How to Make an Offer on a Property in NSW
New South Wales at a glance
Key rules- When are you generally bound?
- At exchangeWhen signed contracts are formally exchanged between you and the seller.
- Cooling-off period
- 5 business daysTypically, ending at 5pm on the fifth business day after the day of exchange. For off-the-plan purchases, the standard cooling-off period is 10 business days.
- Cost to cool off
- 0.25% of the priceEquivalent to $250 for every $100,000.
- When does cooling off not apply?
- When buying at auction or exchanging contracts on the same day after a property is passed in at auction. It can also be waived by providing the seller with a Section 66W certificate.
- Key document
- Contract of saleSets out the property details and the terms of your purchase. Have your solicitor or licensed conveyancer review it before you sign or exchange.
- Can your offer include conditions?
- Only if they are negotiated with the seller and written into the contract. Conditions relating to finance, building and pest inspections or settlement may be requested, but they are not automatic.
- Buying at auction
- There is no cooling-off period. Have the contract reviewed, your inspections completed, your finance position confirmed and any proposed contract changes agreed before you bid.
Before making an offer
- Ask Black & White Finance to confirm your finance position and review any property-related lender risks.
- Send the contract to your solicitor or conveyancer.
- Complete the relevant building, pest, strata and property checks.
- Decide your offer, settlement preference and walk-away price.
- Put your proposed terms in writing, then follow your legal representative's instructions for exchange.
Below is the general playbook for putting in an offer in NSW and dealing with agents along the way. Read it once before you start inspecting seriously, then come back to it when you find the property you want.
The short version: get your contract reviewed, get your finance organised, do your due diligence, then make a clear written offer (price plus conditions) to the selling agent and negotiate from there. Your finance is our job, so that is one thing off your list.
Understand the sale method
Properties in NSW are commonly sold by private treaty, auction or expression of interest. Each method works differently, particularly around conditions, cooling off and when you become legally bound.
Compare auction, private treaty and expression of interest sales.
Get ready before you offer
Get a copy of the contract of sale early and send it straight to your solicitor or conveyancer for review. This should happen before you sign anything, and ideally before you go in hard with an offer. It is much easier to negotiate special conditions or walk away cleanly before you are emotionally attached to a number.
If you already have your pre-approval in place, you are one step ahead. You know your ceiling, and you can move quickly the moment you find the right property. If you have not started that conversation with us yet, now is the time.
Before you offer, ask us for a Cotality Property Profile Report on the property and we will send one over. Look at the comparable recent settled sales for similar properties in the same pocket, adjusting for land size, condition and any unique features, rather than relying on the price guide alone.
Who does what?
Black & White Finance
- Borrowing capacity and pre-approval with a lender in your best interests
- Lender policy, property risk awareness and Cotality reports
- Valuation and formal loan approval process
- Cash-to-complete calculations and finance readiness for settlement
- Loan documents, lender requirements and settlement readiness
Solicitor or conveyancer
- Contract and disclosure review
- Conditions and special clauses
- Cooling-off and notice deadlines
- Title, searches and settlement
- Legal remedies and contract advice
Buyer and inspector
- Decide the walk-away price
- Attend inspections – "House Hunting"
- Arrange building/pest inspection or Strata Reports
- Confirm inclusions and practical suitability
- Sign only after obtaining advice
How to structure your offer
State your price clearly and strategically. Base your number on comparable sales, competition and your maximum. The evidence and terms matter more than whether the number is round.
Include the key terms so there is nothing to guess at:
Deposit amount (the agreed deposit amount and timing, commonly 5% or 10% but negotiable. Confirm the arrangement with your legal representative and ensure funds are available when required)
Your preferred settlement period (42 days from exchange is common, but negotiable)
Any inclusions or exclusions you want confirmed
Whether you want the standard cooling-off period, or whether you are prepared to waive it
Where the property is not going to auction and the vendor will accept a conditional offer, add conditions such as finance approval, a satisfactory valuation, building and pest inspection, and a strata report if it is a unit. Your solicitor or conveyancer can advise on anything specific to the property.
Offer and exchange: there are three paths
Once your offer is accepted, you need to know which route you are taking to exchange. In NSW there are three.
