Plain-English reference · 66 terms
Australian conveyancing glossary, 2026
Australian conveyancing runs on state-specific terminology. This is the complete plain-English decoder for the 66 terms you will encounter in any 2026 property purchase or sale, with cross-references to deeper guides where the underlying concept needs unpacking.
★Key takeaways
- ✓Conveyancing in Australia is governed by state law. Vendor disclosure documents, cooling-off periods and licence types all change at the state border (Section 32 VIC, Form 1 SA, Form 2 QLD from August 2025, s52A statement NSW).
- ✓Body corporate (older / QLD term) and owners corporation (newer / VIC term) refer to the same legal concept: the entity that manages common property in a strata or community scheme.
- ✓Caveats, easements and covenants are all encumbrances registered on title. Searching the title is the first step in any conveyance.
- ✓Settlement adjustments (council rates, water, strata levies, land tax) are apportioned at settlement and typically add or subtract $1,000 to $5,000 from the balance due.
- ✓Cross-references in the definitions link to deeper guides (off-the-plan traps, PEXA, the state-by-state process and stamp duty calculator). Use Ctrl/Cmd+F to jump to a term.
A
Adjustment date
The date from which property outgoings (council rates, water, land tax, strata levies) are apportioned between seller and buyer at settlement. Usually the settlement date itself.
AIC
Australian Institute of Conveyancers. The professional body for licensed conveyancers across all states with a member code, CPD requirements and complaint handling.
Auction contract
A contract signed at or near a public auction. In all Australian states the cooling-off period does not apply to auction sales. Buyers should complete all due diligence (pest, building, finance) before auction day.
B
Body corporate
The legal entity formed by owners of lots in a strata or community title scheme to manage common property. Called "owners corporation" in Victoria and Queensland (modern legislation).
Bridging finance
Short-term loan covering the period between buying a new property and selling the existing one. Typically 6 to 12 months. Higher interest rate than a standard mortgage.
C
Caveat
A formal warning lodged on a property title that protects an unregistered interest (typically by a buyer between exchange and settlement, or by a creditor with a claim). Stops further dealings until resolved.
Certificate of title
Historically a paper document evidencing ownership of land. Most states are now eCertificate of Title (eCT) or fully electronic title held on the state Land Registry register. The paper certificate is being phased out.
Chain of title
The sequence of registered transfers showing how ownership of a property has changed over time. Searched as part of the conveyancing process to verify clear title.
Commercial property
Non-residential property: office, retail, industrial, mixed-use. Subject to different stamp duty, GST and tenancy law than residential. Almost always handled by a property lawyer not a conveyancer.
Common property
Shared areas in a strata or community title scheme (lifts, lobbies, gardens, driveways, exterior walls). Owned by the body corporate / owners corporation collectively, not by individual lot owners.
Conditional contract
A contract subject to one or more conditions (subject to finance, subject to pest and building inspection, subject to sale of buyer's existing home). If a condition fails, the contract can be terminated.
Contract for sale
The legally binding agreement between buyer and seller covering the purchase price, settlement date, deposit, special conditions and prescribed disclosures. Format varies by state.
Cooling-off period
The statutory window after contract signing during which the buyer can rescind, usually for forfeiture of 0.25% of the price. Length varies by state (NSW 5 business days, VIC 3 business days, QLD 5 business days, SA 2 days, ACT 5 days). Does not apply to auction sales. No statutory cooling off in WA, TAS, NT.
Council rates
Annual property tax paid to the local council. Apportioned at settlement so seller pays for the period to settlement and buyer takes over from then. Usually $1,500 to $5,000 per year for a residential property depending on local government area.
Covenant
A binding obligation registered on a title that restricts how the land can be used (no second dwelling, fence material restrictions, building height limits). Runs with the land regardless of ownership change.
D
Default notice
A formal notice issued under the contract by the non-defaulting party requiring the defaulter to remedy within a stated period (typically 10 to 14 business days). Penalty interest accrues during the notice period.
