How to Decode The Glossary of Legal Terms in Property Conveyancing.

Are you finding yourself googling more legal and property title terms than you would care to admit to? To be fair, it is so convenient to reach for your phone and type “define…” in the search bar. We at KDD Conveyancing never expect our clients to be experts in all legal and property terms in property conveyancing; after all, that’s our job. We are here to help, especially with those tongue-tied and confusing moments when reading a property settlement contract.

It’s important to remember that every country or state has different legal definitions and precedents when it comes to contractual law, so Google may not provide the correct answer for your needs. 

As such, we have listed some of the more commonly used industry terms and broken them down for your convenience. 

Adverse Possession: Obtaining land ownership by openly and consistently residing on it for a set amount of time, usually without the owner’s consent.

Caveat: A formal notification filed with the land title office which states your interest in the land. A caveat can prohibit certain activity on a property’s title without the caveator’s permission.

Certificate of Title: a legal record proving the ownership of real estate. Certificates of Title in WA are held digitally.

Chattels: Personal property that is mobile, such as appliances or furniture.

Conveyancer: A certified specialist with expertise in the lawful transfer of property ownership.

Covenant: A property-related legal commitment or agreement that frequently specifies limitations or duties.

Cooling Off Period: a period of time whereby a party is able to terminate a contract without penalty. In WA, there is no cooling off period applicable to the purchase of real estate.

Deed: A formal document that transfers or attests to the transfer of rights or property.

Deposit: The amount paid by the buyer to secure the acceptance of their offer on a property. The deposit is usually held in the Real Estate Agent’s trust account, or alternatively, in the seller’s conveyancer’s trust account.

Easement: A privilege to enter or use another person’s property for a certain reason, such as a common driveway or utility access.

Encumbrance: Any obligation or claim, such as a mortgage or debt, that has an impact on a property’s title. Encumbrances can also include Easements, Restrictive Covenants and Memorials.

Fee Simple: Complete ownership of land. All land in WA is held either in Fee Simple by the Registered Proprietor (owner) or by the Crown.

Fixtures: part of the property that is fixed and included in the sale e.g. floor coverings, lights.

Freehold: see Fee Simple (above).

Grace Period: Sometimes called the ‘three day grace’, this is a period of three business days following the settlement date in which either the buyer or seller can delay settlement without any penalty being incurred. The terms of the grace period is outlined in the Joint Form of General Conditions.

Indefeasible Title: A key feature of the WA title’s system that says that once a document is registered with Landgate, your ownership or interest cannot be disputed.

Joint Form of General Conditions: the standard terms and conditions that underpin most contracts in WA. 

Joint Tenants: A type of property ownership in which multiple people own the property jointly. In the event of one of the owners passing away, their share is automatically assumed by the surviving owner(s). As opposed to Tenants in Common.

Lien: A right or claim established by law against property to protect an obligation or debt.

Land Registry: A government agency in charge of keeping track of land transactions and ownership information. In WA, the land registry is Landgate.

Land Use Planning: the process of regulating land use and development to achieve environmental, social, and economic objectives.

Memorial: an encumbrance that advises of a notice or restriction on a property e.g. a Contaminated Sites Memorial advising that the site has been remediated for restricted use. 

Mortgagee: The bank or lender that is owed money under a mortgage.

Mortgagor: A borrower who guarantees a loan with their possessions.

Nuisance: Something that impedes the use or enjoyment of property and results in injury or annoyance.

Party Wall: A wall that two properties next to each other share.

PEXA: The electronic conveyancing platform that facilitates the transfer of ownership and exchange of funds as the final part of the settlement process.

Prior Possession: a signed agreement between the buyer and seller for the buyer to take possession of the property prior to settlement taking place.

Property Interest Report: a report available from Landgate which outlines any interests, restrictions or responsibilities that may affect the use or enjoyment of the land.

Property Valuation: An assessment of a property’s monetary worth, typically made by a certified valuer.

Requisition: A formal request for data or action, frequently made during real estate transactions by a government agency.

Reservation: A clause or restriction included in a contract or deed that governs the transfer of property.

Residual Land Value: the estimated land value less business margins and development costs.

Restrictive Covenant: A document that may be recorded against a Certificate of Title, which places restrictions on the uses or activities that landowners may engage in on their property.

Right of Way: A legitimate right to enter another person’s property, usually in order to get access.

Setback: The minimal separation that zoning laws mandate between a building and a street or property line.

Stamp Duty: A levy that state governments impose on specific papers, such as conveyances and property transfers. In WA, this is called Transfer Duty and is governed by the Revenue WA.

Strata Title: A type of ownership in which people jointly possess common areas and own a piece of property, such as an apartment in a building.

Subdivision: the division of a bigger piece of land into smaller pieces in order to sell or develop it.

Tenants in common: A type of property ownership in which multiple people own shares of the property without any right of survivorship. Ownership may be equal or unequal. As opposed to Joint Tenants.

Tenure: The terms, such as freehold or leasehold, under which land or property is held or occupied.

Torrens Title: A land registration system where a government-issued certificate of title serves as proof of ownership.

Transfer of Land: The formal document via which one party transfers ownership of land to another.

Vacant Possession: the right of the buyer to take possession of the property upon settlement, with all previous occupants having already moved out.

Variation: a document signed by the buyer and seller agreeing to terms to vary the Contract of Sale.

Vendor: The seller of the property.

Voidable Contract: A legitimate contract that, for certain legal reasons, one or more parties may avoid or terminate.

Water Right: A right granted by law to utilise water from a particular source, like a river or groundwater aquifer.

Zoning: The partition of land, governed by municipal planning bodies, into various zones or areas for particular land uses.

We hope that we unraveled a few tied tongues and cleared up a few misconceptions regarding property conveyancing and settlements. If you are keen to learn more about property settlement or conveyancing or are interested in learning more about the WA property industry, you can follow our blog.