Conveyancing Terms Explained

Buying or selling a property in Victoria comes with a lot of unfamiliar words.

This guide explains common conveyancing terms in plain English, so you know exactly what’s going on during your property transaction.

Administrative Fund Levy

FAQ Icon

If you’re buying into an apartment or unit complex, you’ll usually pay regular fees to the Owners Corporation.
The administrative fund levy covers everyday costs like:

  • Gardening
  • Cleaning common areas
  • Insurance
  • Minor repairs

It’s basically the running costs of the building.

Building & Pest Inspection

FAQ Icon

This is an inspection arranged by the buyer to check the condition of the property.
It looks for:

  • Structural issues
  • Water damage
  • Termites or pests

In Victoria, many buyers include this as a condition in the contract.

Caveat

FAQ Icon

A legal notice placed on a property title to protect someone’s interest in that property.

It prevents the property from being sold or transferred without notifying the person who lodged the caveat.

Certificate of Title

FAQ Icon

This is the official document that shows who legally owns the property.
It also shows:

  • If there’s a mortgage
  • If there are easements
  • Any restrictions on the land

Your conveyancer checks the title before settlement to make sure everything is correct.

Chattels

FAQ Icon

Chattels are items that are not fixed to the property.
For example:

  • Curtains
  • A fridge
  • A washing machine

If they’re not written in the contract, they usually don’t stay.

Fixtures

FAQ Icon

Fixtures are items that are permanently attached to the property.
For example:

  • Built-in oven
  • Light fittings
  • Built-in wardrobes

If it’s fixed in place, it normally stays with the property when it’s sold.

Common Property

FAQ Icon

This refers to areas shared by everyone in a building or complex.
Examples include:

  • Hallways
  • Driveways
  • Gardens
  • Stairwells

These areas are managed by the Owners Corporation.

Contract of Sale

FAQ Icon

This is the legal agreement between the buyer and the seller.
It includes:

  • The purchase price
  • Deposit amount
  • Settlement date
  • Any special conditions

Once both parties sign, it becomes legally binding.

Cooling-Off Period (Victoria)

FAQ Icon

In most private sales, buyers have three business days after signing the contract to change their mind.
If they withdraw during this time, a small penalty applies. There is no cooling-off period for properties bought at auction.

Covenant

FAQ Icon

A restriction registered on the title that limits how the land can be used.
For example, it may restrict building height, subdivision, or certain types of development.

Deposit

FAQ Icon

The deposit is usually 10% of the purchase price (unless negotiated differently).
It’s paid when the contract is signed and held in trust until settlement.

Discharge of Mortgage

FAQ Icon

If the seller still has a home loan, the bank must remove the mortgage from the title at settlement.
This is called a discharge of mortgage.
Without it, the property can’t transfer to the buyer properly.

Easement

FAQ Icon

An easement means someone else has the right to use part of your land for a specific reason.
Common examples:

  • Sewer or drainage pipes
  • Shared driveway access

You usually can’t build over an easement without approval.

Encumbrance

FAQ Icon

An encumbrance is anything registered on the title that affects the property.
This can include:

  • A mortgage
  • An easement
  • A covenant

It may limit how the property can be used.

Joint Tenants

FAQ Icon

This is when two or more people own a property equally.
If one owner passes away, their share automatically goes to the other owner.
This is common for married couples.

Tenants in Common

FAQ Icon

This is another way two or more people can own property.
The difference is:

  • Each person can own a different share (for example 60/40)
  • Their share can be left to someone in their will

Vacant Possession

FAQ Icon

This means the property must be empty at settlement (unless otherwise agreed).
The seller must remove:

  • All belongings
  • All rubbish
  • Any tenants (if vacant possession is agreed)

Important for buyers.

Mortgage

FAQ Icon

A mortgage is a loan secured against your property.

  • The bank is called the Mortgagee
  • The borrower is called the Mortgagor

The mortgage stays on the title until the loan is paid off.

Owners Corporation

FAQ Icon

In Victoria, apartment and unit complexes are managed by an Owners Corporation.
They handle:

  • Insurance
  • Maintenance
  • Shared rules

If you buy into a complex, you become part of it.

Power of Attorney

FAQ Icon

A legal document that allows someone to sign property documents on your behalf.
This is useful if:

  • You’re overseas
  • You can’t attend settlement

Section 32 (Vendor Statement)

FAQ Icon

In Victoria, the seller must give the buyer a Section 32 before the contract is signed.
It contains important information about the property, including:

  • Title details
  • Rates
  • Easements
  • Owners Corporation information

It’s designed to protect buyers by making sure everything is disclosed upfront.

Settlement

FAQ Icon

Settlement is the final step of the process.
On settlement day:

  • The buyer pays the remaining balance
  • Ownership transfers
  • The buyer receives the keys

In Victoria, this is usually done electronically.