Vendor, section 32, stamp duty – jargon can be confusing, and as with any industry, the home buying and selling industry can come with a variety of terms that we may not all understand. In this article, we explore common jargon that comes with buying and selling a property.
In each property contract, there are two parties, one of each is the vendor. The vendor is the party who is selling the property. The other party is commonly referred to as the buyer.
Conveyancing is a branch of legal work concerned with the purchase and selling of a property. Most home buyers and sellers choose to work with a conveyancer, as it strongly assists with what can be a difficult and stressful process.
Section 32 is a legal document provided by the vendor to the intending buyer. It is provided before the contract of sale is signed and provides information on the title including warranty insurance, road access, zoning and planning, as well as information on services connected to the property.
It is recommended that the document be thoroughly read and understood before the buyer signs the purchasing contract.
The settlement refers to the process during which the title of the property is transferred from the vendor and to the buyer. This then leads to the making of payments and financial adjustments.
The handover refers to one of the final processes involved in settlement and it comes from the idea that the keys to the home will be ‘handed over’. Handover date refers to the day on which the keys are handed over, and the new owner of the home is allowed to occupy it.
A statement of adjustments is a formal document that discusses the financial transaction between a vendor and a buyer. It formalises the purchase price, the date of purchase, and the proposed payments.
Its main purpose is to obtain confirmation from both parties as to the financial aspects of the contract.
Stamp duty is a government tax which is placed on a variety of transactions, including property purchases, insurance policies and motor vehicles. The exact stamp duty charges depend on a variety of factors, including property type, location and value.
Stamp duty payment will usually occur within 30 days of settlement and will be organised by either your conveyancer or solicitor. It is important to note that stamp duty is an upfront cost, and therefore cannot be covered by your home loan. However, depending on state laws, it may be possible to defer payment due to concession, depending on your situation.
Dealing with properties, whether buying or selling, can be tricky.