Glossary

Real Estate Terms - Like any business, real estate has its own jargon. The team at Wollongong Conveyancing Services have listed and defined the most common terms to help you understand your sale of purchase.

Agency Agreement - The agreement between the agent and the owner for the marketing of a property detailing the terms of the agreement and the fees payable to the agent.

Auction - A public sale in which a property is sold to the highest bidder.

Bank Cheque - A cheque issued by a bank. The bank guarantees payment and it is as good as cash.

Body Corporate - see Owner’s Corporation

Breach of Contract - When one party breaks one or more conditions of a contract.

Bridging Finance - Finance obtained over a short period as a prelude to long term funding usually between buying a property and selling your existing property.

Building Regulations - Rules of a legal or statutory nature, which control the manner and quality of building in an area ensuring public safety and minimum standards of construction.

Caveat - a legal notice lodged with the Land Titles Office to prevent transactions such as transfer of the title, mortgage or lease on the title until the claim of the caveator is determined.

Certificate of Title - A document issued by the Land Titles Office showing the owner, mortgagees and other encumbrances of land.

Chattels - Property other than the Real Estate such as furniture and other moveable items that may or may not be included in the sale.

Commission - The fee payable to an agent for services rendered as agreed in the agency agreement.

Common Property - Areas available for use by all unit owners, such as stairwells or driveways in a block of units.

Completion - see Settlement.

Contract for Sale - A written agreement, which sets out the terms and conditions of a sale. The contract contains a description of the property, the inclusions and the conditions of sale.

Cooling Off - A period of 5 business days allowed after exchange of contracts in which the purchaser may cancel or rescind the contract.

Covenant - An agreement on a title creating an obligation to adhere to certain terms, conditions or restrictions regarding a property.

Easement - A right annexed to the land in the ownership of one person concerning the user of the land in the ownership of another. Eg. A right of way.

Exchange of Contracts - The formalising of the agreement of sale between the purchaser and the seller. This is when the deposit is paid and the contract becomes binding on both parties subject to cooling off rights.

Exclusions - Items that do not form part of the sale.

Fixtures - Items such as built-in cupboards, bath, stove etc that cannot be removed without causing damage to the property.

Final Inspection - An inspection made by the purchaser prior to settlement taking place, to establish that the property is in the same state of condition as it was when contracts were exchanged.

Gazumping - Withdrawal by a vendor from any agreement with the purchaser to sell property at a specified price, in order to accept a higher offer. This is done prior to entering into any legally binding contract.

Joint Tenants - Joint tenancy is the holding of property by two or more people concurrently. If one person dies his/her share passes to the survivor.

Land Tax - A state government tax payable by some owners of property based on the value of the property.

Mortgage - A legal document which expresses the terms and conditions of the lending of money secured over real estate.

Mortgagee - The person who lends the money.

Mortgagor - The person who borrows the money.

Owner’s Corporation - The owners of the lots from time to time in a strata scheme constitute the owner’s corporation with the broad function of managing the building.

Repudiation – Where one party terminates because of the other party’s failure to comply with the contract.  Upon this happening, normally the deposit is forfeited to the Vendor/seller.

Rescission of Contract - The election of one party to cancel the contract due to the other party failing to disclose certain matters or failing to comply with the contract where the deposit is refunded and the property released from the contract.

Settlement - The finalising of the sale where the balance of monies is paid over and possession and title is transferred to the buyer.

Survey - A survey identifies buildings erected upon the land, the distance of those buildings from the boundaries, whether the buildings on the land are built on the neighbouring properties or the neighbouring properties are built on your land and whether the fencing is on the boundaries.

Tenants in common - The holding by two or more people of a property in equal or unequal shares. Each party may sell his/her own share independently of the owners and title does not automatically pass to the survivor upon death as it does in joint tenancy.

Vendor – jargon for “seller”

Zoning - Statutory description of the allowable uses of land as set out by the local planning instrument and/or regional environmental planning instrument