Buying a new home often comes with a lot of confusion over terms you may have never heard of before. Maybe you’re a first time home buyer, or perhaps you just need a refresher before you sell your home. We help bust some of the conveyancing jargon you need to know.
Common Conveyancing Jargon
Caveat. A caveat is a legal claim that has been registered on the property by a person or entity who has, or believes they have, a right to the property. Caveats must be removed before settlement can occur. Your conveyancing solicitor should advise you of any caveats.
Chattels. Chattels are items that are not fixed to the property and are usually removed at the time of sale. Items like furniture are chattels. These may be included in the sale if you are purchasing a holiday unit or a commercial property – always check the contract to see if any chattels are included in the sale.
Community Titles Scheme. Also known as Strata title, this is used when dealing with properties in high rises, low rises, and complexes. Council’s often use the Community Titles Scheme (or CTS) number to identify buildings for rates, while insurance companies will also use this to identify buildings they cover. These buildings utilise a body corporate to manage the building on a day to day basis.
Disbursements. Disbursements refer to amounts paid out to cover council rates, body corporate fees, and other Government departments. This may also be seen on your statement from your agent and refers to amounts paid out to yourself from the deposit.
Easement. Easements are a legal right granted over the property for it to be used for a specific purpose. The main easements are usually granted to the council, body corporate, State Government and the like.
Encumbrance. Encumbrances are features that affect a property (usually unfavourable). Often this could be outstanding council rates or unpaid strata fees. Some agents will also list any mortgages in this section of the contract as well.
Exchange. Simply, this is when signed and completed contracts are passed between buyer and seller
Finance Date. This date is the date you need confirmation that the bank will lend you money to purchase the home. Finance date lengths vary from state to state, so make sure you have everything ready to get an answer from the bank.
Settlement. The settlement date is the day that the transfer of the property occurs. Once settlement has occurred, the property is yours to move into or rent out.
Statement of Adjustments. Your conveyancer will provide a Statement of Adjustments after settlement has occurred. This document shows any adjustments between the buyer and the seller for council rates, water rates, strata fees and the like. As the seller, you need to keep paying any of these bills throughout the sales process, while the buyer will take them over once the property has settled.
If you’re considering selling your home or looking for a conveyancer for your next home purchase, call Salerno Law. We’ll help you through each step of the process, ensuring you understand what’s happening every step of the way.