Conveyancing Glossary: Key Terms You’ll Often Hear During a Property Transaction

Buying or selling property can feel overwhelming, especially when you are faced with legal terminology you may not have heard before. To help make the process easier to understand, we have put together this client-friendly glossary of common conveyancing terms you are likely to hear throughout your property transaction.

Adjustment

A calculation made at settlement to ensure costs such as council rates, water rates, strata levies and other outgoings are fairly divided between the buyer and seller based on the settlement date.

Building & Pest Inspection

A report arranged by the purchaser to assess the property’s structural condition and identify issues such as defects, damage, or pests (like termites).

Caveat

A legal notice lodged on the title of a property that prevents certain dealings (such as a sale or refinance) without the caveator being notified.

Certificate of Title

The official legal record showing who owns the property and details of any mortgages, easements, covenants or restrictions affecting it.

Completion / Settlement

The final stage of the transaction when ownership officially transfers from the seller to the buyer, funds are exchanged, and the buyer receives legal ownership of the property.

Contract for Sale

The legally binding agreement between the buyer and seller setting out the terms and conditions of the property transaction.

Cooling Off Period

A short period after signing the contract during which the buyer can withdraw from the purchase (subject to certain conditions and usually a financial penalty).

Deposit

An amount paid by the buyer when contracts are exchanged to secure the purchase, usually held in the real estate agent’s or solicitor’s trust account until settlement.

Disbursements

Out-of-pocket expenses incurred during the transaction, such as title searches, council certificates, and government registration fees.

Easement

A legal right allowing someone else to use part of a property for a specific purpose, such as drainage pipes, sewer lines, or access pathways.

Encumbrance

A legal restriction or interest affecting the property, such as a mortgage, easement, covenant, or caveat.

Exchange of Contracts

The point when both parties sign identical contracts and formally swap them, making the agreement legally binding.

Mortgage

A loan secured against the property. The lender holds an interest in the property until the loan is repaid.

PEXA

Australia’s secure online platform used by solicitors and lenders to complete electronic property settlements.

Pre-Settlement Inspection

A final inspection carried out by the purchaser before settlement to ensure the property is in the same condition as when it was agreed to be purchased.

Purchaser

The buyer of the property.

Section 66W Certificate

A document signed by the purchaser to waive their cooling off rights, making the contract immediately binding.

Section 10.7 Certificate (Planning Certificate)

A certificate issued by the local council outlining zoning and planning information that may affect the property.

Settlement Date

The date agreed in the contract when settlement is scheduled to take place.

Settlement Statement

A financial summary showing all funds to be paid or received at settlement, including adjustments, fees and charges.

Stamp Duty (Transfer Duty)

A government tax payable on most property purchases. The amount depends on the property value and whether exemptions or concessions apply.

Strata Report

A report prepared for strata properties (units, apartments, townhouses) containing information about the owners corporation, financial records, defects, disputes, and upcoming works.

Title Search

A search confirming the legal ownership of the property and identifying any registered interests or restrictions.

Transfer

The legal document used to transfer ownership of the property from the seller to the buyer.

Vendor

Another term for the seller of the property.

Vendor Disclosure

Documents the seller is legally required to provide to the buyer before the sale, including title details and certain property certificates.

Settlement Agent / Conveyancer / Solicitor

The professional who manages the legal process of transferring property ownership and ensures everything is completed correctly.

Why Understanding These Terms Matters

Property transactions involve significant financial and legal commitments. Understanding the key terms used throughout the process can help you feel more confident, ask informed questions, and avoid unnecessary stress.

If there is ever a term or process you are unsure about during your conveyancing transaction, your solicitor or conveyancer should always be happy to explain it in plain English.