Ask an Agent

Whether you are buying, selling or renting property, never be afraid to ask the agent what an unfamiliar real estate term means. Real estate terminology can seem daunting. Here are some common terms explained.

PART ONE: A TO M

APPRAISAL Conducted by the real estate agent to prepare a guide to pricing a property for sale or for rent. This summation of the saleability of a property is sometimes referred to as an ‘agent valuation’. AMENITIES Aspects of the property that provide advantages and lifestyle satisfaction, which cannot necessarily be measured by financial gain (e.g. convenient shopping and transport facilities). BODY CORPORATE The group responsible for managing the common property (shared driveways, carparks, lifts, corridors, gardens, recreational areas like pools, etc) of strata-titled properties (apartments, units, townhouses, etc). BRIDGING FINANCE The need sometimes arises for a buyer to settle a real estate transaction prior to the date that their finance becomes available. Under these circumstances, they may obtain a temporary loan to cover the time gap to comply with the terms of the contract.

BUYER’S MARKET The pressures of supply and demand can be such that market prices are at a relatively low level due to an oversupply, giving the buyer an advantage. CAVEAT This can be lodged on the Land Titles Register by anyone with a legal interest in the property, preventing the sale of the property without their knowledge. CONVEYANCER A licensed professional who ensures all legal requirements are met when buying a property and helps with the settlement and title transfer process. COOLING-OFF PERIOD The length of time given to a prospective buyer to consider their impending property purchase. It does not apply to buying at auction. DATE OF SETTLEMENT The day on which, under the terms of the contract, the vendor is required to transfer his or her estate, or interest in property, to the purchaser. EOI Expressions of interest buyers place their interest and offers by a certain date. ENVIRONMENTAL IMPACT STUDY An investigation designed to assess the comprehensive and long-range environmental effects of a proposed land use. FAÇADE The principal exterior face of a house or other building. GRADUATED LEASE A lease that provides for a certain rent for an initial period, followed by an increase or decrease in rent over a stated period. HOME EQUITY The portion of your property you own that does not belong to the bank. As you pay off your mortgage, your equity increases. IMPLIED EASEMENT An encroachment or intrusion that is apparent by long and continued use and left unchallenged for a long period of time. JOINT TENANTS Joint tenancy is ownership in equal undivided shares. Joint tenants are regarded collectively as a single entity. On the death of one joint tenant, that person’s share passes to the survivors so that they remain joint tenants of the whole.

KNOCK DOWN A property in a poor condition, which cannot be restored. Demolish and rebuild is the likely action. LONG-TERM LEASE Generally accepted as a lease agreement extending for 10 years or more and often allowing for the tenant to make improvements to the property. LVI A loan-to-value ratio is the size of your home loan, expressed as a percentage of the value of the property it was used to buy. MARKET PRICE The price actually paid, or to be paid, for a property.