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A-Z Of Real Estate Terms

A-Z Of Real Estate Terms

 Agency

An agency is the relationship, which exists at law between two or more persons whereby one (the agent) is authorised to act on behalf of the other (the principal) to do certain specified acts. A common form of agency occurs in the sale, purchase and leasing of real estate.

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. / A public sale of property in which prospective purchasers bid until the highest price is reached.

Auctioneer

Person holding an auctioneers license and able to conduct and call auctions.

Chattels

Items of property that can be physically removed from your house or business because they are not attached to it in some way. Examples may include fridges, curtains, carpets, easily removable light fittings and wall heaters, and sometimes furniture. If chattels are to be included in the sale, the seller should specifically state this in the Sale and Purchase Agreement.

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

Any contract that includes conditions that must be satisfied before the parties become bound to carry out the terms of the contract. The contract is called "conditional" until the conditions listed are satisfied. Both the buyer and the seller can put conditions in the offer. Buyers often ask for conditions about checking the Certificate of Title, and getting finance or a building consultant’s report. A conditional contract is still legally binding, but the obligations under it are suspended until it becomes unconditional.

Commission

The fees for selling the property - payable by the seller, to the real estate company.

Contract

A contract is a legally enforceable agreement. Used in Real estate to mean the Sale and Purchase Agreement.

Excluded Fixtures

Items that are presumed to stay with the property when sold but have been specified on the contract as not remaining.

Fixtures or Fittings

Items of property that are attached to the house or business because they are permanently attached in some way (by nails or wires for instance). Examples are the stove or oven, built in furniture, light fittings, fitted carpets and TV aerials.

Freehold

A freehold property has a clear title of ownership and is not subject to 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, eg. # years.

Listing Authority

A contract between the owner and the real estate company marketing the property, detailing 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 Program

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.

No Price Marketing

Usually called ‘Auction’, ‘Tender’ or ‘For Sale by Negotiation’. The price is not revealed to buyers during the marketing promotion. MWP - Marketed without a Price.

Offer

A signed contract which includes the price and terms and conditions of sale signed by the buyer then presented to the seller.

Open or General Listing

Any appointed real estate agent / company can quote or sell your property, it is not exclusively marketed by one agent. General low level of marketing and feedback and no one person is totally responsible for managing your sale.

On the Market

During a real estate auction when the bid has reached the vendor's reserve price the property is announced as ‘on the market’ and is going to be sold at that auction.

Possession

When you have paid for the home and have the right to move in. Early possession is when it’s agreed you can   move   in   before   settlement   date —   you   might   have   to   pay   rent   until   then.

Possession date

The date by which you must have left the house or business premises and handed over the keys to the new owner.

Reserve Price

The reserve price is the minimum price the seller will accept for their property at the auction. This is kept confidential between the seller, listing agent and auctioneer.

Sale and Purchase Agreement

This is the contract between the property seller and the property buyer. Also called the "contract". All agreements   for   the   sale   of   land   must   be   in   writing   in   order   to   be   enforceable.

Seller / Vendor Bid

A type of bid at an auction which is made by the auctioneer on behalf of the vendor and clearly disclosed as either a Seller or Vendor bid.

Settlement

This is the final stage of the property becoming yours. It’s the bit where the money is paid, your name and the mortgage go on the title for the property and the Certificate of Title and the keys are handed over. The day   this   all   happens   is   called   settlement   day / date (See   Possession   Date).

Stamp Duty

Government Tax on property purchases, and usually applies to purchases over a certain minimum value.

Title

The legal right to ownership of the property.

Title Deeds

Documents showing who owns a 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. / Unconditional This means that the offer you have made on a property has no conditions attached to it, or the conditions have now been met. The contract is now legally binding and you are committed to buying the property on the agreed date, at the agreed price.

Vacant Possession

This means that when you get ownership of your home there will be no tenants living there or leases giving someone else use of the property.

Vendor

The seller of the property.