Cooling off
5 business days · 0.25% to rescindA verbal acceptance does not exchange the contract. Once contracts are exchanged, the agreed deposit becomes payable and the statutory cooling-off period generally begins. If you validly rescind during that period, you forfeit 0.25% of the purchase price. Do not confuse that rescission cost with any initial or holding deposit requested by the agent.
Finance, valuation and inspection protections must be written into the contract if you want to rely on them. During the standard five-business-day period, you can complete outstanding checks and seek formal loan approval. If you decide not to proceed, your solicitor or licensed conveyancer must ensure the rescission notice is validly served before the deadline. If the deadline simply passes, you remain bound by the contract.
On a $900,000 property, the statutory rescission cost is $2,250. A Section 66W certificate waives the cooling-off period, so use one only after your finance position, contract review and property checks are sufficiently complete and your solicitor has advised you about the risk.
A 66W certificate
No cooling offA 66W certificate allows the buyer to waive the cooling-off period at or before exchange. Once accepted and exchanged (where all parties sign the contract in acceptance of the terms), your offer is then considered final, and you are committed to settle in 42 days or whatever term is agreed. Mere written acceptance of your offer by the vendor is not the same thing as exchange.
Your solicitor draws this 66W up for you, and upon exchange, you will put down the full 5 or 10 percent deposit. This is the path to take if you want to remove the property from the market decisively and show the vendor you are serious.
Be aware: there is no cooling off to fall back on, so if you cannot settle, you are in breach of contract and risk losing your full deposit, plus potential further legal liability. This may make the offer more attractive by giving the vendor greater certainty, but it materially increases your risk.
Auction
No cooling offIf you are the winning bidder, you must settle within the agreed period, typically 42 days, and you are then required to put down the full 5 or 10 percent deposit on the day.
Be aware: similar to the 66W path, since auction contracts are unconditional and binding the instant the hammer falls, you must then settle or face costly ramifications if you are in breach of your contract.
Both, buying with a 66W certificate and at an Auction, leave you without a cooling-off period, but the transaction mechanics differ.
Choose the path that matches how confident you are before you offer. If your due diligence is not finished, cooling off gives you room to move for a small amount at risk. If you want to lock the property away and signal strength to the vendor, a 66W or an auction bid does that, but only once your finance, your solicitor and your inspections are all sorted.
Ready to make an offer?
Reach out to your Black & White Finance broker or broker support manager for a tailored offer template. Have your solicitor or conveyancer approve the terms before you sign a contract or transfer a deposit.
Dealing with the agent in NSW
Agents are professional negotiators working for the vendor, not for you, so keep everything friendly but business-like. Treat it as professional, not personal, even when the pace feels intense.
Keep your communication short and clear. If you talk to the agent on the phone or in person, follow up straight after with a confirming email. That paper trail matters if there is ever a dispute about what was said or agreed. Even if the agent says the vendor has accepted your offer, the sale is generally not binding until contracts are exchanged. Contracts must be exchanged, and signed by both vendor and purchaser for the offer and acceptance to be final.
For the full playbook on reading the agent, structuring your offer and setting your walk-away price, see How much should I offer for a property? And for exactly what to ask them - and what the answers really tell you - see Questions to ask the selling agent.
Frequently asked questions
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Yes. You must engage a lawyer or licensed conveyancer who can complete the electronic settlement on your behalf. They will also review the contract, conduct searches, manage exchange and advise you about cooling-off and notice deadlines. Obtain a fee quote early.
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Exchange is when both parties sign the contracts and become legally committed, subject to the cooling-off period if you have one. Settlement is when the money changes hands, the title transfers to you and you get the keys. Settlement usually happens 42 days after exchange, though this is negotiable.
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Yes. Until contracts are formally exchanged, the seller can accept a higher offer from another buyer. This is exactly why it pays to move quickly and decisively once you are happy with a price.
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You notify the vendor’s solicitor or conveyancer in writing before 5pm on the fifth business day. You will forfeit 0.25 percent of the purchase price, and the remaining deposit will be returned to you. Your solicitor manages the formal steps and deadlines - simply letting the deadline pass does not withdraw you from the contract.
Please keep this page handy as a guide when the moment comes. Ready to make your move? Chat with our team and we will make sure your finance is sorted before you make an offer.
This page provides general information only and does not constitute credit, financial, legal or tax advice. Speak with a licensed solicitor or conveyancer for advice specific to your situation. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Credit Representative Number 494872 is authorised under Australian Credit License Number 389328.