Adjustment of rates is a calculation made at settlement to ensure the buyer and seller each pay their share of property expenses, such as council rates, water rates, and strata levies, up to the settlement date. This ensures both parties only pay for the period they own the property.
A building and pest inspection is a report prepared by a qualified inspector that identifies structural issues, defects, or pest infestations in a property. Buyers commonly obtain this report before exchanging contracts to help identify potential risks or repair costs.
A caveat is a legal notice lodged on a property title that prevents certain dealings with the property until the caveat is removed. It is commonly used to protect someone who claims an interest in the property.
The certificate of title is the official record of property ownership held by the NSW Land Registry. It shows the legal owner of the property and includes details of any registered interests such as mortgages, easements, or covenants.
Completion, also known as settlement, is the final stage of a property transaction when ownership is officially transferred from the seller to the buyer, and the balance of the purchase price is paid.
A conveyancer is a licensed professional who manages the legal transfer of property ownership from one person to another. They prepare legal documents, conduct property searches, liaise with lenders and other parties, and ensure the transaction is completed correctly.
Conveyancing is the legal process of transferring ownership of property from a seller to a buyer. It includes preparing legal documents, reviewing contracts, conducting property searches, managing financial adjustments, and completing settlements.
The cooling-off period is a short time after contracts are exchanged during which the buyer may withdraw from the purchase. In NSW, this period is usually five business days. If the buyer cancels during this time, a small penalty fee may apply.
The contract for sale is the legal document that sets out the terms and conditions of a property transaction. It includes details about the property, the purchase price, the settlement date and any special conditions agreed between the buyer and seller.
The deposit is the amount paid by the buyer when contracts are exchanged. It is typically 10% of the purchase price, although this can vary if agreed by the parties. The deposit demonstrates the buyer’s commitment to the purchase and is usually held in a trust account until settlement.
Disbursements are costs paid by a conveyancer on behalf of a client during the conveyancing process. These may include fees for property searches, title checks, council certificates and other documents required to complete the transaction.
An easement is a legal right that allows someone to use part of another person’s land for a specific purpose. Common examples include drainage pipes, shared driveways, or access for utilities. Easements are registered on the property title and remain in place even if the property is sold.
An encumbrance is a legal claim or interest that affects a property. Common examples include mortgages, easements, or restrictive covenants. Encumbrances are recorded on the property title and may limit how the property can be used or transferred.
Electronic settlement refers to completing property transactions digitally using platforms such as PEXA. It allows conveyancers, lenders, and other parties to exchange documents and transfer funds securely without attending a physical settlement meeting.
Exchange of contracts is the stage when the buyer and seller sign identical contracts and swap them. Once this occurs, the agreement becomes legally binding. The buyer usually pays the deposit at this stage, and the settlement date is confirmed.
The First Home Buyer Assistance Scheme is a NSW Government program that provides eligible first home buyers with exemptions or reductions on stamp duty when purchasing residential property.
Gazumping occurs when a seller accepts a higher offer from another buyer after previously agreeing to sell the property to someone else, but before contracts have been exchanged. In NSW, agreements are not legally binding until contracts are exchanged.
Joint tenancy is a type of property ownership where two or more people own equal shares in the property. If one owner dies, their share automatically passes to the surviving owner or owners.
Land title is the official record that identifies the legal owner of a property and lists any registered interests such as mortgages, easements, covenants, or caveats.
A mortgage is a loan used to purchase property, where the lender uses the property as security for the loan. If the borrower fails to repay the loan, the lender may have the legal right to sell the property to recover the debt.
The mortgagee is the lender that provides the loan secured by a mortgage over the property.
A notice to complete is a legal notice issued when one party fails to complete the settlement by the agreed date. It gives the defaulting party a specified period of time to complete the transaction.
PEXA settlement refers to the electronic platform used in Australia to complete property settlements online. It allows conveyancers, lenders, and other parties to securely transfer funds and lodge documents with the land registry.
Purchaser is the legal term used to describe the buyer of a property.
Requisitions on title are formal questions raised by the buyer’s conveyancer to the seller’s conveyancer before settlement. These questions confirm details about the property and ensure there are no issues affecting the transfer.
A restrictive covenant is a legal condition registered on a property title that limits how the land can be used, such as restrictions on building height or property use.
A Section 10.7 Certificate is a planning certificate issued by the local council that provides information about zoning, land use restrictions and planning controls affecting a property.
A Section 66W Certificate is a legal document signed by a solicitor or conveyancer that removes the buyer’s cooling-off period when purchasing property in NSW.
Settlement is the stage of the conveyancing process when ownership of the property is transferred to the buyer and the balance of the purchase price is paid.
Settlement adjustments are financial calculations made during settlement to divide expenses such as council rates, water charges, and strata levies between the buyer and seller.
Special conditions are additional terms added to the contract for sale that modify or supplement the standard contract conditions.
A strata inspection report is a review of the records of a strata scheme. It provides information about the financial health of the building, maintenance history, insurance, and any issues affecting the property.
Strata title is a form of property ownership used for apartments and townhouses where owners hold title to their individual lot and share ownership of common property.
Tenants in common is a type of property ownership where two or more people own separate shares in the property. Each owner can sell or transfer their share independently.
A title search is conducted through the land registry to confirm the legal owner of a property and identify any registered interests such as mortgages, caveats, or easements.
Torrens title is the most common form of land ownership in NSW. Ownership is recorded in a government register and the registered owner is recognised as the legal owner.
Transfer duty, previously known as stamp duty, is a government tax paid when property ownership is transferred.
An unconditional contract is a contract where all conditions have been satisfied and both parties are fully committed to completing the property transaction.
Vendor is the legal term used to describe the seller of a property.
Vendor disclosure refers to the legal requirement for a seller to provide certain information about the property to the buyer before the contract is signed.
Zoning refers to local council regulations that control how land can be used. Zoning categories determine whether land can be used for residential, commercial, industrial, or mixed purposes.