Glossary

The terms you'll run into most often when buying property in WA as a foreign buyer, defined plainly.

Looking at property in Thailand instead? Real Property Dictionary covers the same idea for the Thai market.

Absentee owner / foreign owner surcharge

An additional annual land tax charged to foreign or absentee owners in some states (NSW, Victoria, Queensland, South Australia). WA does not currently levy this surcharge.

By-laws (strata)

Rules set by a strata company governing an owner's use of the property. Governance by-laws cover how the strata company operates; conduct by-laws cover things like pets, noise and renovations. Worth reading before you buy into a strata scheme, not after.

Cooling-off period

A window after signing during which a buyer can withdraw without penalty. WA has no statutory cooling-off period for residential property — one only applies if specifically written into the contract.

Deposit bond

An alternative to paying a cash deposit upfront, commonly used for off-the-plan purchases — a bond provider guarantees your deposit to the developer for a fee (typically 1–2% of the deposit amount). It defers the cash, it doesn't reduce it; you still need the full amount at settlement. Not the same thing as a rental bond.

Established dwelling

A previously lived-in home, as opposed to a new build. Foreign persons are currently generally banned from purchasing established dwellings, with limited exceptions.

FIRB

The Foreign Investment Review Board — advises the Australian Treasurer on foreign investment applications, including most residential property purchases by foreign persons.

Foreign buyers duty

WA's additional 7% stamp duty surcharge charged to foreign buyers on top of standard transfer duty.

Foreign person

Broadly, anyone who isn't an Australian citizen or a permanent resident who has lived in Australia for 200+ days in the previous year — including most temporary visa holders and foreign-controlled companies or trusts. Defined precisely by FIRB, not by this glossary.

Foreign resident capital gains withholding (FRCGW)

Since 1 January 2025, a requirement for a buyer to withhold 15% of the sale price (regardless of value) on a purchase from a foreign resident vendor and remit it to the ATO. Foreign residents generally can't obtain the clearance certificate that would avoid this. Relevant when you eventually sell, not when you buy — see our Selling & Exit guide.

Home Indemnity Insurance

Mandatory WA insurance for residential building work over $20,000, which the builder must have in place before starting work or taking a deposit. Protects you if the builder dies, disappears, or becomes insolvent before finishing the job.

Joint tenants vs. tenants in common

Two different ways to co-own property. Joint tenants hold an equal, undivided interest with right of survivorship; tenants in common hold separate, distinct shares. The distinction matters for foreign buyers specifically because the FIRB exemption for buying with a citizen or permanent resident spouse only applies if you buy as joint tenants.

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 typically exempt. WA currently applies the same land tax rules to foreign and local owners.

Landgate

Western Australia's land titles registry, responsible for registering property ownership transfers.

Lenders Mortgage Insurance (LMI)

Insurance that lets local buyers borrow above 80% LVR. Often unavailable to non-resident borrowers, which is a key reason their deposit requirements are higher.

Loan-to-value ratio (LVR)

The proportion of a property's value a lender will finance. Foreign non-resident borrowers typically face lower LVR caps (and therefore need larger deposits) than local buyers.

Off-the-plan

Buying a property — usually an apartment — before it's built, based on plans and specifications rather than a finished, inspectable home. Along with new and near-new dwellings, it's one of the main FIRB-compliant options for foreign buyers under the current established dwelling ban.

Offer and Acceptance (O&A)

WA's standard method of forming a property contract — a written offer that becomes binding once accepted and that acceptance is communicated back to the buyer.

Ordinarily resident

The legal test for whether you're a 'foreign person' under FIRB rules. You're ordinarily resident — and not a foreign person — if you're an Australian citizen, or a permanent resident who's actually spent 200+ days in Australia in the preceding 12 months.

Pet bond

A separate bond (up to $350 in WA) a landlord can charge when approving a tenant's pet, lodged with the Bond Administrator the same way as the standard rental bond.

Property condition report

A report documenting a rental property's condition at the start of a tenancy. A WA landlord or property manager must give the tenant two copies within seven days of the tenancy starting.

Rental bond

Security money a tenant pays at the start of a WA tenancy, capped at four weeks' rent and held by the Bond Administrator rather than the landlord directly. Not the same thing as a deposit bond, which is a purchase-financing tool.

Settlement

The day ownership formally transfers — funds are exchanged, duties are paid, and the transfer is lodged with Landgate. Typical WA settlement periods run 30–45 days from an unconditional contract.

Settlement agent

A WA-licensed professional (distinct from a solicitor, though solicitors can also act) who manages conveyancing: title searches, adjustments, duty payment, and registering the transfer with Landgate.

Special Category Visa (SCV, subclass 444)

The visa New Zealand citizens are automatically granted on arrival in Australia. SCV holders are generally exempt from needing FIRB approval to buy residential property, regardless of the 200-day ordinarily-resident test.

State Administrative Tribunal (SAT)

The WA tribunal that generally hears strata disputes — disagreements between owners, or between an owner and the strata company — rather than the general court system.

Strata company / strata title

The ownership structure for most apartments, units and townhouses: you own your individual lot outright and jointly own common property through a strata company every owner automatically belongs to. Increasingly relevant for foreign buyers since apartments are one of the main FIRB-compliant purchase types.

Strata levies

Regular payments strata owners make into an administrative fund (day-to-day running costs) and a reserve fund (long-term capital works) — a genuine ongoing holding cost on top of council rates and land tax.

Sunset clause

A date by which an off-the-plan development must be completed and settle. If construction runs past it, either party may be able to terminate the contract — worth scrutinising before you sign, since a developer facing a higher market price has an incentive to let it lapse.

Transfer duty (stamp duty)

The standard state tax paid on transferring property ownership in WA, calculated on a marginal scale based on the property's dutiable value.

Vacancy fee

An annual federal fee charged by the ATO to foreign owners if a dwelling isn't occupied for at least 183 days in a year. Requires an annual return regardless of occupancy.