Conveyancing Glossary (NSW)

Definitions of common Australian conveyancing terms, each backed by a primary government source.

The FAQ and process content on this page is general information about conveyancing in Australia, not legal advice. Obtain advice specific to your circumstances before acting on it.

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referenceDefinition: {"term":"Cooling-off period","definition":"A 5-business-day period after exchange of contracts on a residential property purchased by private treaty in NSW, during which the buyer may withdraw from the contract. Withdrawing costs the buyer 0.25% of the purchase price. The period can be waived (see s 66W certificate), shortened, or extended by agreement. There is no cooling-off period when buying at auction. (Conveyancing Act 1919 (NSW) s 66S.)","primarySource":"https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/buying-property-nsw/contracts-and-deposits"}
referenceDefinition: {"term":"Section 66W certificate","definition":"A certificate signed by the buyer's solicitor or licensed conveyancer under s 66W of the Conveyancing Act 1919 (NSW) that waives the buyer's cooling-off period, making the contract binding immediately on exchange. Commonly required by vendors before exchange in competitive purchases and standard practice for auction-style negotiations.","primarySource":"https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/buying-property-nsw/contracts-and-deposits"}
referenceDefinition: {"term":"Exchange of contracts","definition":"The point at which the buyer and vendor each sign identical copies of the contract for sale and swap (\"exchange\") them, legally committing both parties to the transaction. Before exchange, either party can generally walk away; after exchange the contract binds (subject to any cooling-off period). The deposit is usually paid at exchange.","primarySource":"https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/buying-property-nsw/contracts-and-deposits"}
referenceDefinition: {"term":"Settlement","definition":"The final step of a conveyancing transaction, when the buyer pays the balance of the purchase price and becomes the legal owner of the property. In NSW settlement typically occurs about 6 weeks after exchange of contracts, though the parties may negotiate a different period. Settlement in NSW is completed electronically (see PEXA / e-conveyancing).","primarySource":"https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/buying-property-nsw/contracts-and-deposits"}
referenceDefinition: {"term":"Gazumping","definition":"When a vendor or their agent accepts a buyer's offer but then sells the property to someone else — usually for a higher price — before contracts are exchanged. Legal in NSW because an accepted offer is not binding until exchange; the usual protection is exchanging contracts as quickly as possible.","primarySource":"https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/buying-property-nsw/making-an-offer-on-a-property"}
referenceDefinition: {"term":"Requisitions on title","definition":"Formal questions the buyer's conveyancer or solicitor puts to the vendor after exchange about the property's title and matters affecting it (e.g. disputes, notices, works). The vendor must respond; answers can reveal issues before settlement. Records of requisitions and responses form part of the conveyancing file a licensed conveyancer must keep.","primarySource":"https://www.fairtrading.nsw.gov.au/housing-and-property/buying-and-selling-property/buying-a-property/conveyancing"}
referenceDefinition: {"term":"Transfer duty (stamp duty)","definition":"A state tax payable when you buy or acquire property in NSW, calculated on the dutiable value (usually the purchase price). Formerly and still commonly called stamp duty. Payable to Revenue NSW by the earlier of the settlement date or 3 months after signing the contract for sale; concessions and exemptions exist (e.g. first-home buyers). (Duties Act 1997 (NSW).)","primarySource":"https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/transfer-duty"}
referenceDefinition: {"term":"PEXA / e-conveyancing","definition":"Electronic conveyancing (eConveyancing) is the digital lodgement and settlement of property transactions through an Electronic Lodgment Network such as PEXA (Property Exchange Australia). Since 11 October 2021 all NSW land transactions that require lodgment with NSW Land Registry Services must be done electronically; funds and title registration move in a single digital settlement workspace.","primarySource":"https://www.registrargeneral.nsw.gov.au/property-and-conveyancing/eConveyancing"}
