Frequently Asked Questions

Conveyancing is the legal process required to transfer ownership from one legal person to another.

Conveyancer

• Has obtained an Advanced Diploma/ Diploma of Conveyancing.
• Has completed a minimum of 12 months supervised practice under a licensed conveyancer/ lawyer.
• A conveyancer can only engage in conveyancing work as defined by.
• Unable to provide specific advice and would need to refer clients to a solicitor should the transaction become complex or litigious.

Conveyancing Lawyer

• Has completed tertiary study to obtain a Bachelor of Law
• Has a vast understanding of the law and how property transactions relate to other areas of law.
• May be able to provide greater assistance when transactions become more complex or litigious.
• Able to provide advice in relation to the transaction.

Transfer of Land

‍The process of changing the ownership details on a Title (deed) to a parcel of land.

Volume and Folio

‍Volume and folios are unique identifiers used in the numbering system that identifies individual land titles.

Encumbrance

‍An encumbrance is an interest in a piece of land by someone other than the registered owner. Encumbrances place limitations on a property. Examples include mortgages, easements, leases and restrictive covenants.

Easement

‍Easements are a right held by someone to use land belonging to someone else for a specific purpose. Common examples of easements are drainage, sewerage and carriageway easements

Caveat

‍A legal document that individuals with a legal interest in a property can lodge to notify future prospective purchasers and third parties of their legal interest in a parcel of land.

Adverse possession

Adverse possession is a legal rule that enables the occupier of a piece of land to obtain ownership of it, provided they can prove uninterrupted and exclusive possession of the land for at least 15 years.

A cooling off period allows purchasers to terminate the contract within a certain “cooling off period” which in Victoria is 3 business days. A purchaser must request the termination in writing to the vendor. When terminating a contract during the cooling off period the purchaser incurs a penalty of $100 or 0.2% of the purchase price (whichever is greater). A cooling off period is not applicable to property’s sold at auction or under auction conditions, if the property is over 1ha and or if it is a commercial premise.

Stamp Duty is a tax imposed on all property purchases by the Victorian Government. The amount of Stamp Duty which applies to the transaction is determined by the property purchase price and may be reduced by concessions the purchaser is entitled to.

Land Tax is a payable on all Victorian Land held individually or jointly by a person where its values are equal to or exceeds $250,000 as at the 31st of December of the previous year.

The Section 32 also commonly referred to as the Vendors Statement and is the document attached to the contract of sale prepared by a Vendor which contains the information required by law to disclosed to potential purchasers.

The General Conditions are the standard terms which are included with the intention of covering many of the most important aspects of a standard transaction. Since each transaction can be different and the parties may have different needs, Contracts may also have special conditions added.

Special conditions are included by agreement and can override the standard terms, so you need to check the Special Conditions carefully.

We can help you with this either by checking the Contract before you sign it or by helping to draft the Special Conditions.

The term disbursements refer to any cost incurred on behalf of the client during the property transaction. Common disbursements include, the cost of searches to determine and or confirm the property details and any issues or encumbrances affecting the land, settlement attendance fees and the cost of general administration work with relation to the file.

We recommend that a Caveat be lodged in the Titles Office to protect your interest as purchaser. By doing so, you will be telling anyone else who tries to deal with the property that your rights come first. If you do not have a caveat on the title, there is nothing to stop the Vendor from selling or mortgaging the property, nor to stop someone else making a claim to it.

We believe that the cost of a caveat is well worth the peace of mind it offers.

Land Tax

‍Land Tax is payable on Victorian land owned jointly or individually that is not your principal place of residence and whose dutiable value exceeds $250,000 as at 31 December of the preceding year.

The main difference for purchasers when purchasing a property at auction is that individuals are required to proceed to settlement of the parcel of land on an unconditional basis. When purchasing a property via an auction the purchaser is consenting to forego the following rights afforded to those purchasing the property via a private sale;

1. The 3 day cooling off period for the offer is not applicable
2. The transaction cannot be subject to finance
3. The transaction cannot be subject to building and or pest inspections.