The first time through

First home buyers

Nobody explains the order things happen in, so the first purchase is usually made under time pressure with half the information. This page sets out the sequence, and the points where a decision cannot be undone.

General information, not legal advice. This page sets out how the law generally applies. It does not take account of your circumstances, and you should get advice about your own situation before acting on it. The official sources this page is written from are listed on it; where they differ from anything here, they are the authority.

Who this page is for

Nobody has told you the order

The hardest part of a first purchase is not any single step. It is that the steps arrive out of order, from different people, and the ones that matter most look like paperwork. An agent hands you a contract and a pen. A broker sends a pre-approval letter that reads like an approval. An auction is on Saturday. Somewhere in there are two or three decisions that cannot be reversed.

Here is the order that actually works. Get your finance to a point where you know what you can borrow and on what conditions. Ask the agent for the contract on any property you are serious about, and send it to us before you make an offer. Arrange a building and pest inspection, and a strata report if it is a unit. Then decide what you will pay, knowing the duty figure as well as the price.

After that the route splits. On a private treaty sale you make an offer, the contract is negotiated, you exchange and the deposit is paid, and a cooling-off period generally applies unless you have waived it. At an auction there is no cooling off at all, so the finishing line is the bidding, and everything must be complete before it.

Then comes the quiet stretch: finance finalised, searches and certificates, duty dealt with, adjustments checked, and settlement completed electronically. Most of that happens without you having to do much, which is the point. The work that protects you was done before you signed.

How we help

What the work actually is

Reviewing the contract before you offer

The whole contract, including the special conditions, the attached documents and the section 10.7 planning certificate. Our guide to what a contract review actually checks sets out what we look for and why.

Explaining what you are about to be bound by

In plain words, before you sign: what the settlement period commits you to, what happens if your finance does not come through, what the deposit is at risk for, and what the vendor can and cannot do.

Advising on cooling off and on auctions

Whether a cooling-off period applies, what it costs to use it, and what a section 66W certificate gives up. If you are bidding at auction, we make sure the preparation is finished before the day, because afterwards is too late.

Checking the duty position and the concessions

Whether you meet the criteria Revenue NSW publishes for first home buyer assistance, what evidence it needs, and what the duty figure means for the number you can afford to bid.

Getting the title right at the start

Whose names go on the title and in what shares. It affects duty, it affects what happens if circumstances change, and it is much more expensive to alter after settlement than to decide before exchange.

Exchange through to settlement

Arranging exchange, ordering searches, dealing with your lender, checking the adjustments for rates and water, and completing settlement electronically so the keys and the title arrive together.

Questions

Questions people ask first

When do I need a lawyer — before or after I find a place?

Before. The work that protects you happens between finding a property and signing for it, and that window can be a few days. Talk to us when you start looking seriously, and send the first contract you are given.

What is exchange?

Exchange is the moment the contract becomes binding. Two signed copies are swapped and the deposit is paid. Before exchange there is no contract, however much has been agreed in conversation. After exchange, subject to any cooling-off right, you are committed.

Is my offer binding?

An offer accepted by an agent is not the same as a contract. In New South Wales the binding point is exchange. That is also why a property can be sold to someone else after your offer is accepted, which is frustrating and lawful.

What happens if my finance is not approved after I exchange?

If the contract is not conditional on finance, you are still bound to complete. Failing to complete generally puts the deposit at risk and can expose you to further claims by the vendor. That is why the state of your finance is the first thing we ask about.

Do I get a first home buyer concession on duty?

You may, if you meet the criteria Revenue NSW publishes. They look at whether you and anyone buying with you have owned residential property before, at citizenship or residency, and at whether you will move in and live there for a period after settlement. The thresholds change, so check the current ones on the Revenue NSW site before you plan around them.

How much do I need beyond the deposit?

Transfer duty, the legal costs, the searches and certificates, the building and pest inspection, a strata report for a unit, your lender’s fees and the moving costs. It is a meaningful sum and lenders generally do not advance it. Work it out before you bid rather than after.

Do I really need a building and pest inspection?

It is not compulsory and it is one of the better uses of money in the whole process. A contract review tells you what the document does to you. An inspection tells you what the building is. For a unit, add a strata report so you also know the state of the scheme.

Can I buy with a friend or a family member?

Yes, and it is worth thinking about before you sign. How the title is held changes what happens if one of you wants out, if one of you dies, or if one of you cannot pay. It can also affect the duty concessions. Raise it with us early, because it is a decision made before exchange.

What to send us

You do not need to have everything. Send what you have and we will tell you what is missing.

The contract for sale, in full, for any property you are serious about.
The property address, and whether it is a house, a unit, a townhouse or land.
Whether the sale is private treaty or auction, and the auction date.
Your lender or broker, and whether you have pre-approval or formal approval.
The full legal names of everyone buying, and how you intend to hold the title.
Whether any of you has owned residential property before, in Australia or overseas.
Your citizenship or residency status.
Any building, pest or strata report you already have.
The date you need to move in, and any lease you have to give notice under.