Glossary
Conveyancing glossary
Buying or selling a home brings a lot of unfamiliar words with it. These are the ones you are most likely to meet, explained in plain English. Where a term works differently in Queensland, New South Wales or Victoria, we say so.
Adjustments
settlement adjustments, apportionment
Adjustments split the ongoing costs of a property between the seller and the buyer at the settlement date. Council rates, water and any strata or body corporate levies are apportioned, so whoever has paid ahead is credited and whoever has not is charged.
Common adjustmentsBody corporate
community titles scheme
A body corporate is the entity that manages the common property, finances and by-laws of a Queensland community titles scheme. Victoria and New South Wales use the term owners corporation for the equivalent body.
Buying in a body corporate (QLD)Building and pest inspection
B&P, pest and building inspection
A building and pest inspection is an independent assessment of a property's physical condition and any timber pest activity, usually carried out before a buyer becomes committed. Whether you can act on what it finds depends on the contract and the state.
Building and pest inspectionsChattels
goods, loose items
Chattels are movable items that are not part of the land, such as a fridge or a washing machine. They are not included in a sale unless the contract says so.
Chattels and FixturesCooling-off period
cooling off, cooling-off rights
A cooling-off period is a short window after signing in which a buyer can withdraw, usually for a penalty. It is five business days in New South Wales and Queensland and three clear business days in Victoria, and it generally does not apply to auction sales, or in some states to sales made close to an auction.
Cooling-Off PeriodDeposit
holding deposit, contract deposit
The deposit is the part of the purchase price paid when the contract is signed, held by the agent or a conveyancer rather than paid to the seller. How much is at risk if things go wrong depends on the contract and the state.
Deposits in Property TransactionsDisbursements
outlays, third-party costs
Disbursements are third-party costs your conveyancer pays on your behalf and passes on, such as title and council searches, certificates, the electronic settlement fee and land registration. They sit on top of the professional fee.
What are conveyancing disbursements?Easement
right of way
An easement is a right for someone else to use part of your land for a specific purpose, most often access or services such as drainage. It stays with the land, so it continues to apply after you buy.
EasementsEncumbrance
interest on title
An encumbrance is any third-party interest or restriction recorded against a property's title, such as a mortgage, easement, covenant or caveat. Seller disclosure documents are required to reveal them.
What a seller must disclose before you signFinance condition
subject to finance, finance clause
A finance condition makes a contract subject to the buyer obtaining loan approval by a set date. What happens if approval does not come through depends on the wording and the state. The standard New South Wales contract has no finance condition; buyers usually rely on pre-approval and the cooling-off period, or negotiate one as a special condition.
Finance Approval GuideFIRB approval
foreign investment approval
FIRB approval is the Foreign Investment Review Board clearance a foreign buyer generally needs before acquiring Australian residential property. It is separate from the foreign buyer duty surcharge, which is a state tax.
Foreign Buyers Purchasing PropertyFixtures
attached items
Fixtures are items attached to the property in a way that makes them part of it, such as built-in cupboards or a fixed air conditioner. They are generally included in a sale unless the contract excludes them.
Chattels and FixturesForm 2
seller disclosure statement, QLD disclosure
A Form 2 is the seller disclosure statement a Queensland seller must give a buyer, together with prescribed certificates, before the buyer signs the contract or, for an auction, made available before bidding starts. It was introduced by the mandatory disclosure scheme that commenced on 1 August 2025.
Form 2 seller disclosure (QLD)Mortgagee
lender
The mortgagee is the lender that holds a mortgage over a property. The borrower is the mortgagor. At settlement the seller's mortgagee is paid out and its mortgage removed from the title.
Discharging your mortgageNotice to complete
completion notice
A notice to complete is a formal demand requiring the other party to settle by a stated date, used where a settlement date has passed. It is the mechanism that makes a deadline binding in New South Wales, where contracts are not usually time of the essence from the outset.
Time and Settlement in Property Contracts (NSW)Owners corporation
OC
An owners corporation is the body that manages common property, finances and rules in a Victorian or New South Wales scheme with shared areas. Queensland calls the equivalent a body corporate.
Buying in an owners corporation (VIC)Pre-settlement inspection
final inspection
A pre-settlement inspection, also called a final inspection, is a walk-through of the property shortly before settlement to check it is in the condition the contract requires and that anything included is still there.
Pre-settlement (final) inspectionSection 27
early deposit release, s 27
Section 27 is the Victorian provision that currently allows a deposit to be released to the seller before settlement, in defined circumstances, unless the buyer objects on specified grounds. It is being replaced by a regime that requires an express term in the contract.
Section 27 Early Release of Deposit (VIC)Section 32
vendor statement, vendor's statement, s 32
A Section 32 is the disclosure statement a Victorian seller must give a buyer before the buyer signs the contract of sale. It covers title, encumbrances, planning, outgoings and other prescribed matters.
The Section 32 vendor statement (VIC)Section 66W certificate
66W, cooling-off waiver
A section 66W certificate waives the buyer's cooling-off rights in New South Wales. It must be signed by a solicitor, barrister or licensed conveyancer who does not act for the seller, and who has explained the effect of the contract, the nature of the certificate and the effect of giving it.
Cooling-Off Period (NSW)Settlement statement
statement of adjustments
A settlement statement is the financial document setting out every cost and payment the buyer and seller settle on the day, including adjustments. It is usually prepared by the buyer's conveyancer.
What is a settlement statement?Special condition
additional condition
A special condition is a term negotiated into a contract on top of the standard printed terms, such as a finance or building and pest condition. What it allows you to do depends entirely on how it is written.
Complying with Contract ConditionsStamp duty
transfer duty
Stamp duty, now more correctly called transfer duty in most states, is the state tax payable on a property transfer. The amount depends on the state, the price and whether any concession or exemption applies to you.
How stamp duty is calculatedStrata scheme
strata title
A strata scheme is a form of ownership where you own your individual lot and share the common property with other lot owners under by-laws. It is the common structure for apartments and townhouses in New South Wales.
Buying in a strata or community scheme (NSW)Sunset clause
sunset date
A sunset clause sets a final date by which an off-the-plan development must be completed and the lot registered. If that date passes, one or both parties may be able to end the contract. In New South Wales and Victoria, and in Queensland for off-the-plan land, a seller can generally only rely on a sunset clause to end the contract with the buyer's written consent or a Supreme Court order.
Time of the essence
essence of the contract
Time of the essence means a contract's deadlines are strict, so missing one is a breach that can allow the other party to terminate. Queensland contracts treat settlement as time of the essence. In Victoria a party generally must serve a default notice, and in New South Wales a notice to complete, before ending the contract for a missed settlement.
Time and Settlement in Property ContractsTransfer duty
stamp duty
Transfer duty is the state tax payable when property changes hands, commonly still called stamp duty. Rates, thresholds and concessions differ by state and are set by the state revenue office.
Stamp duty by state: NSW, QLD & VICUnconditional
going unconditional
A contract is unconditional once the conditions it was subject to, such as finance or building and pest, have been satisfied or have expired. From that point the agreed obligations stand without those escape routes.
Complying with Contract ConditionsVacant possession
empty possession
Vacant possession means handing the property over empty of the seller's belongings, clean, with all keys and access devices, and with no one in occupation. Where a property is sold with tenants, vacant possession does not apply.
Vacant Possession and Tenanted Property
