Adjustment figures

Adjustment figures are amounts calculated before settlement to fairly divide certain property expenses between the buyer and seller.

These may include council rates, water rates, strata levies, land tax, rent, or other property outgoings. The calculation usually depends on the settlement date and the terms of the contract.

By-laws

By-laws are rules that apply to owners and occupiers in a strata scheme.

They may deal with matters such as pets, renovations, parking, noise, common property, waste disposal, smoking, short-term letting, and the use of shared facilities.

Client authorisation

A client authorisation is a form that allows a solicitor or conveyancer to act on behalf of a client for certain conveyancing and electronic settlement purposes.

It is commonly used where documents need to be signed, lodged, or completed electronically.

Contract for Sale

The Contract for Sale is the main legal document used when selling property in NSW.

It sets out the terms of the sale, including the parties, property details, purchase price, deposit, settlement period, inclusions, exclusions, special conditions, and required documents.

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For sellers, a Contract for Sale generally needs to be prepared before the property can be marketed for sale.

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For buyers, the contract should be reviewed before exchange so the buyer understands the terms, risks, and obligations involved.

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Covenant

A covenant is a rule or obligation affecting land.

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Covenants may restrict how land can be used, developed, or built on. They may relate to matters such as building materials, design requirements, subdivision, or use of the property.

Deposit holder

The deposit holder is the person or organisation that holds the buyer’s deposit until settlement.

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This is often the real estate agent, solicitor, or conveyancer. The deposit is usually held in a trust account.

Easement

An easement is a legal right for someone to use part of another person’s land for a specific purpose.

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Common examples include drainage easements, sewerage easements, access easements, and rights of carriageway.

Exchange of contracts

Exchange of contracts is the point where the buyer and seller become legally bound by the contract.

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In NSW, exchange usually occurs when signed copies of the contract are exchanged and the deposit is paid or agreed to be paid.

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After exchange, both parties are generally required to proceed to settlement, subject to the terms of the contract and any applicable rights.

First home buyer assistance

First home buyer assistance refers to government schemes or concessions that may be available to eligible first home buyers.

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In NSW, this may include transfer duty exemptions or concessions, depending on the buyer’s eligibility, the property type, and the property value.

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Eligibility rules can change, so first home buyers should obtain advice before relying on any exemption, concession, or government scheme.

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Goods

Goods are movable items that may be included or excluded from the sale.

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Examples may include furniture, appliances, curtains, or other removable items. Whether goods are included should be clearly dealt with in the contract.

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Land tax

Land tax is a state tax that may apply to certain landholdings.

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Whether land tax applies depends on the owner’s circumstances and the type and value of land owned. In some contracts, land tax may be adjusted at settlement depending on the terms of the contract.

Mortgage

A mortgage is a legal interest registered on the title in favour of a lender.

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It usually secures repayment of a home loan or other loan connected with the property.

Notice to Complete

A Notice to Complete is a formal notice that may be issued when a party fails to complete settlement on time.

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It usually requires the defaulting party to settle within a specified period. The consequences of failing to comply can be serious.

PEXA

PEXA is an electronic conveyancing platform commonly used to complete property settlements online.

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Through electronic settlement, funds can be exchanged and title documents can be lodged electronically.

Purchaser

​The purchaser is the buyer of the property.

Private treaty

A private treaty sale is a sale negotiated between a buyer and seller, usually through a real estate agent.

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The buyer may make an offer, the seller may accept, reject, or negotiate, and contracts are exchanged once the parties are ready to proceed.

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Restriction on use

A restriction on use is a registered restriction that limits how land may be used or developed.

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Restrictions may affect building design, subdivision, access, materials, landscaping, or other property-related matters.

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Settlement

Settlement is the final stage of a conveyancing transaction.

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At settlement, the buyer pays the balance of the purchase price, the seller receives the sale proceeds, existing mortgages are discharged, new mortgages may be registered, and the transfer of ownership is completed.

Sewer diagram

A sewer diagram shows the location of sewerage services affecting the property.

It can help identify whether sewer lines run through or near the land.

Strata inspection report

A strata inspection report is a report prepared after inspecting the records of an owners corporation.

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It may include information about strata levies, building defects, disputes, insurance, meeting minutes, special levies, major works, by-laws, and financial records.

Sunset date

A sunset date is a date in an off-the-plan contract by which certain events must occur.

This may include registration of the plan, completion of construction, or another required step. Sunset date clauses should be reviewed carefully before signing an off-the-plan contract.

Transfer

A transfer is the legal document that transfers ownership of the property from the seller to the buyer.

In NSW, transfers are commonly prepared and lodged electronically.

Vendor

The vendor is the seller of the property.

