Are terms like ‘disbursement’, ‘Torrens titles’ and ‘stamp duty’ giving you a headache? Here are some common conveyancing terms explained in plain English.

Conveyancers can be a huge help when it comes to drawing up contracts, ensuring settlements go smoothly, and protecting you from any potential conflict. But they are lawyers, and that means they use a set of legal definitions that most of us rarely come across. Here are some of the most common conveyancing phrases explained, to help you make sense of the whole process.

Certificate of Title

This refers to the certificate issued by the government in your state that shows the ownership of the property. Most states will issue these in electronic form, however paper copies will also usually be available.

Contract of Sale

This is a document that is signed by both the buyer and seller of the property. It is only signed once all of the terms and conditions of the sale have been defined and agreed upon, such as the sale price, deposit amount and the settlement date.

Cooling Off Period

After the contract of sale has been signed, there is a short grace period during which the buyer can change his or her mind. This is usually three days, and during that time the buyer can terminate the contract without risk of being sued by the seller. However, there could still be financial penalties for backing out of a contract, so it’s important to discuss this with a conveyancer.

Disbursements

Any amount of money spent to obtain information or search results, such as from a council or government department, is considered a disbursement.

Easement

This refers to a legal right granted over someone’s property to use it for a specified purpose.

Encumbrance

An encumbrance refers to a (usually unfavourable) feature affecting a property.

Finance Date

This is the date upon which the bank confirms they will lend you money at settlement, if you are borrowing.

Freehold

This refers to permanent and outright ownership of a property and its land.

Land Tax

Land tax is a state government tax payable by owners of a property that is not their normal place of residence, and is based on its value.

Land Titles Office

This refers to the central registry for the ownership of property in each state.

Memorandum of Transfer

The Memorandum of Transfer is a document signed by the vendor (seller) and purchaser (buyer) that is registered at the Land Titles Office to legally transfer the ownership of land at the agreed price.

Purchaser

The purchaser is the buyer of a property.

Redemption

Redemption refers to the process of paying off a mortgage.

Registered Proprietor

The person who is registered on the title as being the owner of the property is considered the registered proprietor.

Right of Way

Right of way is a type of easement in which access to land is granted to someone who usually isn’t the owner.

Settlement

This is the point at which the transfer of property occurs, i.e. when the money is paid and all necessary documentation is handed over for the registration of the new owner on the title.

Stamp Duty/Transfer Duty

Stamp duty is the tax payable during the transfer of a property, and is determined by the state government.

Statement of Adjustments

During the sales process, there may be some overlap of fees for things like council and water rates. The Statement of Adjustments is a document that helps to ensure that the seller continues to pay for these fees while they still own the property, and that the buyer will pay when they take possession.

Torrens Title/System

This is the system of titling used in Australia in every state. It includes all types of land and property ownership.

Vendor

The vendor is the seller of a property.

Vendor’s Statement

The person selling a property must prepare an official statement for the purchaser (buyer) outlining all the details of the property being sold. This should include the amount of outgoings and rates for the property.

Selling your house and need legal assistance? Talk to a professional conveyancer near you.