Ever wondered what some of those terms are that real estate agents use when talking about real estate?

We have compiled a list of some of the more common terms used.

Remember that these terms are commonly used in the Australian real estate market and dont necessarily have

the same meaning in other countries.

Acceptance
Agreement with the terms and conditions of an offer or contract.

Adjustments
Apportionment of paid or unpaid rates and other charges between the vendor and purchaser at

 settlement. See also Statement of Adjustments below.

Agent
A Company or person who is authorised to act on behalf of the client in the sale, purchase,

letting or management of real property.

Auction
A public sale where the property may be sold to the highest bidder – usually on the proviso

the reserve price for the property has been met or exceeded.

Bid
To offer a particular amount of money at an auction

Body Corporate
The owners of the units/apartments within a building form a Body Corporate.

These owners select a Committee which is responsible for the maintenance

and insurance of the building (which includes all common areas).

Bond
Upon signing a Tenancy Agreement a bond needs to be paid by the

Tenant to the RTBA - Residential Tenancies Bond Authority

(usually equivalent to 4 weeks rent). Please check with the Managing

Agent to confirm the amount. A bond is held as security by the RTBA

against damage or default by the tenant.

Buyer
A person or entity who buys property using money or its equivalent.

Capital Gain
The monetary gain that you obtain when an asset is sold for a higher price

than originally paid for it.

Caveat
A notification registered against a Title to a piece of land at the Land Titles

Office advising that the person lodging the caveat claims some right

to or interest in the land.

Certificate of Title
A document, which shows Ownership details of land and details of any

 mortgages and encumbrances.

Chattels
Any property not permanently attached to the land or house so

as to become part of the land or house.

Common Property
An area of land and/or building which is owned by the Body Corporate

(ie driveways/stairways and open areas).

Company Title
“Owners” of units are shareholders in a private company which owns

the apartment building. The approval of the majority of shareholders is

theoretically necessary if you wish to lease its property or sell your shares.

Condition Report
A statement prepared at the beginning of a tenancy describing the condition

of the premises.

Contract of Sale
A written agreement which contains the terms and conditions of sale of a

property. A signed Contract of Sale is a legally binding document if

the Vendor’s Statement has also been signed.

Conveyance
The legal process involved in transferring the ownership of a property.

Deposit
A sum of money given as part payment or security. A deposit is required

when purchasing a property (at the time you sign the Contract of Sale)

 – usually 10% of the sale price.

Easement
An easement is a right that allows one person's land to dominate

another person's land by exercising some right over the dominated

or subservient land such as a drainage easement or a right of way.

Encumbrances
A claim that one person has against another person's land.

An encumbrance is against the land and NOT the owner of the land.

This means that if the land changes hands, the new owner may acquire

both the land AND encumbrances attached to it.

Fittings
Any item which is not permanently attached to a building or land.

Fixtures
Items affixed to structures or land, usually in such a manner that

they cannot be easily moved without damage to themselves or the property.

Holding Deposit
A deposit paid to the vendor – based on the goodwill of the buyer

to go ahead with the purchase of a property.

It may or may not be refundable according to the

Vendor's / buyers prior agreement.

Landlord
The owner of a property who leases that property to

another person (or legal entity).

Land Tax
An annual tax paid to the State Government, on commercial and

 investment properties calculated according to the site

value of the property.

Lease
A document which grants a person/s tenancy of a property for a

specific period and subject to particular terms and conditions.

Lessee
A person (or legal entity) who leases a property.

Lessor
The owner of a property who leases that property to another

person (or legal entity).

Mortgage
A legal document containing an agreement between a borrower and a lender

for which security (usually real estate) is given by the borrower.

Mortgagee
A person who has security over property to secure a loan.

Mortgagor
The person who borrows funds (money) which are secured on his property.

Occupancy Permit
Certifies that a home can be lived in. It is a requirement of most local

 governments or councils that an Occupancy Certificate be issued prior

 to the purchaser of a home taking occupation.

Old System Title
In New South Wales, Old Law land dates back to an original Crown grant.

Old Law titles require considerable time-consuming research to establish a satisfactory

chain of title, which consists of the deeds of conveyance from every prior owner.

Torrens title has simplified the procedures needed to prove title to land.

Old Law and Torrens systems are both in operation in New South Wales,

although the proportion of land under Old Law titles is rapidly declining.

Opening Bid
At auction, the initial amount that is offered as a starting price in accordance

with the Contract of Sale.

Passed in
A property will be passed in at Auction if fails to meet the Reserve Price.

Purchaser
A person or entity who buys property using money or its equivalent

Real Estate
Land, including all the property on that land that cannot be moved

and any attached rights

Requisitions on Title
A list of questions which a purchaser or mortgagee or solicitor puts in

writing to the vendor, or mortgagor for the purpose of ascertaining any

defects in title and other general information about the title.

Reserve Price
The amount, which is set by the owner of the property prior to the Auction,

 that they are prepared to accept for the property.

After a property meets the reserve price it will be sold to the highest bidder.

Sale by Tender
The Tender selling system offers a fixed date and an invitation to interested

parties to submit bids. Buyers must then submit their best price in

writing for consideration.

Settlement
The date on which the balance of the contract price is paid and ownership

of the property transfers from the vendor to the purchaser.
 

Stamp Duty on Transfer of Land
A State Government tax applicable to the sale price which is paid by the purchaser.

Statement of Adjustments
A document detailing how rates and other outgoings have been apportioned

on the day of settlement. It shows the purchase price,

the deposit paid, the amount of rates paid for the rating period and the

proportion of those rates to be paid by the Purchaser for the period

beyond the settlement date.

Strata Title
A system of ownership of space within a block of apartments or units

which you can be leased or sold. Membership of the Body Corporate is automatic.

The Body Corporate owns and insures the Common Property.

Stratum Title
Similar to a Strata Title but there is a Service Company rather than a

Body Corporate that owns the Common Property.

Owners have a Certificate of Title to their property plus shares in the Service Company.

This form of ownership predates Strata Titles.

Tenant
A person (or legal entity) who leases a property.

Title Search
Process to check ownership of a property and encumbrances usually

carried out during the Conveyancing process.

Torrens Title (Certificate of title)
A system of registering land ownership in which ownership occurs when the document

that transfers the property is registered at the Land Titles Office.

Transfer of Title
The passing of property from one person to another, or a document that

conveys property between persons

Vendor
The party (seller) who offers a property for sale.

Vendor Bid
At auction, a bid made by, or on behalf of, the vendor of the

property being offered for sale.

Yield
The income derived from a property. The yield is usually expressed as a

percentage of the value or cost of the investment.

Zoning
The use permitted by Local Council. 

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