Body Corporate

The corporation is automatically created on the deposit of the unit plan. The body corporate manages the common property within that plan and facilitates various matters of common interest for the residents of the units. The owners of the units are its members.

Caveat

A note on a title than an interest in the land or property is claimed by a third party.  This must be withdrawn prior to settlement.

Certificate of Title

Document provided by the Lands Titles Office that shows the location and size of the land, who owns the property and whether there are any limitations on the title such as mortgages, easements or encumbrances

Completion Date

This is the date that ownership of the property passes from the seller to the buyer and is usually 30 days but can be negotiated between the parties.  It is usual for the completion date to be known only after the exchange of contracts.  You are not required to be present on the completion date as we will arrange settlement with your financier and the other party.

Consideration

The price paid by the buyer for the purchase of the property.

Cooling off period

The legal right of a buyer to withdraw from a contract within a set time frame without penalty, subject to certain conditions.

Contract

This is the agreement between the buyer and the seller. It sets out the main terms of what has been agreed such as the property, the price and the names of the parties. It also deals with the process if something goes wrong. Depending on the State, rather than making the buyer and the seller meet to sign the same contract, the seller's agent, solicitor or conveyancer draws up two copies of the same contract and each party signs their own copy. When both parties are ready to legally commit, the two contracts are exchanged.

Cooling Off

Withdrawing from (or "rescinding" or "terminating") a contract under a statutory or contractual right.  This right may only be exercised in the manner and time set out in the contract or statute.

Covenant

An agreement that creates an obligation on the titleholder of a property to refrain from doing something. Eg. build above a certain height.

Conveyance

The legal and statutory processes required to transfer ownership of real estate. The preparation, execution, verification, and lodgement of various legal documents are important elements of a conveyance.

Cooling Off

The period allowed by contract or statute to allow buyers to consider their purchase and visit their conveyancer if they have not already done so and pull out of the contract.  This period varies from state to state.

Discharge

Process of paying out a mortgage and removing the charge from the title

Disbursements

These are charges paid by your conveyancer that are then passed on to you.

Easement

A legal right to use a designated part of some-one's land for a particular purpose. Types of easement include a right of way (to pass and repass to access adjoining land) and a right to use and maintain sewage or water pipes, and for electricity or telecommunication cables.

Encroachment

The use of or intrusion onto another person's property. Eg. Fence

Encumbrance

Any obstruction or obstacle related to the use of transfer of land. eg. easements, mortgages, caveats.

Freehold

Land owned by the registered proprietor (owner) and not leased from the Government and that has a Certificate of Title. Land which is freehold is shown on the Certificate of Title. Not all land in New South Wales is Freehold. Other types of land holdings are Leasehold and Old System Title.

Exchange

Exchange of contracts occurs when either the agent or the seller’s conveyancer has a contract signed by each party. The agent, conveyancer then dates the contract and passes control of the contract signed by each party to the other party. This is a very important moment. From the minute contracts are exchanged, the sale becomes binding. From that moment on, the seller must sell, the buyer must (subject to their cooling off period) buy, it must be done at the price stated in the contract. Until contracts are exchanged NOTHING is binding - either party can walk away from the transaction with no penalty.

Fixture

This term has a highly technical legal definition when used in a contract for the sale of land. In simple terms, it describes something that has been deliberately affixed to the land (or some building on the land) for the better use or enjoyment of the land, not of the fixture: hence, difficulties arise in classifying equipment such as air conditioners, dishwashers and clothes driers. Any item that may be a fixture should be specifically referred to in the contract to avoid disputes.

Hammer Price

Purchase price to be paid when land or property is sold at auction.

Inclusions & Exclusions

This is a list of the items at the property which are either included or excluded from the sale. These items are listed in the contract so that both parties understand what is included in the selling price.

Joint Tenant

Two or more people holding land under a joint tenancy. Each joint tenant is entitled to the use, possession, and enjoyment of the whole of the land, subject to the rights of the other joint tenant(s).  Upon the death of one joint tenant their interest passes automatically to the surviving joint tenant(s).  Refer also to Tenants in Common

Leasehold

Temporary use of the property. When the lease expires use of the property reverts back to registered proprietor.

Mortgage

This is a loan to help you buy the house. The mortgage is registered on your title deeds, and means that you cannot sell the property without paying out the Mortgage.

Private Treaty

A sale negotiated directly between parties or their agents.

Rescind

To terminate a contract of sale.

Searches

These are requests to Local Councils and Government departments or Body Corporate to see whether there is any money owing or any proposals over the property.

Settle

To complete (fulfil) the terms of the contract of sale. This involves handing over the purchase price in exchange for a Transfer of Lot that has been properly signed by the seller and physical and legal possession of the land in accordance with the contract.

Settlement

The date on which the title is transferred to the buyer and the resulting financial adjustments and payments are made.

Special Condition

Condition in a contract of sale that must be satisfied or waived before the person for whose benefit the condition was inserted can be forced to settle on the contract.

Stamp Duty

This is a tax charged by the state government. Everyone who buys or sells land, unless you are entitled to an exemption, must pay stamp duty.

Survey

This is a report carried out by a surveyor that identifies the land and any buildings on the land and states weather they are built wholly within the land.. If you are buying a property you should be aware that the property is "sold as seen". It is your responsibility, as the buyer, to discover any physical defects by means of inspections and surveys.

Tenants in Common

Two or more people holding land under a tenancy in common.   Tenants in common can own the land in unequal shares and can will their share to any other person.  Refer also to Joint Tenants.

Title or Certificate of Title

These documents firstly act as evidence that the person selling the property actually owns it, and secondly set out any rights or obligations that affect the property. In Northern Territory, a title is not issued unless a form signed by all interested parties is lodged at the time of settlement.

If you are selling, then valuable time can be saved if the whereabouts of your title deeds can be ascertained at an early stage. If you have a mortgage then your bank or building society will be holding your title deeds. We will need to know your mortgage account number and the name and address of the lender.

Transfer of Lot

The document lodged with the Lands Titles Office which transfers legal ownership of a property from the seller to the buyer

Valuation

An estimate of the value of a property at a point in time.

Waive

To give up a legal right. A buyer of land may waive the right to cool off in certain circumstances (see "cooling off"). A person may waive the right to be able to rely on a term (including a special condition) of a contract of sale.

Zoning

Permissible use of an area of land as stipulate by the local council.