Resources: Glossary

 

Acceptance
The agreement of the terms and conditions of the offer by the person receiving the offer.

Administrator                         
The person to administer the estate of a person who died without a will (intestate).  Appointed by a Probate court.

Appreciation 
The increase in the value of a property over time.

Architrave                              
The moulding above and around windows and doors.

Asking Price                          
The price of a property that a owner may be willing to negotiate at.

Assignment                            
The transfer of property from one person to another.

Assignment of Lease             
The transfer of the interest of a tenant to another.

Auction                                   
The selling of any property in public by a licensed auctioneer endeavoring to persuade buyers to make offers until it is knocked down to the highest bidder.

Beam                                      
A principal load-supporting member of a building; can be timber, steel or concrete.

Bearer                                    
Timber that carries the floor joists.

Beneficiary                             
The person receiving the income from the trust, deed of trust or estate.

Body Corporate                      
The administrative body made up of the registered proprietors of the units that handle administration and upkeep of the property.

Bond                                       
A sum of money paid by tenants as an assurance that they will not breach the term and conditions of the tenancy. 

Brick Veneer                          
A construction type in which a single brick external wall is tied to the timber frame.

Capital Gain                           
The increase in the value of property.

Capital Improvement             
An addition that is built as a permanent improvement to add value to the property.           

Carport                                   
An open or semi-enclosed roofed structure for sheltering cars.

Caveat                                    
It is a warning on the title that a third party has some right or interest in the land.

Caveat Emptor                       
"Let the buyer beware".   It is up to the buyer to satisfy any specific items and make their own enquiries before purchasing.

Certificate of Occupancy       
A document that permits the building to be occupied that is issued by local government to the developer.

Certificate of Title                  
The document of title to land held under the Torrens System.  One is kept in the Titles Office and the other is held by the registered proprietor.

Chattels                                 
Personal property that is movable that can be included in the sale.

Common Property                  
Land considered as the property of the public in which all persons enjoy equal rights.

Contract Note (Vic. Only)
The agreement that sets out in writing the terms and conditions of the offer to buy the property.

Cooling Off Period                 
Refers to the time during which a buyer can terminate the contract. This differs from state to state and in Western Australia there is no cooling off period at all.   It was introduced to allow buyers to quickly make an offer and secure the property before seeking legal advice, financial approval or undertaking a professional property inspection.

Covenant                                
Restrictions placed on the title; these invariably can affect future plans with the property.

Cul De Sac                             
A street with only one way in or out sometimes referred to as a court.               

Deposit                                   
A percentage of the purchase price as part of the terms and conditions of the sale.

Depreciation                          
Due to usage and wear and tear the reduction in the value of an asset.

Dual Occupancy                    
A single residential site split or shared with two dwellings.

Easement                                               
An area of land reserved by law for a specific purpose i.e. water sewer.

Encumbrance                        
An impediment to the use or transfer of the property in the form of an interest or right in the property. 

Eviction                                  
The removal of a tenant or occupant legally from a property.

Exclusive Authority                               
The contract giving the real estate agent the authority to sell your property.

Executor                                
The person named in the will to handle and administer the estate.

Extension                                               
An addition to a building to increase the size of the floor area.

Fee Simple                             
The representation of the greatest interest in land that can be enjoyed.

Fibro Cement                         
Building material made of asbestos fibres that are cement bound into sheets.

Fittings                                   
Objects not intended to be removed from the property when selling.

Fixtures                                  
Something tangible that is attached or fixed to the building so it becomes part of the structure.

Foreclosure                           
The legal process involved in selling the property by auction to settle the mortgage debt.  This is due to the borrower defaulting on payments.                               

Freehold                                 
The owner owns the land and dwelling until they choose to sell it.

Gable                                     
The triangular portion of a wall between the lines of two sloped roofs.

Gazumping                             
Occurs when a seller accepts a higher offer after agreeing to a sale with someone else before exchanging contracts.

Gearing                                  
Borrowing funds to invest.

Guarantor                               
A party who agrees to repay a loan using their own assets in case the borrower defaults.                                                       

Investment Property              
A property that is produced to income and not owner occupied.

Joint Tenancy                        
Joint ownership by two or more persons that includes the right of survivorship.

Key Tenant                             
The major tenant in an office building or shopping centre.

Land Tax                                
A state tax based on the value of the property, paid by the owner but doesn't include the principal place of residence.

