Jargon Buster
Asking Price: The listed price of a property. The owner may be willing to negotiate so may not be the selling price.
Assessed Value: The valuation placed on the property.
Auction: Real estate that is sold to the highest bidder.
Body Corporate: The administrative body made of the owners of a group of units or apartments of a strata building.
Bridging Loan: A short term loan used to cover the financial gap between buying and selling.
Building Inspection: A thorough inspection by a licensed builder that evaluates the structural and mechanical condition of the property.
Buyers Market: When the demand for property is less than the supply of property the advantage shifts to the buyer.
Caveat: A warning on the title that a third party may have an interest in the property.
Certificate of Title: A description of a property that includes the name of the registered owner and any encumbrances such as mortgages and easesments. Included in the contract of sale prepared by the solicitor.
Commission: A proportion of the sale price (generally a percentage) of a property paid to real estate agent for negotiating the sale.
Contract of Sale: An agreement in writing that details the terms and conditions in regards to the sale or purchase of a property.
Cooling off Period: A period of five clear business days after the contract is signed during which the purchaser may elect to withdraw from the contract, providing they are not excluded under Section 31(5) of the Sale of Land Act.
Convenant: Terms, conditions and restrictions noted on the title.
Deposit: A percentage of the purchase price given at the time of exchange to bind the sale.
Easement: A right that someone has to use the land that belongs to another. An example is a water authority having a sewerage easement.
Exclusive Authority: A written contract that gives the real estate agent the exclusive right to sell a property in a specified time period.
Exchange of Contracts: The point at which signed contracts are physically exchanged, legally committing the buyer and the seller to the purchase and sale of a property at an agreed price.
Fittings: Objects that can be removed from a property without causing damage.
Gazumping: Gazumping occurs when a seller accepts a buyer’s offer and verbally agrees to sell the property to that buyer but later sells the property to another buyer offering to pay more.
Joint Tenancy: A form of co-ownership that gives each tenant equal shares in the property including the right of survivorship.
Listing: A written contract between an owner and a real estate agent, authorising the agent to perform services for the sale of the owners property.
Market Value: The price at which a seller is happy to sell and a buyer is willing to buy.
Offer: A sum of money that a buyer offers to pay for a property.
Open Listing: A type of listing agreement in which more than one real estate agent may be employed to sell the property.
Passed In: The highest bid fails to meet the reserve price of a property at auction and therefore does not sell.
Private Sale: The sale of a property by the owner without the use of a real estate agent.
Private Treaty: The sale of a property through a real estate agent by negotiation.
Reserve Price: The minimum price which a seller will accept at auction.
Settlement: The sale of a property is finalised by the legal representatives of the vendor and the purchaser and the new owner takes possession of the property.
Stamp Duty: A State Tax on conveyance or transfer of real property calculated on the total value of the property.
Valuation: A written analysis of the estimated value of the property prepared by a qualified valuer.
Vendor: The seller.
Zoning: Local authority guidelines for the permitted use of the land.
