Property law terms, explained plainly.

A calculation made at settlement that fairly divides ongoing property costs — council rates, water rates, land tax, and body corporate levies where applicable — between buyer and seller based on how many days each party owns the property in a given period. The party who has already paid for a period beyond their ownership date is refunded; the other party pays their share. Your settlement statement will show each adjustment line by line.

A short-term loan used to bridge the gap when a buyer needs to settle on a new property before receiving the proceeds from selling their existing one. It allows the purchase to proceed without waiting for the sale to complete. Bridging finance typically carries a higher interest rate than a standard home loan and is repaid once the existing property settles.

If you’re coordinating a sale and purchase, talk to your conveyancer about whether the settlement dates can be aligned — which avoids the need for bridging finance altogether.

An inspection carried out by a qualified inspector to assess the physical condition of a property — including the structure, roof, plumbing, electrical, and any evidence of pest activity such as termites. Most residential contracts include a condition giving the buyer the right to carry out an inspection within a set period. The report is for the buyer’s information only; what you do with the findings depends on what the contract allows.

A formal notice lodged at the Land Titles Office by a person who claims an interest in a property. A caveat prevents the title from being transferred or dealt with until the claim is resolved or the caveat is removed. A title search will reveal any caveats registered against a property.

A caveat doesn’t automatically mean a problem — but it does mean something needs to be investigated before settlement can proceed.

The official document that records who owns a property and any encumbrances registered against it — mortgages, easements, caveats, and restrictive covenants. In Tasmania, certificates of title are held electronically by the Land Titles Office. Your conveyancer accesses the title as part of the search process rather than obtaining a paper copy.

Movable items that are not fixed to the property but may be included in a sale — floor coverings, curtains, light fittings, white goods, garden sheds, and similar. Whether a chattel is included in the sale depends on what the contract says. If an item matters to you, check whether it’s included. If it’s not listed and you want it, ask for it to be added before you sign.

Another term for settlement — the point at which the buyer pays the balance of the purchase price and receives legal ownership of the property. Used interchangeably with “settlement” in most Tasmanian contracts.

Terms in a contract that must be satisfied before both parties are fully committed to proceeding. Until all conditions are met, one or both parties typically retain the right to withdraw. Common conditions include finance approval, a satisfactory building and pest inspection, and the sale of the buyer’s existing property. Once all conditions are satisfied, the contract becomes unconditional.

The written agreement signed by the buyer and seller that sets out the terms and conditions of the sale — the purchase price, deposit, conditions, settlement date, inclusions and exclusions, and any special conditions. Once signed, it is legally binding on both parties, subject to any conditions that allow withdrawal.

The legal process of transferring ownership of property from one person to another. It covers everything from contract review and search ordering through to settlement preparation and the registration of the new title. A conveyancer is a specialist in this process; a property lawyer can perform the same role with additional authority to advise on broader legal issues arising from the transaction.

A period after signing a residential property contract during which the buyer may withdraw, usually subject to paying a small penalty (typically a percentage of the purchase price). The cooling-off period exists to protect buyers who feel pressured into signing before they’re ready. It does not apply to auction purchases, and it can be waived in some circumstances — for example, as a condition of a competing offer. The cooling-off period starts from the date the contract is formed, not the date the buyer receives it.

Always confirm with your conveyancer whether a cooling-off period applies to your contract, when it starts, and what it would cost to use it.

An upfront payment made by the buyer to the seller or the seller’s agent upon signing the contract, or at a date agreed in the contract. The deposit is typically a percentage of the purchase price and is held in trust until settlement, when it forms part of the buyer’s payment. Failure to pay the deposit as required is a serious breach of contract and may allow the seller to terminate.

The process by which a seller’s lender releases the mortgage registered against a property at settlement. The mortgage is discharged once the loan is repaid from the sale proceeds, allowing a clear title to be transferred to the buyer. Sellers need to instruct their lender to process the discharge well in advance of settlement — lenders can take two to three weeks to prepare the necessary documentation, and delays on their end can hold up the entire transaction.

A state government tax payable by the buyer on the transfer of property. The amount increases with the purchase price and is calculated on a sliding scale. Duty is paid before the transfer of title can be registered at the Land Titles Office. First home buyers and certain other purchasers may be eligible for duty concessions or exemptions — eligibility depends on the purchase price, property type, and the buyer’s circumstances. Duty is separate from conveyancing fees and needs to be budgeted for as part of the total purchase cost.