Landlord                                 
The property owner who leases it to another.

Lease                                     
The agreement between a tenant and the landlord that outlines the terms of the tenancy.

Lessee                                   
The person leasing the property.

Lessor                                    
The owner of the property who leases out that property.

Lien                                        
The legal claim upon a property that is paid off when the property is sold.

Market Value                          
The price at which a buyer is willing to buy and a seller is willing to accept.

Mortgage                                
The document that gives security for payment of debt over a property.

Mortgagee                              
The lender.

Mortgagor                               
The borrower.

Negative Gearing                   
Is when an investment property is purchased with borrowed funds and the rental income is less than the interest charged over the course of the year.

Nominee                                 
A person who acts or represents another in a limited sense.

Notice to Quit                         
A notice to a tenant advising them to vacate the property.

Off the Plan                            
Purchasing a property before completion and from a plan.

Offer                                       
The price conveyed by one party to another to form a contract.

Open Listing                          
A property in which multiple real estate agents are employed to sell.  Commission is paid to the agent who finds the buyer.

Passed In                                               
Is when the highest bid at an auction fails to meet the selling price the seller has set.

Power of Attorney                  
The person who has the capacity or authority of another party to act on their behalf.

Private Sale                           
The owner selling the property without an estate agent.

Private Treaty Sale                
The owner selling the property utilising the services of an estate agent.

Property Management            
The act of managing the property on behalf of its owner including collecting the rent and finding the tenant.

Rafters                                   
The beams supporting the roof system.

Requisitions on Title              
The requests made from a buyer for additional information about the title of the property from the seller.

Reserve Price                        
The price at which the owner of a property is prepared to sell at auction.

Right of Way                           
The right to cross another property or for the general public to cross another's property.

Rise and Fall Clause             
The building contract clause that allows for the final price to be increased or decreased according to material prices or wages fluctuations.

Roof Pitch                             
The angle at which the roof slopes.

Sash                                       
The frame that holds the glass panes in the window.

Sellers Market                       
When demand for property outstrips supply and as a result prices move upwards.

Semi Detached                      
Two properties that share a common wall or walls.

Settlement Date                     
The date when the new assumes possession after finalising payment.

Shingles                                 
Small rectangular shaped pieces of timber used instead of concrete tiles on roofs.

Skillion                                   
A roof sloping in the one direction not attached to another roof surface.

Special Condition                  
Conditions specified by the purchaser must be met before the contract can become legally binding i.e. the contract can be made subject to the purchaser getting finance.

Stamp Duty                             
The State Government tax on the purchase price payable at time of settlement by the purchaser.

Strata Title                             
A title used for units and townhouses.  It gives the owner ownership of a defined part of the building including air space as well as membership to the owners' corporation.

Stratum Title                    
Different to a strata title in that the owner purchases a shareholding in the company that manages the common area.  Lenders sometimes can be reluctant to lend more than 80% of the property value.

Studs                                      
The upright framing in the wall of a building.

Subdivision                            
The act of dividing land into individual lots to develop.

Tenancy                                 
Persons living in a property under agreed terms and conditions on a non-ownership basis.                                            

Tenants in Common               
Joint ownership of real estate that may be in equal or unequal shares.  Different from Joint Tenancy in that shares don't automatically pass onto the other owners in the event of death. 

Terrace                                  
A row of homes built in a similar style that have common dividing walls.                          

Title Search                           
A check on whether the owner has the right to sell and transfer the property.

Torrens Title                          
Most common form of title to property.

Townhouse                            
A two storey dwelling attached to similar buildings.

Transfer                                 
Document registered at the Land Titles Office recording entries of change of ownership.

Trustee                                   
Legal term referring to the holder of property on behalf of another.

Underpinning                         
Support provided for added strength under an existing wall.

Unencumbered                      
A property free from covenants or any other restriction.

Valuation                                
The estimated value of a property prepared by a qualified registered valuer.

Vendor                                   
Seller.

Vendor Statement                  
The legal statement made by the seller setting out certain particulars of the property.

Villa                                        
A dwelling that is single storey and usually attached.

Wall Cavity                             
The spacing between the outer and inner sections of a wall.

Yield                                       
The percentage of the amount earned over the amount invested.

Zoning                                    
The guidelines as to the permitted uses of land by local authorities.