A title search is an essential part of buying or selling a property in the Northern Territory, allowing you to discover encumbrances in advance. The team at Tschirpig Conveyancing brings expert legal advice to help you learn about any potential restrictions or obligations during a sale. For more on encumbrances, including what they are, types and implications for you, read on. Call today.
Darwin Conveyancing Cost: What Are Encumbrances?
Governed under the Land Title Act 2000, an encumbrance is a legal claim, restriction or obligation that may exist with a property. They can have an effect on how you can use the land and the ownership of the property.
Types of Encumbrances in the NT
Here’s a look at the types of encumbrances we see in NT conveyancing.
Restrictive Covenants
This is a legal obligation that limits what you can do with your property, including what you can build or use the land for.
Mortgages
This encumbrance registers on the title, where a seller is using the property as security for a different loan.
Land Caveats
If someone else has a possible interest in a property, a caveat can prevent the sale until the party lodging it removes it.
Easements
As part of our Darwin conveyancing costs, we commonly deal with easements that bind all future owners of a property when the land is in use for a specific purpose, such as access to gas or mains water lines.
NT Conveyancing: Implications of Encumbrances
Encumbrances may affect how the owner of a property can use or develop their land while placing a hindrance on your ability to sell. An encumbrance is legally binding and is an effective tool for keeping all dealings involved in the sale of a property protected through transparency for buyers and sellers.
If you want to learn more about how the team at Tschirpig Conveyancing can help you navigate encumbrances in the Northern Territory property market, contact us online today.
