Whether you are buying your first home, selling an investment property, or purchasing a commercial premises, understanding the conveyancing process removes a great deal of the stress and uncertainty. Here is a step-by-step guide to how property transfers work in New South Wales.
Step 1: Before You Sign — Get Legal Advice First
Many buyers and sellers make the mistake of signing a contract before speaking to a lawyer or conveyancer. This is the single most important piece of advice we can offer: do not sign anything until a legal professional has reviewed it.
Once you sign a contract for sale, you are legally bound by its terms — including any special conditions that may be unfavourable to you. A quick review before exchange can save you significant time, money, and stress.
For sellers, we can prepare the contract for sale and ensure all mandatory disclosures are included. For buyers, we review the contract, advise on risks, and negotiate amendments where possible.
Step 2: Pre-Exchange Searches and Checks
Before exchanging contracts, we conduct a range of searches to ensure you know exactly what you are buying:
- Title search: Confirms ownership and identifies any registered interests, mortgages, or caveats over the property.
- Planning certificate (Section 10.7): Reveals zoning, development restrictions, and any planned government works affecting the property.
- Drainage diagram: Shows the location of sewer lines on and near the property.
- Land tax clearance: Confirms no outstanding land tax liability (important for buyers, as this can pass with the property).
- Strata search (for apartments): Reviews the owners corporation records, financials, meeting minutes, and by-laws.
Step 3: Exchange of Contracts
Exchange occurs when both parties sign identical copies of the contract and those copies are physically or electronically exchanged. At exchange, the buyer typically pays a 10% deposit (held in trust until settlement) and both parties are legally committed to completing the transaction.
In NSW, buyers have a 5 business day cooling-off period after exchange — during which they can withdraw from the contract, forfeiting 0.25% of the purchase price. Cooling-off does not apply to properties purchased at auction.
Step 4: Pre-Settlement Preparation
Between exchange and settlement, we:
- Calculate and arrange payment of stamp duty (now called transfer duty)
- Prepare transfer documents
- Liaise with your lender to arrange mortgage documents
- Coordinate with the other party's lawyers or conveyancers
- Confirm settlement figures including adjustments for rates, water, and strata levies
Step 5: Settlement via PEXA
We complete settlement electronically through PEXA (Property Exchange Australia), the national electronic conveyancing platform. On settlement day, funds are transferred and title is registered — without anyone needing to be physically present. Settlement is fast, secure, and typically seamless.
For buyers, your lender draws down your loan on settlement day and the purchase price is paid. For sellers, your mortgage is discharged and the net sale proceeds are paid to you.
Step 6: Post-Settlement
After settlement we notify the relevant local council and water authority of the change of ownership, and ensure title registration is completed correctly. For buyers, the property is now legally yours.
How Long Does Conveyancing Take?
From exchange to settlement, a standard residential transaction typically takes 4–6 weeks. The settlement period is negotiated and agreed upon at exchange. Off-the-plan purchases settle on completion of construction, which can be 12–36 months after exchange.
How Much Does It Cost?
Our conveyancing fees start from approximately $1,500 plus disbursements (search fees, PEXA fees, and registration fees). We provide a clear, upfront cost estimate before we begin. Call us on (02) 9633 3122 for a quote tailored to your transaction.
Need legal advice? James Papas Solicitors offers free first consultations for all Conveyancing & Property Law matters. Our offices are in Parramatta and we serve all of Western Sydney. Learn more about our Conveyancing & Property Law services → or contact us today.