A legal right that allows another person or authority to use part of a property for a specific purpose — for example, a neighbour’s right to drain water across an adjoining property, a utility company’s right to access an underground service, or a right of way that allows someone to pass through the land. Easements are registered on the certificate of title and are revealed by a title search. They pass with the land, meaning the new buyer takes on any easements that exist.

A registered interest or burden on a property’s title that affects its ownership or use — including mortgages, easements, caveats, restrictive covenants, and other registered rights. Encumbrances are revealed by a title search and need to be understood before purchase, as most pass to the buyer at settlement.

An inspection carried out by the buyer in the days before settlement to confirm that the property is in the same condition as when the contract was signed — that no damage has occurred, all agreed inclusions remain in place, and any items that should have been removed by the seller have been. The final inspection is a right under most residential contracts. Use it carefully; it is the last opportunity to identify issues before you become the owner.

A condition in a purchase contract that gives the buyer a specified number of days to obtain formal loan approval. If the buyer cannot obtain finance within that period, and the condition has not been waived, they may be entitled to withdraw from the contract and have their deposit returned. The finance date is one of the most important dates in a contract — missing it, or failing to request an extension in time, can affect the buyer’s rights significantly.

Pre-approval from a lender is not the same as formal finance approval. The finance condition is not satisfied until formal approval is received.

Items physically attached to the property that are generally assumed to be included in a sale — built-in appliances, fixed cabinetry, light fittings, taps, and similar. Unlike chattels, fixtures are presumed to pass with the land unless specifically excluded in the contract. The distinction between a fixture and a chattel can be disputed, particularly for items like freestanding dishwashers, outdoor structures, or garden features. If an item matters to you, check whether it’s addressed in the contract.

The total amount the buyer needs to have available on settlement day — made up of the balance of the purchase price (after the deposit), transfer duty, adjustments for rates and other outgoings, conveyancing fees, and any lender charges. Your conveyancer will provide a funds-to-complete statement before settlement so you know exactly what is required. This figure is rarely identical to the purchase price minus the deposit.

The items specifically listed in a contract as included in or excluded from the sale. Inclusions are items the seller agrees to leave with the property; exclusions are items the seller intends to take. Disputes about what stays and what goes are surprisingly common — often because the contract doesn’t clearly address an item that both parties assumed was covered. If an item matters to you as a buyer, or if you intend to take something as a seller, make sure it is addressed in the contract before you sign.

One of two ways two or more people can own a property together. Under joint tenancy, if one owner dies, their interest passes automatically to the surviving owner or owners — regardless of what their will says. This is common for married couples and de facto partners. The alternative is tenants in common, where each owner holds a defined share that can be left to whomever they choose in their will.

An annual state government tax levied on the total taxable value of land held by an owner above a threshold. Land tax applies to investment properties and vacant land; most owner-occupied principal places of residence are exempt. Buyers of investment properties should check whether any land tax liability is registered against the title, as unpaid land tax can attach to the property itself — meaning the new owner may inherit the debt if it isn’t cleared at settlement.

The government body responsible for maintaining official records of land ownership in Tasmania. When a property is sold, the transfer document is lodged at the Land Titles Office for registration, and a new certificate of title is issued in the buyer’s name. The Land Titles Office also records mortgages, easements, and other encumbrances. Most dealings with the Land Titles Office now occur electronically through PEXA.

A security interest registered over a property’s title by a lender as security for a loan. The property cannot be sold or transferred without first discharging the mortgage — which typically requires repaying the loan. A mortgage is revealed by a title search. Buyers with a mortgage will have their lender’s mortgage registered against the new title at settlement as part of the settlement process.

Property Exchange Australia — the electronic platform used to settle most residential property transactions in Tasmania. PEXA replaces the old system of physical settlement, where representatives met in person to exchange documents and cheques. In a PEXA settlement, the buyer’s and seller’s conveyancers, along with any lenders involved, work in an online workspace. Funds are transferred electronically and the title is lodged with the Land Titles Office digitally. Settlement can happen at any point during the business day once all parties are ready.

The property that is a person’s main home — where they live rather than an investment or holiday property. The distinction matters for a number of reasons: principal places of residence may be exempt from land tax, and duty concessions for first home buyers typically require the property to become the buyer’s principal place of residence. Your conveyancer can advise on what applies to your specific purchase.

