Updated 1 November 2026
Contract for Sales - Seller’s Most Asked Questions #43: How do I ensure a smooth closing process?
How can a seller ensure a smooth settlement in NSW?
Prepare for settlement as soon as contracts are exchanged. Confirm the completion date, arrange mortgage discharge, complete identity checks and obtain required tax certificates early. Your solicitor or conveyancer should coordinate documents, settlement adjustments and funds, while you arrange the property’s agreed condition and possession. Report any obstacle immediately.
- Give your representative lender details, current rates notices and information about occupants, leases and disputes.
- Keep a written list of contractual promises, including repairs, inclusions and documents still to be supplied.
- Check the expected net proceeds before committing those funds to another purchase.
Who manages settlement, and do sellers attend?
A solicitor or licensed conveyancer who uses an authorised electronic lodgment network ordinarily manages settlement for the seller. Sellers generally do not attend a physical settlement appointment. Their representative coordinates with the buyer’s representative and relevant lenders, checks the electronic workspace and confirms when the transaction has successfully settled.
The NSW electronic conveyancing framework requires identity, authority and entitlement checks. Complete the Client Authorisation and respond to requests promptly. Tell your representative about travel, difficulty signing or unavailable company officers before these become settlement-day problems.
Which dates and contract conditions need checking?
The completion date comes from the signed contract and any validly agreed variation. Six weeks is common, but it is not a universal statutory settlement period. Check special conditions, outstanding obligations and any linked purchase. Agree extensions through the legal representatives and record their terms clearly in writing.
Cooling-off rights usually concern the period after exchange, rather than providing an extra extension at settlement. Residential contracts generally have five business days, or ten for off-the-plan purchases, subject to exceptions or valid waiver. Auction purchases generally have no cooling-off period.
Why must the seller’s identity and title be checked?
The person or entity selling must have authority to deal with the property. A current title search should identify the registered owner and relevant mortgages, caveats, leases or other recorded interests. Resolve discrepancies between the contract, ownership records and signing authority before settlement documents are prepared or approved.
Verification of identity and right to deal are separate checks. A company director, attorney or executor needs appropriate authority; familiarity with the property is insufficient. A title search also does not disclose every tenancy or occupation arrangement, so tell your lawyer who actually uses the premises.
When should the mortgage discharge be arranged?
Contact the lender early and complete its discharge requirements well before settlement. The lender must be ready to release the mortgage, and the payout figure must account for interest and applicable charges. A loan balance displayed in an app is not necessarily the amount needed to discharge the security.
Tell your representative about every secured loan, including loans linked to other properties. Obtain confirmation that the discharge request has been received. Mortgage debt is commonly paid from settlement proceeds; you do not necessarily have to repay it separately beforehand. Arrange any shortfall before the scheduled settlement.
Which ATO clearance certificate does a seller need?
For contracts entered into from 1 January 2025, foreign resident capital gains withholding generally applies at 15% with no property-value threshold. Australian tax-resident sellers need an ATO clearance certificate to avoid withholding. Provide the correct certificate for each relevant seller before settlement, including where the property is their home.
The ATO clearance certificate concerns tax residency, not citizenship. Applications can take up to 28 days to process, so apply at least 28 days before settlement, ideally as soon as you decide to sell. Certificates are valid for 12 months. Check the name against the legal owner. Withholding is a tax collection mechanism, not necessarily the seller’s final tax liability.
Ask your adviser separately about GST withholding and supplier notification requirements, particularly for new residential premises or potential residential land. An ATO residency clearance certificate does not resolve GST obligations.
How are rates, levies and land tax dealt with?
Settlement adjustments allocate relevant outgoings and income according to the contract and applicable law. Your representative should check council rates, water charges, strata levies and any rent or land tax adjustment. Some liabilities are paid through settlement, so simply paying every estimated amount beforehand can create confusion or double counting.
Provide current notices and receipts. Revenue NSW’s land tax clearance is separate from the ATO certificate. Sellers generally must supply a current land tax clearance certificate at least 14 days before settlement. If it shows a charge, arrange the necessary payment and clearance evidence.
Review special levies and any contractual land tax adjustment carefully. Do not assume the buyer pays part of your land tax merely because it appears on a settlement statement.
