Definitions and Terminology

A-C

  • Adjustment Date

    The date used to calculate how outgoings (like council rates or water rates) are split between buyer and seller, usually the settlement date.

  • Certificate of Title

    The legal document that shows the registered ownership and interests in a property. Post-October 2021, NSW uses digital titles via the Torrens Title Register.

  • Cooling-Off Period

    A 5-business-day period after exchanging contracts (for residential purchases) during which the buyer can cancel the contract, incurring a 0.25% penalty fee. Does not apply at auction.

  • Contract for Sale

    The legally binding document setting out the terms and conditions of the property sale, including inclusions, price, and settlement date.

  • Conveyancer

    A licensed professional who handles the legal aspects of property transfer. In NSW, conveyancers must be licensed by NSW Fair Trading and hold the appropriate memberships and professional indemnity required.

D-H

  • Deposit

    A percentage of the purchase price (usually 10%) paid upon exchange of contracts to secure the property.

  • Disbursements

    Costs incurred by the conveyancer on your behalf, such as title searches, council certificates, or water rates information.

  • Easement

    A registered right that allows another party to use part of your land for a specific purpose, e.g., access or drainage.

  • Exchange of Contracts

    The process where both buyer and seller sign and legally bind themselves to the sale under agreed terms.

  • Fixtures and Fittings

    Items considered part of the property (fixtures) vs. removable items (fittings); what's included must be stated in the contract.

I-M

  • Joint Tenants

    This means that you both hold a 50% share in the property and if one of you dies, that person’s half share in the property will automatically be passed to the other person on title.

  • Lender's Mortgage Insurance (LMI)

    Insurance required by the lender if the borrower’s deposit is typically less than 20%. It protects the lender, not the borrower.

  • Mortgagee

    The lender (usually a bank) providing the loan.

  • Mortgagor

    The borrower who takes out the loan to purchase the property.

N-R

  • Notie to Complete

    A legal notice used to demand completion of the transaction, often issued when one party fails to settle on time.

  • Off-the-Plan

    Buying a property (typically an apartment or townhouse) before it is built, based on plans and specifications.

  • Outgoings

    Regular property related costs, such as council rates, water rates & charges and strata levies, which must be adjusted at settlement.

  • PEXA

    PEXA (Property Exchange Australia) is an online platform used for electronic property settlements and lodgements in Australia.

  • Pre-Settlement Inspection

    An inspection arranged by the purchaser with the Agent shortly before settlement to ensure the property is in the same condition as when contracts were exchanged.

  • Purchaser

    The buyer of the property.

S-Z

  • Settlement

    The final stage of the property transaction when payment is made and legal ownership is transferred to the buyer.

  • Settlement Statement

    A breakdown of all funds paid, adjusted, and disbursed as part of the settlement.

  • Stamp Duty

    (now known as Transfer Duty): A government tax paid by the buyer on the purchase price (or market value) of the property.

  • Strata Title

    A form of ownership for multi-unit properties (like apartments or townhouses) where owners hold individual lots and share common property.

  • Tenants in Common

    This means that you both hold a 50% share in the property. If one of you dies, the deceased party’s 50% share can be transferred to the nominated beneficiary under the deceased’s will.

  • Tenants in Common with Unequal Shares

    This means that each of you hold unequal shares (eg 20% / 80% or any other percentage). If one of you dies, the deceased party’s percentage in the property will be transferred to the nominated beneficiary under the deceased’s will.

  • Torrens Title

    The most common type of property ownership in NSW, where the state guarantees ownership through a central register.

  • Transfer Form

    The legal document lodged with NSW Land Registry Services to officially transfer property ownership.

  • Vendor

    The seller of the property.