Water rates

Water rates are charges relating to water and sewerage services.

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They are commonly adjusted at settlement so the buyer and seller each pay their share based on the settlement date.

Auction

An auction is a public sale where buyers bid for a property.

In NSW, if a property is purchased at auction, the buyer is usually immediately bound by the contract once the property is knocked down to them.

There is generally no cooling-off period for a property purchased at auction.

Caveat

A caveat is a notice registered on the title of a property by someone claiming a legal or equitable interest in that property.

A caveat can affect whether certain dealings can be registered on title until the caveat is withdrawn, removed, lapses, or is otherwise dealt with.

Common property

Common property is property within a strata scheme that is shared by lot owners.

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This may include areas such as driveways, foyers, lifts, stairwells, gardens, external walls, roofs, and shared facilities, depending on the strata plan.

Cooling-off period

A cooling-off period is a short period after exchange where a residential buyer may be able to withdraw from the contract.

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In many NSW residential property purchases, the cooling-off period is 5 business days.

If the buyer withdraws during the cooling-off period, they may forfeit 0.25% of the purchase price to the seller.

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A cooling-off period does not usually apply to properties purchased at auction.

Deposit

The deposit is the amount paid by the buyer when contracts are exchanged.

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A deposit is often 10% of the purchase price, although a different amount may sometimes be agreed. In some transactions, a smaller deposit may be paid on exchange with the balance due later.

Disbursements

Disbursements are third-party costs incurred during a conveyancing matter.

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These may include title searches, council certificates, strata certificates, property certificates, registration fees, settlement fees, and other search or government charges.

Electronic settlement

Electronic settlement is the process of completing settlement online through an approved electronic conveyancing platform.

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In NSW, many conveyancing transactions are completed electronically. This allows funds to be exchanged and title documents to be lodged electronically.

Exclusions

Exclusions are items that are excluded from the sale.

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These may be listed in the Contract for Sale and can include items the seller intends to remove before settlement.

Fixtures

Fixtures are items attached to the property that usually remain with the property after settlement.

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Examples may include built-in wardrobes, fixed flooring, light fittings, built-in ovens, rangehoods, and air-conditioning units.

Inclusions

Inclusions are items included in the sale of the property.

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These are usually listed in the Contract for Sale and may include items such as blinds, curtains, light fittings, dishwasher, stove, rangehood, or air-conditioning units.

Lease

A lease is an agreement giving a tenant the right to occupy a property for a period of time.

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If a property is sold subject to an existing lease, the buyer may take over the property with the tenant remaining in occupation.

Mortgagee

A mortgagee is the lender or financial institution that holds a mortgage over the property.

Off-the-plan

Buying off the plan means buying a property before construction is complete or before the plan of subdivision has been registered.

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Off-the-plan contracts often involve longer settlement timeframes, sunset dates, construction-related conditions, developer rights, and additional risks that should be carefully reviewed before signing.

Pest inspection report

A pest inspection report is a report prepared by a qualified inspector about pest activity or pest-related damage at the property.

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It is commonly obtained by buyers before exchange or during the cooling-off period.

Release of deposit

A release of deposit occurs when the seller asks for the deposit to be released before settlement.

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This is usually dealt with under the contract and may require the buyer’s consent. Buyers should obtain advice before agreeing to release a deposit, as it can affect what happens if settlement does not proceed.

Requisitions on title

Requisitions on title are formal questions or requests raised by the buyer’s representative after exchange.

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They usually relate to title, ownership, settlement, and whether the seller can properly complete the transaction.

Section 10.7 planning certificate

A section 10.7 planning certificate is a council certificate that provides planning information about a property.

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It may include zoning, planning controls, development restrictions, heritage information, and other information relevant to the land.

Settlement adjustment sheet

A settlement adjustment sheet sets out the financial adjustments between the buyer and seller.

It usually records the purchase price, deposit, rates, water charges, strata levies, land tax if applicable, and the final amount required for settlement.

Special conditions

Special conditions are additional contract terms that modify or add to the standard terms of the Contract for Sale.

They can deal with matters such as deposit arrangements, settlement requirements, inclusions, early access, land tax, delayed settlement, release of deposit, or other transaction-specific issues.

Strata levies

Strata levies are contributions paid by lot owners to the owners corporation.

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They are used to fund the management, maintenance, insurance, administration, and repair of common property.

Tenants in common

Tenants in common own separate shares in a property.

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The shares may be equal or unequal. If one tenant in common dies, their share does not automatically pass to the other owner. It is usually dealt with under their will or estate.

Transfer duty

Transfer duty is a NSW government tax that may be payable when property is purchased or transferred.

The amount depends on the value of the property, the type of transaction, and whether any exemption or concession applies.

