Conveyancing Glossary
Property Law Terms
A comprehensive guide to common conveyancing and property law terms.
A
Adjustment
The process of dividing costs like rates and strata levies between buyer and seller based on the settlement date.
C
Caveat
A legal notice registered on a property title that warns others that someone has an interest in the property. Can prevent sale or mortgage until removed.
Certificate of Title
The official document proving ownership of land. In NSW, all titles are now electronic through NSW Land Registry Services.
Contract Date
In NSW, the date of exchange of contracts when the contract becomes legally binding.
Conveyancing
The legal process of transferring property ownership from one party to another, including searches, contract review, and settlement.
Cooling-Off Period
A 10 business day period after exchange during which a buyer can rescind the contract by forfeiting 0.25% of the purchase price.
Covenant
A restriction registered on a property title that limits how the land can be used or developed, such as building height limits or prohibited activities.
D
Disbursements
Out-of-pocket expenses paid by your solicitor on your behalf, such as search fees, registration fees, and government charges.
Discharge
The process of releasing a mortgage from the property title when the loan is paid off.
E
Easement
A right for someone else to use part of your land for a specific purpose, such as access, drainage, or utilities.
Encumbrance
Any right, interest, or liability attached to a property that may affect its value or use, such as mortgages, easements, or caveats.
Exchange of Contracts
The point at which signed contracts are swapped between buyer and seller, making the agreement legally binding in NSW.
F
Finance Date
The deadline by which the buyer must obtain formal finance approval. If not obtained, the buyer may be able to terminate the contract.
First Home Buyer Assistance
NSW stamp duty exemptions and concessions for eligible first home buyers. Full exemption on properties under $800,000.
Freehold
Complete ownership of land and buildings, as opposed to leasehold where the land is leased from someone else.
L
Lot Entitlement
The proportional ownership interest of a lot in a strata scheme, used to calculate levy contributions.
M
Mortgage
A loan secured against property. The lender holds a registered interest in the property until the loan is repaid.
P
PEXA
Property Exchange Australia - the electronic settlement platform used for all property transactions in NSW.
Pre-Settlement Inspection
A final inspection of the property before settlement to ensure it's in the same condition as when you bought it.
R
Rescission
The act of terminating a contract during the cooling-off period. In NSW, the buyer forfeits 0.25% of the purchase price.
S
Section 149 Certificate
A planning certificate from the local council that discloses zoning and planning controls affecting the property.
Section 66W Certificate
A certificate signed by a solicitor that waives the cooling-off period, confirming the buyer understands the consequences.
Settlement
The day when ownership officially transfers from seller to buyer. The buyer pays the balance of the purchase price, and the transfer is lodged.
Settlement Date
The agreed date for settlement, specified in the contract. Usually 42 days (6 weeks) after exchange in NSW.
Stamp Duty (Transfer Duty)
A NSW state government tax payable on property purchases. The amount depends on the purchase price and buyer circumstances.
Strata Scheme
A form of ownership for units and apartments where you own your lot and share ownership of common property with other lot owners.
Strata Certificate (Section 184)
A certificate from the strata managing agent providing financial and other information about a strata scheme.
Subject to Finance
A contract condition that allows the buyer to terminate if they cannot obtain finance approval by a specified date.
Survey
A detailed measurement and mapping of property boundaries, buildings, and features by a licensed surveyor.
T
Title Search
A search of NSW Land Registry Services records to confirm ownership, registered interests, and any encumbrances on a property.
Transfer
The legal document that transfers ownership of property from seller to buyer.
U
Unconditional
When all conditions in the contract have been satisfied or waived, making the contract fully binding with no remaining escape clauses.
V
Vendor
Another term for the seller in a property transaction.
VOI (Verification of Identity)
The process of verifying a person's identity, required before signing property documents to prevent fraud.