Buying a property is one of the most exciting — and expensive — decisions you’ll ever make. Whether it’s a first home, an investment, or a new acquisition for development purposes, every transaction involves legal, financial and practical risks.
Behind the scenes of every purchase sits the process of conveyancing — the legal transfer of ownership from seller to buyer. In New South Wales, that process is governed by the Conveyancing Act 1919 (NSW), the Real Property Act 1900 (NSW) and other legislation regulating contracts, title, and registration.
This article explains what a conveyancing lawyer does for a buyer, the importance of contract review and due diligence, and how proper legal advice protects your interests from start to finish.
Understanding the Buyer’s Legal Responsibilities
In NSW, property purchases are generally made on a “buyer beware” basis. This means it is up to the buyer to make sure they understand exactly what they’re buying — the property, its title, and any issues affecting it.
A buyer’s legal responsibilities typically include:
Reviewing and understanding the Contract for Sale before signing.
Undertaking pre-purchase due diligence such as building, pest and strata inspections.
Having sufficient funds to complete the purchase or securing unconditional finance approval.
Paying the deposit on exchange and the balance on settlement.
Failing to meet contractual obligations — such as paying the deposit, completing on time, or obtaining finance — can lead to termination of the contract or forfeiture of the deposit. Having a lawyer manage these steps ensures you understand your rights and obligations at every stage.
The Contract Review – The Most Important Step
Before you sign anything, your lawyer should review the Contract for Sale of Land. This document forms the legal foundation of your purchase. It sets out what you are buying, the terms of the transaction, and the obligations of both parties.
A conveyancing lawyer will:
Examine all prescribed documents, including the title search, Section 10.7 Planning Certificate, and drainage and sewerage diagrams.
Identify risks such as easements, covenants, unapproved structures, or encroachments.
Confirm that inclusions (fixtures and fittings) are properly listed and conditions are clear.
Negotiate amendments or special conditions — for example, making the contract subject to finance, satisfactory inspections, or specific repairs.
Explain legal terms and deadlines in plain English so you can make informed decisions.
In practice, two properties that look identical can have very different legal issues. A developer’s off-the-plan contract, for example, will contain far more complex clauses than a standard home purchase. Even small variations can affect your rights, timing, or ability to withdraw.
A careful legal review before you sign is the single most important step in protecting yourself as a buyer.
Due Diligence and Pre-Purchase Checks
While your lawyer handles the legal documentation, you are responsible for ensuring the property itself is sound. This process — called due diligence — involves investigating the condition of the property, its compliance with planning laws, and any potential liabilities.
Common pre-purchase checks include:
Building and pest inspections – identifying structural damage, damp, or termite activity.
Strata inspection reports – for apartments or townhouses, reviewing the strata plan, by-laws, levies, insurance and the financial position of the owners corporation.
Planning and title searches – confirming zoning, easements, heritage listings or future development proposals that may affect the property.
Flood, bushfire or contamination checks – often available through local council records or Section 10.7 certificates.
Your conveyancing lawyer will help interpret these reports and flag any issues that may need to be negotiated before exchange. They can also recommend specialist searches where necessary — such as if the property is rural, commercial, or subject to environmental constraints.
Due diligence should start as soon as you are seriously considering a property. Once contracts are exchanged, your ability to withdraw is limited and can be costly.
Exchange of Contracts
A property purchase becomes legally binding when contracts are exchanged. This means both buyer and seller sign identical copies of the Contract for Sale, which are then dated and swapped.
At this point:
A deposit (usually 10%) is paid to the agent or the seller’s solicitor.
A five-business-day cooling-off period usually applies, allowing the buyer to rescind for any reason — but they will forfeit 0.25% of the purchase price.
The cooling-off period can be waived if the buyer provides a Section 66W Certificate signed by their solicitor.
Because exchange makes the contract legally binding, it is essential that all due diligence, finance, and contract reviews are completed beforehand. Your lawyer will guide you through this process and advise whether it is safe to proceed.
Between Exchange and Settlement
The period between exchange and settlement is typically four to six weeks, but can vary depending on the terms of the contract. During this time, your conveyancing lawyer will:
Liaise with your lender to finalise mortgage documentation.
Conduct final title and settlement searches to ensure there are no new encumbrances.
Calculate adjustments for council rates, water, and strata levies.
Prepare and review settlement documents.
Arrange electronic settlement via PEXA, ensuring funds are correctly transferred and the title is registered in your name.
Buyers should avoid making major commitments — such as moving or renovations — until settlement is confirmed and title registration is complete, as any delays to settlement can ruin those plans.
Common Issues Buyers Encounter
Even with preparation, complications can arise. Common examples include:
Finance delays or valuations coming in below purchase price.
Discrepancies in inclusions or property condition between inspection and settlement.
Strata disputes or other undisclosed building issues.
Title restrictions, easements or unregistered interests.
Vendor delays in providing discharge of mortgage.
Some issues can be resolved by negotiation, others may require legal enforcement or compensation. Early review and ongoing communication with your lawyer minimise the risk of settlement failure or financial loss.
Why Use a Solicitor Instead of a Conveyancer
While both solicitors and licensed conveyancers can handle property transactions, the difference lies in scope and protection. A solicitor is legally qualified to provide advice beyond the conveyance itself — and can assist if the matter becomes contentious or complex.
Even straightforward purchases can involve unexpected complications, such as unregistered easements, deceased estates, or compliance issues. A solicitor can identify these risks early, negotiate solutions, and ensure that your rights are enforceable under NSW law.
Engaging a solicitor provides continuity, accountability, and peace of mind that your transaction is backed by full legal expertise.
Conclusion
Buying property in NSW is not just a financial commitment — it’s a legal one. Every contract, search and document plays a role in ensuring the property you buy is exactly what you expect, with no hidden risks or surprises.
A conveyancing lawyer ensures your contract is reviewed properly, your due diligence is complete, and your settlement is handled correctly.
Speak to a specialist property lawyer
Our property team includes multiple Accredited Specialists in Property Law who act for buyers across Sydney and NSW. If you’re purchasing a home, apartment or investment property, give us a call or submit an enquiry now to speak with one of our conveyancing lawyers.
