Selling Your Property Privately: Legal Essentials for Australian Homeowners

Selling your home without an agent offers greater control, flexibility, and savings—but it also comes with legal responsibilities. Whether you're managing the sale yourself or working with a conveyancer, understanding the legal framework is key to a smooth and compliant transaction.

What Is Conveyancing?

Conveyancing is the legal process of transferring property ownership from seller to buyer. It ensures the transaction complies with state-specific laws and typically includes:

• Drafting and reviewing contracts

• Managing deposit payments securely

• Ensuring all disclosures and tax obligations are met

• Coordinating settlement and title transfer

Engaging a licensed solicitor or conveyancer is strongly recommended to handle these tasks and protect your interests throughout the sale.

Core Legal Documents for Private Sales

1. Contract of Sale

This legally binding agreement outlines the terms of the sale, including:

• Buyer and seller details

• Property address and title particulars

• Sale price, deposit amount, and settlement date

• Included fixtures and any special conditions (e.g. subject to finance)

Without a valid Contract of Sale, the transaction cannot proceed.

2. Vendor Disclosure Statement

Also known as a Section 32 Statement in Victoria, this document provides key information about the property, such as:

• Council rates and zoning

• Utility connections

• Outstanding taxes or encumbrances

Disclosure requirements vary by state. For example, NSW and VIC require more detailed documentation, while QLD and WA place more responsibility on the buyer to conduct due diligence.

State-by-State Legal Requirements

Each state and territory has its own rules for private property sales:

• NSW & ACT: A Contract of Sale must be prepared before listing the property.

• VIC: A Section 32 Statement is required before accepting offers. A Statement of Information (SOI) must also be provided.

• QLD, WA, SA, TAS, NT: Contracts must be finalised before settlement, but pre-listing contracts are not mandatory. However, preparing them early is best practice.

Always check your local legislation before listing your property.

Managing the Deposit Securely

Who Holds the Deposit?

Once the Contract of Sale is signed, the buyer typically pays a deposit (often 10% of the sale price). This must be held in a trust account managed by a solicitor or conveyancer.

Why It Matters

• Sellers cannot legally hold the deposit in a personal or business account

• Funds are released only upon successful settlement

• Secure handling protects both parties and reduces the risk of disputes

What Happens After Signing? The Settlement Phase

Once contracts are exchanged, the sale enters the settlement period, which usually lasts 30–90 days. Key steps include:

• Transfer of Land: Updates government records with the new owner’s details

• Stamp Duty: Paid by the buyer before title transfer

• Capital Gains Tax (CGT) Withholding: Applies if the sale exceeds $750,000

• Verification of Identity: Confirms both parties are authorised to complete the transaction

• Rate Adjustments: Ensures council rates and utilities are settled before handover

Why Legal Support Is Crucial

Even in a private sale, professional legal guidance is essential. A licensed conveyancer or solicitor will:

• Ensure your documents meet state legal standards

• Draft and review contracts to prevent disputes

• Manage settlement and financial transfers

• Protect your rights throughout the process

Buyers should also seek legal advice to ensure fair and lawful negotiations.

When Should You Prepare the Contract?

• Before Listing: Required in NSW and ACT

• Before Inspections: Recommended in all states to avoid delays

• Avoid Reusing Old Contracts: Each sale is unique—always use a freshly prepared, property-specific contract

Final Thoughts

Selling your home privately can be a rewarding experience—offering more control and significant savings. But to ensure a legally sound transaction, it’s vital to understand your obligations and work with qualified professionals.

By preparing accurate contracts, disclosing key property details, and managing deposits securely, you’ll be well-equipped to navigate the legal side of your private sale with confidence.