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Selling a Strata Unit in NSW

A Sydney Lawyer’s Guide

Selling a Strata Unit in NSW

A Sydney Lawyer’s Guide

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Selling a Strata Unit in NSW – A Sydney Lawyer’s Guide 

By CM Lawyers – Property & Conveyancing Lawyers in Marrickville, NSW 

Selling a strata property whether it’s an apartment, townhouse, or unit --comes with its own set of legal steps and obligations. Unlike selling a freestanding house, a strata title sale involves additional documentation, Owners Corporation considerations, and strict disclosure requirements under NSW law. 

At CM Lawyers in Marrickville, we’ve helped countless Sydney property owners sell their strata units with confidence and compliance. In this guide, we’ll outline the legal process of selling a strata unit, the common pitfalls, and how professional legal guidance can help you achieve a smooth, stress-free sale.  

CM Lawyers Sydney - Selling Property Strata NSW Marrickville

Understanding the Legal Process of Selling a Strata Unit in NSW

When you sell a strata title property, you’re selling not only your individual lot but also a shared interest in the building’s common property (lifts, gardens, driveways, etc.). This means there are additional disclosure obligations under NSW strata and conveyancing laws. 

Here’s the step-by-step legal process: 

Step 1: Preparing the Contract for Sale 

  • Before your property can be listed for sale, your lawyer must prepare a Contract for Sale of Land. Real estate agents in NSW cannot legally advertise your strata property without it. 

    The contract must include: 

    • Current title search and strata plan 

    • Zoning certificate (s10.7) 

    • Sewer and drainage diagrams 

    • Strata by-laws and management statement 

    • Section 184 Certificate (showing levies, insurance, and compliance) 

    • Details of any special levies or upcoming works 

    At CM Lawyers, we prepare your contract to comply with all NSW legal requirements and ensure that it clearly reflects the financial and physical condition of the strata property. 


Step 2: Listing and Negotiation
 

  • Once your contract is ready, your agent can begin advertising the property. During this stage, your lawyer ensures that: 

    • The disclosure documents are up to date. 

    • Any ongoing disputes or levies are properly disclosed. 

    • The contract includes clear terms protecting your rights as a seller. 

    We also liaise with the buyer’s solicitor to handle pre-contract enquiries and avoid unnecessary delays. 


Step 3: Exchange of Contracts
 

  • When the buyer agrees to purchase, both parties sign identical contracts, and the buyer pays a deposit (usually 10%). The sale becomes legally binding once contracts are exchanged. 

    We make sure all special conditions such as settlement timeframes or inclusion lists—are correctly recorded before exchange. 


Step 4: Pre-Settlement Period
 

  • Between exchange and settlement, our lawyers: 

    • Confirm all strata levies are paid and up to date. 

    • Obtain updated Section 184 certificates if required. 

    • Liaise with the buyer’s solicitor and lender to prepare for completion. 

    • Coordinate the discharge of your mortgage (if applicable). 


Step 5: Settlement and Transfer
 

  • On settlement day, ownership is transferred through NSW Land Registry Services, the buyer’s funds are released, and the property is officially sold. 

    We ensure the Owners Corporation updates its records to reflect the new owner and confirm all outstanding payments are finalised. 

Legal Obligations When Selling a Strata Property 

Under NSW law, sellers must meet strict disclosure and compliance requirements. Your contract must accurately disclose: 

  • Unpaid or upcoming strata levies 

  • Building defects, disputes, or litigation 

  • By-law restrictions (such as pet or renovation rules) 

  • Insurance details for the strata scheme 

  • Special levies or upcoming capital works 

  • Compliance with fire safety or building certifications 

Failure to disclose required information can allow the buyer to rescind the contract or take legal action for misrepresentation. 

At CM Lawyers, we ensure all disclosures are complete and compliant, protecting you from post-sale legal risk. 

