Page 17 - Wilson Property RCI buying a home

Common Terms

ADJUSTMENTS - Apportionment of rates, taxes, body corporate fees, rent, insurances etc up to the date of possession or settlement on a sale or letting.
AGENT - A person authorised to act for another (usually for the owner) in the selling, buying, renting or management of a property.
Commonly used to refer to licensed real estate agents and real estate representatives.
APPRAISAL - The term means an opinion of the potential saleability of a residential property by a licensed Real Estate Agent.
BID - A verbal or written offer to purchase.
BUILDING INSPECTOR - An authorised person who is responsible for checking buildings in the course of construction and completed buildings to ensure
that they have been constructed in accordance with building control provisions.
BUYER’S MARKET - The condition which exists when, under competitive conditions, the pressures of supply and demand are such that market prices
are at a relatively low level, giving the buyer an advantage. An over-supply causing prices to decline.
CHATTELS - Any fixed asset other than freehold land. Items such as machinery, implements, tools, furnishings, fittings, which may be associated with
land use, but which are not fixed to the land or premises or, if fixed, may be removed without causing structural damage to a building.
CONDITIONS OF SALE - The conditions applicable to a sale contract made between a vendor and purchaser
CONTRACT - A legally binding agreement.
CONTRACT OF SALE - An agreement relating to the sale of property, which expresses the terms and conditions of sale.
CONVEYANCER - A licensed professional who specialises in providing advice and information about the sale of a property
COOLING OFF PERIOD - A short statutory period after the contract is made, during which the Purchaser may cancel the contract unconditionally.
Usually does not apply in the case of auctions.
DATE OF SETTLEMENT - The date on which a contract of sale is finalised and final payment is made.
DEPOSIT - Percentage of total consideration, or an agreed amount, paid on exchange of contract for purchase of an asset.
DEPOSIT BOND - A deposit bond, sometimes referred to as a deposit guarantee, is an insurance policy that acts as a guarantee to the Vendor that the
purchaser will pay the deposit at settlement.
FITTINGS - Installed items that may be removed from real estate without causing irreparable damage to the land, structure or use of the premises.
FINAL INSPECTION - Most final inspections happen anytime from a week up to a few hours presettlement. They’re not compulsory, but Purchasers usually
want to use the opportunity to check nothing ‘untoward’ has happened to the property since they signed the contract. Purchasers are entitled to receive a
property in the condition it was presented to them.
FIXED INTEREST RATE - An interest rate that remains unchanged for a set period, for example, for the whole term of the loan, or the first year of a loan.
HOLDING DEPOSIT - An amount given by a Purchaser to the estate agent acting for the Vendor. It shows the buyer’s serious commitment to the property
and is commonly 10% of the purchase price.
LICENSE AGREEMENT - A licensing agreement is a written contract between two parties, in which a property owner permits another party to use
that property under a specific set of parameters.
MORTGAGE - Documentation of a property loan. Security over real property to ensure payment of a debt or performance of an obligation.
OFF MARKET - An off-market sale is a term used to define a property that is selling, or has already been sold, without any public advertising.
SECTION 27 - The Section 27 Deposit Release procedure can allow a vendor to gain access to a deposit before settlement.
SECTION 32 - The Section 32 is a legal document provided by the Vendor to an intending Purchaser. A section 32 vendor statement refers to the legal
document given by the seller to the potential Purchaser. Essentially, this document contains all the information about the property that is required by law
that the Vendor must provide to the buyer.
SECTION 55 - Under section 55 of the Estate Agents Act 1980, it is an offence for an estate agent or agent’s representative to obtain a beneficial interest
in a property that they have been commissioned to sell.
SELLER’S MARKET - The condition which exists when, under competitive conditions, the pressures of supply and demand are such that market prices
are at a relatively high level, giving the seller an advantage. An under-supply causing prices to increase.
SETTLEMENT - This is the final stage of the sale when the Purchaser completes the payment of the contract price to the vendor and takes legal
possession of the property.
SOLICITOR - Solicitors are specialists in many different areas of the law. Some will specialise in real estate conveyancing.
STAMP DUTY - The tax imposed by state governments on certain contracts (e.g. Contracts of Sale and Registered Leases). The amount of tax payable
is calculated as a percentage of the contract value.
UNCONDITIONAL - As its name implies, an unconditional contract contains no conditional clauses.
UNDER CONTRACT - the words “under contract” means that a binding agreement exists between a Purchaser and a Vendor involving property. The Purchaser
and the Vendor have agreed on a price and any other relevant terms. When a property is under contract, the Vendor may not enter into a contract
with any other Purchaser.
VENDOR - The “vendor” is the ‘seller,’ the person disposing (selling) of the property.

All terms have been sourced from:
Real Estate Institute of Australia, Property Council of Australia, Australian Property Institute. Glossary of Property Terms. First Edition. 2007

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