Agent

A licensed person employed to facilitate the sale of the property on behalf of the vendor.

Allotment

A section of land subdivided from a larger potion of land.

Appraisal

An opinion of your property’s saleability and estimated market value based on current market conditions and your property’s characteristics.

Assets

What you own.

Auction

A three to five week programme using a high-profile marketing campaign. The sale of the property goes to the highest bidder or the property is passed in if your reserve price is not reached.

Breach of Contract

Not fulfilling any terms of the contract.

Body Corporate

A Body Corporate is made up of all of the owners of a block or development of units/townhouses/duplex apartments or other Community Title Schemes. The Body Corporate is responsible for making decisions relating to common property maintenance and management, managing insurances and determining/collecting levies.

Bridging Finance

A short-term loan, usually at a higher rate of interest, which helps people to cover the purchase of a property while waiting for theirs to sell. The security is usually over both properties.

Building Regulations

These are designed to uphold the standards of public safety, health and construction. They are put in place by local authorities (usually councils) to control the quality of buildings.

Capital Gain

The monetary gain obtained when you sell a property for more that you paid for it.

Caravan or Team Inspection

The agent that is marketing the property takes the rest of the salespeople in the office through the property so that they can familiarise themselves with the property and market it to their buyers.

Caveat

A document lodged with the titles office, by any person with a legal interest in a property, to ensure the property is not sold without their knowledge.

Caveat Emptor

Latin for ‘Let the Buyer Beware’. In certain cases, this puts the burden onto the buyer to be satisfied before purchasing a property.

Certificate of Title

A document which details the ownership of a property which may include property dimensions and other details.

Chattels

Any removable items that are sold with a home, typically light fittings, curtains, dishwasher etc.

CMA

Comparable Market Analysis is the price comparison of your home with others that are currently for sale and those that are similar in size and location that have sold.

Commission

The fee payable to a real estate agent for selling a property.

Common Property

Areas on a title which have joint ownership with another property, often common with crossleased, strata-title and unit-title properties.

Conditional Contract

A contract that is agreed by the Vendor and the Buyer, but where one or more conditions need to be met, usually within a specified time period, by either or both parties. For example, it is subject to the purchaser raising finance within a few days or subject to the lawyers consent of the title etc.

Contract of Sale

A written document that sets out the terms and conditions for the purchase or sale of land, and all improvements thereon.

Conveyancing

The legal process of transferring the ownership of a property and money, making sure that everything is legally correct, as the property transfers from one owner to another. This is usually done by your solicitor or licensed conveyancor.

Convenants

Rules and regulations governing the use of property.

Deposit

A defined percentage of the purchase price paid by the purchaser which is held in trust as confirmation of intention to buy.

Easement

A right held by someone to use land belonging to someone else for a specific purpose. Mains, drains and water pipes are usually covered by an easement.

Encumbrance

An easement, mortgage, or other liability on a property which impedes its use or transfer.

Equity

The value you hold in your home. The total value less any mortgage or other liabilities on a property.

Escape Clause

This allows the vendors to issue notice to a conditional purchaser that unless that purchaser confirms the sale as unconditional with in a stipulated time, then the vendor can proceed with another offer from another party.

Exclusive Listing/Agency

Only the agency appointed has the rights to sell the property.

Exclusive Listing Authority/ Appointment of Real Estate Agent

A contract between the owner of the home and the real estate company selling the house. It is normally for a set number of days and sets out the commission rate and any additional costs. This states whether it’is an exclusive, general, tender or auction listing.

Interest-only Loans

A loan on which interest only is paid periodically and the principal is paid at the end of the term.

Joint Tenants

Joint tenancy is the equal holding of property by two or more persons.

Lease

A document granting possession of a property for a stated period without transferring ownership. The lease document specifies the terms and conditions of occupancy, rent payable etc.

Liabilities

The outstanding debts you owe.

Loan Period

The number of years that a home loan is for.

Maturity Date

The last day of the term of the home loan agreement. The home loan must then be paid in full or the home loan agreement renewed.

Mortgage

The security over property given to the lender for the repayment of the loan. The lender (mortgagee) has the right to take the property if the borrower (mortgagor) fails to repay the loan.

Mortgagee

One who lends the money for the property.

Mortgagor

One who borrows the money to purchase property.

Negative Gearing

Where your mortgage repayments exceed the income received from a rental property.

Offer to Purchase

A formal offer for a specified price for a specified property, normally made on a sale and purchase agreement.

Open Listing

A listing that is open for any agent in any company to work.

Passed in

A property is passed in at auction if the highest bid fails to meet the vendor’s reserve price.

Plan

This shows the house design, elevation of the house, number and size of rooms, kitchen, bathroom and laundry layout, and the position of the house on the land.

Possession Date

The day the purchasers take occupancy of the home, normally when the ownership of the property transfers and the balance of the purchase price is paid to the vendor.

Principal Loan

The actual amount of money that has been borrowed to buy a property.

Private Sale

The seller does not engage an estate agent but acts on his own behalf, dealing directly with the buyer and in preparation of the agreement.

Private Treaty Sale

Sale of a property via an agent through private negotiation and contract.

Real Property

Land, with or without improvements.

Reserve Price

The amount below which a home owner will not sell on the day of auction.

Right of Way

Right of access across a property.

Sale and Purchase Agreement

The contract between the vendor and the purchaser.

Security

Property offered as backing for a loan. In the case of a home loan, the property itself usually acts as security.

Semi-detached

Two buildings joined by a common wall.

Settlement

Completion of a sale when the balance of the contract price is paid to the vendor and the buyer is legally entitled to take possession of the property.

Stratum Title

This title gives you legal ownership over a piece of property and also a share in the common land of the area of flats or units. It does not include ‘air space’.

Strata Title/Unit Title

Most commonly used for flats and units, this title gives your ownership of a small piece of a larger property including ‘air space’. You also have an undivided share of the common land and become a member of the Body Corporate which controls maintenance and has stipulated rules governing occupation.

Subject to Finance

A condition inserted into a contract, for the benefit of the purchaser. This makes the contract subject to the purchasers confirming that they have raised finance within a certain amount of time.

Survey

Confirmation of the property boundaries and improvements.

Tender

A tender involves potential purchasers placing confidential bids for a property. The bids may or may not include conditions, and any bid can be accepted by the vendor.

Title Search

The process of examining the land title to ensure the vendor has the right to sell and therefore transfer ownership. It details the names of the owners and other information about the property, such as encumbrances or caveats on the title.

Unconditional Contract

A contract for the sale of a specific property that the vendor and purchaser have agreed upon that has no conditions, or the conditions have been confirmed as being met, and therefore constitutes a sale.

Vacant Possession

When ownership is transferred from the sale of a property there will be no tenants living in the property, or leases giving someone else use of the property.

Valuation

Assessment of the value of a property given in a written report, usually by a registered valuer.

Vendor

The person who owns the property for sale, i.e. the seller.

Zoning

Control of the use of land exercised by local authorities or the responsible planning authority.