When selling your home in NSW, understanding your obligations as a seller extends beyond simply handing over the keys. Many sellers are uncertain about exactly what condition they need to leave their property in for the buyer, especially when the sale includes “vacant possession”. Getting this wrong can lead to settlement delays, legal disputes, and unnecessary stress during what should be an exciting milestone.

Your Legal Obligations as a Seller

Present Condition Requirements

The standard NSW contract for sale requires sellers to deliver the property in the same condition as at the date of exchange, allowing only for fair wear and tear. Most contracts also include a “present condition” special condition, meaning the property is sold “as is”. This doesn’t give you carte blanche to neglect the property, but it provides reasonable protection for normal deterioration.

Fixtures and Inclusions Must Stay

All fixtures (built-in appliances, light fittings, benchtops) and inclusions listed in the contract must remain with the property. However, any chattels (personal property) not specifically listed as inclusions must be completely removed by settlement. This distinction is crucial and often misunderstood.

Cleanliness Standards

While professional cleaning isn’t legally required, the property should be left in a reasonably clean state. Disputes can arise if the property is left dirty or with rubbish, though minor debris that doesn’t substantially interfere with the buyer’s use typically won’t constitute a breach. Best practice is simple: leave the property in the condition you’d want to receive it if you were the buyer.

Repairs and Damage Between Exchange and Settlement

You must not allow the property to deteriorate or sustain damage between exchange and settlement, except for normal fair wear and tear. Substantial damage may entitle the buyer to delay settlement, seek a price reduction, hold back purchase funds, or in extreme cases, terminate the contract.

Understanding “Vacant Possession”

“Vacant possession” is usually ticked on the front page of your contract for sale, and it requires the property to meet three key conditions by settlement:

The Property Must Be Unoccupied

No person, including tenants or yourself as the seller, can be in occupation at settlement. This requirement is absolute when vacant possession is specified.

Free of Personal Belongings

All personal belongings, furniture, and items not included in the contract must be completely removed from the property. This includes everything from obvious furniture to less obvious items stored in garages, sheds, or under the house.

Free of Rubbish and Debris

All rubbish and debris not listed as inclusions must be removed. This is one of the most common sources of settlement day disputes. Sellers often leave behind items like old bricks, tiles, debris under the house, behind sheds, or old paint tins thinking the buyer might want them. If you believe certain materials might be useful to the buyer (like matching tiles for future repairs), get their written agreement beforehand to avoid last-minute disputes.

Note: If your property is sold “subject to existing tenancies”, the buyer takes over the tenancy arrangements and you’re not required to provide vacant possession.

The Final Inspection Process

Buyers are entitled to conduct a final inspection in the days before settlement (often on settlement morning) to confirm the property is vacant and meets the agreed conditions. This inspection is their opportunity to verify you’ve met all contractual obligations.

Failing to meet your obligations can result in:

• Delayed settlement
• Legal disputes and associated costs
• Unnecessary stress during your property transition

Moving Forward with Confidence

As Penrith property specialists, we understand that selling your home involves both emotional and legal complexities. The legal requirements might seem detailed, but they’re designed to ensure fair outcomes for both buyers and sellers in property transactions.

Whether you’re preparing for settlement or have questions about your obligations as a seller, we’re here to provide clear, practical guidance that helps you navigate this milestone with confidence.

Ready to ensure your property sale proceeds smoothly? Contact Complete Legal today for expert conveyancing support that protects your interests and keeps your settlement on track. Our experienced team makes complex property law clear and manageable, giving you the confidence to focus on your next chapter.