Real Estate Terms

Acceptance:
Agree to the terms and conditions of an offer or contract.

Act Of God:
Act of nature such as rain, lightning, floods earthquakes, some insurance policies do not cover for "acts of god"

Agent:
A person authorised to act on behalf of a person (usually the owner) in the sale, purchase of property.

Appraised Value:
An estimate of the value of the property.

Asking Price:
The list price of the property but may not always be the selling price.

Auction:
Sale of a property in public to the highest bidder.

Beneficiary:
Person designated to receive income from a trust or estate.

Body Corporate:
The owners of the units/apartments within a building form a Body Corporate. These owners select a council who are responsible for the maintenance of the building (which includes all common areas).

Boundary:
A line that defines the perimeter of a property.

Breach Of Contract:
When the conditions of a contract are broken.

Business Day:
A standard day for conducting business 9.00am - 5.00pm. Excluding weekends and public holidays.

Buyers Market:
Demand for property is less than supply so the advantages shifts to the buyer.

Caveat:
A document any person with a legal interest in a property can lodge with the Titles Office to ensure the property is not sold without their knowledge.

Chattels:
Chattels are personal property. There are two types. Real chattels are buildings and fixtures. Personal chattels are clothes, furniture, etc.

Cooling - Off Period:
The five business day period applying to sales of residential property.

Commission:
Fee payable to real estate agent for selling a property by the person authorising the sale. Usually a percentage of the sale price.

Common Property:
Areas in strata-title properties shared by all owners.

Contract Of Sale:
Written agreement setting out the terms and conditions of a property sale.

Conveyancing:
Legal process of transferring the ownership of a property from one person to another.

Covenant:
Conditions affecting the use of land or property written into the title.

Cover Note:
A document from an insurance company giving temporary insurance until a formal policy is completed.

Cul-De-Sac:
A street that has only one entrance, can be valued for privacy to homes in the street.

Deed:
A legal document conveying title of a property.

Deposit:
A percentage of the purchase price given to bind the sale of real estate.

Duplex:
Same as Semi-detached.

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.

Exclusive Agency:
A contract that gives one real estate agent the exclusive right to sell a property in a specified time period.

Executor:
Person named in a will to administer it.

Fittings And Fixtures:
a) Items like baths or stoves, b) light and other fittings, and c) kitchen, linen or storage cupboards or wardrobes. Fittings are not normally included in a contract if they can be removed without causing damage.

Foreign Investment Review Board:
Anyone that is not a permanent resident or citizen of Australia must apply to the FIRB to purchase property in this country.

Freehold:
An owner's interest in land where the property and the land on which it stands both belong to their owner indefinitely.

Home Inspection:
A thorough inspection to evaluate the structure and condition of the property.

Listing:
Contract between owner and real estate agent authorising the agent to perform services for the owner's property.

Mortgagee:
One who lends the money for the property.

Multiple Listing:
System of selling the property through many agents.

Offer To Purchase:
A formal legal agreement which offers a specified price for a specified property. The offer may be firm (no conditions attached) or conditional (certain conditions apply).

Open Listing:
System of selling the property through many agents.

POA:
Pricing method used by some Real Estate agents meaning price on application.

Power Of Attorney:
Person who has authority to execute documents on behalf of the grantor.

Private Sale:
The seller does not engage an estate agent but acts on his own behalf, dealing directly with the buyer.

Private Treaty Sale:
Sale of property via an agent through private negotiation and contract.

Reserve Price:
Price below which an owner is not prepared to sell at auction.

Seller's Market:
When demand for property is greater than supply, owners may find greater opportunity for achieving a better price.

Semi-detached:
Two buildings joined by a common wall.

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

Special Condition:
A condition that must be met before the contract is binding.

Stamp Duty:
A State Government tax imposed on the sale of real estate. It is determined by the sale value, and it varies between states.

Strata Title:
Most commonly used for flats and units, this title gives you ownership of a small piece of a larger property including 'air space'. You have sole right to a particular unit and can lease, sell or legally dispose of your unit as you desire. You also have an undivided share of the common land. You also become a member of the Body Corporate which controls maintenance.

Subdivision:
Land divided into individual lots for housing.

Subject To Sale:
When a contract is conditional upon the buyer entering into a contract for the sale of their place by a certain date.

Sunset Clause (or 72 Hour Clause):

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

Unconditional Contract:
Contract that binds both buyer and seller to settle on the date agreed at the price agreed.

Vendor:
Person offering a dwelling for sale.

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