Updated October 2026
Contract for Sales – Seller’s Most Asked Questions | Article 3
One of the most important decisions for a property seller is whether to hire a real estate agent. In NSW, you can sell your own home without one. The decision depends on your time, confidence, marketing options and the complexity of the sale. Professional assistance can help with pricing and negotiations, while legal advice remains important whichever approach you choose. The AML/CTF reforms that commenced on 1 July 2026 also require a clear understanding of who must conduct compliance checks.
1 What does a real estate agent do?
An agent can provide local market knowledge, recommend a sales strategy, organise advertising and inspections, communicate with prospective buyers and negotiate offers. These services can be especially useful when you are selling remotely, managing an estate or balancing the sale with work and family responsibilities.
However, employing an agent does not guarantee a particular price or a dispute-free sale. Compare recent comparable sales, ask how the agent reached their appraisal and request a written marketing plan. The NSW guide to using an agent or selling privately explains the different roles involved. Your solicitor or licensed conveyancer handles the legal work; an agent’s appraisal does not replace legal advice.
2 Compare the full cost before deciding
Agent commissions, fees and expenses are negotiable. Check the agency agreement for commission, advertising charges, GST, the appointment period and termination conditions. Ask whether you could owe commission if you find the buyer yourself or change agents. An attractive headline percentage may exclude substantial marketing expenses.
Selling privately can save commission, but you may still pay for photography, advertising, legal services and other sale costs. Consider the time involved in responding to enquiries and arranging inspections. Compare realistic net proceeds rather than assuming that either option will automatically produce a better result.
Ask who will actually conduct inspections and negotiate with buyers, how often you will receive updates and which expenses require your approval. Discuss what happens if the campaign produces little interest or you decide to withdraw. A clear understanding of the service is more useful than choosing solely on the highest appraisal or lowest commission.
3 Prepare properly for a private sale
A contract of sale must be prepared before advertising a residential property in NSW. Arrange this early with your solicitor or conveyancer. The NSW sales contract requirements cover prescribed documents, including title and planning information. Swimming pool documentation may also be required, depending on the property and applicable exceptions.
Do not assume that a seller has a blanket obligation to volunteer every known defect. Equally, do not conceal information or give inaccurate answers. Contract disclosure requirements, warranties and representations require careful review. Tell your solicitor about building work, approvals, boundary concerns, notices and disputes so they can advise what must be disclosed.
Keep written records of offers and agreed conditions. An accepted offer is generally not a binding sale until contracts are exchanged. Have your legal representative manage the contract terms, deposit arrangements and settlement process. A buyer’s enthusiasm or verbal promise does not remove the need for properly documented terms.
When comparing offers, look beyond the price. Finance conditions, requested repairs, included fixtures and the proposed settlement date can affect whether an offer meets your needs. Explain any deadline for your next purchase or mortgage discharge to your solicitor. Agree who will answer legal questions so that informal discussions do not create conflicting expectations about what is being sold.
4 Understand cooling-off rights
For most NSW residential private-treaty purchases, the buyer has five business days to cool off after exchange. Off-the-plan purchases generally have ten business days. Exceptions include auction purchases, and a compliant section 66W certificate can waive the period. Withdrawing under cooling-off rights generally costs the buyer 0.25% of the price. Check the current NSW guidance and the particular contract before treating a sale as unconditional.
5 What changed under the AML/CTF laws?
From 1 July 2026, the expanded anti-money laundering and counter-terrorism financing regime covers specified services in real estate, conveyancing and legal practice. AUSTRAC’s commencement update confirms obligations including enrolment, AML/CTF programs, customer due diligence, suspicious matter reporting and recordkeeping.
Who carries the obligation matters. Under AUSTRAC’s real estate guidance, an agent brokering a sale has AML/CTF obligations concerning both the buyer and seller. A business selling real estate directly, such as a developer selling without an independent agent, may itself provide a regulated service. Its customer is the buyer.
