
- Book settlement through PEXA (the electronic settlement platform used in NSW)
The buyer is entitled to a pre-settlement inspection (usually 24 to 48 hours before settlement) to confirm the property is in the same condition as at exchange and that any agreed chattels remain. Your conveyancer will advise you of the pre-settlement inspection window in the contract.
Settlement day
NSW residential property settlements are conducted electronically through PEXA. There is no physical attendance required by the parties; your conveyancer and the buyer's conveyancer manage the process.
On settlement day:
- Your conveyancer and the buyer's conveyancer complete the electronic workspace in PEXA.
- Funds (net of mortgage discharge, agent commission, and conveyancing costs) transfer to your nominated account.
- The Transfer of Title document is lodged with NSW LRS, registering the change of ownership.
- Your real estate agent releases the keys to the buyer once settlement is confirmed.
You should have vacated the property and removed all your belongings before the agreed settlement time. The buyer is entitled to possession as soon as settlement completes.
Seller conveyancing costs in NSW
Unlike buyers, sellers do not pay transfer duty (stamp duty). Seller costs in NSW typically include:
| Cost item | Typical range | Notes |
|---|---|---|
| Conveyancer or solicitor fee | $800 to $2,200 | Varies by conveyancer and complexity; includes contract preparation and settlement |
| Title search (LRS) | $30 to $60 | Current search required for the contract |
| Section 10.7 certificate | $50 to $200 | Council fee; (5) certificate costs more than (2) |
| Drainage diagram | $20 to $60 | From Sydney Water or Hunter Water |
| Mortgage discharge fee | $150 to $500 | Charged by your lender if a mortgage is registered; not all sellers have this |
| Swimming pool certificate (if applicable) | $150 to $350 | Required if pool exists; must be current compliance or occupation certificate |
Total seller conveyancing costs (excluding agent commission and capital gains tax) typically range from $1,000 to $2,500 for a straightforward residential sale. Properties with a mortgage to discharge, a pool, strata obligations, or other complexities sit at the higher end.
Agent commission is separate and is not a conveyancing cost. NSW agent commissions are negotiated but typically range from 1.5% to 2.5% of the sale price.
Auction vs private treaty: what changes
| Private treaty | Auction | |
|---|---|---|
| Contract preparation timing | Before listing | Before auction date |
| Cooling-off period for buyer | 5 business days after exchange | None (buyer commits on the fall of the hammer) |
| Deposit | Typically 10%, negotiable | Typically 10%, paid immediately after auction |
| Finance / building inspection conditions | Common (buyer's risk if not included) | Unusual (buyers expected to have done due diligence pre-auction) |
| Settlement period | By agreement; typically 42 days | Set in the vendor's contract; typically 42 days |
Auctions are common in Sydney's competitive market and can achieve above-reserve prices when there is strong buyer competition. They offer sellers certainty -- there is no risk of a buyer using a cooling-off period to renegotiate -- but they require the contract to be finalized before the campaign begins.
Common questions from NSW sellers
Do I need a conveyancer to sell my property in NSW?
You are not legally required to engage a conveyancer to sell property in NSW, but it is strongly advisable. Under the Conveyancing (Sale of Land) Regulation 2022, the seller must prepare and attach prescribed documents to the contract of sale before it can be signed by a buyer. These include a current title search, a zoning certificate (Section 10.7), a drainage diagram, and other mandatory disclosure items. Getting these wrong or incomplete can allow a buyer to rescind the contract. Most sellers engage a conveyancer or solicitor to prepare the contract, coordinate searches, manage the exchange, and handle settlement through PEXA.
How long does selling a house in NSW take?
From when you instruct a conveyancer to prepare the contract to settlement is typically 8 to 14 weeks. Preparing the contract and marketing the property usually takes 2 to 4 weeks. Once a buyer signs and exchange occurs, the settlement period is typically 42 days (6 weeks) by convention, though parties can agree to a shorter or longer period. Auctions can compress timelines as there is no cooling-off period and settlement terms are agreed in advance.
What are a seller's conveyancing costs in NSW?
Seller conveyancing costs in NSW typically include: the conveyancer or solicitor's professional fee ($800 to $2,200), title search and other property searches, discharge of mortgage fee (if a mortgage exists on the property), and land registry registration fees. Unlike buyers, sellers do not pay transfer duty. The total out-of-pocket cost for a seller is usually $1,000 to $2,500, depending on the complexity of the transaction and whether a mortgage is being discharged.
What is a vendor disclosure statement in NSW?
In NSW, disclosure obligations are built into the contract of sale rather than a separate disclosure statement. The seller (vendor) must attach prescribed disclosure documents to the contract: a current title search from NSW Land Registry Services, a zoning certificate under Section 10.7 of the Environmental Planning and Assessment Act 1979, a drainage diagram, and any relevant certificates (e.g. swimming pool compliance). Additional disclosure is required for off-the-plan sales and strata properties. Failure to include prescribed documents can give the buyer a right to rescind within a certain period.
Does the seller pay CGT (capital gains tax) in NSW?
Capital gains tax is a federal tax administered by the ATO, not a state tax. It applies to investment properties and does not apply to your principal place of residence (with some limits). If CGT applies, it is calculated on your capital gain (sale price minus cost base including purchase costs, improvement costs, and selling costs). A 50% CGT discount applies if you held the property for more than 12 months. For complex situations -- particularly where the main residence exemption may be partial or disputed -- consult a tax adviser rather than relying on general guidance.
What happens on settlement day for a seller?
On settlement day, your conveyancer completes the electronic settlement through PEXA. The buyer's funds are transferred to your nominated account (net of any mortgage discharge and conveyancing costs held in trust). Simultaneously, the transfer of title is lodged with NSW Land Registry Services, transferring ownership to the buyer. Your real estate agent will release the keys to the buyer once your conveyancer confirms settlement has completed. You should vacate the property by the agreed time on settlement day.
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Conveyancing Explained provides general information about property transactions in Australia. It is not legal advice and does not create a client relationship. For advice on your situation, engage a licensed conveyancer, settlement agent, or property solicitor in your state or territory.