Buying stages & glossary

process

Auction

A public sale where buyers bid openly. Contracts exchange on the fall of the hammer with no cooling-off period — buyers must do all checks beforehand.

Building & Pest Inspection

A pre-purchase report on structural condition and pest issues (especially termites). Routine in QLD and worth doing in any state.

Contract of Sale

The legal document transferring property ownership — terms vary by state. Always have a conveyancer or solicitor review before signing.

Conveyancer

A licensed property law specialist who handles the legal transfer of property — usually cheaper than a solicitor for straightforward matters.

Conveyancing

The legal work to transfer property ownership — searches, contract review, settlement. Done by a licensed conveyancer or solicitor.

Cooling-off Period

A short window after exchange (varies by state) when a residential buyer can withdraw, usually with a small penalty. Auctions and some contracts have no cooling-off.

Exchange

The moment buyer and seller swap signed contracts and the deposit is paid — the deal becomes binding (subject to any conditions and cooling-off).

Section 32 (VIC)

Vendor's statement under Section 32 of the Sale of Land Act — the legally required disclosure document a Victorian seller must provide before contract.

Settlement

The day legal ownership transfers, the balance of the purchase price is paid, and the buyer takes possession. Typically 30–90 days after exchange.

Vendor

The seller of a property.

property

Body Corporate / Owners Corp

The legal entity made up of all owners in a strata scheme, responsible for managing common property and setting levies.

Off-the-plan

Buying a property that has not yet been built (typically an apartment), based on plans and specifications. Settlement occurs once construction is complete.

Strata Title

Ownership of an individual lot (e.g. apartment) within a larger building, with shared ownership of common property managed by an owners corporation.

Torrens Title

The standard freehold title in Australia — you own the land and any building on it outright, registered on the state land register.

tax

CGT

Capital Gains Tax — federal tax on profit from selling an asset. Your main residence is generally exempt for Australian tax residents.

Investor

A buyer purchasing property to rent out, not live in. Different lending criteria, no main residence CGT exemption, but negative gearing available.

Land Tax

An annual state tax on the unimproved value of land you own, above a tax-free threshold. Your principal place of residence is usually exempt.

Main Residence Exemption

A CGT exemption for the home you live in — only available to Australian tax residents (with some transitional rules for former residents).

Negative Gearing

When the costs of an investment property (interest, maintenance) exceed the rental income — the loss can be offset against your other taxable income.

PPR

Principal Place of Residence — the home you actually live in. Usually exempt from land tax and the basis for the CGT main residence exemption.

Stamp Duty

A state tax on the transfer of property — also called transfer duty or land transfer duty. Calculated on a progressive scale based on price.

Tax Residency

A federal (ATO) concept separate from your visa, decided by four tests. Determines whether you pay Australian tax on worldwide income.

grants

FHOG

First Home Owner Grant — a one-off cash grant from your state for buying or building a new home, with price caps and eligibility rules.

Home Guarantee Scheme

A federal scheme letting eligible first-home buyers, single parents and regional buyers purchase with a small deposit and no LMI, with government guaranteeing part of the loan.

eligibility

FIRB

Foreign Investment Review Board — the federal body that advises Treasury on foreign investment proposals, including residential real estate purchases by non-residents.

Foreign Person

Under the Foreign Acquisitions and Takeovers Act, a person who is not an Australian citizen or PR ordinarily resident in Australia (NZ SCV holders present in Australia are also excluded).

Owner-occupier

A buyer intending to live in the property as their home, as opposed to renting it out. Often eligible for concessions investors are not.

PR

Permanent Resident — someone holding an Australian permanent visa, allowing indefinite stay. PRs can buy property without FIRB approval.

Temporary Resident

A holder of a temporary visa allowing them to remain in Australia for more than 12 months — most need FIRB approval to buy property.

finance

LMI

Lenders Mortgage Insurance — insurance you pay (premium added to the loan) when borrowing more than 80% of the property value. Protects the lender, not you.

LVR

Loan-to-Value Ratio — your loan amount divided by the property value, expressed as a percentage. Above 80% usually triggers LMI.

Pre-approval

A lender's conditional indication of how much they may lend you, subject to property valuation and final checks. Not a binding loan offer.