An ordinary private homeowner selling their own property is not captured by that direct-sales category. A private purchaser does not automatically become responsible for carrying out the vendor’s compliance checks. Lawyers and conveyancers providing regulated professional services generally have obligations concerning their own client, subject to the relevant rules and exceptions.
Buyers and sellers should nevertheless expect requests for information. AUSTRAC’s consumer guidance explains identity checks, proof of ownership and questions about payment arrangements or trusts. Provide documents promptly through a verified, secure channel. Repeated requests from different professionals do not necessarily mean someone has made a mistake.
Christine’s practical example: “I thought the buyer did that”
The following is an illustrative scenario, not a reported client matter or court decision.
Imagine a developer selling an apartment directly after 1 July 2026, without an independent agent. He completes the sale without carrying out his required AML checks. His explanation is that he thought the purchaser would organise everything. The purchaser has not done so, and the seller has confused someone buying property with someone responsible for his business’s compliance.
My response would be: “The buyer came to buy your apartment, not run your compliance department.” A completed sale does not make missed obligations disappear. In this example, the business vendor could find himself in serious regulatory trouble, facing investigation, remedial requirements or financial penalties. The consequence depends on the breach and the regulator’s response.
That is why I would establish responsibility before the transaction proceeds. A bank or another solicitor being involved does not, by itself, discharge your obligations. AUSTRAC permits reliance on another party’s identification checks only within the applicable rules. Assuming “someone must have checked” is no substitute.
What actual enforcement figures show
On 30 September 2026, AUSTRAC announced infringement notices for enrolment failures in the real estate, accounting and jewellery sectors. The notices were $21,840 for corporations and $4,368 for individuals, with daily accrual possible. These figures concern enrolment failures, not an automatic fine for every missed identity check.
AUSTRAC also reported that around 90% of the initial businesses it approached over enrolment concerns had enrolled or attempted to enrol. That is a targeted group, not an industry-wide compliance rate. Its enforcement guidance describes other available responses, including civil penalty proceedings, enforceable undertakings and remedial directions.
Related reading from Adrian William
Adrian William’s Ascend 2026 conference recap discusses James Hurley’s briefing on AML reforms, client verification and transaction monitoring. It provides an agency perspective on the practical changes. For sellers, it is a useful reminder to ask prospective agents how their sales process accommodates the new requirements.
A real case: why property information needs checking
In Butcher v Lachlan Elder Realty (2004), purchasers alleged that an agent’s brochure misrepresented a waterfront boundary relative to a swimming pool. A High Court majority dismissed their appeal, finding that, in context, the agent had passed on the vendor’s information without adopting or endorsing it.
The decision does not give agents universal protection against misleading statements. It shows why the source and presentation of property information matter. Sellers should check material supplied for marketing, and buyers should obtain appropriate advice about title and boundaries. This was not an AML/CTF case.
Your next steps
First, decide whether you can realistically manage the marketing and negotiations. Second, compare written agent proposals. Third, prepare the contract and required disclosures before advertising. Fourth, establish any AML/CTF responsibilities and supply requested information promptly. Fifth, have your solicitor review offers and conditions before exchange.
Contact CM Lawyers for advice about your NSW sale contract, disclosure obligations or whether your business activities fall within the AML/CTF regime. Early preparation can help prevent avoidable delays and disputes.
Key resources
- Using an agent or selling privately and agency agreements — NSW Government guidance on selling options and fees.
- Sales contract requirements and contracts and deposits — NSW disclosure documents and cooling-off rules.
- New reporting regime now in force — AUSTRAC’s 1 July 2026 commencement announcement.
- Real estate designated services and professional designated services — Who has AML/CTF obligations, including direct-selling businesses.
- Information for property buyers and sellers and reliance on third-party identification — AUSTRAC guidance on information requests and permitted reliance.
- Infringement notices for non-enrolment and consequences of non-compliance — AUSTRAC’s 30 September 2026 figures and enforcement powers.
- Ascend 2026: A Look Back at Our Growth Conference — Adrian William’s article, including its AML reforms session.
- Butcher v Lachlan Elder Realty (2004) — Official High Court judgment about an agent’s property brochure.