CM Lawyers Sydney - Selling Property Strata NSW

Common Pitfalls When Selling a Strata Unit

Even experienced sellers can encounter unexpected legal or financial complications. The most common pitfalls we see include: 

  • Missing or Outdated Strata Documents: Failing to include an up-to-date Section 184 certificate, by-laws, or insurance details can delay or invalidate your sale.

  • Non-Disclosure of Special Levies: If the Owners Corporation has approved major repairs (e.g., roof replacement or fire upgrades), these levies must be disclosed. Buyers who discover undisclosed levies can cancel the contract.

  • Ongoing Building Defects or Dispute: Many strata schemes, particularly newer ones have ongoing litigation or defect claims. These must be declared and can affect your property’s marketability.

  • Misunderstanding What’s Included: Sellers sometimes assume they can remove fixtures (like air conditioners or light fittings) that legally form part of the property. We clarify inclusions to prevent disputes.

  • Settlement Delays: Delays in mortgage discharge or missing Owners Corporation documents can stall settlement and lead to penalties. 

CM Lawyers anticipates and manages these issues before they become costly problems. 

Preparing Your Strata Property for Sale

Before listing, take these steps to ensure a smooth transaction: 

  • Order a strata records inspection to identify potential issues. 

  • Resolve outstanding levies or disputes with the Owners Corporation. 

  • Obtain a valid compliance certificate for any renovations or installations. 

  • Make sure your by-laws are current and accessible. 

  • Check for any building defect rectification works in progress. 

We assist clients in reviewing all these items before the property hits the market to avoid surprises during negotiations. 

 

Costs Involved in Selling a Strata Unit

In addition to standard agent commissions and marketing fees, you should budget for: 

  • Legal and conveyancing fees 

  • Discharge of mortgage fee (if applicable) 

  • Strata document fees (e.g., Section 184 certificate) 

  • Council and water rate adjustments 

  • Capital gains tax (if it’s an investment property) 

We provide clear, upfront pricing so you can plan confidently and avoid unexpected costs. 

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.  

 

CM Lawyers Sydney - Selling Property Strata NSW sYNDEY

Why You Need a Property Lawyer (Not Just a Conveyancer)

While conveyancers can handle standard paperwork, strata property sales often involve complex legal issues requiring a solicitor’s expertise such as: 

  • Defects and building disputes 

  • Special levies and financial disclosures 

  • Multi-lot ownership or company title conversions 

  • Dual occupancy or mixed-use strata schemes 

At CM Lawyers, our property solicitors are trained to identify risks, draft stronger contracts, and handle any disputes that arise ensuring full legal protection.

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

Our Step-by-Step Service for Strata Sellers

When you sell with CM Lawyers, you get a streamlined, end-to-end legal service: 

  1. Initial Consultation: We review your property details and timeline.

  2. Contract Preparation: We prepare a legally compliant and customised contract.

  3. Disclosure Management: We gather strata documents, by-laws, and certificates.

  4. Negotiation and Exchange: We liaise with buyers and agents to ensure smooth negotiations.

  5. Pre-Settlement Coordination: We handle mortgage discharge and liaise with lenders.

  6. Settlement and Completion: We finalise payments and transfer ownership securely. 

Why Marrickville Clients Choose CM Lawyers

  • Local Expertise: We know the Marrickville and Inner West strata market. 

  • Extensive Experience: Over 30 years handling NSW strata sales. 

  • Transparent Fees: Fixed, all-inclusive pricing. 

  • Fast Turnaround: We keep your sale moving efficiently. 

  • Personal Service: We communicate clearly and guide you every step of the way. 

Final Word: Sell Your Strata Property with Legal Confidence 

Selling a strata unit in NSW requires more than just finding a buyer,it requires precision, compliance, and legal protection. From contract preparation to settlement, every step involves strata-specific laws that can impact your sale if overlooked. 

At CM Lawyers in Marrickville, we make the process simple, transparent, and fully compliant with NSW law. Whether you’re selling an investment apartment or your family’s first home, we ensure your sale is smooth, legal, and successful.