Page 46 - Real estate: a guide for buyers and sellers
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Real estate: A guide for buyers and sellers
Glossary
Agent A licensed person authorised to act for Capital gain Profits made from the sale of property.
someone else, usually the owner, in selling, buying,
renting or managing a property. Caveat A note on the title that an interest in the
land is claimed by a third party.
Agent’s representative Someone who is not a
licensed agent but is employed by or acts for them, Caveat emptor Latin term meaning ‘let the buyer
and performs the function of an agent. (See also beware’. It is the buyer’s responsibility to ensure
Agent) that the property meets their approval before
purchase.
Auction A public sale of property where the highest
bidder is normally the successful buyer. Certificate of occupancy A document issued
by a building surveyor stating the building is
Authority to sell A legally binding document, suitable for occupation. It is not evidence that the
signed by the seller, detailing the agreement building complies with the Building Act or building
between them and the agent. Many aspects of the regulations.
authority to sell, such as commission and advertising
costs, are negotiable between the parties. Certificate of title A document showing who owns
the property, the size of the land and whether there
Body corporate See Owners Corporation. are any limitations on the title such as mortgages,
caveats, easements or encumbrances.
Breach of contract The breaking of one or more of
the terms or conditions of a contract. Chattels Moveable personal property or furniture.
Not generally part of the property unless
Building consultant An expert experienced specifically stated in the contract of sale. See also
in designing or constructing a building. When ‘Goods’.
employing a building consultant for a pre-purchase
report on a property, check whether they have Commission Paid by the seller to the agent,
indemnity insurance to cover any serious omissions normally when the property is sold. It is usually
about defects. A building consultant is not required a percentage of the selling price. The amount of
to be registered. commission is negotiable.
Building inspector Must be registered as such with Common property Areas of a property used by
the Building Practitioners Board. Can operate as a and belonging jointly to all owners. This applies
private or council building inspector and is qualified to such properties as apartment blocks or multi-
to inspect buildings to ensure compliance with the dwelling complexes.
Building Act and building regulations.
Company title Each owner in a block of flats has
Building surveyor Must be registered as such shares in the company that owns the land and the
with the Building Practitioners Board. A building building. The owners receive a parcel of the shares
surveyor is qualified to issue a building permit, with rights attached. Each owner is entitled to
inspect a building for compliance with the exclusive occupation of a flat, but is subject to the
Building Act and building regulations, and issue an company’s Memoranda and articles of association.
occupancy permit or certificate of final inspection. These documents should be carefully examined for
any restrictions.
Buyer’s advocate (buyer’s agent) An agent
who acts solely for the buyer, sourcing suitable
properties and representing them throughout the
buying process.
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