Home buyers glossary

A property seller may want to include a ’48-hour clause’ when an offer is subject to the sale of a home. If the seller receives an unconditional or subject to finance only offer, the original buyer has 48 hours to make an unconditional offer. If the original buyer can’t make do this, their contract will be cancelled. The seller can then accept the unconditional offer from the other buyer. The clause must say when the 48 hours begins and ends. For example, 48 hours begins when buyer is notified and does not include weekends or public holidays.

A short-term loan used to cover the gap between buying a new property and selling an old one.

A buyer's agent is a licensed professional who represents the buyer's interests in a property transaction. Their responsibilities include helping buyers find suitable properties, negotiating purchase prices, preparing and reviewing contracts, and providing advice throughout the buying process. Unlike listing agents who represent sellers, buyer's agents focus solely on securing the best deal for the buyer.

Tax on the profit made from selling a property other than a primary place of residence.

Specifies the ownership of a defined area of land, and the lodged or registered interests or claims (encumbrances) against the ownership.

Items that can be moved and not considered to be part of the land or a structure on the land. For example, dishwasher, clothes dryer, rugs, mats and pot plants. A buyer and the seller can list what stays and what goes as a special condition in the offer and acceptance document. Chattels are not part of the sale unless specifically agreed in a special condition.

Once the contract has been signed, there is NO cooling off period in Western Australia. This means there is no time option to reconsider the offer. The property contract is legally binding at signing. A cooling off period would only apply if the buyer and seller have included this as an additional clause to the contract.

Sellers can make a counter offer to a buyer's initial offer, proposing changes to the terms, such as the purchase price or conditions. It rejects the original offer and presents a new one. The buyer can either accept, reject, or further negotiate. This process continues until both parties agree on the terms or decide not to proceed with the transaction.

A percentage of the purchase price paid by the buyer. If the deposit is not paid as agreed, it constitutes a breach of contract. The contract will define when a deposit must be returned or when the seller is entitled to retain it. If the seller believes they are entitled to keep the deposit, they must notify both the buyer and the agent holding the deposit. The buyer then has five business days to dispute this claim; otherwise, the deposit can be retained by the seller.

An encumbrance is generally a lodged or registered interest in land by a person who is not the registered owner.

A formal notice or warning registered with a property authority indicating a claim or interest in a property. It is typically used to protect the interest of a party who has a legal claim or right that may impact the property's transfer or use.

Gives a person or a company ‘rights of use or engagement’ over land owned by another. Usual easements are rights of way, easements for the flow of water over and through another’s land, and easements of support (for example, Water Corporation, Western Power, Main Roads WA, telecommunication companies).

A document lodged with Landgate under one of a number of statutes. When noted on a certificate of title, places some form of notice/restriction on a property (such as notification that the land is reclaimed swamp).

This places some type of restriction on the use of the land. For example, the land must be landscaped or buildings to be constructed only of brick. For it to be lifted, consent must be obtained from the party named in the covenant or by a court order.

A strip of land either for use by the general public, or a restricted section of the community. It may be created by subdivision, specific transfer, or continued use over a period of years.

Refers to an error in how certain details of the land are recorded in a contract, for example, property boundaries and/or the area of the land. If this occurs, it is recommended to the buyer that they seek legal advice.

The difference between the market value of a property and the amount owed on it.

Items that are fixed or part of the land or a structure on the land, for example, carpets, down lights and built in robes. A buyer and the seller can list what stays and what goes as a special condition in the offer and acceptance document. Fixtures are part of a sale unless specifically agreed not to be in a special condition.

Cover important contractual obligations for both buyer and seller including paying and holding of a deposit, settlement and adjustment of outgoings. It can also include other payment responsibilities such as underground power and sewerage connections.

It is possible to vary the contractual obligations, for example delete or amend existing contractual obligations. The buyer and seller would have to agree with the changes if the contract is to be binding.

Joint Form of General Conditions for the Sale of Land (the General Conditions). This is a standard part of any contract to sell a property. It deals with many issues that arise between a buyer and seller entering into a contract. When an offer is made, a printed set of General Conditions is presented to both the buyer and seller.

The ownership of land in common by more than one person where the interests are undivided and there is a right of survivorship. This means if one joint owner dies, the deceased’s share goes automatically to the surviving owner(s). One joint owner cannot sell their interest separately from the other owner(s).

A formal proposal made by a potential buyer to purchase a property under specified terms and conditions. The seller can accept, reject, or counter offer.

Together with the Joint Form of General Conditions for the Sale of Land, is a legally binding contract. It details the terms and conditions of the purchase and sale. Most properties in Western Australia are sold through an offer and acceptance process. A person makes a formal offer in writing to buy a property, and the seller either accepts, rejects or counters the offer.

See more on the property contracts page.

When your bank or other lender provides in principle approval in writing for a home loan in or up to a specific amount.

A final inspection by the buyer to ensure the property is in the same condition as when the offer was made.

See more on the inspections page.

Enable parties to obtain the details of interests listed for a property. In Western Australia there are up to 100 interests, restrictions or responsibilities which may affect an owner’s use or enjoyment of the land not listed on a certificate of title. Property interest reports access information about 44 of these interests (this number will increase over time).

Record of the ownership and registered interests or encumbrances for particular land.

The date on which the sale of a property is finalised and ownership is transferred. See more on the property settlement page.

Special conditions can be added to the O & A to meet the particular needs of both buyer and seller. Special conditions may cover issues about:

• property inspections e.g. building and timber pest inspections,
•  who pays for necessary repairs e.g. the repair of a broken window, fixing plumbing, etc., or
• anything else important for either buyer or seller.

See more on the property contracts page.

A government tax on the purchase of property.

The process of dividing land into smaller lots.

Where there are two or more people to own the land in defined proportions that can be equal or different. For example: X has 1/3 share and Y has a 2/3 share of the land. Both X and Y can transfer their share in the land separately from the other owner(s). On the death of one party the land does not automatically go to the remaining owner(s), and will be dealt with in accordance with the deceased’s will or intestacy laws.

A search of public records to confirm a property’s legal ownership and any encumbrances.

Certificates of title, otherwise known as title deeds, are issued by Landgate with one original and one duplicate copy. The original is always kept at Landgate. The duplicate copy is normally held by the registered proprietor (owner) or by a lending institution as security for a loan.

The important difference between these two title deeds is the duplicate certificate of title does not include all encumbrances such as caveats and property (seizure and sale) orders. They are always listed on the original certificate of title kept at Landgate.