1. Vendor
The seller of the property.
2. Purchaser
The buyer of the property.
3. Offer
An agreement signed by the party offering to buy the property. If the other party makes changes, that is called a counter-offer, which must then be accepted by the original party. Once counter-signed, the agreement becomes binding.
4. Deposit
A payment of a fixed amount (usually 10% of the purchase price, but it can be more or less). It is usually paid once the agreement goes unconditional.
5. Condition / Conditional
A contingency that must be satisfied before you are committed to completing the purchase. Common conditions include finance, a builder’s report, a LIM, or solicitor’s approval. A conditional agreement is one that still has conditions to be met.
6. Unconditional
When there are no conditions, or when the final condition is satisfied. At this point you are contractually committed to completing the transaction on the settlement date.
7. Conveyancing
The legal process of transferring ownership of a property.
8. Settlement
The date when final payment is made and legal ownership passes to the purchaser. This is usually the day you move into the property (or need to move out, if you are selling).
9. Title
The legal record of ownership for the property, showing the owner, the land description, and any restrictions such as easements or covenants.
10. LIM (Land Information Memorandum)
A report prepared by the local council. It contains information known to the council about the property, including natural hazards, building consents, and any unconsented works.
11. Estate
The type of property ownership that you are buying. The most common types are freehold, cross-lease, or unit title. All are legitimate but operate slightly differently.
12. Chattels
Items included in the sale that are not fixed to the property, such as curtains, whiteware, or light fittings. Unless stated otherwise, you would usually expect these to be in reasonable working condition.
13. Easements and Covenants
Rights or obligations recorded on the property’s title. An easement may allow another party to use part of your land (such as a shared driveway), while a covenant may restrict how you use the property (such as building materials or height limits). We review these carefully to make sure the terms are acceptable.
Final Thoughts
Property transactions are full of new terms, but once you understand them the process becomes much clearer. Knowing the language gives you confidence to make informed decisions and enjoy the excitement of buying or selling.
We are here to help — feel free to contact us here, if you would like to discuss your next move.
Written by the C&M Legal Property Team
We help first-home buyers and families across Taranaki and Whanganui buy and sell homes with clarity and confidence.