NSW Conveyancing Process: From Exchange to Settlement

The NSW Conveyancing Process: From Exchange to Settlement

The NSW conveyancing process begins well before contracts are exchanged and continues through to settlement and registration. For many residential transactions, settlement is scheduled around 42 days after exchange, following contract review, a five-business-day cooling-off period unless waived, pest and building checks, and final adjustments. This guide walks through each stage, so you know what to expect before your next property move.

What Is Conveyancing and Why It Matters in NSW

Conveyancing is the legal process of transferring ownership of property from one person to another. In NSW, this can involve reviewing the contract, checking title and other property information, coordinating with lenders and the other party’s representative, calculating adjustments, and completing the legal and electronic steps required for settlement and registration.

It matters because property contracts in NSW carry real financial risk if handled poorly. A few reasons this stage deserves proper attention:

• Contracts become legally binding on exchange, subject to any rights that may apply under the contract or NSW law, including the cooling-off period for eligible residential purchases
• Title defects, easements, or zoning restrictions can affect what you are allowed to do with a property
• Missed deadlines can trigger penalties or, in serious cases, termination of the contract
• Special conditions inserted by a seller’s solicitor can shift risk onto the buyer if not reviewed properly

Whether you are buying your first home in Campbelltown or selling an investment property in Southwest Sydney, understanding NSW conveyancing steps before you sign anything puts you in a stronger position from day one.

Before Exchange: Contract Review and Due Diligence

Long before contracts are exchanged, there is groundwork that protects both buyers and sellers. For buyers particularly, this is where most of the risk in a property purchase can be identified and managed.

Key steps before exchange typically include:

• Contract review: A solicitor or conveyancer examines the contract of sale, including the title, any easements or covenants, zoning, and special conditions the seller has added
• Section 10.7 planning certificate: As confirmed by the NSW Planning Portal, this certificate provides information about zoning, planning controls, land use restrictions, and relevant hazards and risks, and must be attached to the contract of sale
• Pest and building inspections: These are arranged independently by the buyer and are not automatically included in the contract
• Finance: Buyers should understand their finance position before exchange and, where possible, have appropriate approval in place. Whether the contract is conditional on finance depends on the terms negotiated
• Strata report review: For units or townhouses, a strata report reveals the financial health of the owner’s corporation and any upcoming special levies

Sellers have obligations too. Before a property is marketed, the seller must have a contract prepared with the prescribed disclosure documents attached. These generally include the property certificate, registered plan and relevant dealings, a drainage diagram, and a current section 10.7 planning certificate, with additional documents required in some circumstances. Incomplete or late disclosure can create issues that need to be resolved before settlement.

Exchange of Contracts and the Cooling-Off Period

Exchange is the moment the deal becomes legally real. Two signed copies of the contract are swapped between the buyer’s and seller’s representatives, usually by phone, email, or post rather than in person, and the deposit is paid.

From this point, the cooling-off period NSW law provides begins automatically for most residential sales, unless it has been waived. NSW Fair Trading sets out the rules in full, but here is how it works in practice:

• Standard residential purchases: A 5-business day cooling-off period applies, starting on the day of exchange and ending at 5 pm on the fifth business day
• Off-the-plan purchases: A longer 10 business day cooling-off period applies, reflecting the added complexity of these contracts
• Auction sales: No cooling-off period applies once a property is sold under the hammer, or if contracts are exchanged the same day after a passed-in auction
• Withdrawing during cooling-off: A buyer can pull out, but must pay the seller 0.25% of the purchase price as a penalty, equal to $250 for every $100,000
• Extending or shortening the period: The cooling-off period can also be reduced or extended by written agreement between the parties
• Waiving cooling-off: A purchaser can waive the cooling-off period by providing the vendor with a certificate complying with section 66W of the Conveyancing Act 1919. Because this removes the statutory cooling-off right, buyers should obtain legal advice before doing so

This is a decision worth making with your solicitor, not under pressure from an agent.

Between Exchange and Settlement: Key Steps and Timelines

Once cooling-off has passed or been waived, the transaction enters its working phase. This is where a conveyancer or solicitor earns their keep, managing a series of interlocking deadlines that need to align before settlement day arrives.

