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Useful Terms
The following
useful terms aim to provide you with a simple and clear explanation
as what some of the common conveyancing jargon actually means…
Caveat
Literally means beware. In real estate, it warns persons (prospective
purchasers, mortgagees, etc.) who propose to deal in the land
that a third person (normally the person lodging the caveat
at the Titles Office) has some right or interest in the land.
Certificate of Title
Certificates of Title are records of property ownership. A
Certificate of Title issued by the appropriate land registration
authority certifying that the land in question is lawfully
owned; it describes the land and indicates any encumbrances
upon it.
Cooling Off
To terminate a contract within the cooling off period. This
period extends two clear business days after both the contract
is signed and the Form 1 has been passed onto the purchaser.
Not all contracts will include a cooling off period.
Easement
A right held by someone to use land belonging to another party
for a specific purpose such as service lines, drains, water
pipes, or driveway access.
Encumbrance
Any right, interest or other claim against land which is registered
on title and affects the owner's ability to sell the property.
Form 1 (or Section 7 Statement)
Statutory
disclosure statement that the vendor (seller) is required to
give to the purchaser. The Form 1 contains information about
the property which is collated from the State Government, local
Council and Vendor and must be complete and accurate when given
to the buyer. As
a seller it is an offence if you fail to give the buyer a
complete and accurate Form 1.
Joint Tenants
When real property is registered in the names of two or more
people as joint tenants, each registered owner does
not have a specific share of the property. When a joint tenant
dies, the ownership automatically vests in the surviving joint
tenant and an application to note the death should be registered.
Memorandum of Transfer
A document signed by both the vendor and the purchaser, which
when registered in the Land Titles Office records the change
of ownership of a property.
Party wall
A shared wall between two pieces of property, most often in
row-houses, semi-detached houses, or townhouses. The shared
wall generally stands on the property boundary line.
Registered Conveyancer
One who is Registered under the Conveyancers Act 1994. The
letters AAIC mean the conveyancer is an Associate member of
the Australian Institute of Conveyancers and is your assurance
that the conveyancer has done specialised study in conveyancing.
Registered Proprietor
The owner of the land, whose name appears on the certificate
of title.
Restrictive covenant
A restriction in a title to limit, or govern, the use of the
land.
Rights of way
Are indicated on the title at the Land Titles Office. They
are often for the use of utilities or the respective council
in order to make repairs to pipes, etc. No permanent structure
may be built on a right of way.
Settle
To finalise the transaction, resulting in new certificates
of title being issued.
Settlement
The time and date when the transaction is settled.
Settlement Statement
A detailed statement of actual settlement costs. Amounts paid
to and by the settlement agent are shown including any fees,
commissions, rates and taxes.
Special Condition
A condition set out in the contract that must be satisfied
before the contract is legally binding.
Tenants in Common
Where there are two or more registered owners of real property,
each registered owner has a separate, defined share of the
property. The security for the beneficiaries of the tenants
in common is protected in the event of the death of one of
them.
Vendor
Person or entity selling the asset.
Worker’s lien
A legal claim or attachment against property as security for
payment of an obligation.
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