What if the property must be sold with vacant possession?
If the contract requires vacant possession, plan for occupants to leave and possessions or rubbish to be removed by completion, subject to the agreed terms. A sale does not automatically end a tenancy. Check tenancy rights and termination requirements before promising that a rented property will be empty.
NSW’s tenancy termination rules require lawful grounds, notice and supporting documents where applicable. A fixed-term lease may prevent the intended timetable. If a tenant remains, tribunal procedures may be necessary. Do not change locks or remove belongings to force compliance with your sale contract.
How should sellers prepare for the final inspection?
Allow the buyer to carry out the final inspection contemplated by the contract and address concerns through the legal representatives. Leave agreed inclusions in place, complete promised work and disclose new damage promptly. The relevant standard comes from the contract; an inspection does not automatically create fresh repair obligations.
Keep evidence of completed work and the property’s condition. Agree any repair, price adjustment or retained amount in writing through your lawyer. Do not assume a minor complaint automatically permits the buyer to refuse settlement, or that every complaint can safely be ignored.
How can settlement funds be protected from fraud?
Confirm bank details through an independently verified communication channel before authorising payments or distribution of sale proceeds. Email accounts can be compromised, and a convincing message is not proof that changed banking instructions are genuine. Call your representative on a previously verified number if any payment direction changes.
The Australian Institute of Conveyancers NSW recommends independently checking account details and using secure communication. Do not use a telephone number supplied only in a suspicious email. Review the destination of your net proceeds and alert your representative immediately to any discrepancy.
What happens if settlement is delayed?
A missed completion date can have contractual consequences, including interest or a notice to complete, but it does not automatically permit termination. The contract, cause of delay and each party’s readiness matter. Get advice before demanding penalties, cancelling the sale or promising an extension that affects your rights.
Notify your lawyer immediately, identify the obstacle and obtain a realistic revised timetable. Any extension should address interest, costs and linked transactions. Buying and selling together also requires a fallback for accommodation or funding if one settlement cannot proceed as scheduled.
What does Barrak v Jaswil show about settlement readiness?
In Barrak Corporation Pty Ltd v Jaswil Properties Pty Ltd [2016] NSWCA 32, a seller’s attempted termination failed because it was not ready, willing and able to complete. The case shows that serving a notice to complete does not excuse the seller from providing valid documents and arranging mortgage release.
The Parramatta transaction initially failed to settle because the corporate seller’s transfer was improperly executed. Its mortgagee could not attend the following day to provide the discharge. The seller nevertheless purported to terminate after the deadline it had made essential.
The Court of Appeal rejected the seller’s appeal and returned the buyer’s damages claim for determination. It did not fix a damages amount in that decision. Although the events involved paper settlement, the practical lesson remains relevant: check documents and lender readiness before relying on default rights.
When should keys and sale proceeds be released?
Wait for your representative’s confirmation that settlement has completed before authorising the usual release of keys. A scheduled time or an assurance that settlement is imminent is not completion. Early access or possession should be separately documented, with advice about insurance, damage, occupation and what happens if settlement fails.
Check the final settlement statement and retain it for your records and tax advice. Contact Christine Manolakos at CM Lawyers early to review the contract, title and settlement requirements, especially where you need proceeds for another purchase or anticipate a delay.
General information only, current at 1 November 2026. Have a lawyer check your contract and settlement arrangements, and obtain tax advice appropriate to your circumstances.
Key resources
NSW Government: contracts and settlement — timing, cooling-off and electronic completion.
Registrar General: electronic conveyancing — the digital settlement framework.
Registrar General: subscriber compliance — identity, authority and right-to-deal checks.
ATO clearance certificates — residency certificates and property sale withholding.
Revenue NSW: land tax clearance — certificates, charges and settlement payments.
NSW Government: ending a tenancy — lawful notice and vacant possession requirements.
AICNSW: protecting against cyber fraud — independently verifying payment details.
Law Society NSW: finalising a sale — discharge, settlement and linked purchases.
Barrak v Jaswil [2016] NSWCA 32 — judgment on readiness and invalid termination.
CM Lawyers — Selling a property — contract preparation and conveyancing for NSW sellers.