referenceDefinition: {"term":"Vendor disclosure (prescribed documents)","definition":"In NSW a vendor cannot market a residential property for sale until a contract for sale has been prepared containing the prescribed documents — including the title search, deposited plan, and drainage diagram — plus required statutory warnings. Defective disclosure can give the buyer rights to rescind. (Conveyancing Act 1919 (NSW) s 52A and Conveyancing (Sale of Land) Regulation.)","primarySource":"https://www.fairtrading.nsw.gov.au/housing-and-property/property-professionals/working-as-a-property-agent/sales-contracts"}
referenceDefinition: {"term":"Contract for sale of land","definition":"The legal document that effects the sale of land in NSW, setting out the parties, price, property, inclusions, settlement period and special conditions, with the vendor's prescribed disclosure documents attached. Must exist before a residential property is offered for sale; becomes binding on exchange.","primarySource":"https://www.fairtrading.nsw.gov.au/housing-and-property/property-professionals/working-as-a-property-agent/sales-contracts"}
referenceDefinition: {"term":"Deposit","definition":"The part of the purchase price — customarily 10%, often negotiable — paid by the buyer at exchange of contracts as security for completing the purchase. Usually held in trust by the agent or vendor's representative until settlement. If the buyer withdraws during a cooling-off period they forfeit 0.25% of the price; failing to complete after an unconditional exchange can forfeit the full deposit.","primarySource":"https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/buying-property-nsw/contracts-and-deposits"}
referenceDefinition: {"term":"Auction purchase","definition":"Buying at public auction in NSW requires pre-registration with proof of identity to bid. The successful bidder signs and exchanges contracts immediately at the fall of the hammer and pays the deposit on the spot. There is NO cooling-off period for auction purchases (nor for contracts exchanged on the same day as the auction after it is passed in), so building/pest/strata inspections and finance must be arranged beforehand.","primarySource":"https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/buying-property-nsw/buying-property-at-an-auction"}
referenceDefinition: {"term":"Off-the-plan purchase","definition":"Buying a property before it has been built or completed, based on plans. NSW off-the-plan contracts for residential lots carry specific protections, including a longer 10-business-day cooling-off period, disclosure statement requirements, and rules around sunset-date rescission. Key risks: completion delays, finance validity at (potentially distant) settlement, and end value differing from expectations.","primarySource":"https://www.nsw.gov.au/housing-and-construction/buying-and-selling-property/buying-property-nsw/buying-property-off-plan"}
referenceDefinition: {"term":"Easement","definition":"A registered right for someone other than the owner to access or use part of the land for a specific purpose (e.g. right of carriageway, drainage, services) while ownership stays with the landowner. Easements run with the title, bind future owners, and can materially affect what can be built on or done with the property — a standard item to review in the title search before exchange.","primarySource":"https://www.crownland.nsw.gov.au/find-services/consents-restrictions-and-easements/easements"}
referenceDefinition: {"term":"Strata title","definition":"Form of ownership for lots in a multi-unit scheme (apartments, townhouses) where you own your lot and share ownership of common property (foyers, driveways, gardens) with other owners through an owners corporation. Owners pay levies for building management, maintenance and insurance and are bound by the scheme's by-laws. Buyers should obtain a strata report before committing.","primarySource":"https://www.nsw.gov.au/housing-and-construction/strata"}
referenceDefinition: {"term":"Torrens title","definition":"The land title system used in NSW (and across Australia) under which ownership is established by registration on the state's Torrens Title Register rather than by chains of deeds — \"title by registration\". Under the Torrens system in NSW, registered title is guaranteed by the State Government; the Register defines ownership and boundaries and records dealings as they are registered.","primarySource":"https://www.registrargeneral.nsw.gov.au/title-guarantee"}
referenceDefinition: {"term":"Caveat on title","definition":"A caveat is a statutory notice lodged on the title of a property under the Real Property Act 1900 (NSW). It gives notice of, and protects the priority of, an interest that a person claims in that land; it does not create, register or transfer ownership. To lodge a caveat you must have an actual caveatable interest in that particular land, which is commonly created first by signed loan or security documents recording the agreed interest. Lodging a caveat without a proper caveatable interest can expose the person lodging it to a compensation claim (s 74P). A caveat is also not permanent protection: it can lapse or be withdrawn and can be challenged by the registered owner (for example under s 74J). It is one tool among several and its suitability depends on the circumstances; a conveyancer can advise.","primarySource":"https://classic.austlii.edu.au/au/legis/nsw/consol_act/rpa1900178/s74f.html"}
