Commonly Used Terms
A Caveat indicates the rights or interests of a third party (not the owner) on a property.
If a person has an existing right or wishes to establish a claim to the property, they lodge a caveat at Landgate.
While a Caveat is on a Certificate of Title, any registered dealings with the property are forbidden and, accordingly, the caveat must be withdrawn before any dealings can take place.
Certificate of Title:
A legal document that shows legal ownership and provides details of the property such as the lot number, plan/diagram/strata plan number, volume and folio, encumbrances and the names of the owner/owners.
If the title is not encumbered with a mortgage, the seller is required to provide the duplicate certificate of title to their settlement agent prior to settlement. Banks will often hold the title as security over a loan.
The initial amount of money paid to the seller (but usually held by the real estate agent) as stakeholder and released at final statement once an Offer & Acceptance contract is accepted.
A section of land that the owner of the easement has placed on the title to restrict the owner of the property from building on it. The Water Corporation often put easements on properties for sewerage or drainage purposes. These usually run along the rear border of the property.
An Encumbrance is a burden or charge that affects the use or enjoyment of the land. It can include a Caveat, Easement or Restrictive Covenant. It is registered on the Certificate of Title.
The opportunity for the buyers to do a final inspection of the property before settlement to make sure everything is in working order and everything that was included in the property has remained.
These are items which can be removed from the property without causing damage such as appliances and furniture.
These are items which cannot be removed from the property without causing damage such as wall or floor mounted objects.
All building insurance should be put in place before settlement. Your lender usually requires a copy of the Certificate of Currency before they agree to settle so this will need to be organised a couple of weeks before settlement, however, the policy can begin from the date settlement is effected.
An agreement requiring the owner of the property to adhere to certain terms, conditions or restrictions regarding their property.
A restrictive covenant is an Encumbrance that is shown on the Certificate of Title. It may have an expiry date or it may state that some of the covenants are not to expire, and consequently, you should be aware of the effect it may have on your use (including future development plans) of the property.
The day all legal documents and money are exchanged between banks and settlement agents. The buyer is now the owner of the property and can collect the keys from the real estate agent, at a pre arranged time.
A tax put in place by the Government to be paid by buyers of a property before settlement. The stamp duty amount is determined by the purchase price of the property. The higher the purchase price, the higher the stamp duty.
A single parcel of land that contains numerous dwellings either detached or attached.
Property owners have sole right to their individual dwelling (possibly including airspace) and an undivided share of common areas with other owners.
Value of the property as determined by a licensed valuer. Valuations are often required by banks to determine the current value and the Office of State Revenue to determine the amount of stamp duty to be paid on related party transfers.