Whether buying or selling a property, it can be one of the most significant decisions and investments in your life, so you want to ensure it is done correctly.
One of the benefits of Catron Simmons Lawyers is that you know exactly who is handling your matter, and we are just a phone call away for any questions you may have. We also have the option to be entirely electronic, meaning there is no requirement to visit our office in Bella Vista, The Hills, Sydney, New South Wales unless you choose to do so.
At Catron Simmons Lawyers, we can help alleviate what often feels like a confusing and stressful time. We are here to guide you through the process and ensure it is as smooth as possible.
Buying your future home is an essential and daunting experience, but it doesn’t have to be that way with the assistance of Catron Simmons Lawyers.
Stages of Buying a Property
Pre-Approval (Before you start looking)
You will likely need to obtain a pre-approval loan from the banks to finance the purchase. We recommend that you do this before you start looking, so you know what your borrowing capacity will actually be. There is no point in looking at a two-million-dollar house if you cannot afford to service the mortgage.
Like with any contract, you should obtain legal advice to understand your rights and obligations, including any fees or restrictions that you may be subject to under the contract.
Found your Potential Property
Once you have found a property, it is always best for you to obtain a pre-purchase inspection. The most common reports are the building and pest inspection report and, for strata-run properties, a strata report.
These reports provide an assessment of the property’s condition and identify potential issues, ensuring you have all the necessary information to make an informed decision.
There are also some simple things that you can do to ensure the property is right for you. Examine the property thoroughly, talk to the neighbours, and ensure you are familiar with the area by going for a walk and driving around. Check out the local shops/schools/playgrounds/daycares, and other amenities.
With any property purchase, there is a degree of risk; however, off-the-plan contracts generally hold more risk than a property that has already been built. As you are unable to examine the quality of work, a number of these major construction firms can shut down mid-build, leaving you stranded. It is very important that you complete your due diligence for all properties.
Offer & Acceptance
If you are happy with everything, an offer is made for the property. It is important to remember that the verbal offer does not “secure” the property for you; an exchanged contract is required to ‘take a property off the market’. It is critical at this point to speak (if you have not already) with your lawyer, as your offer may be affected by information in the contract, for example, a large easement or restriction on the land.
The Contract / Exchange
With Cooling Off
If your offer is accepted, you will be required to sign the contract and pay 0.25% of the contract price to the agent with a 5-business-day cooling-off period. Meaning that you can pull out of the contract in this time and only lose the 0.25% deposit.
During the cooling-off period, you will need to make sure that you have obtained unconditional loan approval and completed all your pre-purchase inspection reports. At the end of the cooling-off period, you are required to pay the full deposit (being 9.75%) to the vendor’s representative (typically the real estate agent).
Auction Conditions: No Cooling Off
If your offer is accepted subject to a s66W or at auction, and you are purchasing the property without a cooling-off period. This means that when you sign the contract, unless in specific and often rare circumstances, you can terminate the contract without significant losses. Upon signing the contract, you are required to pay a 10% deposit to the vendor’s representative.
Contract to Settlement
After the contract has been signed, your solicitors will make a number of inquiries/tasks, including but not limited to:
How are you going to own the property:- Joint Tenancy or Tenants in Common
The solicitor will also be required to attend the settlement, along with the vendor’s solicitor and relevant financial institutions.
This is where the title for the property and keys will be handed over in exchange for the payment.
What does the 'cooling off' period mean?
The cooling off period is a period of time, typically 5 business days where the purchaser can change their minds and pull out of the contract.
If the purchaser does decide to pull out of the contract, they will lose their holding deposit which is typically 0.25% of the total purchase price paid on signing the contract.
There is typically no cooling off period on auctions, when the purchaser signs a s66W Certificate is signed waiving a cooling off right.
What is the difference between a private treaty or sale and an auction?
A private treaty occurs when a property is listed for sale, the purchaser makes an offer and it is accepted by the vendor. The contract is then signed and contracts are exchanged. There is typically then a cooling off period of five business days.
An auction is where prospective purchasers gather following a sale period and bidding is conducted on the property. Once the property is placed on the market is is a case of the highest bidder wins the property. Typically the purchaser signs a waiver of their cooling off rights.
What is a 66W and what is the effect of it?
