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What does a property and conveyancing lawyer do and why I should use one to buy property in NSW?

A property/conveyancing lawyer assists with buying, selling and transferring property in NSW.  This includes reviewing contracts, advising on legal risks, co-ordinating settlement and ensuring the transaction complies with NSW property and conveyancing laws.  A conveyancing lawyer can also advise on broader legal issues such as development and planning issues, contract disputes, complex ownership structures, federal and state tax implications (including implications for foreign persons) and off-the plan or commercial transactions.

Ideally you should engage a property/conveyancing lawyer before you sign a contract to ensure you understand your rights and obligations before you are legally bound.

What does ‘exchange of contracts’ mean?

Exchange of contracts is the point at which a purchaser and vendor sign identical contracts and they are formally swapped, dated and the deposit is paid to the agent’s trust account. Once exchange occurs, the contract becomes legally binding (subject to any cooling-off rights) and neither party can walk away without consequences. Cooling off rights can be waived by a purchaser at this time by providing the vendor with a signed valid section 66W certificate signed by their conveyancer.

What is the purchaser’s cooling-off right?

In most private treaty sales of residential property, purchasers have a five business day cooling off period after exchange of contracts.  If a purchaser ends the contract during this period they forfeit 0.25% of the purchase price.  Cooling-off does not apply to purchases on auction day.

What obligations does a purchaser have after exchange of contracts?

After exchange a purchaser is legally obliged to:

• pay the balance of the purchase price on settlement;
• comply with all contract conditions and statutory requirements; and
• complete the contract by the settlement date.

When does settlement take place?

Settlement or completion is the final stage of the transaction when the balance of the purchase price is paid, including any adjustments for statutory expenses, and ownership transfers to the purchaser.  Settlement usually occurs 6 weeks after exchange unless the contract specifies a different period.

What happens if a purchaser fails to complete on time?

The vendor may serve a Notice to Complete making time essential by requiring that settlement occurs within 14 days of the issue of the Notice to Complete.  If a purchaser continues in default the vendor may terminate the contract, retain the deposit and potentially claim damages.

Are there extra rules for buying strata property (units and apartments).

Yes.  Buying strata properties involves additional considerations including adjusting strata levies at settlement, reviewing by-laws, due diligence on upcoming actual and potential special levies and the financial health of the owners’ corporation.  A strata inspection report is essential to understand your ongoing obligations and any potential issues. These reports are prepared by independent third parties.

Do foreign persons purchasing property in NSW have additional legal obligations when buying property?

Some foreign persons are subject to additional requirements, including requiring in some cases FIRB approval, ATO notification obligations after settlement and payment of foreign persons surcharge stamp duty. Some foreign persons are required to pay surcharge land tax including land tax on their principal place of residence. Failure to comply can result in penalties and additional tax liabilities.

Who should I contact at COD if I would like help with a purchase or sale of property or with another property matter?

As first point of contact you can reach out to:

Patricia Monemvasitis on (02) 9291 7126 or by email PMonemvasitis@codea.com.au

Josephine Heesh on (02) 9291 7170 or by email JHeesh@codea.com.au

David Crane on (02) 9291 7185 or by email DCrane@codea.com.au

Dianne Retief on (02) 9291 7153 or by email DRetief@codea.com.au

Brett Fatches on (02) 4983 4000 or by email BFatches@codea.com.au 

This article was published on 17 June 2026 by Carroll & O’Dea Lawyers and is based on the relevant state of the law (legislation, regulations and case law) at that date for the jurisdiction in which it is published. Please note this article does not constitute legal advice. If you ever need legal advice or want to discuss a legal problem, please contact us to see if we can help. You can reach us on 1800 059 278 or via the Contact us page on our website. (www.codea.com.au).