Glossary

VENDOR The owner.

CONTRACT A legal document (consisting of a number of printed pages) that includes title and property searches.

COOLING-OFF PERIOD Usually five or 10 business days after exchange of contracts within which a purchaser may change their mind and not proceed with a purchase.

SECURITY The property over which a mortgage is taken

TITLE SEARCHES The title, plan documents, dealings and covenants recorded at the Land Titles Office which identify the legal title and restrictions of use relative to a property

MORTGAGEE The bank or financial institution that provides the finance needed to purchase a property.

MORTGAGE A formal legal agreement entered into by the purchaser and bank/finance provider, detailing the amount, term and conditions of the loan.

EXCHANGE OF CONTRACTS The formal handing-over of the purchaser’s signed contract in exchange for the vendor’s signed contract. At this time, a deposit is also paid to the vendor.

PROPERTY SEARCHES The searches conducted to identify whether any government, semi-governement or council has any interest in a property.

COMPLETION DATE The date specified on the front page of a contract within which settlement is to occur (usually 6 weeks(

PURCHASER The buyer.

.25% DEPOSIT Money paid to the agent on exchange of contracts with a cooling-off period.

5 or 10% DEPOSIT The percentage of purchase price paid to the vendor to complete the exchange of contracts.

SETTLEMENT The date of actual settlement of a purchase.

TITLE DEEDS The formal legal Certificate of Title issued by the Land Titles Office.