Verification of Identity

Verification of Identity, often called VOI, is the process used to confirm a person’s identity in a conveyancing transaction.

It helps reduce the risk of fraud and is commonly required before documents can be signed, lodged, or settlement can proceed.

Zoning

Zoning refers to the planning classification that applies to land.

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It affects how land may be used or developed, subject to planning laws, council requirements, and any applicable approvals.

Building inspection report

A building inspection report is a report prepared by a qualified inspector about the condition of a property.

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It may identify issues such as structural defects, water damage, roof problems, safety concerns, or maintenance matters. Buyers commonly obtain a building inspection report before exchange or during the cooling-off period so they can better understand the condition of the property before proceeding.

Certificate of Title

A Certificate of Title was historically the paper document showing ownership of land in NSW.

Paper Certificates of Title have been abolished in NSW. Ownership and registered interests are now recorded electronically through the NSW land title system.

Completion

Completion is another word for settlement.

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It is the point where the legal and financial steps are finalised, the balance of the purchase price is paid, and ownership of the property is transferred to the buyer.

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Council rates

Council rates are charges imposed by the local council for services and local infrastructure.

Council rates are commonly adjusted at settlement so the seller and buyer each pay their fair share based on the period they own the property.

Deposit bond

A deposit bond is an alternative to paying a cash deposit when contracts are exchanged.

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It is a guarantee from a deposit bond provider that the deposit will be paid to the seller if required under the contract. A seller does not have to accept a deposit bond unless it is agreed.

Discharge of mortgage

A discharge of mortgage is the process of removing an existing mortgage from the title.

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When a seller has a mortgage over the property, the outgoing lender usually needs to be paid from settlement funds before the mortgage can be discharged.

Encumbrance

An encumbrance is an interest, right, restriction, or burden affecting a property.

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Examples may include mortgages, easements, covenants, caveats, leases, or restrictions on use.

Final inspection

A final inspection is an inspection carried out by the buyer shortly before settlement.

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It allows the buyer to check that the property is in a similar condition to when contracts were exchanged, subject to fair wear and tear, and that any agreed inclusions remain at the property.

Folio identifier

A folio identifier is the unique title reference for a parcel of land in NSW.

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It is used to identify the property in title searches, contracts, transfers, and land registry documents.

Joint tenants

Joint tenants own property together as a single shared ownership interest.

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If one joint tenant dies, their interest usually passes to the surviving joint tenant or tenants by survivorship, rather than through their will.

Lot

A lot is a defined parcel of land or property.

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In strata, a lot usually refers to an individual apartment, townhouse, unit, commercial suite, or other separately owned part of the strata scheme.

Mortgagor

A mortgagor is the property owner who gives a mortgage to the lender as security for a loan.

Owners corporation

The owners corporation is the legal entity made up of all lot owners in a strata scheme.

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It is responsible for managing the common property and administering the strata scheme.

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Plan of subdivision

A plan of subdivision divides land into separate lots.

In off-the-plan purchases, settlement often cannot occur until the plan of subdivision is registered.

Priority notice

A priority notice is a notice lodged on title to alert others that a person intends to lodge a dealing, such as a transfer or mortgage.

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It may help protect the priority of an intended dealing for a limited period.

Rescission

Rescission means ending or cancelling a contract.

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In conveyancing, rescission rights may arise in specific circumstances, including under the contract or applicable law. The consequences depend on the reason for rescission and the terms of the contract.

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Section 184 certificate

A section 184 certificate is a strata certificate that provides financial and management information about a strata lot.

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It may include information about levies, insurance, owners corporation details, and other strata-related matters.

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Settlement date

The settlement date is the date agreed in the contract for completion of the transaction.

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This is when the buyer usually becomes entitled to ownership of the property and the seller receives the settlement funds.

Stamp duty

Stamp duty is commonly used to refer to transfer duty.

In NSW, transfer duty is generally payable on the purchase or transfer of property unless an exemption or concession applies.

Strata scheme

A strata scheme is a property ownership structure commonly used for apartments, townhouses, villas, and some commercial properties.

Owners usually own their individual lot and share ownership or responsibility for common property through the owners corporation.

Title search

A title search is a search of the land title register.

It shows key information about the property, including the registered owner, title reference, mortgages, easements, caveats, covenants, and other registered interests.

Transfer of title

A transfer of title is the process of changing the registered ownership of a property.

This may occur because of a sale, family transfer, relationship breakdown, estate matter, or other ownership change.

Vacant possession

Vacant possession means the property is provided to the buyer without the seller, tenants, or other occupants remaining in possession, unless the contract provides otherwise.

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The property should usually also be free of rubbish and personal belongings, subject to the contract terms.