Buying or selling property feels straightforward until one clause, one delay, or one hidden cost turns everything upside down. Knowing what happens before, during, and after a deal protects your money, your timeline, and your peace of mind. Every step in this guide shows you how to stay in control and avoid costly mistakes.

Property Transaction Costs, Legal Terms, Key Steps

What Costs are Involved in Selling A House

Selling a house involves 9 types of expenses besides the house price:

1. agent commission
2. advertising
3. conveyancing services
4. discharge of mortgage
5. moving costs
6. cleaning
7. repairs
8. styling
9. settlement adjustments

The highest cost is usually the agent commission.

ANZ* estimates a range of 1.5% to 4.5% of the property value, which equals $7,500 to $22,500 on a $500,000 home. Advertising is commonly 0.5% to 1.0% of value, or $2,500 to $5,000 on a $500,000 home. Legal fees cover contract preparation, title checks, settlement coordination, bank payout, and adjustments for council rates or owners’ corporation fees.

Example:

A seller with a $900,000 Melbourne home paying 2% commission spends $18,000 before advertising, conveyancing, staging, cleaning, repairs, and moving. A rushed sale also costs money when missing documents delay settlement or force last-minute legal work.

*ANZ is Australia and New Zealand Banking Group

What does Unconditional Mean in Real Estate

Unconditional in real estate means a signed contract no longer depends on finance approval, building inspection, pest inspection, cooling-off rights, or any other condition.

Once a contract becomes unconditional, the buyer must complete settlement under the contract.

NSW gives:

• Residential buyers a 5-business-day cooling-off period after exchange
• Off-the-plan purchases receive 10 business days
• Auction purchases do not receive a cooling-off period.

Withdrawing during the NSW cooling-off period costs 0.25% of the purchase price, equal to $250 for every $100,000.

Example:

A buyer signs a $900,000 NSW contract with cooling-off rights and pulls out in time. The cost is $2,250. After the contract becomes unconditional, withdrawal exposes the buyer to far larger losses, including deposit loss, damages, or legal action.

What Happens on Settlement Day

Settlement day is the day the buyer pays the balance of the price and becomes the legal owner of the property.

NSW Government states settlement takes place around 6 weeks after exchange, unless the contract states another period. Electronic settlement now handles document lodgement and money transfer, with lawyers or conveyancers preparing financial details, verifying identity, and completing the transfer through an electronic workspace. Cheques and paper documents no longer drive NSW settlements.

• For buyers, the lender provides funds, the transfer registers, and keys become available once the settlement is complete.
• For sellers, the mortgage is paid out, the agent commission is deducted, and the remaining funds are released.

Settlement failure creates immediate stress because removalists, banks, agents, and incoming owners all depend on completion at the agreed time.

What is a Caveat on a Property

A caveat on a property is a legal notice lodged on the title by a person claiming an interest in the land.

Land Use Victoria defines a caveat as a document lodged by a person with a legal interest in property. Once registered, the caveat appears on the title and warns buyers about possible third-party rights. NSW Registrar General describes a caveat as a statutory injunction recording a claim to an estate or interest in land.

A caveat matters because it blocks or delays dealings until removed, withdrawn, or resolved.

Example:

A buyer runs a title search before signing and finds a caveat from a former partner, lender, or family member. Settlement then needs legal work before ownership transfers safely. Ignoring a caveat exposes the buyer to disputes after paying the deposit.

Need help with lodging a caveat? Reach out today, and we’ll handle all for you.

What Is a Conveyancer In Real Estate

A conveyancer in real estate handles the legal and administrative work needed to transfer property ownership from seller to buyer.

The work covers contract review, vendor statement checks, title searches, council and planning searches, settlement adjustments, lender coordination, electronic settlement, and post-settlement registration. ASIC MoneySmart recommends getting a solicitor or conveyancer to review a contract before signing because legal help reduces costly mistakes.

A conveyancer protects against different risks for each side. Buyers need contract advice, hidden title risks, stamp duty guidance, and settlement protection. Sellers need correct contract preparation, disclosure documents, payout coordination, and settlement completion. A good conveyancer turns confusing legal steps into a controlled process with fewer surprises.

What is a Pre-Settlement Inspection

A pre-settlement inspection is the buyer’s final check of the property before settlement.

Consumer Affairs Victoria says buyers are entitled to inspect the property at a reasonable time during the week before settlement.

The seller must hand over the property in the same condition as on the sale date.

Buyers should check included items, appliances, damage, keys, rubbish removal, fixtures, and repairs promised under the contract.

Example:

A buyer notices that a dishwasher no longer works, a light fitting has been removed, or damage has appeared after contract signing. The buyer then asks for repair, replacement, compensation, or a settlement adjustment before completion.

Pre-settlement inspection is not a second building inspection. It checks contract compliance.

What is Settlement

Settlement is the legal completion of a property sale, where the buyer pays the balance and ownership transfers.

In NSW, settlement is when the rest of the sale price is paid and legal ownership moves to the buyer. The NSW Government also explains electronic settlement requires a lawyer or licensed conveyancer who subscribes to an Electronic Lodgment Network.

