Property Glossary
Clear, objective definitions for 28 essential property transfer, tax, and legal terms used in Australia.
B
Beneficiary
A person named in a will or estate plan who is entitled to receive a portion of the deceased person’s assets, property, or sale proceeds.
Bridging Finance
A short-term loan that covers the financial gap between purchasing a new property and receiving the sale proceeds from an existing property.
C
Capital Gains Tax (CGT)
A federal tax levied on the capital profit made from selling an asset, such as an investment property, administered by the Australian Taxation Office (ATO).
Contract of Sale
A legally binding document prepared by a conveyancer or solicitor that details the terms, conditions, price, and disclosure items of a property transaction.
Conveyancer
A licensed professional who specialises in providing legal advice and preparing the necessary paperwork for transferring property ownership.
Cooling-Off Period
A statutory period after contract exchange (5 business days in NSW) during which a buyer can withdraw from the purchase, usually forfeiting 0.25% of the price.
D
Delayed Settlement
An agreed arrangement where the settlement date is scheduled significantly further in the future than the standard 42-day period, such as 3 to 12 months.
E
Exchange of Contracts
The critical moment in a property transaction when identical, signed contracts are formally swapped between the buyer and the seller, making the sale legally binding.
Executor
The individual named in a deceased person’s will who is legally responsible for administering the estate, paying debts, and distributing assets.
Expression of Interest (EOI)
A structured sale method where buyers are invited to submit their best confidential offers and transaction terms by a specified closing date.
J
Joint Tenants
A form of co-ownership of property where all owners hold an equal interest in the entire property, and the right of survivorship automatically applies upon the death of an owner.
L
Lease and Option Agreement
A structured contract where the buyer purchases or takes control of the property, and the seller remains living in the property as a tenant under a lease.
M
Main Residence Exemption
A capital gains tax exemption that applies to the sale of a property if it was the owner’s primary home and was not used to produce assessable income.
Mortgagee in Possession
The legal status when a lender takes physical control of a mortgaged property after the borrower defaults on their loan repayments.
O
Off-Market Property
A property that is available for purchase but is not listed or advertised on public real estate portals like Domain or realestate.com.au.
P
Passed In
The status of a property at a public auction when the bidding fails to reach the reserve price, resulting in the property not being sold.
Private Sale
The direct transfer of a property from a vendor to a buyer without using a public real estate agent listing, auction process, or marketing campaign.
Private Treaty
A method of sale where a property is advertised at a set price or price guide, and negotiations occur privately between the parties or through an agent.
Probate
The legal process by which the Supreme Court validates a deceased person’s will and confirms the executor’s authority to manage and distribute estate assets.
Property Exit Strategy
A strategic, proactive plan detailing when, how, and to whom an owner will sell their property asset to maximize net proceeds or achieve specific life goals.
S
Section 66W Certificate
A legal document signed by a buyer’s solicitor or conveyancer that waives the buyer’s statutory cooling-off rights, making the contract binding immediately upon exchange.
Settlement Date
The contractually agreed date upon which the buyer pays the remaining purchase price and the legal ownership of the property transfers from the vendor.
Solicitor
A fully qualified legal practitioner who can manage conveyancing transactions and also provide broader legal representation on complex estate, family, or tax matters.
Strata Title
A system of property ownership for multi-unit complexes, where individuals own their unit and share ownership of common property with the body corporate.
T
Tenants in Common
A form of co-ownership of property where two or more persons hold distinct, defined shares in the property, which can be unequal and can be bequeathed via a will.
Torrens Title
A system of land title where ownership is registered on a central government registry, proving absolute title to the land and buildings.
V
Vendor
The legal owner of a property who is offering it for sale; the seller in a real estate transaction.
Vendor Disclosure Obligations
The legal requirement for a seller to attach specific certificates and documents to the contract of sale, revealing zoning, easements, and title boundaries.