LAW & ORDER
Your legal obligations when buying a house
Purchasing a home is one of the biggest financial decisions most people will ever make. In New South Wales( NSW), buyers have several legal obligations that must be met during the property purchase process. Understanding these responsibilities is essential to ensure the transaction proceeds smoothly and legally. 1. Review of the Contract of Sale Before you commit to purchasing a property, the seller must provide a valid contract of sale. This legal document outlines the terms of the sale, including the purchase price, settlement date, any special conditions, and inclusions such as fixtures or appliances. You are legally entitled to have the contract reviewed by a solicitor or licensed conveyancer, and it is highly advisable to do so. They will check for any issues, such as easements or restrictions, that might affect your future use of the property. 2. Cooling-Off Period If you purchase a property through a private treaty( not at auction), you are entitled to a five-business-day coolingoff period. During this time, you can change your mind and withdraw from the contract. However, if you do so, you will forfeit 0.25 % of the purchase price. This period can be waived or extended by agreement, but waiving it must be done through a solicitor’ s certificate. 3. Pre-Purchase Inspections Although not strictly mandatory, arranging building and pest inspections is a practical and often expected step. These inspections help identify any structural issues or pest infestations that may affect your decision to proceed with the purchase. If you skip this step and later discover problems, you may have limited legal recourse. 4. Financial Obligations In addition to the purchase price, you are responsible for several legal and financial costs, including:
• Stamp duty – a state government tax based on the property’ s value.
• Legal and conveyancing fees – for managing the transaction.
• Lender fees – if you are taking out a mortgage. Failure to pay these on time can delay or even derail settlement.
5. Settlement Process
Settlement usually occurs six weeks after the exchange of contracts. At this stage, legal ownership of the property transfers to you. Your solicitor or conveyancer will work with the seller’ s representative to ensure all conditions are met, funds are transferred, and documents are lodged correctly with NSW Land Registry Services.
By understanding your legal obligations as a buyer in NSW and engaging qualified professionals, you can confidently navigate the purchase process and protect your investment.
New Day Legal offers personal, reliable legal services that strive to achieve best outcomes for our clients.
Evelyn Beaver, our Principal Solicitor, has extensive legal experience across a range of practice areas. New Day Legal is well established in the Riverstone area and surrounding suburbs.
We are a client-focussed service and pride ourselves on delivering positive and innovative solutions.
PRACTICE AREAS
• Contested Estate Litigation and Family Provision Claims
• Property and Conveyancing Law
• Local Government and Planning Law
• Wills, Powers of Attorney, Appointment of Enduring Guardians and Advance Care Directive
• Estate Planning Advice and Superannuation Law
• Elder Law
• Family Law
• General Business and Commercial Law
We welcome your enquiries about how we can help you. Phone 9627 2051 or email to info @ newdaylegal. com. au. Located at 47 Garfield Road East, Riverstone with easy parking( next door to 7-Eleven). New Day Legal – Law with Innovation
THE HAWKESBURY INDEPENDENT theindependentmagazine. com. au ISSUE 179 // APRIL 2025 27