Your solicitor reads the contract before you sign, acts for you through exchange, checks the property and the title, and settles the purchase.
The work starts before you are bound and ends when the title is in your name.
This article sets out each part of that work in order.
Before you make an offer
The NSW Government advises buyers to get a copy of the contract as early as possible and have it examined by a solicitor or licensed conveyancer.
A residential property cannot be put on the market until the seller has a contract ready.
So the contract should be available from the agent before you make an offer.
We read it and tell you:
- What you are agreeing to buy, and what is included.
- The deposit, and when it is due.
- The settlement date.
- The special conditions added by the seller.
- Any document that should be attached but is missing.
Changing the contract
The agent acts for the seller, not for you.
An agent cannot change the terms of the contract. Only a solicitor or licensed conveyancer can.
If a term should be changed before you sign, we raise it with the seller's solicitor or conveyancer and confirm any change in writing.
This is the point where you have the most room to ask for changes. Once contracts are exchanged, you are bound by the terms as they stand.
Exchange and the cooling-off period
Exchange is when the buyer and seller each sign a copy of the contract and the copies are swapped. Before exchange, neither side is bound.
We arrange the exchange with the seller's representative and tell you what deposit must be paid and when.
For most residential purchases you then have a cooling-off period of 5 business days.
We tell you the exact day and time it ends, so you can decide whether to proceed while you still have the right to withdraw.
Checking the property and the title
After exchange, the work moves to checks and enquiries. The NSW Government lists the kinds of checks a conveyancer or solicitor carries out for a buyer. They include:
- Whether a government authority has an interest in the land, or a planned development could affect it.
- Whether there is outstanding land tax on the property.
- Whether swimming pool compliance documents are needed.
- Information that may not have been disclosed, such as illegal building work or a fence dispute.
For a unit or townhouse in a strata scheme, we also review the strata records or report, including the levies and the scheme's finances.
If a check shows a problem, we advise you on your rights under the contract and act on them.
Your loan and your costs
If you are borrowing, your lender will have its own documents and its own settlement date needs.
We review the mortgage documents with you and keep the finance dates in view.
We tell you the costs you must meet at settlement, including transfer duty, which the buyer pays.
We also calculate the adjustments for council and water rates, so that each side pays its share up to and after settlement.
Settlement and the change of title
All NSW settlements are done electronically.
Both the buyer and the seller must be represented by a solicitor or conveyancer who subscribes to an electronic lodgment network.
We prepare the transfer, confirm the final figures, and complete settlement for you.
The change of title is then registered with NSW Land Registry Services.
Where buyers get caught
Signing before the contract is reviewed.
Once contracts are exchanged, you are bound. The time to change a term is before you sign.
Relying on the agent to explain the contract.
The agent acts for the seller. The agent cannot change the contract or advise you on it.
Paying an expression of interest deposit and thinking the property is secured.
An expression of interest deposit does not take the property off the market. The seller can keep negotiating with other buyers until exchange.
Leaving the finance until after exchange.
Have your loan approved before you exchange, and know the dates your lender needs.
Common questions
Do I need a solicitor before I make an offer?
Have the contract reviewed before you sign anything. An offer can be made before the review, but nothing should be signed until it is done.
Can I do my own conveyancing in NSW?
You can review a contract yourself. The NSW Government warns that this carries risk, including being personally liable if something goes wrong. Settlement itself must be done electronically by a subscriber to an electronic lodgment network.
Do I have to come to the office?
No. Remote legal services are available. Most of the work can be done by phone, email and electronic signing. You may also meet us in person by appointment.
Speak to a solicitor before you sign. Call (02) 8062 6300.
This article is general information only. It is not legal advice for your situation.