Understand NSW Property Purchasing Process – Existing Property

The property purchasing process for existing property is much easier than off-the-plan purchasing process. If you have not read our articles about off-the-plan property purchasing process, click here to learn more.

Existing property purchasing process

  • Step 1: New Contract – The seller issues new contract to the buyer.
  • Step 2: Holding Deposit – The buyer needs to put down a 0.25% deposit to hold the property.
  • Step 3: Sign Contract – Both parties (seller and buyer) sign the contract.
  1. Step 4: Contract Exchange – Contract is signed by both parties. At the point, the buyer can still withdraw from the contract.
    1. The buyer is given a 5 to 10 business days cooling off period.
  2. Step 5: 10% Deposit – To move the contract forward, the buyer needs to pay 10% (minus previous paid 0.25%) deposit.
  3. Step 6: Unconditional Contract Exchange – After putting down the deposit, the contract becomes unconditional. The buyer can not withdraw from the contract. Contract exchange date starts from now.
  • Step 7: Settlement – The property settlement is usually in 42 days. The date can be negotiated by two parties.
  • Step 8: Stamp Duty – The buyer needs to pay 4% stamp duty by the day of settlement.
  • Step 9: Handover – Congratulations! Now you have completed the purchasing process, and enjoy your new home.
    • Given the nature of existing property, it is usually “you get what you see”. Seller will not provide 3 months defects warranty.

Still a little confused about the whole process? Don’r worry our Realtisan team wants to invite you to a 45 minutes free private consultation.

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