Deposit
The initial payment made by the buyer at or near contract signing. Standard is 10% of the price (less in some negotiated cases). Held in a regulated trust account until settlement.
Deposit bond
An insurance product that takes the place of a cash deposit. The bond issuer guarantees payment of the deposit if the buyer fails to complete. Premium typically 1.0 to 1.5% of the bond face value per year.
Disbursements
Costs paid by the conveyancer on the buyer's or seller's behalf (title searches, council and water certificates, registration fees, stamp duty). Itemised on the settlement statement and on the conveyancer's invoice.
Discharge of mortgage
The legal process of removing a mortgage from the title once the loan is paid out. Lodged electronically through PEXA at settlement.
E
Easement
A registered right of one party to use part of another's land for a specific purpose (e.g. drainage, sewerage, right of way, electricity easement). Runs with the land.
Electronic conveyancing
Conveyancing where settlement and lodgement happen through an Electronic Lodgement Network Operator (ELNO) such as PEXA. Now the default in all states; mandatory in NSW, VIC, SA, WA for common dealings.
ELNO
Electronic Lodgement Network Operator. The two operators approved nationally are PEXA (dominant, 99%+ market share) and Sympli (smaller).
Encumbrance
A registered interest on a title that affects ownership: mortgage, caveat, easement, covenant, lease, charge. Searched and disclosed during conveyancing.
Exchange
The moment the contract becomes legally binding (both buyer and seller sign and the contract is exchanged). In NSW the term is used literally; in other states "signing" is the common term. Subject to cooling off where applicable.
F
FIRB
Foreign Investment Review Board. The Commonwealth body that approves non-resident purchases of Australian residential property. Application required before signing; fees scale with property price ($14,800 base for property up to $1 million in 2025 to 2026, indexed annually).
Form 1 (SA)
The South Australian vendor disclosure statement under the Land and Business (Sale and Conveyancing) Act 1994. Must be served on the buyer; cooling-off period only starts on service. Defective Form 1 gives rescission rights.
Form 2 (QLD)
The Queensland Seller Disclosure Statement, mandatory from 1 August 2025 under the Property Law Act 2023. Discloses title, encumbrances, body corporate, transferable rates, building approvals. Replaces older patchwork QLD disclosure.
G
GST margin scheme
A GST calculation method for property developers where GST is charged on the margin between the sale price and the developer's acquisition cost, rather than the full sale price. Reduces buyer's GST burden on new residential property. Eligibility conditions in Division 75 of the GST Act.
I
Inspection (final / pre-settlement)
The buyer's right under the contract to inspect the property in the period (typically 7 to 14 days) before settlement. Confirms the property is in the same condition as at contract date.
L
Land tax
Annual state-based tax on land value (not improvements) above a threshold. Principal place of residence is exempt in most states. Apportioned at settlement. Thresholds: NSW $1,075,000 (2025), VIC $50,000 (no PPR exemption from 2024 for trust-held PPR), QLD $600,000.
M
Memorandum of transfer
The registered instrument that effects the transfer of title from seller to buyer. Drafted in the PEXA workspace, signed digitally, lodged with the state Land Registry at settlement.
Mortgage
A registered charge over the property securing a loan from a lender. The mortgagee (lender) has the right to sell if the borrower defaults. Discharged at the end of the loan term or on refinancing.
O
Off-the-plan
A purchase of a property (typically an apartment or house-and-land package) that has not been built or registered as a separate title at the time of contract. Settlement typically 18 to 36 months after signing. See our off-the-plan traps guide.
Owners corporation
The legal entity formed by lot owners in a strata or community scheme to manage common property. The Victorian and Queensland (post-2020) name for body corporate.
P
PAMD Form 30c
Now-retired Queensland disclosure form, replaced by Form 2 Seller Disclosure Statement from 1 August 2025 under the Property Law Act 2023.
PAYG transfer
PAYG instalment transfer where stamp duty is paid progressively rather than at once. Available for certain off-the-plan transactions in some states. Verify with your conveyancer.
