Common Terms

Caveat

  • A notice registered on the title deed indicating that someone has an interest in the property.


Chattel

  • Personal property, a moveable article such as furniture


Cooling off period

  • The period of 5 working days from the date of exchange of contracts. The cooling off period is only for the purchaser.


Deposit

  • The amount of money paid on or before the date of exchange of contracts. The deposit is normally 10% of the purchase price unless otherwise negotiated between the parties.


Deposited Plan

  • A plan of subdivision deposited at Land and Property Information. Commonly called a DP.


Drainage Easement

  • The right to drain water over another property.


Easement for support

  • The right to have a part of a building over another property.


Encroachment

  • The action of one person intruding upon land over which they have no right.


Encumbrance

  • A right held by one person over the property or another that limited the ways in which the owner may use or deal with the property. An impediment or burden eg ; Mortgage


Exchange

  • The act of swapping contracts. The sellers signed contract is held by the purchasers conveyancer and visa versa. Once completed both parties have entered into a legally binding contract.


Vendor

  • Proprietor – owner of the land


Fixtures

  • An item fixed to the land or building. Cannot be removed without causing damage to the land or building. Anything nailed, screwed or glued to the building is a fixture.


Inclusions

  • Those things included in the sale price that are not necessarily fixtures but in some cases may be fixtures.


Joint Tenants

  • If one party passes away the other automatically inherits the whole of the property.


Lot

  • Each block of land, unit. Townhouse, villa is given a lot number. This does not necessarily match the house or unit number.


Mortgagee

  • Lender (bank)


Mortgagor

  • Borrower


Restriction on user

  • A restriction on the use of the land usually imposed by the original developer and or council.


Strata Title

  • Is a form of Torrens Title and relates to properties that form part of a Strata Plan.


Tenants in Common

  • The property can be purchased in equal or unequal shares. If one owner passes away their share goes to whoever inherits their estate.


Torrens Title

  • Title guaranteed by the NSW Government. The most common type of title to land.


Stamp Duty

  • NSW Government tax on the purchase of land. There are some concession ie First Home Plus