Typical activity during this window includes:

• Requisitions on title: The buyer’s legal representative may raise formal requisitions with the seller’s representative about title and other matters affecting the property
• Loan documentation: If finance is involved, the buyer’s lender finalises mortgage documents and prepares to release funds
• Adjustment calculations: Council rates, water rates, and strata levies are calculated and adjusted between buyer and seller based on the settlement date
• Final searches: Updated title, land tax, and other searches confirm nothing has changed since exchange
• Booking settlement: Both parties agree on a settlement date and time, with settlement now conducted electronically through an Electronic Lodgment Network Operator such as PEXA or Sympli, as outlined in Revenue NSW’s eConveyancing guidance

Many standard NSW residential contracts provide for settlement around 42 days after exchange, although the parties can negotiate a different period. Shorter settlements of 30 days are common when a seller needs a fast turnaround, while longer periods of 60 or 90 days sometimes suit sellers who need extra time to secure their next property.

Common causes of delay include finance approval taking longer than expected, a buyer’s lender being slow to release funds, and last-minute issues surfacing in a final property inspection, such as damage that occurred after exchange.

Settlement Day: What to Expect

Settlement is the point where the transaction is financially and legally completed between the parties. NSW property settlements are now completed electronically for the vast majority of transactions, which has largely replaced the old paper-based settlements where representatives met in person to exchange cheques.

On settlement day, several things happen almost simultaneously:

• The buyer’s lender releases the remaining purchase funds
• The buyer’s representative pays the balance of the purchase price to the seller
• Any existing mortgage on the property is discharged
• The transfer is lodged for registration with NSW Land Registry Services
• Keys are released to the buyer, usually through the real estate agent, once funds have been confirmed as received

NSW Government guidance recommends a final inspection on the morning of settlement to check that the property remains in the condition agreed under the contract. For sellers, ensuring all rates and levies are paid up to date avoids awkward adjustment disputes at the last minute.

Once settlement has completed, the transfer is lodged for registration and, once registered, the buyer is recorded as the registered proprietor. If your purchase also means updating a will to reflect the new asset, our wills and estates team can help you handle both at once.

Conveyancer or Solicitor: What NSW Buyers and Sellers Should Know

Both solicitors and licensed conveyancers can provide conveyancing services in NSW, subject to their respective regulatory requirements and scope of practice, as outlined by the Law Society of NSW and NSW Fair Trading.

A solicitor may be preferable where the transaction involves broader legal issues, such as a dispute, a complex title issue, an estate matter, or other legal work outside the scope of standard conveyancing. If you are unsure which applies to your situation, our property law and conveyancing page outlines the support Gryphon Lawyers provides across every stage of a transaction.

Getting Legal Support Through Your Conveyancing Journey

Buying or selling property in NSW involves more moving parts than most people expect. Gryphon Lawyers reviews your contract, explains the key risks, and guides you through exchange and settlement, so nothing catches you off guard. Contact our Campbelltown team on (02) 4656 1834 or book a consultation online before you sign or exchange contracts.

FAQs

Q: How long does conveyancing take in NSW?
A: Many residential contracts provide for settlement around 42 days after exchange, but the actual timeframe depends on the contract and circumstances of the transaction.

Q: What is the cooling-off period in NSW?
A: The cooling-off period is a 5 business day window after exchange during which a buyer can withdraw from a residential purchase, subject to a 0.25% penalty on the purchase price. Off-the-plan purchases carry a longer 10 business day period, and no cooling-off period applies to auction sales.

Q: Do I need a conveyancer or a solicitor in NSW?
A: Both can provide conveyancing services within their respective scope of practice. A solicitor may be preferable where the transaction involves a dispute, an unusual contract condition, or a legal issue beyond standard conveyancing, such as a deceased estate or a boundary disagreement.

Q: What happens on settlement day?
A: The buyer’s lender releases the purchase funds, the balance is paid to the seller, any existing mortgage is discharged, and the transfer is lodged for registration with NSW Land Registry Services. Once registered, the buyer becomes the recorded proprietor.

Q: What should I do if a legal issue comes up during my property transaction?
A: Contact your solicitor immediately rather than resolving it directly with the other party or their agent. Issues like a failed inspection, a title defect, or a financing delay usually have workable solutions if addressed early, but can jeopardise the transaction if left unaddressed close to settlement.