Glossary - Conveyancing Terms Explained

CAVEAT:

If a caveat is registered on the title it means that some other person has an interest in the land

CERTIFICATE OF TITLE:

A document identifying the ownership of land, it shows who owns it, whether there is any mortgage or other encumbrance etc. effecting the land.

COMMUNITY PLAN:

A plan that divides a parcel of land into community lots and common property, within the community plan can be areas set aside for such things as playing fields, swimming pool, club house and or other community activities. It allows for residential houses and strata units with the other activities within the community plan.

COMMUNITY TITLE:

Title to land within a community plan.

CONVEYANCE:

The legal process required to transfer ownership of real estate

CONVEYANCER:

A person licensed by Government to advise on and prepare documents to transfer or convey ownership of real estate. Conveyancers are licensed in NSW to handle other transactions related to land and business transactions.

COVENANT:

An agreement by one party to adhere to certain terms, conditions or restrictions regarding the property. This will show on the certificate of title and you should be aware of the effect it may have on your use of the property.

DEPOSIT:

A deposit is normally paid by the purchaser at the time of exchange of contracts; normally 10% of the sale price, any amount paid initially as a part deposit or holding deposit will form part of the 10% deposit. A lesser amount can be paid if agreed by the vendor.

EASEMENT:

A legal right to use a designated part of someone's land for a particular purpose.

ENCUMBRANCE:

A burden or charge registered on the title to the property such as a mortgage

FEE SIMPLE:

The highest interest in land that can be owned by an individual

FITTINGS:

Goods or articles that can be removed from the property without causing damage.

FIXTURES:

Items such as built-in cupboards, bath, toilet, stove etc. that cannot be removed without causing damage.

LAND TAX:

A state government tax payable by owners of a property (normally not their permanent place of residence) based on the value of the property.

LEASE:

An exclusive right to occupy land owned by someone else

LICENCE:

A non-exclusive right to occupy land owned by someone else

MEMORANDUM OF TRANSFER:

A document signed by the vendor and the purchaser that when registered by the Lands Department legally changes the ownership of the land. Usually referred to as simply the 'Transfer'. (not to be confused with the contract)

REGISTERED PROPRIETOR:

The person whose name appears registered on the certificate of title as owner of land

RIGHT OF WAY:

A right which gives a person access across certain land. (Usually land owned by someone else)

STRATA TITLE:

This is the name given to the ownership of units, townhouses, villas. It is a form of Torrens title.

SURVEY:

Conducted by a registered surveyor who provides a written report showing the position of the buildings and fences in relation to the boundaries and will show any encroachment onto the land or onto the neighbour's land.

TORRENS TITLE:

This is the name given to a system of recording ownership of land. It is the most common form of land title and the cheapest to convey. When you are registered on title you are guaranteed ownership by the state government.

VALUATION:

A written report by a registered valuer showing his opinion of the value of the property, usually required by a lender so that they know what the market value of the property is.