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// Terminology

Adjustments Adjustment of rates and taxes charged against the property from the date of settlement IE: Council rates, SA Water, ESL , Land Tax etc.
Agency Agreement An agreement between the Real Estate Agent and Vendor setting out the terms and conditions upon which the Vendor appoints the Agent to sell the property including the selling price, agents commission, advertising etc
Assign To transfer one’s rights and obligations
Assignment of Contract An Agreement which transfers the rights and obligations of one person to another under an already signed Contract.
Certificate of Title A document identifying the ownership of land. Commonly known as the deeds to the land.
Chattel Personal property of the Vendors, not fixed to the property being sold. Generally not included in the sale of the property such as rugs, furniture, pot plants etc
Community Corporation The Community Corporation’s role is to administer the by-laws and manage the common property and is made up of the Community Lot owners.
Community Lot A defined piece of land (not being common property or a development lot) within a community plan.
Common Property Common property is the part of the land and building in the Strata / Community plan which does not form part of any unit and is for common use by all owners. eg stairways, paths and driveways.
Community Plan A plan created under the Community Titles Act where a parcel of land has been divided to create 2 or more community lots and common property.
Conveyance An instrument by which title to property is transferred; a deed
Conveyancer A person who prepares the Conveyancing instruments for fee or reward for the purpose of transferring property from the Seller to the Buyer. Conveyancers must be Licensed and Registered.
Conveyancer CPC As for Conveyancer, with the added achievement of Certified Practicing Conveyancer accreditation. They must undergo annual continued professional development & have practiced full time for a minimum of 2 years licensed.
Cooling off The period of time in which the buyer can withdraw from a Contract to Purchase (unless bought at auction). In SA this period covers 2 clear business days form the services and receipt of the Form 1 for Residential and 5 clear business days for Businesses
Covenant An agreement that restricts / stops, the right of the Owner from doing something to the property. Eg. dividing the land, the type of fence being erected and the paint colour to be used, single or double story dwelling
Default Failure to meet an obligation
Default Interest The rate of interest that may be changed as a result of defaulting under the Contract. Such as not settling on time
Deposit The amount of money payable as part of the Contract
Development To add something to the land, typically a dwelling
Development Lot A piece of land within a Community Plan which is to be further developed at a future date. Typically seen in larger developments where the building may be staged
Development Assessment Commission (DAC) Independent body statutory body who’s role is to assess and determine development applications in South Australia. See Links for more detail
Discharge to remove
Division to divide
Easement a legal right to use another persons land for a specified purpose. A typical easement is a Right of Way
Emergency Services Levy (ESL) Government levy for the funding of South Australia’s Emergency Services
Equitable Interest an interest that is not registered. Such as the right of a Purchaser that has entered into a Contract to buy land that has not yet settled
Fixtures Items fixed to a property such as carpet (not rugs), built in cupboards etc
Fixed Interest A pre determined and agreed rate to be charged to money borrowed. Will also include the time frame for the rate to apply
Form 1 Vendor Disclosure Statement for land which provides specific detail on the property being sold
Form 2 Vendor Disclosure Statement for a business which provides specific detail on the business being sold
Going Concern According to the Australian Taxation Office (ATO), ‘supply of a going concern’ occurs when: • A business is sold, and that sale includes all of the things that are necessary for the business to continue operating, and
• The business is carried on up until the day of saleThe supply of a going concern is GST free if it meets certain requirements, including:
• The sale is for a payment or consideration
• The purchaser is registered, or required to be registered, for GST, and
• The seller and the purchaser have agreed, in writing, that the supply is of a going concern
GST Goods and Services Tax. 10% tax charged on most goods and services provided in Australia
Head Lease The main lease – the first right to the exclusive use and right to occupancy of land under an agreement (Lease)
Interest Rate The rate charged by a lender on money lent. May be fixed or variable
Interest (in a contract) A right to (land) as a result of a Contract being entered into
Joint Tenant An ownership whereby; in the event of the death of one of the parties the survivor will become the sole owner.
