Buying and Selling a Property at the Same Time: What You Need to Know

Buying or selling property is one of life’s biggest financial decisions. Managing a property sale and purchase at the same time can add extra stress and complexity.

This process is known as a simultaneous settlement. It occurs when you sell your existing property and complete the purchase of another property on the same day.

A simultaneous settlement requires careful planning, communication and coordination between your conveyancer or solicitor, your lender and the other parties involved in both transactions.

What Is a Simultaneous Settlement?

A simultaneous settlement occurs when the sale of your current property and the purchase of your new property settle together.

Many people use this approach when they need the funds from their property sale to complete their purchase. This is common when a family sells their home to:

Upgrade to a larger property.
Downsize after children leave home.
Relocate to another area.
Move closer to family or work.

With the introduction of e-conveyancing in NSW, settlements are now conducted online without the need to meet with the bank and lawyers for the other party, through platforms such as PEXA, which allows banks, lawyers and conveyancers to complete settlements online.

Why Choose a Simultaneous Settlement?

A simultaneous settlement can provide practical benefits, especially for homeowners who need to sell their current property before purchasing another.

Benefit	How It Helps
Move once	You may avoid moving into temporary accommodation or storing your belongings between properties.
Reduce additional costs	You may save on removalist expenses, storage costs and short-term rental accommodation.
Manage your finance	The proceeds from your sale can contribute towards the purchase of your new property.
Coordinate services	You can arrange the connection and disconnection of services around one moving date.

What Happens During a Simultaneous Settlement?

A simultaneous settlement requires your property sale and purchase to proceed together. Because the transactions depend on each other, delays with one transaction can affect the other.

The circumstances of the other buyers and sellers can also impact the process. For example, if another party in the chain experiences a delay, this may create complications for your settlement.

The Settlement Process

On settlement day:

The funds from your property sale are received.
Your existing mortgage is paid out if required.
Funds are applied towards the purchase of your new property.
Your new mortgage is registered against the purchased property.
Ownership of the properties transfers once settlement completes.

Although the final settlement process may only take minutes, preparation often begins weeks or months earlier.

Your solicitor or conveyancer will coordinate with the relevant parties to ensure contracts, finance arrangements and settlement requirements are ready.

Legal Considerations When Settling Two Properties at Once

A simultaneous settlement can make moving between properties easier, but it also creates legal and financial risks that require careful management.

Once contracts exchange, the parties become legally committed to the transaction. If a party fails to complete the contract, significant consequences may follow.

Before committing to purchase a new property, you should understand whether your existing property sale is secure and whether the timing of both settlements is realistic.

Your lawyer can help by:

Reviewing your sale and purchase contracts.
Negotiating appropriate settlement dates.
Identifying risks before contracts exchange.
Communicating with other parties involved in the transaction.
Helping prepare contingency plans.

For general information about buying and selling property in NSW, you can also refer to NSW Government property buying and selling information.

Should You Sell First or Buy First?

There is no single option that suits everyone. Your decision will depend on your financial position, the property market and your personal circumstances.

Option	Advantages	Potential Risks
Sell first and buy later	You know exactly how much money you have available. You may have stronger negotiating power as a buyer. You avoid owning two properties at once.	You may need temporary accommodation. You may need storage while searching for a new property.
Buy first and sell later	You can secure your preferred property before it sells. You avoid missing out on a suitable home.	You may need to manage two mortgages. You may require bridging finance. You may feel pressured to sell quickly.
Simultaneous settlement	You can coordinate both transactions together. You may avoid temporary accommodation. You can use sale proceeds towards your purchase.	A delay in one transaction can affect the other. The process requires careful preparation.

Selling First and Buying Later

Selling your property before purchasing another home may be the safer option for some people.

The main advantage is that you know exactly how much money you have available after your sale completes. This can make budgeting and negotiating easier.

The downside is that you may need temporary accommodation while searching for your next property.

If your buyer does not need immediate possession, you may be able to negotiate a leaseback arrangement. This allows you to remain in the property for an agreed period after settlement.

If you need to relocate quickly and cannot sell immediately, renting your existing property for a short period may also be an option depending on your circumstances.

Buying First and Selling Later

Buying a new property before selling your existing property can provide certainty if you find your ideal home.

However, this option can create financial pressure. Unless you have significant funds available, you may need to manage two loans or obtain bridging finance.

If holding two properties becomes difficult, you may feel pressured to sell quickly, which could affect the price you achieve.

Planning a Successful Simultaneous Settlement

A successful simultaneous settlement depends on preparation and communication.

Before proceeding, consider:

Whether your finance arrangements are confirmed.
Whether your sale and purchase contracts allow enough time for settlement.
Whether all parties understand the settlement timeline.
What you will do if one transaction experiences delays.

Conclusion

Buying and selling property at the same time can simplify your move, but it also requires careful planning.

Your financial circumstances, the property market and your personal situation will determine the best approach for you.

A simultaneous settlement requires strong communication, negotiation and a clear contingency plan. If one transaction experiences problems, the other may also be affected.

This information is general only and does not replace legal advice specific to your circumstances.

Speak With a Property Lawyer About Your Settlement

If you need advice about buying, selling or settling property in NSW, Cunningham & Adam Solicitors can help you understand your legal obligations and options.