Conveyancing Sydney

QUESTION: HOW LONG DOES THE PROCESS TAKE GENERALLY

The typical conveyancing transaction in NSW takes 6–8 weeks from exchange of contracts to settlement, though this can vary significantly. Off-the-plan purchases often have longer settlement periods of 24 months or more. The main stages to a standard conveyance are:

Pre-contract (1–2 weeks). The purchaser receives the contract, we review it, conduct searches, and provide advice – usually within 24 hours. Under s66W Conveyancing Act 1919 (NSW), purchasers have a 5-business day cooling-off period after exchange (unless you agree to waive it with a s66W certificate).

Between exchange and settlement (4–6 weeks typically). The purchaser arranges finance and prepares for settlement. The vendor must give vacant possession on settlement unless the contract states otherwise.

Settlement. Now conducted electronically through PEXA in NSW. We lodge the transfer for registration, and upon registration the purchaser becomes the registered proprietor. The time frame depends on whether it's a cash purchase (potentially quicker) or requires finance approval.

QUESTION: INITIAL INSPECTION AND FINAL INSPECTION – THE DIFFERENCE

Initial inspection is what purchasers do before making an offer or exchanging contracts. This is when they walk through the property, check the condition, and decide if they want to proceed. Most purchasers also arrange building and pest inspections at this stage. The purchaser accepts the property in its current state, unless otherwise agreed by way of an additional special condition which allows for the vendor to attend to repairs prior to completion.

Final inspection (also called pre-settlement inspection). This happens just before settlement, legally within 1–3 days leading up to settlement. The purpose of the final inspection is different – it's not about deciding whether to buy, but confirming the property is in substantially the same condition as at exchange. Under the standard contract, the vendor must maintain the property and hand it over in substantially the same condition as at the date of contract, fair wear and tear excepted. The final inspection checks:

• Fixtures and fittings listed in the contract are still present and working
• No damage has occurred since exchange
• Any chattels included (like curtains or appliances listed as inclusions) are still there
• The property is vacant if vacant possession is required
• Any repairs the vendor agreed to complete have been done

If something is wrong at final inspection, you cannot just walk away – you committed by contract. The remedy depends on the issue. Minor problems might be resolved by the vendor fixing them before settlement or providing compensation. Significant damage might allow the purchaser to rescind under the contract terms or claim damages.

The key difference: initial inspection is about deciding to buy, final inspection is about ensuring you're getting what you contracted for.

QUESTION: COMMON MISTAKES – DUE DILIGENCE

Purchasers often rush into contracts without proper due diligence. Here are the most common problems we see:

Not reading the contract properly. Many purchasers don't understand what they're signing. The contract isn't just about price and settlement date. Special conditions can significantly affect their rights. For example, a vendor might include a condition that they're selling "as is" with no obligation to fix defects, or that certain items shown in photos aren't included.

Skipping building and pest inspections. Some purchasers waive these to make their offer more attractive in a competitive market. They then discover structural issues, termite damage, or building work done without approval after exchange when it's too late to back out without penalty.

Ignoring easements and covenants. The title search shows registered easements and covenants, but purchasers don't always understand what they mean. An easement for drainage might run under where they planned to build a pool.

For strata properties. Not reviewing the strata report: Purchasers need to check:

• The capital works fund balance – is it adequate for planned major works?
• Any special levies proposed or approved
• Building defects or disputes
• By-laws that might restrict renovations, pets, or short-term letting

Not checking for tenancies. If the property is tenanted - the lease transfers to the purchaser under. Purchasers can't just evict tenants to move in themselves. The lease terms continue unless there are valid grounds for termination.

Assuming they can get finance. Making an unconditional offer without finance approval is risky. If finance falls through, the purchaser loses their deposit and may be sued for damages. Even "subject to finance" clauses (which are unusual in NSW contracts) need to be properly worded - the purchaser must make genuine attempts to obtain finance.

Not budgeting for additional costs. Purchase price plus transfer duty (stamp duty), legal fees, disbursements for searches, building inspection costs, and potentially mortgage registration fees.

Verbal promises from the vendor or agent. Purchasers sometimes rely on what the agent said about inclusions, the condition of appliances, or planned repairs. You must know the written contract represents the entire agreement - if it's not in the contract, it's not enforceable.

Not understanding settlement adjustments. Council rates, water rates, and strata levies are adjusted as at settlement date. Purchasers sometimes don't realise they're reimbursing the vendor for rates already paid for the period after settlement.

The best protection is getting proper legal advice before exchange and not rushing due diligence because of market pressure.

QUESTION: WHAT HAPPENS WHEN THE OTHER PARTY DELAYS SETTLEMENT

If the vendor delays. The standard contract in NSW (the 2022 edition published by the Law Society and Real Estate Institute) includes a contractual obligation to settle on the specified date. If the vendor isn’t ready to settle on time, the purchaser has several options depending on the circumstances. The purchaser can serve a notice to complete under the contract. This typically gives 14 days to settle and makes time of the essence. If the vendor still doesn’t settle, the purchaser can terminate the contract and recover their deposit. They may also claim damages for any loss suffered, such as additional rental costs or interest on bridging finance. Alternatively, the purchaser might agree to a short delay if the vendor has a genuine reason (like delays in their own purchase). Any extension should be documented in writing. If completion is delayed and it’s not the purchaser’s fault, the purchaser is entitled to compensation at the rate prescribed by the contract (usually the interest rate on the deposit) for each day of delay.

