Adjustments:
During Settlement any expenses, such as council and water rates, will be distributed proportionally between the seller and buyer.
Agent:
A registered person who is qualified to negotiate a sale on behalf of the seller or buyer.
Auction:
The public sale of property to the highest bidder. The terms of sale for a property sold at Auction may differ to those of other methods of sale, in that a deposit may be required on the day of sale and any rights to a cooling period may be void.
Auctioneer:
A person who is legally qualified to conduct a publicly held sale of property, also known as an Auction.
Body Corporate:
A group of people or sole entity responsible for the upkeep and administration of a property with common ownership, for example a block of apartments or units.
Body Corporate levy:
A fee charged to owners for the upkeep, maintenance and administrational duties of a collectively owned property.
Bridging finance:
A short-term loan taken out by buyers who have purchased a property whilst waiting for their current property to be sold.
Buyers advocate:
A person hired to legally represent a buyer during property negotiations. The Buyers Advocate should be qualified and is paid by and acts on behalf of the buyer.
Building inspection:
An inspection conducted by a qualified building inspector to check a properties’ compliance with plans, laws and to check for problems, for example unauthorised building works, water pressures, electrical faults and any building defects prior to purchasing the property.
Caveat:
A legal document any person with a legal interest in a property can lodge at the Titles Office to ensure that the property is not sold without their knowledge.
Certificate of Title:
A legal document stating who owns a property, the land size and any other items impacting the property, such as: mortgages and easements.
Chattels:
Chattels are tangible items other than land; they can be either buildings and fixtures or personal chattels such as furniture, clothing and personal items.
Commission:
A percentage fee charged on the selling price of a property. This commission is paid by the seller to an Agent at the time of Settlement.
Contract of Sale:
The legal document which commits a buyer to the purchase of a property. During negotiations, the buyer may be asked by a seller or an Agent to sign a contract to formalise their offer. Before signing anything ensure your Solicitor or Conveyancer looks over it to make sure it is what you agreed to.
Conveyancer:
A licensed person who handles the legal documentation throughout the sale or purchase process. A Conveyancer does not have the same legal experience as a qualified licensed Solicitor.
Cooling off period:
A set amount of time in which you choose to withdraw from the sale of a property and the contract becomes void. If you are planning on withdrawing from the property sale during the cooling off period, contact your Solicitor or Conveyancer to coordinate this. Cooling off periods will differ from state to state.
Covenant:
A covenant is an agreement affecting the use of land or property which has been written into the Title.
Deposit:
A percentage of the agreed sale price paid to the seller to secure the intended purchase of a property. The percentage is negotiable; however, is usually 10 per cent.
During the private sale process, the buyer should pay their deposit to the seller’s Solicitor which will be placed into their trust account until settlement occurs.
Disbursements:
A Solicitor or Conveyancer may charge you disbursements as part of the property transaction. Disbursements can include registration fees, government charges and stamp duty charges.
Dummy bid:
A dummy bid is a false bid which has been made by a non-genuine bidder or by the auctioneer. Dummy Bidding is illegal in most states within Australia.
Easement:
A right held by one property owner to use land owned by someone else for a specific purpose. An easement can include drains and water pipes and allows certain authorities to have access to these areas for repair works and upgrades.
Exclusions:
A particular item that is not included in the sale contract. For example a garden shed or children’s cubby house.
Exclusive Sale Authority:
An Agent may ask you to sign an Exclusive Sale Agreement when selling your property. This gives the Agent exclusive rights to represent your property and prevents you from enlisting the services of another Agent, or to sell it yourself.
If there is the possibility you would like to sell your property without the use of an Agent, or alternatively, with multiple agents, it is not recommended that you sign an Exclusive Sale Agreement.
Fittings:
Items that can be removed from a property without causing damage to it, for example: a dishwasher, blinds and curtains.
Fixtures:
Fixtures are items that are fixed to the property and can not be moved without causing damage. For examples: carpet, awnings etc.
First Home Owners Grant:
A Government introduced scheme which provides first home owners with a one off payment to contribute towards a property purchase.
For Sale By Owner:
A term used when an individual is selling their property without the assistance of an Agent.
Investment:
Purchasing an asset with the intention of producing a capital gain. When the asset is a property, it becomes an investment property.
Mortgage:
When money is borrowed from another person or an institute, for example a bank, to assist in the purchase of a property.
Mortgagee:
The person or institution which lends the money to assist the buyer in purchasing a property.
Mortgage insurance:
Insurance that will cover any shortfalls or debt owing should a buyer be unable to make repayments. In most cases, a bank will request that you have mortgage insurance prior to approving your loan.
Negative gearing:
Negative Gearing occurs when there are costs associated with an investment property that exceeds the amount of income received over that tax year. This loss can be claimed as a tax deduction. We recommend you seek tax advice relating to negative gearing.
Off the Plan:
Buying property that is yet to be built and is based on an architects plan.
Open for Inspection:
When a seller arranges a time for potential buyers to inspect the property.
Private Sale:
A method of sale in which the seller controls the sale process of their property without the assistance of an Agent.
Rates:
Fees payable to your local council for services such as garbage removal, water and sewerage.
Reserve Price:
The minimum price a seller is willing to consider for their property. This price is used to commence bidding at an Auction.
Sellers advocate:
A person qualified to legally represent the seller during the sale of their property. The advocate acts on the seller’s behalf and is paid by the seller.
Settlement:
At Settlement the balance of the purchase price is paid to the seller in exchange for the title to the property on a specific, pre-arranged date. Unless otherwise arranged, the buyer will take possession of the property on the day of settlement.
Solicitor:
A person who is legally qualified to undertake legal work.
Stamp duty:
A government tax which is calculated based on the sale price of a property.
Statutory Documents:
Each state has legislation governing documentation / information which vendors must provide at/or prior to execution of the Contract of Sale. Your legal adviser will ensure that all statutory requirements are met. For example: In Victoria, a Vendor's Statement must be supplied to the buyer prior to execution of the Contract of Sale.
Subject to Council Approval:
A common real estate term used on property advertising to imply that demolition or renovations may be applied to a property once purchased, however, those amendments are subject to council approval.
Strata Title:
A Strata Title applies to more than one property on a piece of land, for example an apartment block. Each apartment would have a separate Strata Title.
Title:
A legal record ensuring a property seller has the right to sell and transfer ownership of a property.
Vacant Possession:
When a property is vacant upon settlement.
Vendor:
The seller of a property.
