Property Law glossary
Australian property law is jurisdiction-specific to a degree most other practice areas are not — Section 32 in Victoria, REIQ contracts in Queensland, NSW vendor disclosure, and the Torrens system across all states. This glossary covers 40 of the most commonly used terms.
This is a glossary of 40 key terms used in Australian property and conveyancing law. Each term has a plain-English definition and a reference to the relevant state legislation. Use it as a reference for client conversations, briefings, or junior conveyancer training.
Definitions
Adjustments
Apportionment of council rates, water rates, body corporate levies, and land tax between vendor and purchaser at settlement, calculated to the settlement date.
Body corporate
The collective of unit owners in a strata-titled building. Manages common property, sets levies, and enforces by-laws. Governed by state-specific strata legislation.
Caveat
A notice lodged on a property title claiming an interest in the land. Prevents dealings until the caveat is removed or the dispute resolved.
Certificate of title
The official document evidencing ownership of land under the Torrens system. Now mostly digital. Required for many dealings with the property.
Common property
Areas of a strata building shared by all unit owners — typically including hallways, lifts, gardens, and external walls. Managed by the body corporate.
Conveyancing
The legal process of transferring ownership of land from vendor to purchaser. Includes contract preparation, vendor disclosure, settlement, and registration.
Cooling-off period
A statutory period after exchange (or signing) during which the purchaser can rescind the contract. Varies by state — NSW 5 business days, VIC 3 business days, QLD 5 business days.
Covenant
A contractual restriction on how land can be used, registered on title and binding on successive owners. Some covenants can be modified or removed by court order.
Default notice
A notice issued by one party to the other for a breach of the contract, typically requiring the breach to be remedied within a specified period.
Deposit
A sum (typically 5-10% of the purchase price) paid by the purchaser on exchange. Held in trust until settlement and applied to the purchase price.
Disclosure
The vendor's statutory obligation to provide the purchaser with specified information about the property before signing the contract. Differs by state.
Easement
A right held by one landowner to use part of another's land for a specific purpose (such as access or services). Typically registered on title and runs with the land.
Encumbrance
A claim or restriction on land that may affect its value or use — including mortgages, caveats, easements, and covenants. Disclosed in the contract.
Equity
The owner's interest in a property after deducting any mortgage or secured debt. Calculated as market value minus outstanding loan balance.
Exchange
In NSW, the formal step where the parties' signed contracts are exchanged and the contract becomes binding. The contract date is the exchange date.
Foreign purchaser surcharge
Additional stamp duty payable by foreign purchasers acquiring residential property. Applies in most Australian states with varying rates.
GST on property
Goods and services tax may apply to commercial property and new residential premises. Established residential property is generally GST-free. Withholding may apply.
Inspection
A pre-purchase examination of the property to identify defects or issues. Building and pest inspections are common, often as a contract condition.
Land tax
A state tax on land ownership, calculated annually. Most states exempt principal residences. Adjusted at settlement between vendor and purchaser.
Lender
The bank or financial institution providing a mortgage. Typically holds the certificate of title as security until the loan is repaid.
Mortgage
A loan secured against real property, registered on title. Gives the lender the right to sell the property if the borrower defaults.
New residential premises
A category of property under the GST law — typically property that has not been previously sold as residential premises. Subject to GST.
Notice to complete
A formal notice issued when one party does not settle on the agreed date. Sets a final period to comply, after which the other party may terminate.
Off the plan
A purchase of property (typically an apartment) before construction is complete or before the title is registered. Subject to additional disclosure requirements.
Owners corporation
The Victorian equivalent of a body corporate — the collective of owners in a subdivision (strata or community) responsible for managing common property and shared services.
PEXA
Property Exchange Australia — the electronic conveyancing platform used for most Australian property settlements. Allows online lodgement, fund transfer, and document exchange.
Possession
The right to occupy the property. Vacant possession at settlement is the standard expectation in residential transactions.
Purchaser
The party buying the property. Has obligations under the contract including payment of the purchase price and acceptance of title at settlement.
Registration
The lodgement of a transfer or other dealing on the title at the relevant state Land Registry. The point at which the purchaser becomes the registered proprietor.
REIQ contract
The standard Queensland residential contract issued by the Real Estate Institute of Queensland. Used for most residential property sales in QLD.
Rescission
The cancellation of a contract by one party, returning the parties to their pre-contractual position. Available in cooling-off periods or for certain breaches.
Section 32
A vendor disclosure document required for the sale of land in Victoria under the Sale of Land Act 1962 (VIC). Must disclose specified information about the property.
Settlement
The completion of a property transaction — the purchase price is paid, title is transferred, and any mortgages are discharged or registered.
Stamp duty
A state tax on the transfer of land (now called transfer duty in some states). Calculated on the purchase price. First home buyer concessions apply in some states.
Strata title
A form of title for individual units within a multi-unit building, with shared ownership of common property via a body corporate. Common in apartments and townhouses.
Subject to finance
A contract clause making the contract conditional on the purchaser obtaining finance approval by a specified date. The purchaser can terminate if finance is not approved.
Sunset clause
A clause in an off-the-plan contract allowing one or both parties to terminate if the property is not registered or completed by a specified date.
Title
The legal ownership of land. Under the Torrens system, the registered proprietor has indefeasible title, generally protected against unregistered interests.
Torrens system
The system of land title registration used across all Australian states and territories. Provides indefeasible title to registered proprietors.
Vendor
The party selling the property. Has obligations under the contract including delivery of vacant possession and clear title at settlement.
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