A Seller’s Guide to Conveyancing in Australia: From Contract to Settlement

Key Takeaways

• Preparation is Key: As a seller in Australia, you are legally required to have a complete and compliant Contract of Sale prepared before you can market your property.

• Disclosure is Mandatory: You have a legal duty to disclose specific information about your property in the contract. Failing to do so can give the buyer the right to cancel the sale.

• The Process: The seller’s conveyancing journey involves preparing the contract, responding to negotiations, coordinating with your bank to discharge the mortgage, and executing the legal transfer of ownership on settlement day.

• Expert Guidance is Essential: The preparation of the sales contract and management of the transaction is a legal process that must be handled by a licensed conveyancer or property solicitor.

Introduction

When selling your property, your focus is often on presentation, marketing, and achieving the best possible price. However, behind the scenes, a critical legal process is unfolding that is entirely your responsibility as the seller. While the buyer is busy with inspections and loan applications, you have a completely different set of legal obligations to meet.

This guide provides a clear, step-by-step overview of the conveyancing process from the seller’s perspective. Understanding your duties from the outset is the key to ensuring a smooth, compliant, and successful sale.

Important Note: Property law is legislated by each state and territory. The specific disclosure requirements are different everywhere. This guide will focus on the rules in New South Wales (NSW) and Victoria (VIC), Australia’s two largest property markets.

Learn more about conveyancing requirements at NSW Fair Trading.

This is the absolute first legal step you must take as a seller. Before your real estate agent can even show the property to a single potential buyer, you must have a legally compliant Contract of Sale prepared by your solicitor or conveyancer.

This is not optional. It is a strict legal requirement designed to ensure that buyers receive all the necessary information upfront.

The Seller’s Disclosure Obligations

The core of the contract preparation is “vendor disclosure.” This means you have a legal duty to attach a range of specific certificates and documents about the property.

• In New South Wales (NSW): The Contract for Sale must, by law, include documents such as:

  • A Title Search from the Land Registry Services (LRS).

  • A Section 10.7 (previously 149) Zoning Certificate from the local council.

  • A diagram showing the location of sewer lines.

  • Copies of any easements, covenants, or other restrictions on the land.

  • If it’s a strata property, a full set of strata documents.

• In Victoria (VIC): The seller must provide a Section 32 Vendor’s Statement to any potential buyer before they sign the contract. This document must contain crucial information, including:

  • Details of any mortgages or debts against the property.

  • A copy of the plan of subdivision.

  • Information about any restrictions on the land.

  • Council and water rates notices.

  • If it’s a strata property, an Owners Corporation Certificate.

Failing to include the required documents or providing inaccurate information can have severe consequences. A buyer may be able to legally cancel the contract and have their deposit refunded, even after signing.

Learn more about vendor disclosure requirements at Consumer Affairs Victoria.

Once your property is on the market, you will start receiving offers. Your solicitor or conveyancer plays a key role here. They will receive the offer from the buyer’s legal representative and advise you on any proposed changes to the contract.

Buyers may request:

• A different settlement period (e.g., 90 days instead of 42).

• A smaller deposit amount.

• Special conditions, such as making the sale “subject to” their finance approval or a building inspection.

Your legal representative will advise you on the risks and benefits of accepting these changes and will formally amend the contract if you agree.

Once both you and the buyer have signed and “exchanged” identical contracts, the agreement becomes legally binding. During the period leading up to settlement, you have a key obligation:

• Maintain the Property: You must keep the property in the same condition as it was when the buyer exchanged contracts. You are responsible for the risk of any damage to the property until settlement is complete.

• Early Release of Deposit: In some cases, you may be able to access the buyer’s deposit before settlement. This requires a formal legal process (governed by Section 27 in VIC or Section 66S in NSW) and is only possible in specific circumstances, such as if the contract is unconditional.

As settlement day approaches, your conveyancer will coordinate the final steps of the transaction. Your key tasks are:

• Discharging Your Mortgage: You must authorise your bank to release its mortgage over the property. Your conveyancer will send a formal request to your bank and obtain a “payout figure” – the exact amount needed to clear your loan on settlement day.

• Signing the Legal Documents: You will need to sign the legal document that transfers ownership to the buyer (the “Transfer”). In the era of e-conveyancing, this is usually done digitally.

• Providing Vacant Possession: You must ensure the property is completely empty of all your belongings and rubbish and is in a clean state before the buyer’s final inspection.

• Handing Over the Keys: You will need to provide all keys, garage remotes, and security codes to the real estate agent before the settlement time.

On settlement day, your conveyancer, your bank, and the buyer’s representatives all meet in a digital workspace (PEXA) to exchange the funds and complete the transfer of title.

Conclusion

For a seller, a successful property transaction begins long before the first open house. It starts with engaging an expert conveyancer or solicitor to prepare a compliant and comprehensive Contract of Sale.

By understanding your legal obligations—especially your duty to disclose—and working closely with your legal representative, you can navigate the process with confidence. Proactive legal preparation is the key to a smooth settlement, protecting you from potential disputes and ensuring you receive the proceeds of your valuable asset without delay.

LawDocs: Your Partner in Conveyancing

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Learn more about property sales regulations at Land Victoria.