Question 1

Is it legal to sell your house privately without a real estate agent in NSW?

Accepted Answer

Yes, it is 100% legal. In NSW, the Property and Stock Agents Act 2002 regulates the conduct of real estate agents, but there is no legal requirement to engage an agent to sell your own property. You do, however, require a licensed conveyancer or solicitor to prepare the contract of sale and execute the transfer of title.

Question 2

Who prepares the contract of sale for a private property transaction?

Accepted Answer

A licensed conveyancer or solicitor must prepare the contract of sale. Under the Conveyancing Act 1919 (NSW), a valid contract of sale containing prescribed disclosure documents (like title searches and zoning certificates) must be prepared and available before any residential property can be offered for sale.

Question 3

How do you exchange contracts in a private property sale?

Accepted Answer

Once price and terms are agreed, both the buyer and seller sign identical copies of the contract of sale. Their respective conveyancers or solicitors then formally exchange the documents and the buyer pays the deposit (usually 5% to 10%). Once exchanged, the contract becomes legally binding.

Question 4

Does a private sale still have a cooling-off period in NSW?

Accepted Answer

Yes, a standard private treaty or private sale has a statutory cooling-off period of 5 business days for the buyer after exchange. The seller is fully bound from exchange, but the buyer can withdraw by forfeiting 0.25% of the purchase price. The cooling-off period can be waived if the buyer provides a Section 66W certificate.

Question 5

Do sellers have to pay real estate agent commission in a private sale?

Accepted Answer

No. Because you are selling directly to a buyer without an intermediary agent, you pay $0 in real estate agent commissions. This saves the seller an average of 1.5% to 3.0% of the property value, plus thousands of dollars in upfront agency marketing and auctioneer fees.

Question 6

What documents must a seller disclose when selling property in NSW?

Accepted Answer

Under the Conveyancing (Sale of Land) Regulation 2022, vendors must attach prescribed disclosure documents to the contract. These include a title search, a Section 10.7 planning zoning certificate, a drainage diagram, sewerage service diagrams, and strata certificates (if selling a strata title unit).

Question 7

How does an off-market sale differ from a public sale?

Accepted Answer

An off-market sale is completed quietly without public advertising on realestate.com.au or Domain, without street signage, and without public open homes. A public sale involves open marketing campaigns designed to create competitive public bidding via auction or private treaty.

Question 8

What is a delayed settlement and when is it used?

Accepted Answer

A delayed or long settlement is a transaction where contracts are exchanged today but the final transfer of ownership and payment occur 3 to 12 months in the future. It is used by sellers who need guaranteed sale certainty today but require extra time to build, relocate, or plan their downsizing move.

Question 9

What is a lease and option agreement in property sales?

Accepted Answer

A lease and option agreement allows the seller to sell the property to a buyer but remain in the home as a tenant under a residential lease. The buyer holds a legal option to complete the transaction on agreed future terms. This structure unlocks home equity immediately while avoiding physical relocation.

Question 10

Do I pay capital gains tax (CGT) when selling my primary home privately?

Accepted Answer

If the property was your primary place of residence for the entire time you owned it and was not used to generate income, you are generally eligible for the main residence exemption. This means you pay $0 in Capital Gains Tax. Investment properties, however, are subject to CGT.

Question 11

Do sellers pay stamp duty when selling a house in NSW?

Accepted Answer

No. In New South Wales, stamp duty (transfer duty) is paid exclusively by the buyer. The seller does not pay stamp duty, although they are responsible for their own legal fees, land tax clearances (if applicable), and paying off any outstanding mortgage.

Question 12

What are the holding costs of waiting to sell a property?

Accepted Answer

Holding costs include mortgage interest repayments, council rates, water rates, strata levies, building insurance, and property maintenance. If you delay selling a vacant property in a correcting market, these holding costs can quickly erode the final net proceeds.

Question 13

Can I sell an inherited property before probate is granted?

Accepted Answer

You can prepare and exchange a contract of sale for an inherited property "subject to the grant of probate". However, you cannot legally complete the transaction or settle the property transfer until the Supreme Court of NSW formally grants probate to the executor.

Question 14

Who pays for the conveyancing costs in a private sale?

Accepted Answer

Both the buyer and the seller are responsible for paying their own respective legal representation fees. You will pay your own conveyancer or solicitor to prepare the contract of sale, manage negotiations, and coordinate settlement, while the buyer pays theirs.

Question 15

What is a Section 66W certificate in NSW property transactions?

Accepted Answer

A Section 66W certificate is a legal document signed by a buyer's solicitor or conveyancer that waives the buyer's statutory 5-day cooling-off rights. Providing this certificate at exchange makes the contract unconditionally binding on both parties immediately.

Question 16

How do you determine the value of a property before a private sale?

Accepted Answer

Sellers can determine value by ordering an independent valuation from a registered valuer (accredited by the Australian Property Institute) or by comparing recent, local sold data. Unlike agent appraisals, independent valuations are legally binding and conflict-free.

Question 17

Can a property portfolio be sold in a single bulk transaction?

Accepted Answer

Yes. A bulk or portfolio transaction allows investors holding multiple Sydney residential properties to bundle them into a single sale to a single direct buyer. This avoids managing multiple individual agent campaigns and listing fees.

Question 18

What happens on settlement day when selling privately?

Accepted Answer

On settlement day, the buyers lender transfers the remaining purchase funds to the sellers legal representative, who pays off the sellers mortgage. The legal title is updated on the NSW Land Registry, keys are handed over, and the transaction is complete.

Question 19

What is mortgagee in possession and how can it be avoided?

Accepted Answer

Mortgagee in possession is the legal state where a lender takes control of a property after default. Borrowers facing severe mortgage pressure can avoid foreclosure by selling their property privately to a direct buyer, clearing the debt before forced possession.

Question 20

Is Sell My House Privately a buyer or an agent?

Accepted Answer

We are an independent, neutral knowledge resource. We do not buy properties ourselves and we do not act as real estate agents. We educate owners on private sale methods and, if requested, connect them directly to our verified direct buyer partner in Sydney.

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