Like any profession, the real estate industry has a language of its
own. Many of these terms you will already be aware of but there may be
some you have not come across.
Appraisal
An opinion of the market worth of a property.
Auction
A preferred marketing option where you list your property without a
price, supported by very intensive marketing leading buyers to the
auction day, where they must bid against each other to successfully
purchase your property in an unconditional situation.
Auctioneer
Person holding an auctioneer's license and able to conduct and call auctions.
Buyer
Buyer of the listed property.
CMA
Current or Competitive Market Analysis (CMA), is a written price
comparison of your property with others that are for sale or were
recently sold.
Conditional Contract
A written contract which has been signed by the seller and the buyer but
has one or more conditions which need to be met, usually within a
specified time period. For example, "subject to the solicitor's
approval of the title."
Commission
The fees for selling the property - payable by the seller, to the real estate company.
Conveyancing
Transferring the ownership of a property from the vendor to the purchaser. It is often performed by a solicitor or conveyancer.
Deposit
An amount of the purchase price paid by the purchaser, usually at or
around the time of making a written offer. The deposit must be held in a
trust account by an estate agency or by the solicitor or conveyancer.
Excluded Fixtures
Items that are presumed to stay with the property when sold but have
been specified on the contract as not remaining. Fixed items such as
curtains, light fittings, ceiling fans, shrubs, built in cabinets etc.
Freehold
A freehold property has a clear title of ownership and is not subject to a lease.
Included Chattels
Moveable items you decide to sell with the property, such as pool
equipment, fridge, freestanding glasshouse, shed or playhouse,
dishwasher, etc. These are noted in the contract if they are included
in the sale.
Leasehold
Sometimes land is subject to a lease. The owner of the land leases to
the tenant for a fixed rental sum for a fixed period, e.g. 21, 99 or 999
years.
Listing Authority
A contract between the owner and the real estate company marketing the
property. It details the length of the agency, commission rate and any
additional costs. The type of marketing method to be used is assigned
and a summary of information about the property is detailed on the
Listing Authority.
Marketing Fees
Money paid by a seller that goes directly to increase advertising spread.
Marketing Programme
A promotional package put together to give a property exposure to the
market. It may include advertisements to be used, a calendar of dates
for advertisements, open homes, buyer contact and service.
Offer
A signed contract, which includes the price, terms and conditions of sale, signed by the buyer then presented to the seller.
Off The Plan
Purchasing 'off the plan' means buying a property before it has been
built or subdivided. These purchases are usually based on the designer
or surveyors plans and models.
Open or General Listing
Any appointed real estate agent/company can quote or sell your
property. General low level of marketing and feedback. No one person
is totally responsible for managing your sale.
Owners Corporation
The body corporate that has collective ownership of the common areas in a
subdivision of land or buildings. it is responsible for the
administration, upkeep and insurance of the common areas shared by all
the owners.
Possession Date
The date the purchaser physically takes possession of the property.
Section 32
See 'Vendors Statement'
Settlement Date
The date when the seller is paid the full purchase price and ownership passes to the purchaser.
Subdivision
Dividing land or buildings into lots. The subdivision must be approved by local council.
Team Inspection
An appointment time is scheduled with the seller for the listing
agency’s team of consultants to visit the seller’s property and acquaint
themselves with the property.
Unconditional
When the conditions written into the agreement to buy a property have
been met, the offer becomes unconditional. The property is now sold and
both the seller and buyer must settle.
Vendor/Seller
The person selling the property.
Vendor's Statement
Information that the vendor must provide to the purchaser advising of
restricitions such as covenants and easements, outgoings such as rates,
and any other notices such as compulsory aquisition. the required
information is specified under section 32 of the Sale of Land Act.
Zoning
The system of controlling the use to which land may be put.