Joint Venture The relationship between two or more parties who enter into an agreement to work towards a common goal, while remaining separate entities. Typically in real estate between a land owner and developer
Land Broker See Conveyancer. The term by which Conveyancers used to be known
Lands Titles Office (LTO) The statutory body responsible for land administration functions in South Australia
Land Tax a State Tax imosed on all investment property in South Australia. The revenue is used towards public services such as education, health and safety
Lease A contractual agreement for the exclusive use and right to occupy land
Lessor The owner of the land being Leased
Lessee The tenant of the land being Leased
Licence to Occupy An agreement in writing for the right to access and use land / property before settlement has taken place.
Margin Scheme a method used to calculate the GST payable. Both Vendor and Purchaser must agree to apply the Margin Scheme to a Contract in writing. The Purchaser is not able to claim an input credit for GST paid under the Margin Scheme
Memorandum of Transfer The legal document which gives effect to the transfer of land from one person or entity to another
Mortgage The agreement by which money is lent from one person or entity to another
Mortgagee The Lender
Mortgagor The Borrower
Notice A written advice given to one party from another
Partnership A relationship between parties carrying on a business in common with a view to making a profit. Can be either in writing or implied.
Purchaser Buyer
Registered Proprietor The registered owner (of land)
Right of Way A legal right to pass and re-pass over someone else’s land. See Encumbrance
R1 – (Vendors written guide to) Sales Agency Agreements Form required to be given to Vendors by Real Estate Agents explaining the Sales Agency Agreement. Seehttp://www.ocba.sa.gov.au/assets/files/FormR1.pdf
R2 – Disclosure of Benefits Form required to be given to Vendors & Purchasers by Real Estate Agents explaining their [the Agent’s] requirement to disclose any benefit received by a person or business they refer to. Seehttp://www.ocba.sa.gov.au/assets/files/FormR2.pdf
R3 – Buyers Information Notice Form required to be given to a Purchaser by the Vendor (or Vendor’s Agent) explaining what Purchasers should be aware of when buying a house Seehttp://www.ocba.sa.gov.au/assets/files/FormR3.pdf
R4 – Bidders Guide Form advising prospective bidders of their rights and obligations when bidding for land. Seehttp://www.ocba.sa.gov.au/assets/files/FormR4.pdf
R5 – Collusive Practices Form advising prospective purchasers of the prohibition of engaging in collusive practices when bidding for land. seehttp://www.ocba.sa.gov.au/assets/files/FormR5.pdf
R6 – Warning Notice to Purchaser Form advising Vendors and Purchasers of the general prohibition for an Agent to act for both parties, unless correctly disclosed. Seehttp://www.ocba.sa.gov.au/assets/files/FormR6.pdf
R7 – Warning Notice (Financial and Investment Advice) Form advising Vendor’s & Purchasers on the legal obligation of the Agent to inform you of certain factors when providing financial advice in relation to land. Seehttp://www.ocba.sa.gov.au/assets/files/FormR7.pdf
Section 7 statement see “Form 1”.
Settlement The act of finalising a Contract. The final stage.
Settlement Statement The statement of all debits and credits associated with the sale / purchase of land
Special Condition A Condition of the Contract that must be satisfied before Settlement can occur
Stamp Duty The statutory charge made on the transfer of goods including land in South Australia.
Strata Corporation The Strata Corporation’s role is to administer the articles and manage the common property and is made up of the Strata Lot owners.
Strata Plan A plan created under the Strata Titles Act where a parcel of land has been divided to create 2 or more community lots and common property.
Strata Unit A defined piece of land (not being common property or a development lot) within a strata plan.
Sub Lease A contractual agreement for the exclusive use and right to occupy land between parties whereby one party holds the head lease
Surveyor An engineer who determines the boundaries and elevations of land or structures
Tenants in Common An ownership whereby;Upon the death of a Tenant in Common their interest in the land can be left to anyone they nominate in their Will.
Termination To end. Terminate.
Title Deed to land
Torrens System The method of land registration used in South Australia
Torrens title The Title to land issued pursuant to the Real Property Act
Variable Interest The rate to be charged to money borrowed which may vary, up and down, through the course of the loan
Vendor Seller
Waive To forgo a right