Agent:- A person authorised to act on the Principal’s behalf. The terms of the agency agreement signed at the time of listing the property for sale with the real estate agent with define the extent of the agency.
Auction:- An event in which the property is sold on the fall of the hammer, as opposed to a private negotiated sale. If you are purchasing a property at auction there is no cooling off period.
Caveat emptor:- This is a Latin term which briefly translates to “buyer beware”. If this term is applied to the property market it is a strong reminder to Purchasers that they should be cautious when entering into a Contract. It is important that you are completely satisfied with the condition of the property and conduct all of the relevant enquiries and searches prior to attending an auction or the expiration of the cooling off period.
Certificate of Title:- A Certificate of Title will describe the title particulars, the owners of the property and any dealings noted on the property. If you have a mortgage for the property your bank will retain the Certificate of Title.
Completion date:- A completion date, often referred to as the settlement period, is the time lapsed between exchange and the date of settlement. A usual settlement period is 6 weeks however, this can be altered by agreement between the parties.
Cooling off period:- When you purchase residential land in New South Wales the law will provide you with a 5 business day cooling off period. There is no cooling off period if you buy at auction or on the same day as the property was auctioned.
Contract for the Sale of Land:- This Contract specifies the property and all of the terms and conditions associated with the sale. The front page of the Contract will list the property address, contact information of both parties and the inclusions of the sale. The Contract will also have a title search, deposited plan or strata plan, any associated dealings, s149 council certificate and sewer diagram.
Covenant:- A covenant is a promised tied to the land. For example, A common covenant for a strata property is a promise to ensure the storm water basin is kept clear. Covenants are listed on your title. If you are purchasing a property with a covenant you should ensure you obtain Contract advice to understand how the covenant will effect the use of your property.
Deposit:- A deposit is the consideration paid to the Vendor to bind the Contract. The deposit amount is listed on the front page of the Contract and is commonly 10%. However, with discussion with the Vendor you may be able to reduce the deposit payable to 5%. When you sign a Contract under the cooling off period you will be required to pay a 0.25% deposit (commonly referred to as a holding deposit).
Discharge of Mortgage:- If there is a mortgage charged over your property you must obtain a discharge of mortgage prior to selling. The bank will calculate the discharge figure (the amount of money required to pay out your loan) and provide you with a clear Certificate of Title.
Easement:- An easement is a restriction of use that is attached to the land. For example, it is common to have an easement to drain water on your property. If you are benefited by an easement to drain water it would mean that the runoff rainwater from your property is allowed to flow into your neighbouring property. Another common easement is an easement for services whereby the Council will have access to your property to maintain a sewer, telephone or internet service. Easements are listed on your title. If you are purchasing a property with an easement you should ensure you obtain contract advice to understand how the easement will effect the use of your property.
Exchange:- Exchange refers to when the Contracts are signed and dated by both the Vendor and the Purchaser. It is the crucial element which brings the legally binding contract into existence.
Exclusions:- An exclusion is an item, such as a chandelier, which is not included in the sale. Exclusions are listed on the front page of the Contract.
First Home Owner:- As a first home owner you may apprehensive about purchasing a property. At Prime Conveyancing we take the time to discuss all your concerns thoroughly. We charge a flat fee which means you can call and email as much as you would like.
Folio identifier:- A folio identifier is the distinct lot and deposit/strata number that is specific to your individual property. The folio identifier will appear on the Certificate of Title.
Inclusions:- An inclusion is an item, such as blinds, carpet, pool equipment that is included in the sale. All inclusions are listed on the front page of the Contract.
Office of State Revenue:- The Office of State Revenue is a government agency which collects duties on transfers of land.
Pest & Building Report:- A building and pest report is essential when you are considering purchasing a house. This report will give you detailed information regarding any pest or termite activity. If you wish to reduce the price of the property after obtaining this report you must consult your real estate agent.
Purchaser:- A purchaser, also known as the Buyer, is a person who is to obtain ownership of a property. If you are a purchaser you should be vigilant in satisfying yourself with the condition of the property by completing all of the relevant searches and enquiries.
Refinance:- You may choose to refinance your mortgage for numerous reasons including payment of debt, investments or even a holiday. If you wish to redraw on your mortgage you should consult your financial institution.
Requisitions on title:- This is a list of questions relating to the quality of the title provided by the Vendor. Your solicitor will either complete these requisitions and send them to you for your perusal (if you are the Vendor) or will peruse the requisitions n your behalf to identify any potential issues (if you are the Purchaser).
Section 66 Certificate:- This certificate allows the Purchaser to waive their cooling off period. If you elect to waive your cooling off period you must have your deposit ready, obtained Contract advice and unconditional finance approval, satisfied yourself of the condition of the property and completed all your searches and enquiries. A solicitor or conveyancer can provide you with a s66 certificate.
Settlement:- A settlement period relates to the time lapsed between exchange and when settlement is complete. A settlement period is usually 6 weeks. The settlement process will take approximately 30 minutes (this can be busier in peak periods such as Christmas) and you will not be required to attend.
Stamp Duty:- This is a duty charged by the Office of State Revenue on all transfers of land (unless you are purchasing property under a stamp duty exemption scheme). The duty is usually payable on settlement and is calculated on the property’s purchase price.
Strata Property:- A strata property is a property which has strata managing agents, common property and by-laws to regulate the use of common property to encourage harmony between residents and consistency with the appearance of the property. The types of strata property includes home units, apartments, townhouses and villas.
Strata Report:- A strata report is essential when purchasing strata property. The report will outline any building defects, the cost of strata levies, the financial status of the administrative and sinking fund and any disharmony that may exist with any residents of the strata property.
Survey Report:- A survey report is completed by a suitably qualified surveyor. The purpose of a survey is to ascertain that the property is correctly described (especially in relation to boundaries).
Torrens Title:- Torrens Title refers to a property register maintained by the Government. The purpose of Torrens Title is to maintain confidence in property by guaranteeing ownership of title.
Transfer:- This document will transfer the property from the vendor to the purchaser. The Vendor must execute the Transfer in the presence of a witness. A solicitor or licensed conveynacer can sign on behalf of the Purchaser. On a Transfer you will elect to be either joint tenants (the property will pass by survivorship) or as tenants in common (each party will have a distinct share in the property).
Vacant possession:- If a Contract is marked ‘with vacant possession’ this means that the property will be vacant on settlement. The alternative is ‘with existing tenancies’ whereby you are purchasing the property with tenants.
Vendor:- The Vendor is the owner of the property.
Zoning Certificate:- A zoning certificate, otherwise known as a s149 certificate, is supplied by your Local Council. It will provide relevant information regarding development controls and any local government policies, such as bush fire prone, flood prone or heritage areas, that may affect your land. If you need any further information regarding the zoning certificate you should contact your local Council and/or a town planner.