Understanding the Conveyancing Process in NSW: A Step-by-Step Guide

Reviewed by Brenda Gately, Licensed Conveyancer (NSW Licence No. 05006556, AIC member) — 36 years' experience.

Conveyancing is the process of transferring ownership of a property from one person to another. In NSW it runs through six broad stages: contract review, exchange, the cooling-off period, searches and enquiries, settlement, and post-settlement registration. For a standard purchase it typically takes around six weeks from exchange to settlement.

Buying or selling a home is one of the biggest transactions most of us ever make — and most of the work happens out of sight. This guide walks through what actually happens at each stage, what can go wrong, and how a licensed conveyancer keeps your transfer on track.

Step 1 — Before you sign: the contract review

In NSW, a residential property can't be marketed without a contract of sale. Before you sign anything, your conveyancer reviews that contract: the title and plan, what's included in the sale, any easements or covenants over the land, the planning certificate (s10.7), and the special conditions — the clauses agents rarely mention that can shift risk onto you.

This is the single most valuable step in the process. Once contracts are exchanged, your options narrow sharply — so anything you want changed (a longer settlement, a repair, a released deposit condition) must be negotiated now.

Selling? We prepare your contract of sale, including the vendor disclosure documents NSW law requires, before your agent lists the property.

Step 2 — Exchange of contracts

Exchange is the moment the transaction becomes binding. Two identical copies of the contract are signed — one by the buyer, one by the seller — dated, and swapped. The buyer pays the deposit, usually 10% of the purchase price, which is held in trust by the agent until settlement.

At auction, exchange happens on the spot when the hammer falls. In a private treaty sale, exchange happens once both sides have signed and the deposit is paid.

Step 3 — The cooling-off period

For most private treaty purchases of residential property in NSW, the buyer has a cooling-off period of five business days after exchange. During this window the buyer can withdraw from the contract — but at a cost: 0.25% of the purchase price is forfeited to the seller.

There is no cooling-off period when you buy at auction. The cooling-off period can also be waived with a certificate under section 66W of the Conveyancing Act, signed by a solicitor or conveyancer. We can prepare a 66W certificate for you — and before you sign one, we'll explain exactly what giving up your cooling-off rights means for your purchase.

Buyers typically use the cooling-off period to finalise loan approval and complete building and pest or strata inspections.

Step 4 — Searches, enquiries and preparing for settlement

Between exchange and settlement, your conveyancer orders searches and certificates from councils, water authorities and other relevant government authorities. These relate to broader infrastructure or planning proposals that may or may not actually affect your specific lot — and they confirm there are no surprises attached to the property, such as outstanding rates, road proposals or caveats.

These third-party costs are the disbursements on your invoice — read our guide to what disbursements are. At the same time, we liaise with your lender so the loan funds are ready, and calculate the settlement adjustments — dividing council rates, water charges and strata levies between buyer and seller on a pro rata basis as at settlement day.

Step 5 — Settlement day

Settlement is when the balance of the purchase price is paid and ownership formally changes hands. In NSW, settlement happens electronically through PEXA (Property Exchange Australia): funds move between banks, duties are paid, and the transfer is lodged for registration — all in a single digital workspace, usually early afternoon.

As the buyer, you don't need to attend anything: once settlement completes, the agent is authorised to hand you the keys. As the seller, the proceeds (after your loan is discharged and adjustments applied) land in your nominated account.

Want to know what can hold things up? Read our guide to avoiding settlement delays.

Step 6 — After settlement

A few loose ends remain after settlement day: registration of the transfer is confirmed, the council and water authority are notified of the new owner, and you should arrange (or transfer) building insurance if you haven't already — buyers should generally have cover in place from exchange.

New owner? Work through our checklist of what to do after exchanging contracts.

How long does the conveyancing process take?

A standard NSW residential matter runs around six weeks from exchange to settlement, though the settlement period is set by the contract — shorter or longer periods can be negotiated before exchange. Off-the-plan purchases work differently: settlement is triggered by registration of the plan, which can be months or years after you sign.

Do I need a conveyancer to do all this?

In NSW you can appoint a licensed conveyancer or a solicitor to act for you. A licensed conveyancer specialises exclusively in property transfers. Brenda Gately has been guiding buyers and sellers through NSW settlements for 36 years, handles every matter personally, and quotes a fixed fee upfront.

Request a Free Quote or call (02) 8815 8148.

Frequently asked questions

What are the steps in the conveyancing process in NSW?

Contract review, exchange of contracts, the cooling-off period (private treaty only), searches and enquiries, electronic settlement via PEXA, and post-settlement registration.

How long does conveyancing take in NSW?

Usually around six weeks from exchange to settlement for a standard residential matter — but the contract sets the settlement period, and it can be negotiated before exchange.

When do I pay the deposit?

At exchange. It's usually 10% of the purchase price and is held in trust by the agent until settlement.

Can I pull out after exchanging contracts?

Only during the cooling-off period (five business days for most private treaty sales), and you forfeit 0.25% of the purchase price. There's no cooling-off at auction.

What happens if settlement is delayed?

As a purchaser, if settlement is delayed by you, you will be liable for penalty interest and other delayed settlement fees under the contract. Most delays are avoidable with early preparation — that's a core part of what we do.