referenceDefinition: {"term":"Co-buying (joint purchase)","definition":"Buying a property together with one or more other people so that each person holds an ownership interest in the title and shares in decisions about the property. Where the co-buyers are also co-borrowers on the same loan, they are typically jointly and severally liable under that loan contract, which means each borrower can be responsible for the whole loan, not just their share, so if one cannot meet their repayments the others must cover the shortfall. Joint and several liability is a feature of the loan contract, not of co-ownership itself. Co-buying gives each party an ownership interest but adds more moving parts than a family guarantee, which is why documenting ownership shares, contributions and exit arrangements up front is important. General information, not personal or credit advice.","primarySource":"https://classic.austlii.edu.au/au/legis/nsw/consol_act/ca1919141/"}
referenceDefinition: {"term":"Co-ownership agreement","definition":"A written agreement put in place before family members buy a property together that documents each person's ownership percentage and financial contribution, and sets out what happens if circumstances change, for example if one owner wants to exit, passes away, or loses their income. It commonly records contribution, control (who decides on matters such as renovating, holding or selling) and exit or buyout arrangements. A clear agreement helps reduce disputes over who is entitled to what, but it does not remove every risk: in NSW any co-owner can apply to the court for the appointment of trustees to sell the property under s 66G of the Conveyancing Act 1919 regardless of a private agreement, so a co-ownership agreement manages rather than eliminates the risk of a forced sale. General information, not personal advice.","primarySource":"https://classic.austlii.edu.au/au/legis/nsw/consol_act/ca1919141/s66g.html"}
referenceDefinition: {"term":"Family guarantee (family pledge or parental guarantee)","definition":"A home-loan arrangement in which a family member, usually a parent, allows the lender to take security over a portion of the equity in their own property to support the borrower's loan. The guarantor does not contribute cash and is not a borrower on the loan; they are only allowing the borrower to draw on that equity. Because the guarantor's property is used as security, that property is at risk if the borrower defaults. The guarantee can typically be released once the borrower has built sufficient equity, as the purchased property rises in value and the loan is paid down and the loan-to-value ratio improves. Lending criteria and availability vary by lender. This is general information about a lending structure, not credit assistance or personal advice.","primarySource":"https://moneysmart.gov.au/loans/going-guarantor-on-a-loan"}
referenceDefinition: {"term":"Joint tenants vs tenants in common","definition":"In NSW these are the two ways that two or more people can co-own property, and the difference matters most when one owner dies. Joint tenants hold the whole property together as a single undivided interest with a right of survivorship: when one joint tenant dies, their interest passes automatically to the surviving joint tenant or tenants and does not form part of their estate or pass under their will. A joint tenancy is not permanent: a joint tenant can sever it during their lifetime and convert their interest into a tenancy in common. Tenants in common each hold a distinct, undivided share (equal or unequal) that they can sell, mortgage or leave by will independently, and there is no right of survivorship, so a deceased tenant in common's share passes through their estate and under their will. Under section 26 of the Conveyancing Act 1919 (NSW), where an instrument disposes of a beneficial interest in property to two or more people, they are presumed to take as tenants in common unless the instrument expressly provides that they take as joint tenants, which reverses the older common-law presumption in favour of joint tenancy. See also co-buying (joint purchase) and co-ownership agreement.","primarySource":"https://legislation.nsw.gov.au/view/html/inforce/current/act-1919-006#sec.26"}

Conveyancing Glossary (NSW)

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