Conveyancing Glossary
Our conveyancing glossary is an essential resource for you to understand the key terms and concepts in the property transfer process. Whether you’re a first-time homebuyer, a seasoned investor, or a professional in the field, our comprehensive glossary will help demystify the legal jargon and complexities of conveyancing.
From “adverse possession” to “zoning,” we provide clear, concise definitions to guide you through every step of your property transaction journey with confidence and clarity.
Adverse Possession:
When a property owner has been occupying or using a parcel of land that is adjacent to their own property without objection from the owner of the subject parcel of land for a period of 15 years or more.
Aggregation:
If a purchaser buys two or more parcels of land from the same vendor at the same time in separate contracts, the Duties Act regards this as a single purchase of all of the parcels of land for the sum of the component contracts.
Allotment:
A parcel of land on a title (typically one of several) that can be sold separately without having to subdivide the parent land.
Arrears:
How much money a property owner owes in respect of the land for council or water rates, owners corporation fees or land tax.
Auction:
Selling a property in public to the highest bidder.
Caveator:
A (third) person or party who has an interest in or claim over the subject land.
Contract:
A legally enforceable agreement, signed by both parties.
Cooling-off period:
A 3-business day period after signing the contract where the purchaser can rescind the contract without penalty (except forfeiting a small percentage of the deposit).
Council Rates:
Fees imposed annually on a property by the local government authority, most of these are proportional to capital improved value of the property.
Covenant:
A restriction or prohibition against a specified use of the subject land.
Deposit:
That part of the purchase price that the purchaser pays before settlement, this would be forfeited to the vendor if the purchaser failed to complete the contract.
Discharge of mortgage:
A title dealing that removes a mortgage from a title.
Easement:
The right of someone else (the dominant party) to use part of your land.
Encroachment:
When a building on an adjacent lot overhangs or has been built over the surveyed boundary of the lot.
Encumbrance:
An interest in someone’s land, or a restriction on how that land may be used.
Exchange:
When a contract has been signed by both parties, but they have signed separate copies. The signed copies are then exchanged between the parties.
Fixtures:
Items that cannot be removed from a building without leaving a defect.
Gazumping:
After informally accepting an offer from one prospective purchaser, a vendor then sells the property to another purchaser at a higher price.
GST (Goods and Services Tax):
A federal government tax imposed on some land transfers.
Inclusions:
Items being left in the building for the purchaser.
Land Titles Office:
The government department that maintains the titles register.
Legal fees:
Professional fees charged by legal practitioners or conveyancers.
Mortgagee:
A party (usually a lender) who accepts a mortgage over a parcel of land as security for a loan.
Mortgagor:
A property owner who grants a mortgage over their land as security for a loan.
Possession Date:
The date that the purchaser becomes entitled to exclusive occupancy of the land or to its rents.
Pre-contractual disclosure:
Things that a vendor must disclose to prospective purchasers in accordance with the Sale of Land Act 1962.
Requisitions:
These are no longer relevant in Victoria for land contracts. However, a lodgement of a title dealing or plan to Land Use Victoria is requisitioned if it has an issue that prevents it from being registered until this issue is appropriately dealt with or resolved.
Section 32 Statement:
A set of statutory disclosures that vendors of land in Victoria must give to prospective purchasers before any contract for the sale of land can be signed.
Settlement:
When the parties fulfil their various obligations under the contract.
Settlement statement:
A worksheet that shows the agreed amount that the purchaser will pay the vendor at settlement.
Stamp duty:
A state government tax imposed on land transfers.
Title search:
A snapshot of what’s shown on a title.
Transfer:
Change of ownership of land.
Transfer of Land:
A document (usually electronic) that is lodged with Land Use Victoria to change the ownership of a parcel of land. This document must be stamped with the relevant stamp duty before lodgement, and is signed on behalf of the existing owners (the Transferors) and the new owners (the Transferees) by their respective legal representatives.
Valuation:
An assessment of the market value of a parcel of land, done by a licensed real estate agent or a qualified valuer.
Vendor:
The seller of a parcel of land.
Zoning:
A declaration by the local council as to how a parcel of land may be used.