- PO Box 6670 NORWEST, NSW 2153
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COMMON CONVEYANCING TERMS
A land title is a document that shows who owns a piece of land. It can also identify if there are any mortgages or other encumbrances on the property.
A plan that divides a parcel of land into community lots and common property, within the community plan can be areas set aside for such things as playing fields, swimming pool, club house and or other community activities. It allows for residential houses and strata units with the other activities within the community plan.
Title to land within a community plan.
The legal process required to transfer ownership of real estate
A person licensed by Government to advise on and prepare documents to transfer or convey ownership of real estate. Conveyancers are licensed in NSW to handle other transactions related to land and business transactions.
One party agreeing to follow certain terms, conditions or restrictions in regards to the property is called an encumbrance. This will be shown on the certificate of title and it's important to be aware of possible effects it may have on your use of the property.
When you buy a house, you usually have to put down a deposit. This is usually 10% of the sale price. If you've already paid a part deposit or holding deposit, this will count towards the 10% deposit. In some cases, you may be able to agree on a lower amount with the seller.
A legal right to use a designated part of someone’s land for a particular purpose.
A burden or charge registered on the title to the property such as a mortgage or caveat.
The highest interest in land that can be owned by an individual.
Goods or articles that can be removed from the property without causing damage.
A government tax payable by owners of a property (usually not their permanent place of residence) based on the value of the property.
Before settling on a property, it's crucial that purchasers conduct a final inspection to confirm that the condition of the property hasn't changed and that any inclusions listed are still present. This helps to ensure that there aren't any surprises down the line and that buyers are getting exactly what they expected.
The purchaser is always entitled to a final inspection of the property prior to settlement, in order to confirm that the condition of the property has not changed since first inspection, and that all inclusions are still present. This is subject to fair wear and tear, of course.
A right which gives a person access across certain land. (Usually land owned by someone else)
A registered surveyor will come onto the property and, using precise measurements, map out the placement of all structures on the land. This provides a written record of where everything is located in relation to property boundaries. The surveyor will also note any areas where the land or structures encroach onto a neighbor's property.
This is the day on which all monies are handed over in exchange for the title deeds and the day on which possession is normally given to the purchaser.
The person whose name appears registered on the certificate of Title as owner of land.
A land title is like a deed to a house. It proves that you own the property and can do whatever you want with it. Most land titles are registered with the government, which guarantees your ownership.
A valuer's written report showing their opinion of the property's value is usually required by a lender. This allows the lender to know the property's market value.
The contract between the parties is two-fold: first, each party signs an identical contract and exchanges them so that each holds the other party's signed contract. Second, the deposit is paid and the contracts are dated on the day of exchange. At this point, the parties are legally bound to the transaction and all conditions of the sale are solidified in the contract.
Purchasers have a five-day window after exchanging contracts to back out of the sale, but they'll lose 0.25% of the purchase price if they do. If the contract is explained by the purchaser's conveyancer and a section 66W certificate is signed, there is no cooling-off period. This is usually the case when the purchaser has been approved for financing and all inspections are done before entering into the contract.
The amount of stamp duty payable on the contract is determined by the sale price of the property. The higher the price, the higher the duty. Stamp duty is paid after contracts are entered into and usually before settlement of the transaction.
If you're buying your first home and the sale price is below a certain amount, you may be eligible for assistance with your stamp duty payment or a reduction in the amount you have to pay. You may also be eligible for cash grants if you're buying a new home.
Before you purchase a property, it's important to get your finances in order. The contract usually doesn't allow for wiggle room when it comes to finance approval, so if you're not able to complete the purchase, you could lose your deposit and get sued by the seller.
There are two ways that people can own property together. Joint tenants means that each person owns the property jointly and on the death of one of the owners the property automatically passes to the remaining joint tenant or tenants. Tenants in common mean that each person owns a share in the property and on the death of one party that share passes to whoever inherits their estate.
Items that cannot be removed without causing damage such as built-in cupboards, bath, toilet, stove etc.
On settlement day, the risk of insurance passes to the new owner. All building insurance should be in place before the purchase is settled. Your lender will need a copy of the policy before they agree to settle, so this will need to be done a couple of weeks before settlement.
An exclusive right to occupy land owned by someone else.
A non-exclusive right to occupy land owned by someone else.
This is the name given to the ownership of units, townhouses, villas. It is a form of Torrens title.
Deposit bonds are becoming a more popular method to guarantee payment of a deposit to a vendor, in lieu of paying cash, for a number of reasons. The main reason is that it is more cost effective than paying a cash deposit. Additionally, it allows the purchaser to not tie up all their assets in one property if they do not have the cash on hand to make a purchase. It is important to note that deposit bonds can only be used if the vendor agrees to accept it as such.
If a caveat is registered on the title it means that some other person has an interest in the land.