Buying in NSW
New South Wales runs the purchase differently from the northern states. Contracts are exchanged rather than simply signed, the seller's solicitor has to prepare the contract with a set of prescribed documents attached before the property can even be marketed, and your five business day cooling-off period is often signed away with a section 66W certificate. It is a system built around the contract being ready before you are.
None of that is hard once you can see it coming. This guide walks the whole New South Wales purchase: what happens, in what order, and where the deadlines and the money sit, with a link to the detailed explainer for every stage.
The short version for New South Wales buyers
- Read the contract before you exchange, not after. In NSW the seller's contract already has the title, planning and drainage documents attached, so the review is about what those documents show and which conditions you still need.
- Cooling-off is five business days, but it is often waived. If your solicitor gives a section 66W certificate you give up cooling-off entirely, which is common on in-demand properties. Withdraw during cooling-off and you forfeit 0.25% of the price. There is none at auction.
- Exchange is the moment it gets real. Both sides sign, contracts are exchanged, and the deposit is paid on exchange. Until exchange, either side can still walk, which is where gazumping happens.
- Budget for transfer duty separately. NSW duty is significant and generally due within three months of exchange. First-home buyers get help up to set thresholds, and foreign buyers pay surcharge duty on top.
If you have bought in another state before, these are the parts of a New South Wales purchase that work differently.
| Rule | New South Wales | Queensland | Victoria |
|---|---|---|---|
| Cooling-off | 5 business days, seller keeps 0.25%, rest of deposit returned, often waived by a section 66W certificate | 5 business days, seller keeps 0.25%, rest of deposit returned | 3 business days, penalty $100 or 0.2% of the price, whichever is greater, none at auction |
| Who prepares the contract | The seller's solicitor, before the property is marketed | The agent prepares the standard REIQ contract | The seller's lawyer or conveyancer prepares the section 32 and contract |
| When risk passes to the buyer | On completion (settlement) | 5pm the next business day after the contract date | At settlement |
| Making a deadline binding | Usually a notice to complete first (often 14 to 28 days) | Time is of the essence on condition dates. Settlement is different. Either side can take a unilateral five business day extension | Usually a notice to complete first |
In NSW the sale becomes binding at exchange, and there are two common ways to get there.
Until you exchange, a verbal yes is not binding and another buyer can still be preferred. That gap is where buyers get gazumped, and a 66W exchange closes it by binding the deal on the spot. The trade-off is that you give up your cooling-off safety net, so only go unconditional once your finance and inspections are sorted.
| Topic | How it works in New South Wales | Where the detail sits |
|---|---|---|
| Cooling-off | Five business days from exchange, or ten business days for an off-the-plan home, ending 5pm on the last day. Withdraw and you forfeit 0.25% of the price. A section 66W certificate waives it, and there is none at auction. | Cooling-off period (NSW) |
| The contract and disclosure | The seller's solicitor prepares the contract before marketing, with prescribed documents attached under section 52A, such as the title search, a section 10.7 planning certificate, a drainage or sewer diagram, and the by-laws for a strata property. Your review is about what they show. | Contract terms & key dates (NSW) |
| Exchange and deposit | Both parties sign, contracts are exchanged, and the deposit (usually up to 10%, often negotiated lower) is paid on exchange. | Deposits in property transactions (NSW) |
| Insurance and risk | Unlike Queensland, the property stays at the seller's risk until completion, so you are not strictly required to insure from day one. Your lender may still want cover from exchange, and you can rescind if the property is badly damaged before completion. | Property condition, risks and insurance (NSW) |
| Making time binding | The completion date is not automatically essential. To force it, a party serves a notice to complete, usually allowing 14 to 28 days. | Complying with contract conditions (NSW) |
| Settlement timing | Around six weeks from exchange is the NSW norm: 42 days is the standard, with the exact date set in the contract. | Time and settlement in property contracts (NSW) |
⚠️ Before you exchange: do not sign a New South Wales contract, or a section 66W certificate, without having the contract reviewed first. Once you exchange without cooling-off you are committed, and the attached documents are exactly where problems tend to hide.
Transfer duty. New South Wales charges transfer duty on a sliding scale, and it's the biggest single cost after the price itself: around $21,187 on a $600,000 home at the standard rate. Duty is generally due within three months of exchange, or at settlement if that comes first. First-home buyers can get a full exemption or a concession up to set thresholds under the First Home Buyers Assistance Scheme, and foreign buyers pay surcharge purchaser duty on top. Check your figure with Revenue NSW, then read how stamp duty is calculated.
The rest of the stack. Conveyancing is a fixed fee, with strata reports, searches and the title registration fee on top. See what conveyancing costs in Queensland, NSW and Victoria.
Quick answers to what New South Wales buyers ask most.
In NSW contracts are exchanged rather than just signed, the seller's solicitor prepares the contract with documents attached before marketing, and cooling-off is often waived with a section 66W certificate. The property also stays at the seller's risk until completion, not from the day after signing as in Queensland.
It is a certificate from your solicitor that waives your cooling-off rights, so the sale is unconditional from exchange. Sellers and their agents ask for one to lock the deal in, especially in Sydney's faster markets. Only give one once your finance and inspections are sorted, because it removes your five business day exit.
Gazumping is when a seller accepts a higher offer from another buyer before contracts are exchanged. In NSW nothing is binding until exchange, so the risk sits in the gap between a verbal yes and exchange. Being ready to exchange quickly, sometimes with a section 66W certificate, is how buyers close that gap.
If you exchange with a cooling-off period and then withdraw during it, the seller keeps 0.25% of the purchase price and the rest of your deposit comes back to you. There is no cooling-off, and nothing to forfeit, at auction or where you have given a section 66W certificate.
In NSW the property usually stays at the seller's risk until completion, so you are not strictly required to insure from the moment of exchange. Your lender may still ask for building cover from exchange, and it is worth checking the contract, but the day-one insurance rule you see in Queensland does not apply here.
In New South Wales transfer duty is generally payable within three months of exchange, or at settlement if that is sooner. First-home buyers may get an exemption or concession up to set thresholds, and foreign buyers pay surcharge duty on top.
Around six weeks from exchange is the NSW norm: 42 days is the standard, with the exact date set in the contract. See time and settlement in property contracts (NSW).
Local searches, council costs and the checks that matter in each part of New South Wales.
Buying in New South Wales comes down to being ready before you exchange. If you've got a contract in front of you, get a fixed-fee quote and have it reviewed before you sign or give a 66W certificate. Just Zettle it.
General information only, not legal advice. Conveyancing law varies by state and changes over time, so confirm your situation with a licensed conveyancer or solicitor.
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