Navigating the property sales process

12 May 2023 · Vivid Land Team

At Vivid Land, our dedicated team implements the best campaign and strategy to market your property, ensuring you achieve a premium price. Here's what you need to know.

Preparing your contract of sale

Before advertising your residential property for sale, it is vital to prepare a contract of sale including essential documents such as title deeds, a drainage diagram and a current Zoning Certificate (s149) issued by the local council. If your property has a swimming or spa pool, additional requirements apply: a valid certificate of compliance, a valid occupation certificate with evidence of registration, or a valid certificate of non-compliance.

Failure to include these documents may grant the purchaser the right to rescind the sales contract within 14 days of exchange, unless settlement has already taken place. Verify your pool's compliance at the NSW Swimming Pool Register, and find more detail at NSW Land Registry Services.

Statement of Information and price advertising (2026 reforms)

From 29 June 2026, the Property and Stock Agents Amendment (Underquoting and Other Agent Conduct) Act 2026 requires a Statement of Information (SOI) for residential sales — setting out comparable sales and how the price was estimated. The SOI must be included in online advertisements, displayed prominently at inspections, and provided to prospective buyers within 2 business days on request.

The same reforms prohibit advertising or representing a selling price lower than the agent's estimated selling price, the highest bid known from a passed-in auction, or a written offer the seller rejected only because it was too low. Penalties for underquoting and related offences increased substantially, and further price-guidance changes take effect in late 2026.

Cooling-off

Private treaty buyers in NSW have a 5 business day cooling-off period after exchange — withdrawing during it incurs a penalty of 0.25% of the purchase price. There is no cooling-off period for sales at auction, and buyers cannot waive their cooling-off rights in most cases. The 14-day rescission right for missing contract documents is separate and additional.

Agency agreements for residential property sales

Choosing a real estate agent

Take the time to research and consult at least three agents. Confirm they hold a valid licence (checkable through the licensing authority), obtain a clear breakdown of their fees, inquire about their knowledge of the local area, and ascertain whether they adhere to a code of ethics. In NSW, agents must hold a real estate agent's licence issued by NSW Fair Trading.

Signing an agency agreement

Prior to marketing your property, an agency agreement must be signed. This document is legally binding, so read and understand its terms — and seek legal advice if you have any uncertainties.

Key elements of the agency agreement

• The services the agent will provide, including agreed fees or commission, and when payment is triggered.
• How and when commission is paid — for example, whether the agent can deduct their commission from the buyer's deposit.
• Scenarios where you may pay commission to multiple agents, and the warning (since 1 March 2015) about commission if the sale is not completed.
• The agent's authority to act on your behalf, such as exchanging contracts or making changes to the contract.
• An estimated selling price — single price or range. If a range is used, the highest price cannot exceed the lowest by more than 10%.

Termination of the agreement

Agency agreements can be open-ended or fixed-term, with the term negotiated between you and the agent. If you wish to terminate, provide written notice per the agreement's terms — and properly terminate before engaging another agent, or both agents may charge commission. Once an agreement is correctly rescinded, the agent cannot charge fees relating to it, and funds already paid must be refunded.

In summary

Prepare a comprehensive contract of sale with all necessary documentation. Select a licensed agent, understand your agency agreement, and negotiate where necessary. Should you decide to terminate, provide proper notice — and take advantage of the cooling-off period for additional review and advice.