Penalty interest
Interest payable by the defaulting party under the contract following a default notice. Usually 10 to 12% per annum on the unpaid balance, compounding daily.
PEXA workspace
The shared digital environment in PEXA where conveyancers, lenders and the state Land Registry coordinate a property settlement. See our PEXA explained guide.
Plan of subdivision
The registered plan that creates new lots from a parent title. For off-the-plan apartments, the plan of subdivision is registered before titles can be issued to buyers.
Power of attorney
A legal document authorising another person (the attorney) to act on the principal's behalf, including signing a property contract or transfer document. Often used when the principal is overseas at settlement.
R
Rates certificate
A certificate from the local council showing outstanding rates and charges on the property. Ordered by the conveyancer to verify amounts to be adjusted at settlement.
Requisitions on title
Formal questions raised by the buyer's conveyancer to the seller's conveyancer about the title and the property. Most are pro-forma; some may flag genuine concerns.
Rescission
The legal termination of a contract, usually with restoration to the pre-contract position. Available during cooling off, on certain conditional failures, and where the other party is in fundamental breach or fails to satisfy mandatory disclosure.
Restrictive covenant
A covenant registered on title that limits the buyer's use of the land (no commercial use, only one dwelling, building line setback). Binds successive owners.
S
Section 32
The Victorian vendor disclosure statement under section 32 of the Sale of Land Act 1962 (VIC). Must be provided before contract signing. Discloses title, encumbrances, planning, building permits, owners corporation, outgoings. Defective Section 32 gives buyer rescission rights.
Section 27 (VIC)
Section 27 Sale of Land Act allowing release of deposit to the seller before settlement if certain conditions are met (contract unconditional, no caveats, requisitions answered). Common in long settlements.
Section 66W certificate (NSW)
A buyer-signed certificate in NSW that waives the cooling-off period. Common practice in competitive bidding contexts to make an offer more attractive. Once signed, contract is immediately binding.
Settlement
The final stage of conveyancing: balance of price paid, title transferred, mortgages discharged and registered, keys released. Now overwhelmingly conducted electronically via PEXA in 1 to 2 hours.
Settlement adjustments
Pro-rata adjustments at settlement for outgoings the seller has prepaid that benefit the buyer post-settlement (rates, water, strata levies, land tax) and reverse for amounts the seller owes. Typically $1,000 to $5,000 of total adjustment.
Settlement letter
A formal letter or PEXA-generated statement showing the balance of price due at settlement, adjustments and final cleared funds. The single most-checked document by both sides.
Settlement statement
The detailed itemised summary of all amounts payable at settlement, including price, deposit credit, adjustments, stamp duty, transfer registration fee, PEXA fees. Equivalent to the closing statement in US conveyancing.
Special conditions
Clauses added to a standard form contract addressing specific elements: subject to finance, subject to inspection, vendor warranty, specific exclusion of fixtures. Reviewed line by line by the conveyancer.
Special levy
A non-recurring levy raised by a body corporate / owners corporation for major capital works or unexpected expenses. A pending special levy disclosed in the contract is a price negotiation point for the buyer.
Stamp duty
State-based tax on property transfers. Charged on the purchase price (or unencumbered value if higher). Scales steeply with price. Concessions for first home buyers, pensioners, off-the-plan and principal place of residence vary by state. Use a stamp duty calculator.
Strata title
A form of title where individual lots (typically apartments or townhouses) are owned outright with shared ownership of common property through the body corporate / owners corporation. Most common in NSW and VIC apartments.
Subject to finance
A special condition in the contract giving the buyer the right to terminate if finance is not approved by a specified date. Standard in most contracts in QLD, optional in NSW + VIC. Specifies lender, loan amount and approval deadline.
Sunset clause
A clause in an off-the-plan contract setting the date by which the developer must register the plan of subdivision and complete the property. If missed, either party may rescind, subject to state-specific protections (NSW Conveyancing Amendment (Sunset Clauses) Act 2015 + VIC + QLD equivalents). See off-the-plan traps.
