Accepting an offer on your home is a thrilling moment — but contrary to popular belief, it's not the end of the selling process. In fact, it's just the beginning of a structured legal and financial journey toward settlement. Whether you're a first-time seller or just a little rusty on the process, understanding each stage will help you feel more confident and prepared.
In this guide, we break down what happens after you accept an offer in a private treaty sale, with insights tailored to property transactions in New South Wales.
Step 1: Acceptance of Offer
The moment you accept a buyer's offer can feel like a major milestone — and emotionally, it is. However, accepting an offer is not legally binding in New South Wales.
At this stage:
- The buyer may still conduct further due diligence, including building and pest inspections.
- Either party can walk away from the agreement before contracts are exchanged.
- You should continue liaising with your agent to ensure all agreed terms are documented and understood by both sides.
This phase can last a few days to a couple of weeks, depending on how ready the buyer is to move forward.
Step 2: Contract Preparation
With the offer accepted, it's time to bring in your legal expert. Your solicitor or conveyancer will prepare the Contract for Sale, which includes:
- Title search and Certificate of Title
- Zoning certificate from the local council
- Inclusions and exclusions (e.g. fixtures, appliances)
- Any special conditions agreed between the parties
- This document forms the basis of the legal agreement. It's crucial that all terms are accurate and complete, as this is what will be reviewed and signed during the next phase.
Buyers will often have their legal representative review this document before exchange to ensure everything is in order.
Step 3: Exchange of Contracts
This is the key legal moment when the transaction becomes binding.
Once both parties are satisfied with the terms, each signs an identical contract, and then the contracts are formally exchanged — either by the agents or solicitors. At this point:
- The buyer usually pays a 0.25% deposit (for private treaty sales)
- The transaction becomes legally binding in NSW
- Both parties are now locked into the sale, barring a valid reason during the cooling-off period (if applicable)
From this point on, the property is effectively under contract, and you can begin preparing for your move.
Step 4: Cooling-off Period (if applicable)
In NSW, private treaty sales include a 5-business day cooling-off period for the buyer. This gives them time to:
- Finalise finance approval
- Conduct any last-minute inspections
- Reassess their commitment
If the buyer chooses to withdraw, they must forfeit the 0.25% deposit already paid at exchange. However, the cooling-off period can be waived or shortened via a legal certificate from the buyer's solicitor.
Note: There is no cooling-off period if the property was sold at auction or if the buyer is a company.
Step 5: Full Deposit Paid
Once the cooling-off period ends — or is waived — the buyer is required to pay the full deposit, usually 10% of the purchase price.
This amount is held in a trust account, typically by the agent, until settlement. This deposit acts as security for you, the seller, in case the buyer defaults before settlement.
You're now on the home stretch, but a few crucial steps remain before the keys change hands.
Step 6: Pre-Settlement Process
This stage is often the busiest behind the scenes. During this period:
- The buyer's solicitor will conduct final title checks, searches, and adjust for any outstanding rates or levies.
- Their lender will finalise the loan and prepare for funds transfer.
- Your solicitor will arrange discharge of any mortgage, and confirm final payout amounts.
- You may need to provide the buyer access to the property for a final inspection, often 1–2 days before settlement, to ensure it's in the same condition as at exchange.
It's wise to continue maintaining the property in clean, presentable condition during this time to avoid disputes at the final walk-through.
Step 7: Settlement Day
Settlement generally takes place 4 to 6 weeks after exchange, unless otherwise agreed.
On settlement day:
- The buyer pays the balance of the purchase price.
- Ownership of the property is legally transferred.
- The real estate agent is authorised to release the deposit to you.
- You must vacate the property and hand over all keys, remotes and manuals.
Once settlement is complete, your solicitor or agent will notify you, and the buyer officially becomes the new owner.
Legal and Compliance Notes (NSW)
It's important to be aware of your legal obligations throughout the selling process. In NSW:
- Real estate agents must comply with the Property and Stock Agents Act 2002 and relevant Fair Trading legislation when managing offers, contracts and trust deposits.
- The Real Property Act 1900 governs the land title registration process and ensures the correct transfer of ownership.
- Additional financial considerations such as capital gains tax, mortgage discharge fees, and land tax adjustments may apply depending on your circumstances.
Engaging a qualified solicitor or conveyancer from the start is crucial to ensure compliance and avoid costly delays or disputes.
Final Thoughts
Selling a property is far more than accepting a good offer. From contract exchange to settlement, each step plays a vital role in ensuring a smooth transaction and successful outcome. Understanding what to expect helps you stay informed and in control, minimising stress and surprises along the way.
If you're searching for a trusted and experienced property management team to help maximise your investment, Century 21 Novocastrian can assist.
If you're seeking expert property management in Newcastle and Lake Macquarie, our dedicated team at Century 21 Newcastle is here to help you maximise your rental returns. For personalised, tailored advice from our investor consultants, click here to book an investment consultation via Calendly.
EMAIL | newcastle.com.au">hello@c21newcastle.com.au
PHONE | 02 4943 6333
ADDRESS | 155 Pacific Highway, Charlestown NSW 2290