A 66W certificate is the waiver by the purchaser to a cooling off period.
The effect of which means, that if a purchaser pulls out of a contract under the 66W conditions they generally forfeit the full 10% deposit of the purchase price.
There is also the risk that you may be liable for any difference between your offer and the subsequent sale of the property.
Under the Act, a s66W certificate must set out the following:
- the name of the legal practitioner and where they are admitted to practice (or the name or a licensed conveyancer);
- a statement that the legal practitioner provides the certificate in line with section 66W of the Act;
- reference to the name of the property, the vendors and the purchasers;
- confirmation that there is no cooling off period for the contract;
- a statement that the legal practitioner does not act for the vendors; and
- a statement that the legal practitioner has explained to the purchasers:
- the effect of the contract for the purchase of the property;
- the nature of a s66W certificate; and
- the effect of no cooling off period.
What is the difference between tenants in common and joint tenancy?
You should obtain legal advice on this issue as advice will differ according to each situation.
Joint Tenants
All own equal shares of the property proportionate to the number of tenants involved. Joint tenants have the right of survivorship, that is the percentage of the deceased person passes to the surviving other tenants.
Tenants in Common
Tenants in Common ownership is determinate according to the percentage each tenant holds in the property. This percentage is typically decide at the point of transfer and/or sale.
Tenants in common do not possess a right of survivorship and the deceased’s ownership of the property passes according to their estate.
More information on tenants in Common and Joint tenants.
Can Joint Tenancy be Severed
Yes, Joint tenancy can be severed converting the ownership structure to tenants-in-common, allowing you to leave your portion of the property to anyone you choose, rather than the other co-owners.
There are several reasons why severing a joint tenancy might be beneficial:
Control Over Your Share
If you prefer your share of the property to pass to someone other than the surviving co-owners upon your death, severing the joint tenancy allows you to specify this in your will.
Inheritance Preferences
For example, if you inherited property with siblings as joint tenants but wish for your share to go to your spouse or children, severing the joint tenancy ensures your wishes are honoured.
Blended Families
If you own property with a current spouse or partner but have children from a previous relationship, severing the joint tenancy allows you to provide for your children in your will.
Separation or Divorce
After separating from a spouse or partner, severing the joint tenancy ensures your share of the property does not automatically transfer to them upon your death.
What is stamp or transfer duty?
Stamp Duty is a tax charged by the government when you buy a house. The amount required to be paid depends on the property’s value and any concessions that may be applicable.
Transfer Duty Calculations from 1 July 2025:
| Property value |
Transfer duty rate |
| $0 to $17,000 |
$1.25 for every $100 (the minimum is $20) |
| $17,000 to $36,000 |
$212 plus $1.50 for every $100 over $17,000 |
| $37,000 to $99,000 |
$512 plus $1.75 for every $100 over $37,000 |
| $99,000 to $372,000 |
$1,597 plus $3.50 for every $100 over $99,000 |
| $372,000 to $1,240,000 |
$11,152 plus $4.50 for every $100 over $372,000 |
| Over $1,240,000 |
$50,212 plus $5.50 for every $100 over $1,240,000 |
Properties over $3 Million incur both standard transfer duty rate, as well as a premium duty rate.
Transfer Duty Calculator
Possible Concessions or exemptions from Stamp Duty:
Property over $3 million - What is Premium Duty rate
The premium rate applies to residential properties only worth over $3 Million. This surcharge is in addition the the standard transfer rate.
If your property is worth more than $3 million (as per the premium table above) and part of it is used for business, we’ll only take into account the part that’s used for residential purposes when applying the premium transfer duty threshold.
|
Property value |
Premium rate |
|
Over $3,721,000 |
$186,667 plus $7.00 for every $100 over $3,721,000 |
Properties for land over two Hectares
For large properties, the premium transfer rate is calculated only on the first two hectares of land you own, as a proportion of your overall parcel of land. The remainder of your property will be charged at the standard rate.
For example:
- your 10 hectare property is worth $20 million
- two hectares is 20 per cent of the total area
- 20 per cent of the value is $4 million
- you’ll pay the premium rate on the dutiable value above $3 million (as per the premium table above)
- the remaining portion will be charged at the rate for property worth over $1 million.
What is the First Home Buyer Assistance Scheme?
