Common Phrases in Conveyancing Matters
Common Phrases in Conveyancing Matters
When going through a conveyancing matter, one thing that is certain is that you will encounter a bunch of legal jargon that most will not understand. And as I consistently say, that’s okay! Hence, I have prepared a glossary of commonly used phrases in conveyancing that you can refer back to if you ever encounter an unfamiliar word or phrase.
Caveat – a statutory injunction (warning) on a property title notifying others of a potential claim or interest in the property.
Certificate of Title – a legal document that proves ownership of a property.
Conditional Contract – a contract that is contingent upon certain conditions being met, allowing either party to legally withdraw if those conditions are not met.
Contract of Sale – the legally binding agreement between the landlord and tenant that outlines the terms and conditions of the sale, property details and price. Contracts are presented on exchange day.
Cooling-off Period – a time period in which a buyer can withdraw from a contract without penalty. The cooling-off period in NSW and the ACT is 5 business days.
Disbursements – third party fees incurred during the conveyancing process such as searches and registration fees that are paid for by the conveyancer
Easement – agreement that allows someone to use land that they do not own for a specific purpose such as access to utilities or a road.
Encroachment – a structure such as a building, fence or wall that intrudes onto a neighbour’s property that can lead to legal dispute.
Encumbrance – a claim or interest in a property held by a party that is not the registered owner.
Exchange – the day landlord and tenant will overview their contract, sign it and schedule a date for settlement.
Fittings – items that can be removed such as curtains that are usually not included unless specified in the contract.
Fixtures – things that are permanently attached to a property and come with the purchase such as built-in cabinets.
PEXA (Property Exchange Australia) – a digital platform that facilitates online property settlements in Australia, allowing lawyers to lodge documents electronically.
Settlement – the most exciting day of all: the day the tenant gets the keys and is able to move in.
Stamp Duty – a tax one pays to the government when one buys property.
Strata Title – a form of property ownership that allows for ownership of a specific unit (eg. Apartment, townhouse) within a larger building and shared ownership of communal spaces (eg. Gardens, hallways).
Torrens Title – complete ownership and control over a piece of land with registration of the land title within the government of the state or territory.
If you have any questions about conveyancing terminology, please do not hesitate to let me know. I am here to help.