Buying property in New South Wales is one of the most significant financial decisions you’ll ever make. Whether you’re a first home buyer, investor, or upgrading your family home, it’s crucial to understand the legal process involved in buying real estate.
This comprehensive guide walks you through the key legal steps of buying property in NSW, your rights and obligations, and how a qualified conveyancing solicitor can protect your interests from contract to settlement.
Step 1: Pre-Purchase Due Diligence
Before making an offer, you should:
- Obtain loan pre-approval from your bank or mortgage broker
- Review the Contract for Sale of Land with a solicitor
- Conduct building and pest inspections (for houses)
- Review a strata report (for apartments)
💡 Tip: Always seek legal advice before signing anything. Verbal agreements aren’t legally binding in property transactions.
Step 2: Reviewing the Contract
The Contract for Sale contains critical terms, including:
- The settlement date (typically 42 days from exchange)
- Inclusions (fixtures, fittings, furniture, etc.)
- Special conditions
- Certificate of title and zoning information
At MCB Lawyers, we thoroughly review and negotiate contract terms to ensure your interests are protected and no hidden clauses impact your future use of the property.
Step 3: Exchange of Contracts
Once your solicitor is satisfied with the contract and inspections are complete:
- Both buyer and seller sign the contract
- A 10% deposit is usually paid to the agent, however it is common to negotiate this amount to 5%
- Contracts are formally exchanged, making the agreement legally binding
- The cooling-off period (5 business days) begins, unless waived
Note: The cooling-off period doesn’t apply to properties purchased at auction.
Step 4: Pre-Settlement Process
Between exchange and settlement:
- Your solicitor will conduct searches and checks (title search, land tax, planning, etc.)
- The balance of the purchase price is finalised
- Stamp duty is calculated and paid
- Your bank prepares for loan funding
- Final inspection is arranged to ensure the property is in the agreed condition
Step 5: Settlement Day
On settlement day, ownership is transferred to you, and the transaction is finalised via the PEXA (electronic conveyancing) platform:
- Funds are transferred
- The title is registered in your name
- You receive the keys to your new home
- The agent is notified and the deposit is released to the seller
Congratulations — you now legally own the property!
Why You Need a Property Lawyer
A qualified property lawyer or conveyancer ensures:
- Contract terms are in your favour
- All legal obligations are met
- Risks are minimised throughout the process
- You’re not caught out by hidden fees or clauses
At MCB Lawyers, we’ve helped hundreds of clients successfully navigate the property market across Manly, Wollongong, and Parramatta. Whether you’re buying your first home or investing, our experienced team will guide you every step of the way.
📞 Contact MCB Lawyers Today or call (02) 9977 1133 to speak with a property lawyer.
Frequently Asked Questions
Do I need a lawyer to buy property in NSW?
Yes. A solicitor or a licensed conveyancer ensures your legal rights are protected and manages the contract, due diligence, and settlement process.
How much are conveyancing fees?
Fees vary depending on the complexity of the transaction. Contact our team for a fixed-fee quote tailored to your situation.
What if I buy at auction?
There’s no cooling-off period for auction purchases, so it’s essential to have your contract reviewed and finance in place beforehand.