This week in the A – Z of Conveyancing, we’ll go through the commonly used terms in relation to conveyancing, looking at the letter S.

Sales Advice

A Sales Advice is provided by a selling agent when terms of a sale have been agreed upon between a vendor and a purchaser, including details of the purchase price, settlement dates and additional terms. A Contract for Sale is then finalised with the agreed terms in preparation for the signing and exchange of contracts.

Settlement

This is the date of completion of the sale as agreed by the parties and noted on a Contract for Sale. A standard settlement period is 42 days (6 weeks), however, a shorter or longer settlement date can be negotiated between the parties. The settlement date is the day in which the property is transferred, funds are paid and the keys to the property are handed over.

Special Conditions

These are the provisions that are attached to a Contract for Sale. They are drafted by the Vendor’s representative in relation to the property and the terms of the Contract such as penalty interest rates, warranties etc. They also set out additional terms which have been agreed by the parties. The purchaser’s representative can request amendments to these provisions prior to the contract becoming unconditional.

Stamp Duty

This is a tax that is imposed by Revenue NSW when purchasing a property.  Stamp duty is calculated on the purchase price. This is to be paid on the earlier of the settlement date or three months from the date of exchange. There are some exemptions and concessions available for first home buyers which your solicitor/conveyancer can advise you on.

Sunset Date

This is a term that is used for off the plan purchases. This is the final date in which the vendor can register a deposited or strata plan. If this deadline is not met either the vendor or purchaser has a right to rescind. There is usually a provision noted in the Contract which gives the vendor the right to extend the Sunset Date within a specific notice period.