Selling a property in NSW from listing to settlement

Step 1. Sign with an agent

The agency agreement must state the agent's services, the commission or fees, when the agent is paid and the agent's estimated selling price.

If the estimate is a range, the top of the range cannot be more than 10% above the bottom.

Once you sign, you have one business day to cancel by written notice. The period ends at 5pm on the next business day or Saturday.

If you have signed with one agent and want to change, end that agreement first. If you do not, both agents may claim commission.

Step 2. Have the contract prepared

Your property cannot be offered for sale until a contract has been prepared by a lawyer or licensed conveyancer.

The law sets out the documents that must be attached. See the article on what a seller must attach to the contract.

We order the documents, prepare the contract and send it to your agent.

Step 3. Choose how to sell

There are two usual methods.

1. Private treaty. You set a price and buyers make offers.
2. Auction. Buyers bid against each other. You must give the agent your reserve price in writing before bidding starts. If bidding does not reach the reserve, the property is passed in and you can negotiate with bidders.

At auction, the winning bidder signs the contract and pays the deposit on the day.

Step 4. Exchange of contracts

Neither side is bound until signed copies of the contract are exchanged.

If the agent arranges exchange, the agent must give each party signed copies within 2 business days.

The deposit is usually 10% of the price. A smaller deposit, such as 5%, can be agreed.

A seller has no cooling-off period. Once contracts are exchanged, you are bound.

On a private treaty sale, the buyer usually has 5 business days to cool off. If the buyer withdraws, the buyer forfeits 0.25% of the price. The buyer may pay only 0.25% at exchange, with the balance of the deposit due before the cooling-off period ends.

There is no cooling-off period for the buyer at auction, or where the buyer gives a 66W certificate.

Step 5. Between exchange and settlement

We deal with the buyer's solicitor or conveyancer and prepare for settlement.

Two certificates matter in this period.

1. Land tax clearance. You must give the buyer a current land tax clearance certificate at least 14 days before settlement. Unpaid land tax is a first charge on the land, so it must be dealt with at or before settlement.
2. ATO clearance certificate. Each seller on the title who is an Australian resident needs an ATO clearance certificate, given to the buyer at or before settlement. Without it, the buyer must withhold 15% of the property's market value and pay it to the ATO. This applies to contracts signed on or after 1 January 2025, whatever the price. Apply at least 28 days before settlement. Processing can take up to 28 days.

If you have a mortgage, your lender must be told of the sale so the loan can be paid out at settlement. See the article on paying out your mortgage when you sell.

Step 6. Settlement

NSW settlements are done electronically.

Rates and other bills are split at settlement. You pay up to the settlement date and the buyer pays from then on.

At settlement, your mortgage is paid out, the balance is paid as you direct, and the title passes to the buyer.

Where sellers get caught

Where sellers get caught

Signing with a second agent before ending the first.

Both agents may claim commission.

No written reserve at auction.

The reserve must be given to the agent in writing before bidding starts.

Applying late for the ATO clearance certificate.

If the buyer does not have it at settlement, the buyer must withhold 15% of the market value, even if you are an Australian resident.

Leaving land tax to the last week.

The clearance certificate must reach the buyer at least 14 days before settlement.

Common questions