A covenant is a restriction placed over land. It limits the way a property owner can utilise their land. An example may be that you cannot subdivide the land or build more than one dwelling.
WHAT IS AN EASEMENT?
An easement is an interest in land that allows one person to make use of land owned by another person for a specific reason. A typical example is an easement created in favour of a water board, whereby at the rear of the land they have their drainage and sewerage pipes underneath the surface level.
WHAT DOES VACANT POSSESSION MEAN?
Most contracts entitle the purchaser to vacant possession of the property upon payment of the balance due under the contract. This means that the vendor must have vacated the property and left it in a condition that will allow the purchaser to take possession of the property.
WHAT DOES RECEIPT OF RENTS AND PROFITS MEAN?
This term is used when there is a Tenant in the Property and the Tenant will remain after settlement. Once the settlement takes place you as the purchaser become entitled to receive the Tenant's rent.
WHAT IS A DEPOSIT BOND?
A deposit bond is a guarantee by an insurer that a purchaser will pay the deposit when it falls due, at settlement or upon rescission. The purchaser pays an insurance premium and a certificate of guarantee is given to the vendor or agent. No money is paid until settlement, so the vendor is unable to obtain release of the deposit prior to settlement and the agent must await settlement for payment of commission and expenses.
