9 Steps for Purchasing a Property in NSW
A general guide to the property purchasing experience with legal insights
Topics: NSW Real Property - Contracts of Sale for Land - Conveyancing - NSW Land
26 August 2025, Angophora Legal
Purchasing Entity - are you buying as an individual, a couple, a company or a trustee?
As solicitors, we often receive phone calls asking either can I change the ownership of my property or can I transfer my property to another person? Changing the ownership of a real property asset is often a costly exercise incurring legal fees and either full or partial stamp duty on the transaction (usually with reference to the market value of the property around the time of the change of ownership). Furthermore any change of ownership may or may not achieve an intention of asset protection. It is a case by case scenario which is rarely simple and straightforward. To avoid this complicated step, you need to know your buying legal structure prior to beginning your property search and arranging your finance. When you find a property you want to make an offer on, things can move very quickly, and you want to have your legal affairs in place prior to signing a contract. Similarly for couples it is important to discuss whether 2 individuals wish to purchase a property as joint tenants or tenants in common when purchasing as individuals. By consulting a lawyer at the start of the process you will have the option and time to carefully prepare for these important decisions.
Finance Arrangements and Budgets.
Before identifying your market preferences, it is helpful to determine your budget range and limit, noting that there is often a temptation to go beyond a purchaser’s budget at auction or when looking at properties above your budget. It is vital to have a clear plan as to how you will be paying for your property. For most buyers, the purchase price is paid with a combination of savings and borrowings, noting that a 10% deposit is normally required for exchanging contracts. Most loan approvals will have a strict time limit, and any loan or finance approval will need to match your legal structuring plan referred to in step 1. Keep in mind you need to budget for stamp duty, legal fees plus disbursements and loan fees. There are also incidental costs such as moving/ relocation costs or purchasing new furniture, planned maintenance, renovations or improvements. Once you have determined your budget, you can then confidently begin researching the property market.
Know your Market - Research Past Sales.
Use realestate.com.au or domain.com.au to research past sales in suburbs and areas that you are interested in. Past sales are generally the best indicators of a potential price range for a new property. Utilise the search functions on those websites so you can gain a clearer picture of what a a particular style of property is worth in your suburbs of interest. You can compare the prices of property within a suburb with similar features. Talking to real estate agents about previous sales can also provide helpful insights into the property market. Items such as number of bedrooms or car-spaces can have a significant impact on prices, and prices within suburbs can vary significantly based on location within the suburb. The property market moves fast and disappointment over missing a property can be a common experience when buyers are not prepared.
Select your Target Suburbs and Property Types.
Try and narrow your search down to a few suburbs, in some cases, we have known buyers who have restricted their searches to a number of streets within a suburb. This is a difficult step - do you want to live in the city, close to nature, near public transports and shopping precents, by the river or the beach, or close to work, family and friends. It is easy to be distracted by looking at similar priced properties in areas and regions outside your target suburbs, i.e. a small city apartment may be the equivalent price of a 4 bedroom house in the country. Planning is crucial, and it helps to be clear about whether you are looking for a unit or apartment, a townhouse or villa, an existing house (standalone or shared walls), vacant land, or a house and land package. Rural properties or acreage properties require additional planning and thinking for knowledge of infrastructure, utilities and services. The wider your target suburbs and property types, the more likely that you may become confused or unsure about market value. In our experience, looking for bargains can be exciting, and on some occasions excellent value can be achieved by buyers, but in the vast majority of cases, properties sell around market value or above.
Prepare for being (a) Ready to Exchange or (b) Bidding at auction.
If you engaged a solicitor at Step 1, this will be easy as you should discuss the process of exchanging a contract or attending an auction with your solicitor. If not, it is prudent to engage a solicitor so that you understand the purchasing process and ensure that you have a solicitor on call who can perform a contract review for you at short notice.
At Angophora Legal, we often take calls from clients needing a same day contract review and we will go out of my way to facilitate this for our clients (and yes agents and sellers may push to finalise a sale on a Friday evening or Saturday morning).
Inspections & Identifying Properties that meet your Criteria
Take your time when physically inspecting a property and look at each room in detail. Ask to see any areas which are not open for inspection and take time to carefully look around outside areas and gardens. Think about what repairs, improvements or maintenance might be required in the short term and long term. Most inspections go for approximately 30 mins, and real estate agents will usually have to close up the property after the 30 min period. It is always return to carry out multiple physical inspections, and these can usually be arranged with the real estate agent after hours.
Have your Solicitor Review the Contract of Sale.
Once you have found a property that has met your search criteria, we recommend that you have a solicitor carry out a thorough contract review for you so that you have a clear and meaningful understanding of the property you intend to purchase and to understand what rights you will have as a purchase. What exactly are you buying? What are the terms and conditions in the contract? Speak to your solicitor if you are concerned about any urgency in having a contract reviewed. If you engage a solicitor, your solicitor can also negotiate on your behalf to attend to any amendments or changes to the Contract of Sale prior to exchanging contracts. It is often prudent to have a solicitor handle negotiations on your behalf when it comes to corresponding with the solicitor or conveyancer for the seller. There are several important legal factors to consider when exchanging contracts, such as - the amount of the deposit, whether there is a cooling off period, the arrangements for a building and pest inspection, conditional contracts, settlement periods, compliance issues, strata reports and special conditions. A solicitor is the best person to guide you on how the purchasing transaction operates and will advise you on the terms and conditions of the sale.
Building and Pest Inspection Reports.
In NSW, you are generally purchasing the property in the condition of that property at the time of exchanging contracts. Most contracts are drafted on the premise that the buyer is responsible for researching or investigating the condition of the property. If you are buying a property, it is always useful to obtain a building and pest inspection. A building and pest inspection will give you information about the condition of the building and may identify building defects. Make sure that you arrange for a pest inspection report, if one is not included with your building report. The NSW Department of Fair Trading provides a helpful guide to information about property conditions and building and pest inspection reports in this link. You should discuss with your solicitor the timing of any Building and Pest Inspection Report.
Making an Offer or Attending at Auction.
This is an exciting moment. There are however a range of things to consider, and we believe that the earlier you speak to a lawyer the better your understanding of the process will be. Finally, keep in mind that financial scams continue to increase in scope and sophistication and regularly target the property market. Take time to speak to your lawyer about what steps you can take to ensure any financial payments or transactions are secure.
At Angophora Legal, we are passionate about explaining the intricate details of contracts and the sales process to our clients. We also genuinely enjoy engaging and working with our clients in the buying journey and looking at the wide range of properties available in NSW.
When it comes to planning, exchanging contracts and settlement, there will be several important decisions to discuss with your solicitor. We are always available to our clients in those moments to ensure you are informed and empowered to navigate the sales process. We operate on a fixed price model for conveyancing services.
Please contact our firm on (02) 9238 2274 or email info@angophoralegal.com.au to discuss your enquiry and obtain a quote.