Conveyancing Glossary

When you’re transacting property, you are bound to hear your solicitor using all sorts of conveyancing terms which are unfamiliar. We’ve created a glossary of conveyancing terms for you to print and keep with you throughout your conveyancing transaction, so you will always know what’s going on.

ADJUSTMENTS

Adjustments is a reference to the calculations carried out to determine how the outgoings for a property will be divided between the vendor and purchaser. Adjustments are used to ensure each party only pay the outgoings for the time periods they are in possession or ownership of the property.

CAVEAT

A document registered on the Certificate of Title for a property by a person who claims a legal interest in that property. This claim prevents other transactions, including the transfer of title, until it has been determined.

CERTIFICATE OF TITLE (TITLE)

The legal document for the property, which provides details of the vendor and any other matters that may affect the property such as a caveat, mortgage, or easement.

COOLING OFF PERIOD

A period of 5 business days after exchange within which the purchaser can choose to walk away from the contract for any reason, losing only 0.25% of the purchase price.

DEPOSIT

A portion of the purchase price, usually 10%, paid by the purchaser prior to exchange as an assurance that they intend to proceed with the purchase. The deposit is usually held by the real estate agent.

EASEMENT

A right of someone else to use and access part of a property. Easements are commonly used when access is required by council to maintain underground pipes for sewage and drainage.

EXCHANGE

The time when the contract becomes legally binding on both parties. For exchange to take place, the purchaser’s solicitor swaps the contract signed by their client for an identical copy signed by the vendor, and both solicitors date the contracts. The deposit must be paid prior to exchange.

FINAL INSPECTION

An inspection of the property carried out by the purchaser within the 3 days prior to settlement to ensure the condition of the property is as it should be.

INCLUSIONS AND EXCLUSIONS

A list of items on a property that are either included or excluded from the sale. These items include blinds, dishwasher, clothes line, and other items that many purchasers may believe is being purchased with the property, but that vendors may intend to take with them. The list of inclusions and exclusions assists in ensuring each party is aware of exactly what is included in the sale of the property.

LICENCE

Sometimes, a right may be granted to the purchaser allowing them to move into the property before settlement has taken place. Rent can be charged during this period of time.

MORTGAGE

The funds loaned to a purchaser to assist in the purchase of the property. The mortgage will be registered on Title.

MORTGAGOR

The purchaser in receipt of the mortgage.

MORTGAGEE

The person or entity providing the mortgage.

OUTGOINGS

Money paid by an owner in relation to the property, for example council rates and water rates.

PEXA

Property Exchange Australia. An online platform used by practitioners to conduct property transactions.

PRIORITY NOTICE

A Notice which can be registered on Title reflecting that the person registering the Notice has a future interest in the property to be registered. This works in a similar fashion to a Caveat. For example, a Priority Notice can be registered after exchange to protect the interest of the purchaser until they are able to register their transfer on settlement.

PURCHASER

The person or entity buying property.

RESTRICTIVE COVENANT

A document registered on Title which places restrictions on the property to which the owner is legally bound. This commonly includes building in accordance with design guidelines or using specific building materials.

REQUISITIONS

A series of questions or comments in relation to the property. The purchaser’s solicitor will send Requisitions to the vendor’s solicitor, who will then provide replies.

SETTLEMENT

The time that the transaction finalises. The purchaser pays the balance of the adjusted purchase price and the vendor gives possession of the property. The Title is transferred into the name of the purchaser.

STATEMENT OF ADJUSTMENTS

A document setting out the calculated adjustments and determining the adjusted purchase price.

TRANSFER

The document showing details of the change of ownership.

UNENCUMBERED

A property that is free of any mortgages, restrictions, easements and caveats.

VENDOR

The person or entity selling property.