The process of recording a change in property ownership at the Land Titles Office. After settlement, the transfer document is lodged for registration and a new certificate of title is issued in the buyer’s name. Registration is also required for mortgages, easements, caveats, and other interests in land. Legal ownership formally transfers at the time of registration, though in practice it is treated as having occurred at settlement.

A registered restriction on how land may be used or developed — for example, a prohibition on subdividing, a requirement to maintain a certain setback from the street, or a limit on the type of structure that can be built. Restrictive covenants are registered on the title and bind successive owners. They are revealed by a title search and should be read carefully, as they may affect how you intend to use or develop the property.

Requests made to government bodies, councils, and registries to find out what is registered against or associated with a property. Common searches include a title search, council rates search, water search, land tax search, and building records search. Searches reveal encumbrances, outstanding charges, compliance issues, and planned works that could affect the property. Your conveyancer recommends and orders the searches relevant to your purchase.

The point at which a property transaction is completed — the buyer pays the balance of the purchase price, the seller receives their proceeds, and legal ownership transfers. In Tasmania, most residential settlements are now conducted through PEXA. Neither buyer nor seller typically needs to be present; both are represented by their conveyancers. Settlement can happen at any time during the business day once all parties are ready.

A document prepared by conveyancers that sets out the financial calculations for a property transaction — the purchase price, deposit already paid, adjustments for rates and other outgoings, and the net amount to be paid or received at settlement. Buyers receive a statement showing their funds to complete; sellers receive a statement showing their net proceeds after the mortgage discharge and any other deductions. The settlement statement is reviewed and agreed by both parties’ conveyancers before settlement proceeds.

A provision used when a contract is conditional on the buyer selling their own property. It allows the seller to continue marketing their property. If the seller receives a better offer, they can give the contracted buyer two clear business days’ notice of their intention to accept it. Within that period, the buyer must either waive or satisfy their conditions and proceed unconditionally, or the seller can terminate the contract and accept the new offer.

A condition added to a contract that is specific to the parties or the property, supplementing the standard terms. Special conditions might cover finance approval, building and pest inspection rights, works to be completed before settlement, the sale of another property, unusual settlement arrangements, or anything else the parties negotiate. Special conditions are where most of the legally significant variation between contracts occurs. They should be read carefully — “standard contract” does not mean “no special conditions.”

A form of property ownership used for units, apartments, and certain developments where individual lots and shared common property are separately titled. Strata title properties are managed by a body corporate, which is the collective of all lot owners. Body corporate fees (levies) are payable by each owner for the maintenance of common property. Buying a strata-titled property involves additional considerations, including reviewing body corporate financials and minutes.

A clause in an off-the-plan contract that specifies the date by which the property must be completed and settlement must occur. If the project isn’t ready by the sunset date, the buyer (and in some cases the seller) may have the right to terminate the contract and receive their deposit back. Sunset dates can be many years in the future, and some contracts allow developers to extend them. Understanding the sunset clause is essential before signing any off-the-plan contract.

One of two ways two or more people can own a property together. Under tenants in common, each owner holds a defined share — equal or unequal — that they can deal with independently. Unlike joint tenancy, a share held as tenant in common does not automatically pass to the surviving owners on death; it passes in accordance with the deceased owner’s will or intestacy rules. This structure is common among co-investors, business partners, or family members who want to maintain separate interests.

The legal document signed by the seller to transfer ownership of a property to the buyer. The transfer is prepared in a form prescribed by the Land Titles Office, executed at or before settlement, and lodged for registration after settlement completes. Registration of the transfer is what formally records the change of ownership on the certificate of title.

The status of a contract once all conditions have been satisfied or waived. Once a contract is unconditional, both parties are fully committed to proceeding to settlement. There is no longer any right to withdraw on the basis of the conditions. The path from exchange to settlement is then primarily a matter of preparation and timing rather than legal risk.

A requirement for all parties to a property transaction to verify their identity before settlement can proceed. VOI is a fraud prevention measure designed to protect against identity theft and fraudulent property transactions. It typically involves presenting original identity documents — passport, driver’s licence — in person to a conveyancer or an authorised verification service. For remote or interstate clients, digital VOI services are available that allow the process to be completed without attending in person.