Know the lingo

Know what it means. After reading this you’ll be a pro like us.

 

Agency Agreement

The formal agreement between the vendor and the agent that sets out the specifics of the sale along with the associated costs.

 

Auction

A sale usually in public, by an auctioneer, in which property is sold to the highest bidder.

 

Contract for Sale

An agreement relating to the sale of property, which expresses the terms and conditions of sale.

 

Colling-off period

A short statutory period (usually 5 days) after the contract is exchanged, during which the purchaser may cancel the contract. Usually does not apply in the case of auctions

 

Easement

The right of another person or organisation to use the land belonging to someone else. Mains, drains and water pipes are usually covered by an easement.

 

Exchange of Contracts

A formal legal process that creates a binding contract for the sale of real property on agreed terms. This involves both parties signing the contract, the agreed deposit paid and the contracts dated. The parties are then bound to proceed to settlement, subject to any cooling off period that may apply.A deposit is usually also paid by the purchaser to the vendor during the exchange process. Any party that unilaterally declines to proceed to settlement may forfeit deposit monies or be subject to a damages claim

 

Exclusions

An item that is recorded on the contract for sale that is not included with the sale, i.e. a dishwasher.

 

Gazumping

If a vendor agrees to sell a property to one person at an agreed price, then sells it to someone else (usually for a higher price). Unless contracts have been exchanged, agents are obligated by law to present all offers to the owner.

 

Inclusions

Items found within the property that are included in the sale, ie blinds, rangehood or T.V. antenna.

 

Pest Reports

A report that the purchaser can buy to determine if the property has any pest problems. e.g. termites.

 

Private Treaty Sale

The sale of a property via an agent through the process of negotiation between the parties (usually through an agent).

 

Reserve

The lowest acceptable price fixed by the vendor prior to an auction.

 

Settlement

Completion of sale when balance of contract price is paid to the vendor and the buyer is legally entitled to take possession of the property.

 

Stamp Duty

A state-based tax, paid by the purchaser based on the sale price once a property is sold. This is not paid on the sale of a property.

 

Strata Report

A report that a purchaser can buy to examine the history of a property under a Strata title.

 

Strata Title

Most commonly used for flats and units, this title gives you ownership of a small piece of a larger property including ‘air space’. You have sole right to a particular unit and can lease, sell or legally dispose of your unit as you desire. You also have an undivided share of the common land. You also become a member of the Body Corporate which controls maintenance.

 

Torrens Title

System of recording ownership of property, also known as Certificate of Title. Most common and simplest form of title to property.

 

Vendor

The person(s) or entity selling the property.