Hello,
To make life a little easier, we have put together the most common legal jargon used throughout the duration of a conveyancing matter, along with an explanation.
Conveyancing: The act of transferring property title from one person (Vendor) to another (Purchaser).
Contract: A contract for the sale of land between a Vendor and Purchaser to buy and sell a specified parcel of land.
Cooling-Off Period: A period of days which commences immediately after entry into certain contracts during which the purchaser may rescind the contract, usually subject to a small monetary payment to the other party.
Cooling-Off Periods tends not to be applicable when buying Vacant Land.
Deposit: A sum of money, usually 10% and or 5% of the purchase price, put down to secure the parcel of land.
Deposit Bond: A guarantee made by a financial institution that in the event the purchaser defaults from the contract the financial institution guarantees to pay the 10% deposit owed to the vendor.
Disbursements: Miscellaneous expenses other than our fees which paid on behalf of another person and for which reimbursement will eventually be demanded of that person ie. certificates from councils etc.
Easement: A right enjoyed by a person in regard to the land of another person.
Exchange: The formal process within a conveyancing transaction in which we physically trade contracts with the purchaser. This is when the contract becomes legally binding.
Purchaser: This is another name for the buyer of a property.
Pre-approval: The bank has agreed to lend $$$, however the purchaser must meet the banks criteria. Pre-approval is not the same as Unconditional Approval
Requisition On Title: A series of questions, inquiries, and requests addressed by a purchaser of an estate of land to a vendor regarding the vendor’s title.
Section 603 Certificate: A certificate applied for through the local concil of your proposed purchase which outlines any outstanding accounts for rates and/or water. These are used to calculate the amount of money each party (vendor and purchaser) is liable for respective of the time each party is in ownership of the property.
Settlement: The completion of the transaction when ownership of the property is transfered from the vendor to the purchaser.
Stamp Duty: A tax imposed by all Australian states on documents or transactions that affect or record the transfer of the ownership of assets.
Strata Title: Is a form of Torrens Title which relates to properties which form part of a Strata Plan. Properties included under this title are usually units, villas and townhouses.
Torrens Title: The most common type of title to land. Once you are registered as the proprietor.
Transfer: A document, usually a piece of paper showing the title particulars of a property, which passes title to a purchaser.
Unconditional Finance Approval: When you have met all the criteria of your lender and we have written confirmation that it is unconditional. Finance may be conditional upon a valuation. This does not constitute unconditional finance.
Vendor: This is another name for the seller of a property.