Settlement includes lender payout, title transfer, duty assessment, rate adjustments, registration, and fund distribution. Buyers gain legal ownership after successful settlement. Sellers receive sale proceeds after loans, agent fees, and adjustments are handled. Settlement is the finish line of the contract, but post-settlement tasks still matter because title registration, council notices, and follow-up questions continue after completion.

What is Stamp Duty in Victoria

Stamp duty in Victoria, officially called Land Transfer Duty, is a state tax paid when a person buys or receives property.

The Victorian State Revenue Office says duty depends on the dutiable value, residency status, and any exemption or concession.

First home buyers pay no duty for eligible homes up to $600,000 and receive a reduced amount for homes from $600,001 to $750,000. Eligible purchasers must satisfy residency rules, including living in the home as a principal place of residence for 12 continuous months within 12 months of settlement.

Example:

An eligible first home buyer purchasing a $600,000 Victorian home pays $0 duty under the first home buyer exemption. A buyer purchasing above the threshold needs a calculation based on the dutiable value and available concessions.

How Much Is Stamp Duty in Victoria

Victorian duty applies when buying or receiving property. The taxable value is usually the higher of the purchase price or the market value. The Victorian SRO calculator uses the contract date and dutiable value to estimate duty.

General rates differ depending on whether the property is:

1. non-principal place (investment or commercial property)
2. principal place of residence (LOWER fees)

Below, you’ll find calculations and examples, so you can do the math yourself.

1. Stamp Duty for Non-principal Place

For non-principal place of residence property, current Victorian rates include:

• 1.4% up to $25,000,
• $350 plus 2.4% above $25,000 to $130,000, 
• $2,870 plus 6% above $130,000 to $960,000, 
• 5.5% from $960,000 to $2,000,000,
• $110,000 plus 6.5% above $2,000,000.

Non-Principal Place Of Residence Examples

Example 1: $400,000 investment property
The amount is between $130,000 and $960,000
Calculation:
$2,870 + 6% of ($400,000 − $130,000)
= $2,870 + 6% of $270,000
= $2,870 + $16,200
= $19,070
If the property value is $400,000, the stamp duty will be $19,070.

Example 2: $1,200,000 investment property
The amount is between $960,000 and $2,000,000
Calculation:
5.5% of $1,200,000
= $66,000
If the property value is $1,200,000, the stamp duty will be $66,000.

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2. Stamp Duty for Principal Place

For the principal place of residence property, current Victorian rates include:

1.4% up to $25,000,
$350 plus 2.4% above $25,000 to $130,000,
$2,870 plus 5% above $130,000 to $440,000,
$18,370 plus 6% above $440,000 to $550,000.

Principal Place Of Residence Examples

Example 1: $90,000 property
The amount is between $25,000 and $130,000
Calculation:
$350 + 2.4% of ($90,000 − $25,000)
= $350 + 2.4% of $65,000
= $350 + $1,560
= $1,910
If the property value is $90,000, the stamp duty will be $1,910.

Example 2: $400,000 property
The amount is between $130,000 and $440,000
Calculation:
$2,870 + 5% of ($400,000 − $130,000)
= $2,870 + 5% of $270,000
= $2,870 + $13,500
= $16,370
If the property value is $400,000, the stamp duty will be $16,370.

When Do You Pay Stamp Duty

Stamp duty is paid after signing the contract and before or at settlement, with exact timing handled by the conveyancer or solicitor through the state revenue process.

In Victoria, SRO assessment* depends on contract date, dutiable value, and eligibility for concessions. In NSW, Revenue NSW states that first home buyer assistance applications happen after the exchange of contracts, with settlement work completed through the lawyer or conveyancer.

Example:

A  buyer signs a contract, the conveyancer calculates duty, applies for concessions, lodges documents, and arranges payment before transfer registration. Late or incorrect duty handling delays settlement because title transfer and revenue requirements need alignment before ownership changes.

*SRO is short for State Revenue Office. It is a government authority in each state that handles taxes related to property, including stamp duty.

SRO assessment means the State Revenue Office reviews your property purchase and calculates exactly how much stamp duty you must pay. They look at the contract price, the market value, your status as a buyer, and any concessions you qualify for, such as a first-home buyer discount.

After checking all details, the SRO issues a final amount which must be paid BEFORE the property can be transferred into your name. Without completing the SRO assessment and paying the duty, settlement cannot be finalised, and ownership cannot legally change.

Who Pays Conveyancing Fees

Each party pays their own conveyancing fees in a standard property transaction.

The buyer pays for contract review, searches, duty work, lender coordination, transfer preparation, and settlement. The seller pays for contract preparation, vendor disclosure documents, discharge of mortgage coordination, settlement adjustments, and transfer completion. The NSW Government describes settlement work involving lawyers or licensed conveyancers for electronic settlement, identity verification, document preparation, and financial information.

Example:

A  buyer and seller in the same transaction hire separate conveyancers. The buyer’s conveyancer protects purchase risk. The seller’s conveyancer prepares the sale documents and completes the payout. Separate legal representation matters because each side has different duties, risks, and financial interests.