Caveat
A restriction on the
registration of dealings on
a property, lodged with the
Land Titles Office.
Certificate of
Title
A document issued by the
Land Titles Office
detailing the names of the
owner and other interests
attaching to the property.
Conveyance
A procedure by which the
ownership of a property is
transferred from the owner,
to another person.
Cooling off
period
A specified period of time
(normally 5 days) from the
exchange of contract, where
the purchaser may withdraw
from the contract. The
purchaser must then pay an
amount equivalent of .25%
to the vendor on such
withdrawal. A cooling
off period does not apply
to rural land.
Covenant
An obligation or
restriction registered on
the title of the property.
Deposit
Bond
If you do not have the
finance to pay the 10%
deposit required on
exchange of contract, you
can apply for a Deposit
Bond, usually from a bank
or building society, to
cover the payment of the
deposit. A premium is
payable to the bank or
building society.
Disbursements
Expenses, in addition to
legal costs, incurred
during the transaction, and
paid on your
behalf. These are
usually for disclosure
documents or enquiries to
statutory authorities to
check on the title to the
property.
Disclosure
documents
These are documents that
you are required to attach
to the contract and may
include a search of the
property, a drainage
diagram and a zoning
certificate from the
council (s149 certificate).
Easement
A right held by another
person to make use of the
land of another.
Encumbrance
An item that burdens a
property.
Exchange
Exchange of contracts
occurs when the vendor
hands to the purchaser a
signed contract, in
exchange for a contract
signed by the purchaser.
GST
Goods & Services Tax
9GST) applies on
professional fees and most
disbursements. GST may
also apply to the property
being transacted.
Joint
tenants
A situation where someone
holds jointly with another
an unspecified share in
land. This has the
effect that when one joint
tenant dies, the property
immediately passes to the
surviving joint tenant/s,
and therefore has an effect
on estate planning (the
making of a will).
Land Titles
Office
The registry that records
all conveyancing
transactions affecting the
land, and holds the
original documentation.
Mortgagee
The person or institution
who lends money to complete
the transaction.
Mortgagor
The person or company who
borrows money to complete
the transacgtion.
Old System
Title
This preceded the system of
Torrens Title. There
are now very few properties
that have not been
converted to Torrens
Title. In lieu of a
Certificate of Title, there
are numerous documents
documenting the chain of
the title.
Purchaser
Is the buyer of the
property.
Registration
Refers to the lodgement and
registration of documents
at the Land Titles
Office. This occurs
following the finalization
of the conveyancing
transaction.
Settlement
This occurs as the final
step in the transaction and
is when documents are
handed over to the
purchaser (or the
mortgagee) in exchange for
payment for the property.
Tenants in
common
A situation where someone
holds a specified share
(say a one-third share, or
equal shares) in land in
common with
others. This has an
effect on estate planning
as the holder of a share
can dispose of that share
in his/her will.
Title
Ownership rights over
property as recognized by a
legal system.
Torrens
Title
Is the most common system
of land registration in New
South Wales.
Transaction
The deal or agreement
reached between a purchaser
and vendor.
Vendor
Is the seller of the
property
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