1. What is Conveyancing?
Conveyancing is the legal transfer of ownership of any property or real estate from one person to another.
2. What is a Vendor Statement?
A Vendor Statement, also known as a Section 32 is a document prepared by the person selling a property and must be provided to a prospective purchaser prior to them signing the Contract.
The function of the Vendors Statement is to inform the purchaser of certain particulars about the property. The Vendors Statement will include such information relating to rates, zoning, easements, restrictions, building approvals etc.
3. What is a Caveat?
A Caveat is a document lodged at the Land Titles Office to protect a Purchasers interest in the property.
Until settlement takes place the Certificate of Title to the property is still in the name of the Vendor and third parties associated with the Vendor can place encumbrances over that title.
The purpose of the Caveat will in effect prevent any other encumbrances being placed on the Certificate of Title.
4. What is Stamp Duty?
When you buy land in Victorian, which may include buildings, you are liable to pay duty. The duty payable is based on the market value of the total value of the land and dwelling or the purchase price, whichever is greater.
The link below will take you to the State Revenue Office calculator for working out how much you will pay.
5. What is a settlement?
Settlement is the process where all the parties to a conveyancing transaction come together to complete the transaction. Ideally this takes place on the date indicated on the contract of sale.
A convenient time of day is agreed to by all parties involved in the matter (Purchasers representative, Vendors representative, incoming Mortgagee and Discharging Mortgagee) who will attend a nominated location (usually the bank of the discharging Mortgagee).
6. What are adjustments?
Adjustments is an exercise undertaken towards the end of the conveyancing transaction to ensure an equitable pro rata split of rates and other outgoings to the property as of the date of settlement.
The adjustment of rates will ensure that the Vendors pay all rates and taxes due on the property up until settlement date, and Purchaser pays from the settlement date.
7. What are special conditions?
Special conditions are clauses inserted into the contract of sale.
These are extra conditions that are put in the contract by you or the Vendor.
They can be about anything to do with the property.
For example they maybe:
- That the contract is subject to you obtaining finance;
- That there will be penalties for a delay in the settlement;
- That the sale is subject to a tenancy etc.
8. What is a Discharge of Mortgage?
Is when the vendor repays the lending institution the total amount that was borrowed. This means that when your property is sold, the Mortgage or Mortgages together with any other charges, caveats or the like are paid off (discharged).
The mortgage will be paid out at settlement from the settlement funds and any balance left over will be paid as you direct.
9. What does Principle Place of Residence mean?
That at least one of the purchasers named occupies the land as his or her principle place of residence for a continuous period of 12 months commencing within a 12 month period immediately after the purchaser became entitled to possession of the land.
10. What is cooling off?
Cooling off is a term used to describe the entitlement of a purchaser of residential property to bring a contract to an end by written notice, without any specific reason being needed. It is available for three clear business days from the date the contract was signed by the purchaser.
There are certain situations where this cannot occur. Please contact our office for further information.
Please note that? Cooling Off does not apply if you are selling a property.
11. What are Joint Proprietors?
Joint Proprietors are those who hold property in the names of two or more persons, where all persons have an equal interest in the whole property. When one person dies his interest passes to the survivor(s).
12. What are Tenants in Common?
Tenants in Common are those who hold property in the names of two or more persons and in which each has a separate and distinct share. When one person dies his share is not passed to the survivor(s) but becomes part of his estate for disposal according to his will.