Buying a property is a major milestone, and the legal process can feel overwhelming. This guide breaks down the key steps involved in buying a property in New South Wales.
Steps in Buying Property (NSW)
1. Get Your Finances in Order
Before you start house hunting, it’s important to:
Obtain pre-approval from your lender
Understand your budget, including extra costs like stamp duty and legal fees
What is Pre-Approval?
Pre-approval is an indication from a lender of how much they may be willing to lend you. It is not a final approval.
2. Engage a Conveyancer or Solicitor
It’s essential to have a conveyancer or property lawyer review documents before you commit to a purchase.
3. Review the Contract of Sale
The seller provides a Contract of Sale, which includes:
Title details
Zoning information
Inclusions (e.g. fixtures and fittings)
What is a Contract of Sale?
A legally binding document that sets out the terms and conditions of the property purchase.
4. Conduct Due Diligence
Before signing, you should arrange:
Building and pest inspections
Strata inspection reports (if applicable)
5. Exchange of Contracts
Once both parties sign the contract and it is exchanged:
The buyer usually pays a deposit (commonly 5 or 10%)
The agreement becomes legally binding
Cooling-Off Period (NSW)
In most private sales, buyers have a 5-business-day cooling-off period after exchange (unless waived with a Section 66W).
6. Settlement Period
This is typically 42 days (but can vary). During this time:
Your lender finalises your loan
Legal checks and searches are completed
7. Settlement Day
On settlement:
The balance of the purchase price is paid
Ownership of the property is transferred to you
This article provides general information and does not constitute legal or financial advice. Government schemes, eligibility requirements and legal obligations may change. Advice should be obtained based on your individual circumstances.