Glossary of Conveyancing Terms
Glossary of Wollongong Conveyancing Terms
Agent- the person who acts on behalf of another party in a particular transaction. In Real Estate the Agent is the Vendor's agent, whose purpose and authority extends to locating a Purchaser.
Auction- is a process of selling property whereby the parties engage to bid and the property is then sold to the highest bidder. Click here to find out more about Auctions.
Caveat emptor- a latin term meaning 'let the buyer beware'. The principle of 'buyer beware' has significant implications for people buying property in Wollongong and the Illawarra. Click here to find out more.
Completion date (often also called the settlement date)- the date at which settlement of the contract is scheduled to occur (being the date when the Purchaser pays the balance of the purchase price and may collect the keys). If the Purchaser is not ready to pay the balance of the purchase price by the Completion date the Purchaser may be liable to pay penalty interest along with other fees imposed by the Vendor. Click here to get advice on your Contract now.
Contract of sale- a written agreement which contains all of the terms and conditions which govern the sale of the Real Estate from the Vendor to the Purchaser. Selling- Click here for a contract. Buying- Click here for Contract advice.
Cooling off period- a period of time proscribed by the Conveyancing Act during which the Purchaser under the Contract of Sale may pull out of the contract. Click here to find out more about the Cooling Off period for properties located in Wollongong and the Illawarra.
Covenant- a promise that is tied to the title of the land. Covenants may restrict access to the property and impose positive obligations to the owners of the lands. Click here for Keira Conveyancing to advise you on the Covenants affecting your property.
Deposit- the amount paid to the Depositholder (usually the Agent) in order to bind the bargain between the Vendor and Purchaser. In NSW it is common to pay a 'holding deposit' and the balance of the Deposit at the end of the cooling off period. Before doing so you should ensure the contract contains a clause to allow the payment of the Deposit to be delayed until the end of the cooling off period. Click here for Keira Conveyancing to advise you if you covered before you sign the contract.
Easement- a right a third party has to use all or part of the property (fro example an easement for drainage). Easements can affect the use and enjoyment of the property. Click here for Keira Conveyancing to advise you on the Easements affecting your property.
Exchange- In NSW it is accepted that the exchange of contracts (being the process where the Vendor's signed counterpart contract and Purchaser's signed counterpart contract are exchanged bewteen the party's representatives) is the crucial and vital fact which brings the contract into existence.
Exclusions- any items, fixtures or building not include in the contract of sale. The vendor must remove these items, fixtures and building prior to Completion.
First Home Owner- the definition of a First Home Owner for stamp duty and First Home Owner Grant purposes varies. Click here to find out more about the First Home Owner Grant requirements and click here to find out more about the First Home Owner Stamp Duty Exemption Requirements.
Folio- the unique number registered by the Department of Land which identifies individual land holdings.
Inclusions- any item, fixture or building included in the contract of sale.
Joint tenants- ownership that jointly gives each tenant 100% share and right in the property. Property owned as joint tenants automatically passes to the survivor upon the death of the other joint tenant (ie. it does not pass according to the Will of the deceased).
OSR- Office of State Revenue is the State government body responsible for collecting revenue, outstanding fines and penalties, developing policy and implementing legislation relating to State taxation for and on behalf of the people of NSW.
Pest and building inspection- a professional inspection service undertaken to identify structural and pest problems with the property. Click here for more information on the importance of obtaining a pest and building inspection.
Purchaser- the party who has expressed interest in purchasing the property for an agreed value.
Refinance- renegotiation of a loan (often secured by way of a mortgage) on more favourable terms and conditions (most commonly a more favourable interest rate). Click here for our Refinance page.
Requisitions on Title- process where the Purchaser requests additional information about the title of the property from the Vendor to ensure the Vendor is in a position pass good title on Completion.
Settlement (also called the Completion)- the date at which settlement of the contract is scheduled to occur (being the date when the Purchaser pays the balance of the purchase price and may collect the keys). If the Purchaser is not ready to pay the balance of the purchase price by the Completion date the Purchaser may be liable to pay penalty interest along with other fees imposed by the Vendor. Click here to get advice on your Contract now.
Settlement Adjustments- the calculations undertaken to ensure the Vendor and Purchaser pay for services (including Council rates, Water rates and Strata levies) applicable to the time of their individual ownership of the property.
Sewer diagram- diagram provided by the local council which identifies wherein the property the sewage pipes lie.
Stamp Duty- additional amount payable to the Office of State Revenue on the purchase of a property. Certain stamp duty concessions are available for First Home Owners, Seniors, purchasers of new buildings and off the plan contracts. Contact us to see if you qualify for these concessions.
Strata report- review of the owners corporation financial position including the history of increases to strata levies and sinking funds and any outstanding liabilities.
Survey report- report prepared by a registered surveyor to note the dimensions of the property according to the registered plan in order to verify the location of the property, structures/improvements thereon and the boundaries.
Tenants in Common- type of ownership between more than one owner in a particular share (eg. 50/50 or 10/90). Upon the owners death property owned as tenants in common passes according to the Will of the deceased (see joint tenants above for alternate option).
Title deed (Certificate of Title)- the legal document issued by the Department of Lands which states the ownership of the land and restrictions on the ownership (see Easements / Covenants).
Torrens title- system of title by registration first developed by Sir Robert Torrens in South Australia in 1958. Torrens title replaced the need to trace the ownership of title back through generations of land owners.
Transfer- process of changing the registered proprietor/s of a property. The transfer document is often executed by the Purchaser's solicitor or conveyancer, although only the Vendor can sign that part of the Transfer.
Vacant possession- the property must be vacant for the Purchaser on Completion.
Vendor- the person/party selling the property.
Zoning certificate (s.149 certificate)- the Wollongong, Shellharbour or Kiama Council certificate required by law to be included in the contract for sale which discloses the zoning restrictions and state planning policies applicable to the land.