If the purchaser delays. The vendor’s position is similar but with different concerns. The vendor can serve a notice to complete. If the purchaser fails to settle within the notice period, the vendor can terminate, forfeit the deposit, and sue for damages if the property has to be resold at a lower price. The vendor continues to be responsible for the property until settlement (paying rates, maintaining insurance, and maintaining the property in the same condition). Risk generally passes to the purchaser on the date specified for possession, but if settlement is delayed through the purchaser’s default, they may bear the risk earlier.

Practical considerations. Most delays are resolved by negotiation. If the purchaser’s finance is delayed by a few days, the vendor might agree to extend settlement rather than terminating and starting again with a new purchaser. If the vendor’s own purchase has fallen through, the parties might negotiate a longer extension. However, if one party is deliberately stalling or unable to perform, the other party needs to act decisively. Serving a notice to complete protects their position and allows them to move on if settlement still doesn’t occur. The key is documenting everything. If you agree to extend settlement, get it in writing signed by both parties. If the other side is in default, make sure you comply strictly with notice requirements so your client can terminate if needed.

QUESTION: TENANTS

When a property is sold with an existing tenant. The lease doesn't end—it transfers to the new owner. If you are buying a tenanted property, you step into the vendor's shoes as landlord. The purchaser takes on all the vendor's obligations under the existing lease. This means:

• The purchaser can't just give notice and evict the tenant to move in themselves (unless the lease is already ending or there are valid grounds for termination).
• The purchaser must honour the existing lease terms including the rent amount and lease duration.
• The purchaser is entitled to the bond, but this must be formally transferred through Fair Trading NSW.
• The purchaser receives the benefit of any rent paid in advance.

The vendor should provide a copy of the lease and a statement showing bond details, rent paid, and the condition report from the start of the tenancy. As at settlement, rent is adjusted—the vendor keeps rent up to settlement date, the purchaser is entitled to rent from settlement onwards.

If the property is sold with vacant possession. Most residential sales are with vacant possession, meaning no tenants. The contract will specify this on the front page. The vendor must ensure any tenants have moved out by settlement and the property is empty and clean (broom clean condition). If there are still tenants in the property at settlement, the vendor is in breach of contract. To remove tenants before settlement, the vendor must follow proper procedures under the Residential Tenancies Act 2010 (NSW). They can't just tell tenants to leave because the property is sold. They need valid grounds—for example, if it's a fixed-term lease ending, they give notice that it won't be renewed. If it's a periodic lease, they must give the correct notice period.

If purchasers plan to rent the property out. Some purchasers buy as an investment. They can either keep existing tenants (if any) or wait until settlement and then find new tenants themselves. If they're keeping the existing tenants, they should review the lease carefully before exchange to understand what they're committing to. For new tenancies created after they become owner, they must comply with all the requirements in the Residential Tenancies Act 2010 (NSW)—providing a written lease, lodging the bond, maintaining the property in reasonable repair, and giving proper notice for any rent increases or if they want to end the tenancy later.

QUESTION: NEW FIRST HOME INCENTIVES

First Home Buyer Assistance Scheme (transfer duty exemption or concession)
There are several schemes available for first home buyers in NSW, and they've been expanded recently. Benefits often change, so it is worth visiting https://www.nsw.gov.au/housing-and- construction/buying-and-selling-property/home-buying-assistance/eligibility-assessment to see if you are eligible for a stamp duty exemption, concession or grant.
As at writing this in 2025, first home buyers can get a full exemption from transfer duty if they're buying a new home valued up to $800,000, or a concession on homes valued between $800,000 and $1,000,000. For existing homes, there's a full exemption up to $650,000 and a concession between $650,000 and $800,000.

• Must be an Australian citizen or permanent resident
• Must be 18 or over
• Neither purchaser has previously owned property in Australia (or received the first home buyer benefit)
• Must move in within 12 months and live there for at least 6 continuous months
• The property must be in NSW

If there are two purchasers and only one qualifies as a first home buyer, they can only get the concession on that person's share of the purchase price.

First Home Owner Grant
This is $10,000 for first home buyers purchasing or building a new home valued up to $600,000 (increased from $750,000). The home must be a new home—either newly built, or a substantially renovated home that hasn't been previously occupied. Off-the-plan purchases qualify if the building work hasn't substantially started at contract date. The same basic eligibility criteria apply as for the duty concession, plus the home must be used as the principal place of residence for at least 6 continuous months.

How to claim these benefits
The requirements are strict—if you don't move in within 12 months or don't stay for 6 months, Revenue NSW can claw back the benefit and charge penalties. Make sure you genuinely intend to live in the property as required.