Selling a House in NSW

Selling a House in NSW – A Sydney Lawyer’s Guide

By CM Lawyers – Residential Property and Conveyancing Experts in Marrickville, NSW

Selling a property in Marrickville is more than a financial transaction – it’s a major legal process. Whether you’re upgrading, downsizing, or selling an investment, it’s essential to understand the legal obligations, risks, and documentation involved in selling residential property in NSW.

At CM Lawyers in Marrickville, we’ve guided thousands of homeowners through successful sales across Sydney and the Inner West. This expert guide outlines the legal process of selling a house, common mistakes to avoid, and how our lawyers ensure your sale proceeds smoothly and securely.

Understanding the Legal Process of Selling a House in NSW

Every property sale in NSW must comply with the Conveyancing Act 1919 and associated regulations. Here’s a step-by-step look at how we handle it:

Step 1: Preparing the Contract for Sale

Before advertising your property, the law requires you to have a complete Contract for Sale of Land ready. Without it, your agent cannot legally list the property.

The contract must include:
- A current title search and plan
- Zoning certificate (s 10.7) from your local council
- Sewer and drainage diagrams
- Details of any restrictions, easements, or covenants
- Inclusions and exclusions list (e.g. fixtures, appliances)
- Swimming pool compliance certificate, if applicable
At CM Lawyers, we draft and review your contract to ensure it complies with NSW law and protects your interests.

Step 2: Listing and Negotiation

Once your agent has the contract, they can begin marketing the property. We work closely with your agent to ensure that:
- All legal documents are ready for prospective buyers.
- Any special conditions (such as delayed settlement or inclusions) are clearly worded in the contract.
- Negotiations run smoothly and comply with legal requirements.

Step 3: Exchange of Contracts

When the buyer makes an offer and both parties agree on terms, the buyer and seller sign identical contracts. The buyer pays a deposit (usually 10 percent).

Once contracts are exchanged, the sale becomes legally binding. If the buyer withdraws after the cooling-off period, they forfeit their deposit.

Step 4: Pre-Settlement Period

During this time, the buyer’s lawyer and your lawyer liaise to finalise the transfer of title and prepare for settlement. We:
- Ensure any mortgage is discharged.
- Handle council and water rate adjustments.
- Prepare settlement figures and coordinate with the buyer’s solicitor and lender.

Step 5: Settlement and Transfer of Ownership

On settlement day, the buyer’s funds are transferred to you, and the property is legally transferred at NSW Land Registry Services. Keys are handed over to the buyer once settlement is complete.

Legal Obligations of the Seller

In NSW, sellers must comply with strict disclosure requirements. Failure to do so can lead to the contract being cancelled or legal claims for misrepresentation.

Your contract must accurately disclose:

All known defects or encumbrances on the property.

Easements, rights-of-way, and heritage listings.

Swimming pool and building compliance certificates.

Council and zoning restrictions.

CM Lawyers ensures your contract meets all NSW legal standards so that you’re protected from future disputes.

Common Legal Pitfalls When Selling a House

Even experienced homeowners can run into unexpected issues. The most common pitfalls we see include:

Incomplete or Incorrect Contracts: Listing your house without a valid contract can lead to fines and delays. Missing documents (such as zoning certificates or sewer diagrams) can invalidate the sale.
Unapproved Building Work: If your property has renovations or additions done without council approval, you must disclose this in the contract. Otherwise, you could face claims after settlement.
Delays in Mortgage Discharge: If your bank isn’t notified early enough, the settlement can be delayed. We handle this early in the process to avoid penalties.
Failure to Disclose Known Defects: If you know about structural damage, asbestos, or compliance issues and fail to disclose them, the buyer could terminate the contract or seek compensation.
Incorrect Settlement Adjustments: Miscalculating rates or levies can lead to financial loss. We ensure your figures are accurate and approved before settlement.

You may be interested in: What are the risks of selling a property "as is”?

Hidden Costs of Selling a House

When selling a house, you should also budget for additional expenses:

Legal and conveyancing fees

Real estate agent commission

Mortgage discharge fees

Marketing and staging costs

Outstanding rates and utilities

Capital gains tax (if applicable to investment properties)

We provide a transparent estimate of all fees and government charges upfront.

Selling a property during a property settlement can have significant financial, emotional, and legal implications for both parties. In New South Wales (NSW), the decision to sell a property, such as the family home, is often a necessary step to ensure a fair division of assets following a divorce or separation. However, this decision comes with various consequences that need to be carefully considered. Understanding these implications and avoiding common pitfalls can help both parties achieve a fair and satisfactory settlement. Read more here.

Why You Need a Property Lawyer (Instead of Just a Conveyancer)

While licensed conveyancers can manage paperwork, only a solicitor can provide legal advice and representation if a dispute arises.
This is crucial when:

There are unapproved building works or defects.

You are selling a property held in a trust or estate.

The buyer raises legal issues during negotiation.

CM Lawyers offers the expertise of a full-service law firm backed by decades of experience in NSW property law.

Our Step-by-Step Service for Home Sellers

Initial Consultation: We review your property details and timeline.
Contract Preparation: We draft a legally compliant contract for sale.
Negotiations and Exchange: We liaise with buyers and agents to negotiate terms.
Pre-Settlement Liaison: We coordinate with banks and buyers’ lawyers to ensure all requirements are met.
Settlement and Handover: We finalise payments, transfer ownership, and confirm discharge of mortgages.

Our goal is to make the entire process stress-free and legally secure.