T
Title search
The conveyancer's search of the state Land Registry to verify the legal owner, identify all registered interests (mortgages, caveats, easements, covenants) and confirm clear title can be transferred at settlement.
Torrens title
The Australian (and New Zealand) system of land registration where the state-maintained register is conclusive proof of ownership. Replaced the older "old system" or "general law" title in most states.
Transfer
The instrument that transfers ownership from seller to buyer, registered electronically through PEXA at settlement.
Trust account
A regulated bank account held by a conveyancer or solicitor for client funds (deposits, settlement funds). Subject to strict statutory rules and annual audit. Misuse triggers disciplinary and criminal consequences.
U
Unencumbered value
The value of the property without taking account of any mortgage or other charge. Used in some stamp duty calculations and asset valuations.
V
Vendor statement
The seller's disclosure document required before contract signing. Form varies by state (Section 32 VIC, Form 1 SA, Form 2 QLD, s52A statement NSW). Material omission gives buyer rescission rights.
W
Water authority certificate
A certificate from the relevant water authority (Sydney Water, Yarra Valley Water, Urban Utilities, etc) showing outstanding water rates and usage charges. Ordered by the conveyancer for settlement adjustments.
Withdrawal of caveat
The formal removal of a caveat from title, lodged electronically through PEXA. Required before settlement if a caveat is registered against the title.
Common questions
Conveyancing glossary – common questions
Why are conveyancing terms so different between states?
Conveyancing in Australia is state law, not federal. Each state has its own Sale of Land Act, vendor disclosure regime and licence framework. So while the underlying transaction looks similar across states (contract, cooling off, pre-settlement checks, settlement), the documents and timelines change at the state border. Section 32 (VIC), Form 1 (SA), Form 2 (QLD) and s52A statement (NSW) are functionally similar but legally distinct.
What is the difference between body corporate and owners corporation?
They are the same legal concept under different names. Body corporate is the older / Queensland term still used in some statutory frameworks. Owners corporation is the modern Victorian term and is used in NSW for strata schemes. The function is identical: the legal entity that owns and manages common property in a strata or community title scheme on behalf of all lot owners.
What is the difference between Section 32 and Form 1?
Section 32 is the Victorian vendor disclosure under section 32 of the Sale of Land Act 1962 (VIC). Form 1 is the South Australian equivalent under the Land and Business (Sale and Conveyancing) Act 1994 (SA). Both disclose title, encumbrances, outgoings, planning information. Defective disclosure gives buyer rescission rights in both states.
What is the new Queensland Form 2 disclosure?
Form 2 Seller Disclosure Statement is mandatory from 1 August 2025 under the Property Law Act 2023 (QLD). It replaces the older patchwork QLD pre-contract disclosure regime (which had no single document) and brings QLD into line with VIC + SA + NSW on upfront seller disclosure. Form 2 covers title, encumbrances, body corporate, transferable rates, building approvals.
What does "subject to finance" actually mean?
A special condition in the contract giving the buyer the right to terminate if the named lender does not approve a specified loan amount by a specified date. Standard in most QLD contracts, optional and less common in NSW + VIC. The condition must be specific (lender, loan amount, deadline) and the buyer must use reasonable endeavours to obtain finance. Misuse to escape a contract is risky.
What is a caveat?
A formal warning lodged on the property title that protects an unregistered interest. Commonly used by a buyer between contract exchange and settlement to stop the seller selling to anyone else. Also used by creditors with a claim against the registered owner. A caveat must be withdrawn before settlement (or the conveyancer satisfies the caveator another way).
When do I pay stamp duty?
Stamp duty is calculated at contract signing and payable to the state revenue office on settlement (or, in some states, within a stipulated number of days post-settlement). On PEXA settlements, stamp duty is deducted from settlement funds and remitted to the state revenue office automatically. Concessions vary by state and buyer profile (first home buyer, pensioner, principal place of residence, off-the-plan).