GENERAL TERMS

Adjustments

This refers to the method used to calculate how property outgoings (e.g. local council rates) will be divided between the Buyer and the Seller. This process helps ensure that both parties are only responsible for paying these for the time that they are in possession of the property. 

Agent

The real estate agent who the Seller has engaged to manage the sale of their Property.

Australian Taxation Office (ATO) Clearance Certificate

On 1 July 2017, the Australian Taxation Office (ATO) introduced requirements for all properties being sold for $750,000 or more; each Seller must obtain a Clearance Certificate prior to Settlement. The ATO Clearance Certificate is a statement from the ATO confirming that each Seller is not a foreign resident.  

Building and Pest Date

A standard condition of a contract of sale in Queensland is a building and pest inspection, which provides a Buyer with the right to have the property inspected for any pests and/or building defects.

Caveat

A caveat is a notice to the Registrar, which is placed on the title of a property.  The property cannot be sold unless the caveat is removed.

Certificate of Title

The document that shows the legal ownership of a property. From 1 October 2019 paper Certificates of Title (sometimes called “The Deed”) issued in Queensland will no longer have any legal effect, as the electronic title held by the Titles Office will be the true record of ownership. From this date, you may either keep your Paper Certificate of Title for historical purposes or destroy it.

Community Title Schemes (CTS)

The term given to multi-dwelling developments. This can be a house in a gated community, a townhouse, or an apartment in a high rise. The title has the same rights as the title associated with a block of land excepting there are usually common areas, e.g. Corridors, driveways, pool areas, etc. Strata titles are invariably managed by a body corporate whose members are made up of the strata title owners.

Contract of Sale

A Contract of Sale is the written document that gives rise to the conveyancing transaction and is signed by all parties. It creates a legal obligation for both the Buyer and Seller to complete the legal process for transferring property.

Cooling-off Period

When the Buyer signs the Contract of Sale they receive a statutory five business day cooling-off period in which they can terminate the contract without providing a reason to the Seller for doing so. If the Buyer elects to terminate during this period the Seller is entitled to keep 0.25% of the purchase price from the Buyer’s deposit.

Deposit

The deposit is the consideration the Buyer pays the Seller upon entering in to the Contract. The standard deposit is 10% of the price purchase. In the standard REIQ, Deposits are commonly due when the Buyer signs the Contract, on a fixed date, a Special Condition or when the Contract becomes unconditional.

Disbursements

A disbursement is a payment made to a third party, such as the Land Titles Office for a title search on the Property. Searches are conducted over the Property to ensure it is cleared from all outstanding monies at Settlement and to ensure any notices or orders do not impact legal ownership.

Discharge/Release of Mortgage

A discharge/or release of mortgage is the process of removing the security interest from the title over the property.

Easement

A right of use for a property that is listed on the property's title, whereby someone other than the property owner has a right to use the property for a specific purpose, for instance, shared paths and driveways.

Encumbrance

The term given to a formal burden over the property as listed on the Title. This can include a mortgage, easement or lease.

Exchange

Is the point in which the binding Contract is passed from either the Buyer to the Seller after it has been signed by both parties.

Finance Date

The date in which the Buyer must confirm that their lending banking institution will provide the funds for the purchase.

Fixtures

Fixtures are items that are attached to the property and which ownership will move from the Seller to the Buyer.

Joint Tenants

If you are purchasing property as joint tenants, each party on title will hold an individual interest in the property. The most common example of a joint tenancy is the ownership over a home by a married couple. In this example, joint tenancy comes with the ‘right of survivorship’, which means that in the event of one joint tenant surviving the other, the property automatically passes to the remaining joint tenant and does not form part of the deceased’s estate.

Land Titles Office

The central registry for the ownership of real property in each state. The transfer is registered with the Land Titles Office.

Mortgage

A mortgage is another name for a loan and used to define a loan for the purchase of a property. The mortgage will be registered on the Title to the property and shows the interest of the body that has lent money to the owner of the property for its purchase. 

Mortgagor

The person or body that has lent money for the purchase of the property. 

Mortgagee

The person or body that has borrowed money for the purchase of the property.

Office of State Revenue

The Queensland Government department that assesses stamp, or transfer duty and accepts payment of it as part of the transaction in the purchase of property.

PEXA

PEXA is an online property exchange network and assists lawyers, conveyancers and other professionals to transact online to lodge documents and settle digitally, ensuring a more efficient, faster and cost effective conveyancing process.

Professional Fee

The fee that you pay your Lawyer or Conveyancer who conducts the property transaction.

Settlement

The date or point at which the actual property transfer occurs, i.e. The payment of monies and the delivery of documents necessary for the registration of the new owner on title.

Settlement Agent

A independent person who attends settlement on behalf of the Buyer or Seller.

Stamp Duty (also referred to as Transfer Duty)

Also known as ‘transfer duty’. This is a state tax levied upon the transfer of property and is payable by the buyer. The transfer duty amount varies from state to state and depends on the value of the property.

Transfer

The official legal document that shows the property’s title particulars, its current registered owner and any encumbrances.

Tenants in Common

If you are purchasing the property as tenants in common, each person will own a share in the property (i.e. can be 50/50, 70/30, 99/1 or any share as you wish). On the death of one party that share passes to whoever inherits their estate.

Vacant Possession

The purchasing of a property that will be vacant at settlement, with no tenant or any other person living in it.