From 1 July 2023, a full exemption from transfer duty will be available if you are buying a new or existing home valued up to $800,000, while homes valued over $800,000 and less than $1,000,000 may qualify for a concessional rate.
If you are purchasing vacant land on which you intend to build a home, you may receive an exemption for land valued up to $350,000 and a concessional rate for land valued over $350,000 and less than $450,000.
| Property value |
Exemption |
| New and existing homes |
Value is equal to or less than
$800,000 |
Exempt
You can apply for a full exemption from transfer duty. |
| Value is above
$800,000
and less than
$1 Million |
Concessional rate
You can apply for a concessional transfer duty rate. |
| Vacant land |
Value is equal to or less than
$350,000 |
Exempt
You can apply for a full exemption from transfer duty. |
| Value is above
$350,000
and less than
$450,000 |
Concessional rate
You can apply for a concessional transfer duty rate. |
What is the First Home Owner (New Homes) Grant?
A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home.
Your first new home can be a house, townhouse, apartment, unit or similar that is newly built, purchased off the plan or substantially renovated.
If you purchase a newly built house, townhouse, apartment, unit or similar the purchase price must not exceed $600,000.
If you purchase vacant land and sign a building contract with a builder then we add the value of the vacant land plus the value of the comprehensive home building contract plus the cost of any building variations done together. The total combined cost must not exceed $750,000.
What is land tax? Do I have to pay that as well?
Land tax is a tax levied on the ownership of land. It is usually imposed annually and is based on the value of the land you own that are investment properties, meaning your principal place of abode is not included.
There is a land tax threshold below which land tax is not payable. For 2024, the threshold in NSW was $1,075,000. This means if the combined value of your land holdings is below this amount, you won’t be liable for land tax. If it’s above this threshold, you will pay tax on the value above it.
Calculate your land tax
What is a Strata Scheme?
A strata scheme is a building or collection of buildings that has been divided into ‘lots’. Lots can be individual units/apartments, townhouses or houses. When a person buys a lot, they own the individual lot and also share the ownership of common property with other lot owners. Common property generally includes things like gardens, external walls, roofs, driveways and stairwells.
It’s important for you to be aware of the additional and different responsibilities and responsibilities that apply to living in a strata schemes if you are considering purchasing a lot in a strata scheme. Some activities may be more restricted than if you were living in a freestanding house – for example, where you can park your car or how you can renovate your lot.
More information on Strata schemes.
What does Off the Plan mean?
“Off the plan” refers to the process of purchasing a property, typically an apartment or house, before it has been constructed. Buyers commit to buying the property based on architectural plans and drawings rather than seeing the completed structure.
There are a number of risks associated with any off the plan property.
What is PEXA?
PEXA is an acronym for Property Exchange Australia. PEXA is a platform or multi-level digital workspace that allows settlements to occur in the digital world in real time.
What is a deposit bond?
A deposit bond is essentially an insurance policy, the bond is a policy document that tells the vendor that the insurance company will pay the 10% of default of the contract.
Come settlement the deposit bond, the purchase price is paid in full and the bond simply lapses.
What is the difference between a Solicitor and/or Conveyancer?
Whether you hire a conveyancer or solicitor, it is critical to hire them at the outset of your transaction.
The advantage of hiring a solicitor is a greater level of knowledge in various areas of law, meaning that any legal issues that potentially arise can be quickly dealt with.
A solicitor generally able to provide a more focused client-based approach to the transaction.
Should I use a local Conveyancer / Solicitor?
You do not need to use a local conveyancer and/or solicitor, they must however, be registered within NSW.
At Catron Simmons Lawyers we can operate wholly electronically so there is no need to come into the office. Alternatively if you prefer however, we do of course accept in house appointments at no extra charge.
Frequently used terms in Property
Caveat – A notice on the title proclaiming an ‘interest’ over the property (other than the owner)
Certificate of Title – A document that shows the ownership and interest in the land/property under the Torrens System of title.
Easement – Right to use the land of another or a right to prevent the owner from using the land in a particular way. Common easements are drainage and electricity.
Lien – A charge, security or encumbrance on a property for the payment of debt.
Reserve Price – The lowest acceptable price fixed by the vendor.
Vendor – The person/unity selling the property.
Zoning – a local planning tool, controlling the current and future prospects of the land.